Legislature(2009 - 2010)BUTROVICH 205

03/29/2010 03:30 PM Senate RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 245 SALMON PRODUCT DEVELOP. TAX CREDIT TELECONFERENCED
Heard & Held
*+ SB 255 FISH PROCESSOR FEES, LICENSES, RECORDS TELECONFERENCED
Heard & Held
+ HB 162 SOUTHEAST STATE FOREST TELECONFERENCED
Heard & Held
= SB 143 RAILBELT ENERGY & TRANSMISSION CORP.
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
                 HB 162-SOUTHEAST STATE FOREST                                                                              
                                                                                                                                
4:49:34 PM                                                                                                                    
CO-CHAIR   WIELECHOWSKI   announced  HB   162   to   be  up   for                                                               
consideration.                                                                                                                  
                                                                                                                                
4:49:38 PM                                                                                                                    
CHRIS  MAISCH,  Director,  Division of  Forestry,  Department  of                                                               
Natural Resources (DNR),  said that HB 162 would  establish a new                                                               
Southern Southeast State  Forest and it would be  managed as part                                                               
of the State  Forest system under AS 41.17.200-230.  Lands in the                                                               
State  Forest  would  continue  to  be  open  for  multiple  uses                                                               
including   wildlife  habitat   and   harvest  and   recreational                                                               
activities.  The State  Forest designation  would not  affect the                                                               
Wrangell  Borough  municipal  entitlement  nor  would  it  affect                                                               
calculation of  entitlement acreage for future  municipalities in                                                               
Southeast Alaska.                                                                                                               
                                                                                                                                
He  explained   that  Section  1   (a)  and  (d)   provide  legal                                                               
descriptions for the lands to  be designated as a Southeast State                                                               
Forest  in  AS 29.65.030.  Designated  lands  include 20  parcels                                                               
totaling approximately 25,291 acres  on Prince of Wales, Tuxekan,                                                               
Kosciusko,  Hecate,  Revilla  and  Gravina islands,  and  on  the                                                               
mainland  at Crittenden  Creek.  These parcels  are an  important                                                               
part of the  state timber base but are classified  as general use                                                               
lands,   which  may   be  sold   in  the   future.  Legislatively                                                               
designating  a state  forest  would ensure  that  some land  will                                                               
remain  available  for long  term  forest  management and  enable                                                               
thinning  to increase  timber volumes.  Designated lands  exclude                                                               
areas  identified  as  important  sites  for  future  state  land                                                               
disposals.                                                                                                                      
                                                                                                                                
MR. MAISCH said the management  plan and transportation corridors                                                               
were in  subsection (b). It  directs DNR to prepare  a management                                                               
plan  for  the  Southeast  State Forest.  Under  AS  41.17.230  a                                                               
management  plan is  required within  three years  after a  state                                                               
forest  is established;  and state  forest management  plans must                                                               
consider and permit multiple  uses including recreation, tourism,                                                               
mining,  use of  fish and  wildlife, and  other traditional  uses                                                               
unless the  commissioner issues a  site specific  written finding                                                               
that a  use is incompatible with  one or more of  the other uses.                                                               
Public  interagency  and board  of  Forestry  review is  required                                                               
prior  to adoption  of the  state forest  management plan.  As in                                                               
other state  forests, subsection (c) states  the DNR commissioner                                                               
may  also establish  transportation  corridors  within the  state                                                               
forest.                                                                                                                         
                                                                                                                                
The  next category  (section 1)  is  municipal entitlements,  and                                                               
subsection (e) clarifies the relationship  of the Southeast State                                                               
Forest  to current  and potential  municipal entitlements.  State                                                               
Forest can affect  the amount of land a  municipality is entitled                                                               
to select  and the  land available for  selection. The  amount of                                                               
land  a municipality  may select  is based  on the  maximum total                                                               
acreage  of  vacant unappropriated  and  unreserved  land in  the                                                               
borough   boundaries  within   two  years   after  the   date  of                                                               
incorporation  (AS 29.65.030).  Municipal selections  are limited                                                               
to VUU  land; land classified  as general  use land is  VUU land,                                                               
but state forests are not.                                                                                                      
                                                                                                                                
