Legislature(1997 - 1998)

02/25/1997 01:36 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                       February 25, 1997                                       
                           1:36 p.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Bill Hudson, Co-Chairman                                       
 Representative Scott Ogan, Co-Chairman                                        
 Representative Beverly Masek, Vice Chair                                      
 Representative Ramona Barnes                                                  
 Representative Fred Dyson                                                     
 Representative Joe Green                                                      
 Representative William K. ("Bill") Williams                                   
 Representative Irene Nicholia                                                 
 Representative Reggie Joule                                                   
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 SENATE JOINT RESOLUTION NO. 8                                                 
 Urging the United States Congress to give an affirmative expression           
 of approval to a policy authorizing the state to regulate,                    
 restrict, or prohibit the export of unprocessed logs harvested from           
 its land and from the land of its political subdivisions and the              
 University of Alaska.                                                         
                                                                               
      - MOVED SJR 8 OUT OF COMMITTEE                                           
                                                                               
 HOUSE BILL NO. 28                                                             
 "An Act repealing the Alaska Coastal Management Program and the               
 Alaska Coastal Policy Council, and making conforming amendments               
 because of those repeals."                                                    
                                                                               
      - HEARD AND ASSIGNED TO SUBCOMMITTEE                                     
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  SJR 8                                                                
 SHORT TITLE: PRIMARY MFG OF PUBLICLY OWNED TIMBER                             
 SPONSOR(S): SENATOR(S) TORGERSON, Pearce, Taylor, Duncan;                     
 REPRESENTATIVE(S) Grussendorf, James                                          
                                                                               
 JRN-DATE      JRN-PG                 ACTION                                   
 01/23/97       114    (S)   READ THE FIRST TIME - REFERRAL(S)                 
 01/23/97       115    (S)   RESOURCES                                         
 02/05/97              (S)   RES AT  3:30 PM BUTROVICH ROOM 205                
 02/10/97              (S)   RES AT  3:30 PM BUTROVICH ROOM 205                
 02/10/97              (S)   MINUTE(RES)                                       
 02/11/97       282    (S)   RES RPT  5DP 1NR                                  
 02/11/97       282    (S)   DP:  GREEN, TAYLOR, TORGERSON, LEMAN,             
 02/11/97       282    (S)   DP:  SHARP;  NR:  LINCOLN                         
 02/11/97       282    (S)   ZERO FISCAL NOTE (S.RES)                          
 02/13/97              (S)   RLS AT 10:45 AM FAHRENKAMP RM 203                 
 02/13/97              (S)   MINUTE(RLS)                                       
 02/14/97       355    (S)   RULES TO CALENDAR  2/14/97                        
 02/14/97       359    (S)   READ THE SECOND TIME                              
 02/14/97       359    (S)   COSPONSOR(S): TAYLOR                              
 02/14/97       359    (S)   ADVANCED TO THIRD READING                         
                             UNAN CONSENT                                      
 02/14/97       359    (S)   READ THE THIRD TIME  SJR 8                        
 02/14/97       359    (S)   COSPONSOR(S): DUNCAN                              
 02/14/97       359    (S)   PASSED Y17 N- E3                                  
 02/14/97       361    (S)   TRANSMITTED TO (H)                                
 02/17/97       370    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/17/97       370    (H)   RESOURCES                                         
 02/17/97       377    (H)   CROSS SPONSOR(S): GRUSSENDORF, JAMES              
 02/25/97              (H)   RES AT 1:00 PM CAPITOL 124                        
                                                                               
 BILL:  HB 28                                                                
 SHORT TITLE: REPEAL COASTAL ZONE MGMT PROGRAM                                 
 SPONSOR(S): REPRESENTATIVE(S) THERRIAULT, Kelly                               
                                                                               