He said  that Southern  Southeast State  Forest is  designated to                                                               
have no  impact on Wrangell  Borough land selections.  The amount                                                               
of land that the Wrangell Borough  may select is already fixed by                                                               
its date  of incorporation  and this bill  specifies that  it may                                                               
select  state  forest land  within  the  borough boundary.  Three                                                               
parcels in  the Southeast  State Forest  are within  the Wrangell                                                               
Borough Boundary.  If new municipalities are  incorporated before                                                               
June 30,  2019, the  Southeast State Forest  will not  affect the                                                               
amount of land that they can select.                                                                                            
                                                                                                                                
MR. MAISCH  said HB  162 specifies that  state forest  lands that                                                               
were VUU lands  before establishment of the State  Forest will be                                                               
included in the calculation of  the entitlement acreage. However,                                                               
parcels  in  the  southern  Southeast State  Forest  may  not  be                                                               
selected.  If  municipalities form  after  2019,  the amount  and                                                               
location of their  entitlement would be based on the  VUU land at                                                               
that time.                                                                                                                      
                                                                                                                                
MR. MAISCH  said section 2,  authorizes DNR to  immediately adopt                                                               
regulations to  implement the  bill. Section  3 is  the effective                                                               
date  for regulations;  section  2 takes  effect immediately  and                                                               
finally section  4 provides for an  effective date of July  1 for                                                               
the  State Forest;  it  currently  reads 2008  and  that will  be                                                               
amended.                                                                                                                        
                                                                                                                                
4:54:47 PM                                                                                                                    
He  noted  letters  of  support  from  the  Resource  Development                                                               
Council,  the  Southeast  Conference,  the  Society  of  American                                                               
Foresters  - both  Juneau  and Statewide  Chapters,  the City  of                                                               
Wrangell, the  Community of Coffman  Cove, and the  Alaska Forest                                                               
Association. The Board of Forestry  supports this; the membership                                                               
of  the board  includes  Alaska Native  corporations, the  Forest                                                               
Industry   Trade  Association,   a  non-government   professional                                                               
forester,  a  non-governmental  professional  fish  and  wildlife                                                               
biologist,   a    mining   organization,   a    commercial   fish                                                               
organization,  a recreation  organization,  and an  environmental                                                               
organization. All  those entities  reached consensus on  this and                                                               
unanimously  supported  this  legislation.  He  said  this  is  a                                                               
governor-sponsored  bill  and   the  administration  supports  it                                                               
wholeheartedly. He said this bill  helps show the State of Alaska                                                               
will make investments in long  term forest management in southern                                                               
Southeast and help these communities maintain diversification.                                                                  
                                                                                                                                
4:56:34 PM                                                                                                                    
SENATOR  WAGONER asked  if it  is safe  to assume  all the  units                                                               
either have  water frontage  for the  timber to  be taken  off or                                                               
other access.                                                                                                                   
                                                                                                                                
MR.  MAISCH  answered  yes;  all  the  parcels  have  either  log                                                               
transfer facility  access or the  logs are already accessed  by a                                                               
transportation  system.   On  Prince  of  Wales   that  would  be                                                               
primarily a road system.                                                                                                        
                                                                                                                                
SENATOR FRENCH asked what other  steps would be necessary besides                                                               
passing  this bill  to  get  thinning started  on  these lands  -                                                               
either through the state or other agencies.                                                                                     
                                                                                                                                
MR. MAISCH  replied that pre-commercial  thinning can be  done on                                                               
these lands  now, but  they have  not been  willing to  make that                                                               
investment  because these  lands  could be  sold,  selected by  a                                                               
future  municipal  process  or   essentially  be  lost  to  state                                                               
ownership  -  and  it's  an  expensive  proposition  to  do  pre-                                                               
commercial  thinning.  He  said  they did  secure  some  American                                                               
Recovery and Reinvestment Act (ARRA)  funding for thinning, which                                                               
they will use.                                                                                                                  
                                                                                                                                