 JRN-DATE      JRN-PG                 ACTION                                   
 01/13/97        34    (H)   PREFILE RELEASED 1/3/97                           
 01/13/97        35    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/13/97        35    (H)   RESOURCES, FINANCE                                
 02/13/97              (H)   RES AT 1:00 PM CAPITOL 124                        
 02/13/97              (H)   MINUTE(RES)                                       
 02/20/97              (H)   RES AT 1:00 PM CAPITOL 124                        
 02/20/97              (H)   MINUTE(RES)                                       
 02/22/97              (H)   RES AT 1:00 PM CAPITOL 124                        
 02/22/97              (H)   MINUTE(RES)                                       
 02/25/97              (H)   RES AT 1:00 PM CAPITOL 124                        
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 MARY JACKSON, Legislative Assistant                                           
    to Senator John Torgerson                                                  
 Alaska State Legislature                                                      
 Capitol Building, Room 514                                                    
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-2828                                                    
 POSITION STATEMENT:  Presented sponsor statement for SJR 8.                   
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-20, SIDE A                                                            
 Number 0001                                                                   
 CO-CHAIRMAN BILL HUDSON called the House Resources Standing                   
 Committee meeting to order at 1:36 p.m.  Members present at the               
 call to order were Representatives Hudson, Ogan, Masek, Dyson,                
 Green and Joule.  Representatives Nicholia, Williams and Barnes               
 arrived at 1:39 p.m., 1:41 p.m. and 1:50 p.m., respectively.                  
                                                                               
 SJR 8 - PRIMARY MFG OF PUBLICLY OWNED TIMBER                                
                                                                               
 Number 0048                                                                   
                                                                               
 CO-CHAIRMAN HUDSON announced the first order of business was Senate           
 Joint Resolution No. 8, urging the United States Congress to give             
 an affirmative expression of approval to a policy authorizing the             
 state to regulate, restrict, or prohibit the export of unprocessed            
 logs harvested from its land and from the land of its political               
 subdivisions and the University of Alaska.  He noted that Senator             
 Torgerson was the prime sponsor.                                              
                                                                               
 Number 0096                                                                   
                                                                               
 MARY JACKSON, Legislative Assistant to Senator John Torgerson,                
 presented the resolution.  She said SJR 8 is the same as the                  
 previous year's SJR 37, which had passed both the House and Senate            
 unanimously.  Its premise is simple.  At the present time, the                
 State of Alaska does not have the authority to regulate, restrict             
 or prohibit the export of its timber, which resulted from a 1984              
 U.S. Supreme Court ruling.  In 1990, the U.S. Congress had                    
 corrected in part that ruling for 11 western states, but that did             
 not include Alaska.  Ms. Jackson said SJR 8 requests the                      
 congressional delegation to look at that issue again, reopen it and           
 add Alaska to it, so that Alaska can also regulate, restrict or               
 prohibit its timber resources.                                                
                                                                               
 MS. JACKSON said SJR 8 applied to more than just Senator                      
 Torgerson's district.  The issue had also been raised in Seward,              
 where the mill had been shut down.  Those logs were being exported,           
 in one case to another western state that did not even allow its              
 own logs to be exported to Alaska.  Ms. Jackson indicated SJR 8               
 would allow some economic development.  She expressed hope that the           
 congressional delegation would listen and take action on it.                  
                                                                               
 Number 0259                                                                   
                                                                               
 REPRESENTATIVE REGGIE JOULE asked where the logs would be processed           
 and whether Alaska had the facilities to process them.                        
                                                                               
 MS. JACKSON replied, "The premise is that you would have the                  
 ability to restrict or prohibit or regulate.  There may be some               
 areas in Alaska where you want to restrict it.  And there may be              
 some where you just want to regulate it.  Obviously, the ones where           
 you'd want to regulate it are ones where you'd have the ability to            
 process.  The problem and the point right now is we don't have any            
 of that authority, and this asks Congress to give Alaska that                 
 authority."                                                                   
                                                                               
 CO-CHAIRMAN SCOTT OGAN commented that in light of severe cutbacks             
 of timber harvest, especially in the Tongass National Forest, the             
 least they could do was allow value-added primary manufacturing.              
                                                                               
 Number 0378                                                                   
                                                                               
 REPRESENTATIVE JOE GREEN made a motion to move SJR 8 from the                 
 committee with individual recommendations.  There being no                    
 objection, SJR 8 moved from the House Resources Standing Committee.           
                                                                               
 CO-CHAIRMAN HUDSON turned the gavel over to Co-Chairman Ogan.                 
                                                                               
 HB 28 - REPEAL COASTAL ZONE MGMT PROGRAM                                    
                                                                               
 Number 0435                                                                   
                                                                               
 CO-CHAIRMAN OGAN announced the next order of business was House               
 Bill No. 28, "An Act repealing the Alaska Coastal Management                  
 Program and the Alaska Coastal Policy Council, and making                     
 conforming amendments because of those repeals."                              
                                                                               
 CO-CHAIRMAN OGAN said although no testimony would be taken,                   
 comments could be submitted in writing.  He advised that HB 28 was            
 being assigned to a subcommittee.  Following that, further                    
 testimony would be taken before the committee acted on the bill.              
                                                                               
 Number 0476                                                                   
                                                                               
 CO-CHAIRMAN OGAN said to provide direction to the subcommittee, he            
 was seeking members' opinions on whether the program should be                
 abolished, partially retained or left alone.  He appointed                    
 Representatives Green, Joule and Barnes as subcommittee members,              
 with Representative Green as chairman.  He indicated that                     
 Representative Barnes, who was not present, had agreed to serve on            
 the subcommittee.  Co-Chairman Ogan said he himself would play an             
 active role but not be a member of the subcommittee.                          
                                                                               
 Number 0561                                                                   
                                                                               
 CO-CHAIRMAN HUDSON indicated upon first hearing HB 28, he agreed              
 with its intent.  However, the more he heard, the more he realized            
 there were "potential values there that need to be uplifted and               
 perhaps redesigned."  He suggested careful consideration of the               
 testimony heard thus far.  "Perhaps we don't need to necessarily              
 get rid of something that is working in some fashion but to modify            
 it so that it works better," he stated.  "And if there's some                 
 actions within there that are arbitrary or perhaps excessive, then            
 those are the types of things that should be gotten out."                     
                                                                               
 CO-CHAIRMAN HUDSON noted that all members were welcome to attend              
 subcommittee meetings and provide input.  He said after the                   
 subcommittee presented its recommendations, perhaps there would be            
 hearings on those.                                                            
                                                                               
 Number 0667                                                                   
                                                                               
 REPRESENTATIVE IRENE NICHOLIA concurred.  She hoped the                       
 subcommittee would contact people who had testified, especially               
 those familiar with the program, including Diane Mayer, Director of           
 the Division of Governmental Coordination (DGC) in particular.                
                                                                               
 Number 0726                                                                   
                                                                               
 REPRESENTATIVE JOULE asked whether there would be notice for                  
 subcommittee meetings so that communities could follow the process.           
                                                                               
 REPRESENTATIVE GREEN said the meetings would be noticed.  He asked            
 whether the question was whether the meetings would be                        
 teleconferenced so people could hear.                                         
                                                                               
 REPRESENTATIVE JOULE said either to hear or testify.  He expressed            
 concern that because of the recent shootings in Bethel, at least              
 one community may have missed out on the process.  He suggested               
 that an opportunity be afforded to provide testimony, even if it              
 was in writing.                                                               
                                                                               
 REPRESENTATIVE GREEN concurred.  However, he was uncertain whether            
 telecommunications would be possible throughout all the meetings.             
                                                                               
 Number 0773                                                                   
                                                                               
 CO-CHAIRMAN OGAN requested members' comments on their perceptions             
 thus far, as there had been a lot of testimony but little committee           
 discussion.  He said on the plus side, the program provided                   
 coordination between people applying for permits and government               
 bureaucracies.  It also provided an avenue for local input.  He               
 cautioned that it might be subjective as to how much local input              
 would remain if the program were abolished.                                   
                                                                               