SENATOR FRENCH asked  what the state expenses are  and why aren't                                                               
they borne by the people who are selling the logs.                                                                              
                                                                                                                                
4:58:27 PM                                                                                                                    
MR.  MAISCH  answered  that  the   state  currently  has  a  pre-                                                               
commercial  thinning  program  in  the Haines  State  Forest  (in                                                               
Southeast). They have not been  willing to spend their funding on                                                               
land that  is not  allocated for long  term management.  The ARRA                                                               
funds supplement the money they already have.                                                                                   
                                                                                                                                
SENATOR STEDMAN  asked how much  timber volume is on  these lands                                                               
in percentage of old growth  versus what had been harvested since                                                               
industrialized logging in the 1950s.                                                                                            
                                                                                                                                
MR. MAISCH  replied about  1,100 acres of  state forest  land has                                                               
previously  been   harvested.  The   29,000  acres  is   not  all                                                               
productive forest  land. The allowable  cut for these  parcels of                                                               
land is  8.7 million feet  annually. To put that  in perspective,                                                               
he  said the  current Tongass  Land Use  Management Plan  (TLUMP)                                                               
calls  for up  to  100 million  feet of  volume  to be  harvested                                                               
annually.                                                                                                                       
                                                                                                                                
SENATOR  STEDMAN said  he  thought  they used  to  do around  369                                                               
million board feet.                                                                                                             
                                                                                                                                
MR. MAISCH  explained there  are three phases  of the  TLUMP, and                                                               
the third phase calls for up to 280 million feet.                                                                               
                                                                                                                                
SENATOR STEDMAN  said the forest  is proposed to be  25,300 acres                                                               
and asked  how much acreage  is commercial timber,  second growth                                                               
and scrub land that has no significant timber volume.                                                                           
                                                                                                                                
MR. MAISCH  said he  didn't know  the actual  acreage of  the old                                                               
growth  volume that  is present  on that  25,000 acres,  but that                                                               
translates to  an 8.5  million annual figure.  He offered  to get                                                               
accurate information for the committee.                                                                                         
                                                                                                                                
5:00:53 PM                                                                                                                    
SENATOR STEDMAN said some would  be more interested in old growth                                                               
selection rather than swamps.                                                                                                   
                                                                                                                                
MR. MAISCH  replied that this  land was through an  area planning                                                               
process  and so  these  lands were  selected  for their  forestry                                                               
potential. They worked closely with  the Division of Mining, Land                                                               
and  Water to  look at  the total  49,000-acre package  they have                                                               
that is identified as GU  with forest management intent, and from                                                               
a forestry  perspective, these lands  are the most  productive in                                                               
that 49,000 acres.                                                                                                              
                                                                                                                                
SENATOR FRENCH  asked for an estimate  of how many jobs  would be                                                               
created with the opening of these lands.                                                                                        
                                                                                                                                
MR. MAISCH  said he could  estimate, but the industry  is growing                                                               
with the enhanced  value added concept. He said  the state timber                                                               
program  has become  more  and more  important  to the  remaining                                                               
mills  that are  left in  Southeast. One  large mill  is left  on                                                               
Prince of Wales  Island and a bridge timber  program has supplied                                                               
some of the critical volume to  that mill to keep it open. Volume                                                               
is  also provided  to many  small one  and two  person operations                                                               
that  are  scattered  through  Southeast  Alaska,  including  Icy                                                               
Straits Lumber Corporation  in Hoonah. It's hard  to estimate the                                                               
number of jobs,  but it is very important volume  because of what                                                               
has happened to the federal timber sale program in Southeast.                                                                   
                                                                                                                                
SENATOR  HUGGINS   asked  how  often   a  new  state   forest  is                                                               
established.                                                                                                                    
                                                                                                                                