 CO-CHAIRMAN OGAN noted that the Department of Natural Resources               
 (DNR), the Department of Fish and Game (ADF&G) and the Department             
 of Environmental Conservation (DEC) were already obligated to take            
 public input on any action they took.  He also believed there was             
 a sense of ownership with committees working in these small                   
 communities and involved in the process.                                      
                                                                               
 CO-CHAIRMAN OGAN said on the minus side, it could provide a special           
 interest group or "somebody with an agenda" the avenue to stop a              
 project, which perhaps would not happen if just the DNR or another            
 department took testimony.                                                    
                                                                               
 CO-CHAIRMAN OGAN said the program put federal money into the                  
 economy.  He expressed uncertainty over whether that was a plus.              
 Although the leverage of that money was nice to have, he believed             
 the legislature, as policy-setters, needed to get out of the mind-            
 set of "well, let's just spend X amount so we can get more."  He              
 advised, "Anytime you get any money from the federal government or            
 any other source, there's strings attached.  And so with that                 
 federal money comes federal regulation and federal intervention.              
 And it's certainly nice for local governments and the local economy           
 to have some people on staff that are doing these things, but                 
 government shouldn't, in my opinion, be in the position of just               
 providing jobs for the sake of providing jobs."                               
                                                                               
 Number 0931                                                                   
                                                                               
 REPRESENTATIVE BEVERLY MASEK said the federal government had so               
 many holdings in the state that when this policy was created, it              
 actually gave up some sovereign authority.  She believed it was               
 important that state and local governments play a greater role in             
 development and other issues in their areas.  She suggested that              
 the subcommittee look closely at the permitting process and the               
 role of the DGC.                                                              
                                                                               
 REPRESENTATIVE MASEK said the program offered a greater level of              
 protection to the public where access concerns arose relating to              
 large corporate holdings.  She believed that should not be thrown             
 away because of problems in the permitting area of the program.               
 She offered to work closely with the subcommittee and to follow up            
 on some of the recommendations as well.                                       
                                                                               
 Number 1105                                                                   
                                                                               
 REPRESENTATIVE GREEN noted that although some members thought one             
 thing when the title came to them, they had changed their minds               
 after hearing testimony.  "You may still want to throw it out," he            
 said.  "But at least you have a better idea of what it does, why it           
 was instigated."  He said many things not yet discussed would be              
 addressed in the subcommittee, including the intended purpose of              
 the program and whether it was doing what it was supposed to.                 
                                                                               
 REPRESENTATIVE GREEN pointed out that Alaska has more shoreline               
 than the rest of the Lower 48 together.  Tinkering with the                   
 program, or considering getting rid of it, was a tremendous                   
 undertaking.  He stated, "The nation felt that it was a reasonable            
 thing to do.  The way it's handled by the various states varies               
 considerably."                                                                
                                                                               
 REPRESENTATIVE GREEN believed Alaska may be able to learn from                
 other states.  Compared to other states, Alaska had been restricted           
 as far as the number of applications coming under the coastal zone            
 purview.  He suggested finding out what tinkering by other states             
 had not worked out, for example.  "And if we find that this was the           
 thrust and yet we're askew from the rest, maybe it's the way we're            
 interpreting it," he said.  Maybe it would be better to actually              
 try and make some tweaks within the purview of not losing the whole           
 program."                                                                     
                                                                               
 Number 1227                                                                   
                                                                               
 REPRESENTATIVE GREEN asked what avenue people would have for input            
 if the program were abolished.  He believed the most onerous                  
 prospect was the potential litigation to stop activities in mid-              
 stride, as he said occurred with the Northstar project.  He                   
 believed dissatisfied individuals would be free, or less inhibited,           
 to stop projects, whether justified or not.  This might happen if             
 they did not fully understand a project or did not think it had               
 been fully reviewed before it occurred.                                       
                                                                               