MR. MAISCH  answered it's not  very frequent. There are  only two                                                               
other  Alaska state  forests  in existence  -  the Tanana  Valley                                                               
State Forest, which  is the largest at 1.8 million  acres and the                                                               
Haines  State Forest.  This would  be  the third  forest in  that                                                               
system and would  be the first one since the  Tanana Valley State                                                               
Forest was authorized in the 1980s.                                                                                             
                                                                                                                                
SENATOR  HUGGINS asked  how  long  he had  been  working on  this                                                               
project.                                                                                                                        
                                                                                                                                
MR. MAISCH  answered for the better  part of four years.  He said                                                               
the federal  program in  Southeast is in  dire straits,  and they                                                               
have been  working with  the federal government  to try  and turn                                                               
that program around.  "This is a very important  comment to make,                                                               
in my opinion, to the communities  and to the Forest Service that                                                               
the state  supports long term management  and this is the  way to                                                               
do that by designating the state forest."                                                                                       
                                                                                                                                
SENATOR HUGGINS said he supports what they are trying to do.                                                                    
                                                                                                                                
CO-CHAIR  WIELECHOWSKI asked  what  kind of  public process  they                                                               
went through and if they found any opposition to the bill.                                                                      
                                                                                                                                
MR. MAISCH answered that they  had an extensive process; they met                                                               
internally and other agencies that  would have potential interest                                                               
in them establishing a state  forest. After that they did further                                                               
outreach to  communities in the  areas the state forest  would be                                                               
around,  they  talked  before the  Tongass  Futures  Round  Table                                                               
Organization,  he presented  twice to  the Southeast  Conference,                                                               
talked  to  local  community councils,  legislative  bodies,  and                                                               
environmental  groups.  By  and  large  they  have  found  strong                                                               
support for this bill.                                                                                                          
                                                                                                                                
Last year, Mr. Maisch said,  concerns were expressed about two of                                                               
the  parcels -  one was  Crittenden Creek  and the  other was  on                                                               
Gravina  Island -  by some  individuals who  worried about  their                                                               
location  and  the  fact  that  they would  be  used  for  forest                                                               
management purposes.  He provided a  lengthy response that  is in                                                               
the  record. Briefly,  it  says  the lands  had  been through  an                                                               
extensive area  planning process  which included  public meetings                                                               
in all  these communities,  a lot of  public outreach,  and these                                                               
lands were  chosen to be  set aside for  GU purposes, but  with a                                                               
forestry  management  intent.  It  continued  that  the  City  of                                                               
Wrangell may indeed  select the Crittenden Creek  parcel and that                                                               
would  put that  parcel in  local control  which means  the local                                                               
community  could decide  what  the best  use  of that  particular                                                               
parcel might be.                                                                                                                
                                                                                                                                
5:07:26 PM                                                                                                                    
DICK COOSE,  representing himself,  Ketchikan, supported  HB 162.                                                               
He said  he is a  retired forester and  knows it will  allow more                                                               
efficient multi use  management of those state lands.  The use of                                                               
the forest products  that comes from these lands  helps the local                                                               
economy  and  adds  jobs.  Alaska  is now  a  leader  in  quality                                                               
effective  and efficient  management  of forest  lands; the  more                                                               
lands that  can be  designated as state  forest lands  the better                                                               
off we are. The feds aren't managing their lands effectively.                                                                   
                                                                                                                                
5:08:57 PM                                                                                                                    
JACK SLAGHT,  representing himself,  Petersburg, Alaska,  said he                                                               
supported  HB 162  and believes  that Southeast  Alaska needs  to                                                               
strive to rebuild  a diversified economy. In the past  20 years a                                                               
relentless assault  has remained on the  forest products industry                                                               
by environmental groups that has  reduced that industry to almost                                                               
nothing.  Currently only  fishing,  processing  and some  tourism                                                               
exit  in the  Petersburg area.  Thankfully some  mining is  still                                                               
being  done.  There  will  be  increased  competition  for  ocean                                                               
resources, and no  one knows how future energy  costs will affect                                                               
fishing and processing.                                                                                                         
                                                                                                                                