 REPRESENTATIVE GREEN suggested the main thing the subcommittee                
 might accomplish was establishing that area of confidence between             
 the applicants, the state and federal governments, and those people           
 affected either directly or indirectly.  An example of the latter             
 was people with an interest in maintaining Alaska's beautiful                 
 coastline.  "And so that's a fairly broad amount of people that               
 we're going to possibly impact," he said.                                     
                                                                               
 REPRESENTATIVE GREEN stated, "We may find that the job is bigger              
 than a subcommittee, or certainly that it's bigger than a                     
 subcommittee over a short period of time.  I would hope to come               
 back to you with a lot more, a litany of things, that we should be            
 doing, and if we can't resolve those in subcommittee, a charge to             
 be done over the interim."                                                    
                                                                               
 Number 1326                                                                   
                                                                               
 CO-CHAIRMAN HUDSON urged Representative Green to look into the                
 appeals process to the Alaska Coastal Policy Council.  He wondered            
 whether it moved issues forward in a deliberate fashion and how               
 much it cost.  In addition, he suggested talking to Diane Mayer               
 about her ideas.  He cited an instance of a small contractor in his           
 district running into large costs in dealing with the U.S. Army               
 Corps of Engineers.  He asked what affect these people had on the             
 smaller developers.                                                           
                                                                               
 Number 1417                                                                   
                                                                               
 REPRESENTATIVE GREEN said that was an excellent concept to                    
 consider.  He noted that earlier testimony indicated one agency may           
 actually overlap into another agency's jurisdiction or be able to             
 hold up a project, either arbitrarily or a because of feeling a               
 need for additional information that perhaps no one else in the               
 regulatory arena would subscribe to.                                          
                                                                               
 Number 1456                                                                   
                                                                               
 REPRESENTATIVE RAMONA BARNES commented that this law was put on the           
 books around 1977.  She said it had not stopped lawsuits nor                  
 prevented people from being anti-development.  She believed people            
 had used this law to stop development of any project they could               
 find in the coastal areas to stop.                                            
                                                                               
 Number 1530                                                                   
                                                                               
 REPRESENTATIVE JOULE questioned whether the mentioned lawsuits had            
 originated in the areas to be developed or elsewhere.  He suggested           
 that people in coastal areas supported development of the resources           
 in those areas because of this vehicle to help them reach some                
 level of comfort about their concerns.  "In rural areas, it usually           
 has to do with subsistence activities," he noted.  "And once they             
 feel those are put to rest, then usually I think they climb on                
 board."                                                                       
                                                                               
 REPRESENTATIVE JOULE referred to discussion at earlier hearings               
 about adjacent areas being in and out of the coastal zone.  "But              
 there's that throughout the state," he said.  "We have different              
 game management units throughout this state, as an example where              
 rules change, depending on where you happen to be inside those                
 boundaries.  Local option laws."                                              
                                                                               
 Number 1653                                                                   
                                                                               
 CO-CHAIRMAN OGAN referred to earlier testimony about Fort Knox.  He           
 suggested the subcommittee look at that project because, to the               
 best of his knowledge, Fort Knox got its permits in record time               
 without oversight by the DGC.  He noted that the program enabled              
 "anti-development folks" to stop a project and said, "There's                 
 already a safety net of agencies that cover these concerns."                  
                                                                               
 CO-CHAIRMAN OGAN advised that the bottom line, and what they needed           
 to look at in this committee, was not so much the finance aspects             
 but whether Alaska's resources would be compromised if this either            
 was abolished or modified.                                                    
                                                                               
 CO-CHAIRMAN OGAN pointed out that the Majority Caucus had an agenda           
 to reduce the size and scope of state government.  He endorsed                
 looking for programs to eliminate rather than just making cuts.               
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 1770                                                                   
                                                                               
 CO-CHAIRMAN OGAN adjourned the House Resources Standing Committee             
 meeting at 2:06 p.m.                                                          
                                                                               

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