5:12:33 PM                                                                                                                    
OWEN  GRAHAM, Alaska  Forest Association,  supported  HB 162.  He                                                               
said the  division wants to  make sure  the money they  invest in                                                               
these lands won't  be lost and the trees will  be allowed to grow                                                               
to maturity  after thinning  so that  investment can  be recouped                                                               
through timber  sales in  the future. He  said this  industry has                                                               
shrunk by  85 percent since 1990  and it is solely  the result of                                                               
an inadequate  supply of timber.   The federal timber  supply has                                                               
just disappeared,  and the federal government  controls more than                                                               
90 percent of  the timber lands in Southeast  Alaska. In contrast                                                               
the Division  of Forestry  has done  a good  job with  its timber                                                               
sale program.                                                                                                                   
                                                                                                                                
5:14:22 PM                                                                                                                    
MARK  VINSEL,  Executive  Director, United  Fishermen  of  Alaska                                                               
(UFA), said he is speaking  as the seat designated for commercial                                                               
fishing on the  Board of Forestry. He pointed out  that the board                                                               
works on  a consensus basis and  there was no opposition  to this                                                               
bill. He  had not  heard of  any opposition  from UFA  members or                                                               
individual fishermen on this bill.                                                                                              
                                                                                                                                
5:15:13 PM                                                                                                                    
RON WOLFE, Alaska Native Corporation  representative to the Board                                                               
of Forestry, said  he is also the Sea  Alaska Corporation Natural                                                               
Resource Manager. He added his support to this legislation.                                                                     
                                                                                                                                
5:15:53 PM                                                                                                                    
WAYNE NICOLS, member, State Board  of Forestry and the Society of                                                               
American  Foresters, supported  HB  162.  He said  he  is also  a                                                               
Certified Forester and is retired  after working 37 years for the                                                               
Forest  Service. There  are several  reasons  for establishing  a                                                               
state forest  in this area  and they have  heard most of  them. A                                                               
primary reason is to enable  long term investment in forest land.                                                               
Effective  forest management  involves  investments  in terms  of                                                               
creating  access  for  harvest   and  for  subsequent  management                                                               
activities.  Investments  in  good  forest  management  are  only                                                               
feasible  and  prudent  with  long  term  ownership  provided  by                                                               
dedication of forest land as in a designated state forest.                                                                      
                                                                                                                                
He said  that timber  management on  the Tongass  National Forest                                                               
has  become very  limited due  to litigation  and other  factors.                                                               
While the  state forest cannot  begin to compensate  entirely, it                                                               
can help  offset it. As such,  mature timber existing now  can be                                                               
properly  harvested  soon  contributing  a wood  supply  for  the                                                               
industry and creating jobs. As  the harvested portions of the new                                                               
forest degenerate  the young growth  will be managed  for optimum                                                               
or maximum  quality and quantity to  establish cultural treatment                                                               
of new stands and increase their value as the years pass.                                                                       
                                                                                                                                
MR. NICOLS said all state forests  are managed by the Division of                                                               
Forestry  successfully  under  the very  effective  State  Forest                                                               
Resources and Practices Act. It  provides an umbrella-like set of                                                               
regulations and best management  practices to protect and enhance                                                               
other resources,  most notably streams  and water sheds.  He said                                                               
this act is exemplary among at  least 35 states that have similar                                                               
laws, and that most forest  management enhances fish and wildlife                                                               
habitat.                                                                                                                        
                                                                                                                                
He said that  the Society of American Foresters is  a unit of the                                                               
largest  such  organization   in  the  world  and   is  the  only                                                               
professional  forestry organization  in  the United  State. By  a                                                               
resolution   first  initiated   by   the   Juneau  Chapter,   and                                                               
subsequently by  unanimous conference the  statewide organization                                                               
endorses  establishes  of the  Southeast  Forest.  He hoped  they                                                               
recognized  the  importance  and   wisdom  to  environmental  and                                                               
economic  benefit of  all Alaskans  of establishing  a new  state                                                               
forest in Southeast Alaska.                                                                                                     
                                                                                                                                
5:20:06 PM                                                                                                                    
MR. WOLFE responded  to a question from Senator  French about why                                                               
the  purchaser didn't  bear  the  cost by  saying  that would  be                                                               
difficult simply because of the  time period involved. Typically,                                                               
pre-commercial  thinning is  done  15-20  years following  timber                                                               
harvest. So  image factoring  that funding into  your bid.  It is                                                               
not   uncommon  for   the  purchaser   to   be  responsible   for                                                               
reforestation,  however in  the kind  of forest  Southeast Alaska                                                               
has that is rarely a problem.                                                                                                   
                                                                                                                                
5:21:00 PM                                                                                                                    
MR.  NICHOLS commented  in regard  to  Senator Huggins'  question                                                               
about how  often state  forests happen that  he hoped  they would                                                               
hear lots more about them in the future.                                                                                        
                                                                                                                                
5:21:28 PM                                                                                                                    
JOHN SANDOR,  representing himself, Juneau, supported  HB 162. He                                                               
said he  is a  former regional forester  and commissioner  of the                                                               
Department  of  Environmental  Conservation (DEC).  He  said  the                                                               
state forest  would be professionally managed  in accordance with                                                               
the Alaska  Forest Practices  Act, and the  DNR and  the Forester                                                               
has an excellent record of  managing Alaska's diverse ecosystems.                                                               
Since the  closure of  Southeast Alaska  pulp mills  in Ketchikan                                                               
and Sitka and with the  ongoing political and legal challenges to                                                               
virtually  every U.S.  Forest  Service road  and  timber sale  in                                                               
Southeast  Alaska, the  integrated  forest  products industry  of                                                               
Southeast Alaska that had generated  more than 3500 jobs has been                                                               
eliminated -  to the detriment  of every Southeast  community. To                                                               
this day any  road timber sale cannot be proved  locally, but has                                                               
to  be submitted  to the  Secretary of  Agriculture's office  for                                                               
approval.                                                                                                                       
                                                                                                                                
The   establishment  of   the  Alaska   Southeast  State   Forest                                                               
authorized by  HB 162  will help begin  the process  of restoring                                                               
professional forest  management practices with  multiple benefits                                                               
from  timber recreation,  wildlife,  fisheries,  and other  uses,                                                               
resulting  in  economic and  environmental  and  quality of  life                                                               
benefits to Wrangell and other Southeast communities.                                                                           
                                                                                                                                
SENATOR  WAGONER commented  that the  state of  Utah has  taken a                                                               
solid stance  against the  federal government.  He asked  what he                                                               
thought about  having the  state take over  the federal  lands in                                                               
the State of Alaska.                                                                                                            
                                                                                                                                
MR. SANDOR said  he is very much  in favor of that  move. Over 90                                                               
percent of Southeast Alaska is  managed by the federal government                                                               
and even  though the  Tongass plan authorizes  up to  100 million                                                               
feet to be harvested, less than  25 million is harvested. It is a                                                               
fact  that the  1890  and  1900 census  of  the  State of  Alaska                                                               
recorded  more  saw  mills  operating  than  today  in  Southeast                                                               
Alaska.                                                                                                                         
                                                                                                                                
5:25:42 PM                                                                                                                    
CO-CHAIR  WIELECHOWSKI thanked  everyone for  their comments  and                                                               
held HB  162 for further work.  He adjourned the meeting  at 5:25                                                               
p.m.                                                                                                                            
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 245 - Bill Packet.pdf SRES 3/29/2010 3:30:00 PM
SB 245
SB 255 - Bill Packet.pdf SRES 3/29/2010 3:30:00 PM
SB 255
HB 162 - Bill Packet.pdf SRES 3/29/2010 3:30:00 PM
HB 162
GRETC - Joint Utility Task Force.pdf SRES 3/29/2010 3:30:00 PM