Legislature(1999 - 2000)

03/01/2000 02:10 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                                                                               
                          March 1, 2000                                                                                         
                            2:10 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Bill Hudson, Co-Chair                                                                                            
Representative Beverly Masek, Co-Chair                                                                                          
Representative John Cowdery, Vice Chair                                                                                         
Representative John Harris                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Ramona Barnes                                                                                                    
Representative Jim Whitaker                                                                                                     
Representative Reggie Joule                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 290                                                                                                              
"An Act  relating to  stranded gas  pipeline carriers  and  to the                                                              
intrastate regulation  by the Regulatory  Commission of  Alaska of                                                              
pipelines  and  pipeline  facilities   of  stranded  gas  pipeline                                                              
carriers."                                                                                                                      
                                                                                                                                
     - MOVED CSHB 290(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 56                                                                                                   
Proposing an amendment to the Constitution  of the State of Alaska                                                              
prohibiting certain initiatives relating to wildlife.                                                                           
                                                                                                                                
     - MOVED HJR 56 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 403                                                                                                              
"An  Act requiring  certain  vessels to  prepare  and provide  oil                                                              
discharge  prevention  and contingency  plans  or  to provide  oil                                                              
discharge   prevention   and   contingency   plans   prepared   in                                                              
conjunction  with a  nonprofit association  established for  spill                                                              
response and restoration purposes;  and providing for an effective                                                              
date."                                                                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 290                                                                                                                  
SHORT TITLE: STRANDED GAS PIPELINE CARRIERS                                                                                     
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/14/00      1924     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/14/00      1924     (H)  O&G, RES, FIN                                                                                       
 1/27/00               (H)  O&G AT 10:00 AM HOUSE FINANCE 519                                                                   
 1/27/00               (H)  Heard & Held                                                                                        
 1/27/00               (H)  MINUTE(O&G)                                                                                         
 2/01/00               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 2/01/00               (H)  Heard & Held                                                                                        
 2/01/00               (H)  MINUTE(O&G)                                                                                         
 2/10/00               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 2/10/00               (H)  Heard & Held                                                                                        
 2/10/00               (H)  MINUTE(O&G)                                                                                         
 2/15/00               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 2/15/00      Text     (H)  -- Meeting Canceled --                                                                              
 2/17/00               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 2/17/00               (H)  Moved CSHB 290(O&G) Out of Committee                                                                
 2/17/00               (H)  MINUTE(O&G)                                                                                         
 2/21/00      2251     (H)  O&G RPT CS(O&G) NT  2DP 2NR 5AM                                                                     
 2/21/00      2251     (H)  DP: PHILLIPS, WHITAKER; NR: GREEN,                                                                  
 2/21/00      2251     (H)  BRICE; AM: DYSON, HARRIS, SMALLEY,                                                                  
 2/21/00      2251     (H)  PORTER, KEMPLEN                                                                                     
 2/21/00      2251     (H)  FISCAL NOTE (DCED)                                                                                  
 2/21/00      2252     (H)  2 ZERO FISCAL NOTES (REV, DNR)                                                                      
 2/21/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
 2/21/00               (H)  Heard & Held                                                                                        
 2/21/00               (H)  MINUTE(RES)                                                                                         
 3/01/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
BILL: HJR 56                                                                                                                  
SHORT TITLE: CONST. AM: WILDLIFE INITIATIVES                                                                                    
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2206     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2206     (H)  RES, JUD, FIN                                                                                       
 2/28/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
 2/28/00               (H)  <Bill Postponed to 3/1/00>                                                                          
 3/01/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOHN SHIVELY, Commissioner                                                                                                      
Department of Natural Resources                                                                                                 
400 Willoughby Avenue, Fifth Floor                                                                                              
Juneau, Alaska  99801-1724                                                                                                      
POSITION STATEMENT:  Provided information  on HB 290.                                                                           
                                                                                                                                
REPRESENTATIVE CARL MORGAN                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 409                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Sponsor of HJR 56.                                                                                         
                                                                                                                                
SANDRA MATTIE                                                                                                                   
P.O. Box 18                                                                                                                     
Ester, Alaska  99725                                                                                                            
POSITION STATEMENT:  Testified in  support of HJR 56.                                                                           
                                                                                                                                
PETE BUIST, Co-Chair                                                                                                            
Coalition for the Alaskan Way of Life                                                                                           
P.O. Box 71561                                                                                                                  
Fairbanks, Alaska  99707                                                                                                        
POSITION STATEMENT:  Testified in  support of HJR 56.                                                                           
                                                                                                                                
WAYNE HEIMER, Board Member                                                                                                      
National Foundation for North American Wild Sheep                                                                               
1098 Chena Pump Road                                                                                                            
Fairbanks, Alaska  99709                                                                                                        
POSITION STATEMENT:  Testified in  support of HJR 56.                                                                           
                                                                                                                                
STANLEY NED                                                                                                                     
Tanana Chiefs Conference Incorporated                                                                                           
122 First Avenue                                                                                                                
Fairbanks, Alaska  99701                                                                                                        
POSITION STATEMENT:  Testified in  support of HJR 56.                                                                           
                                                                                                                                
PATRICK WRIGHT, President                                                                                                       
Scientific Management of Alaska's  Resource Treasures                                                                           
P.O. Box 244001                                                                                                                 
Anchorage, Alaska  99524                                                                                                        
POSITION STATEMENT:  Testified in  support of HJR 56.                                                                           
                                                                                                                                
NANCY HILLSTRAND                                                                                                                
P.O. Box 674                                                                                                                    
Homer, Alaska  99603                                                                                                            
POSITION STATEMENT:  Testified on HJR 56.                                                                                       
                                                                                                                                
JOE MATTIE, Board Member                                                                                                        
Alaska Trappers Association                                                                                                     
P.O. Box 18                                                                                                                     
Ester, Alaska  99725                                                                                                            
POSITION STATEMENT:  Testified on HJR 56.                                                                                       
                                                                                                                                
BILL HAGAR, Member of Executive Committee                                                                                       
Alaska Wildlife Conservation Association                                                                                        
431 Gaffney Road                                                                                                                
Fairbanks, Alaska  99701                                                                                                        
POSITION STATEMENT:  Testified on HJR 56.                                                                                       
                                                                                                                                
SUSAN SCHRADER, Conservation Advocate                                                                                           
Alaska Conservation Voters                                                                                                      
P.O. Box 22151                                                                                                                  
Juneau, Alaska  99802                                                                                                           
POSITION STATEMENT:  Testified in opposition to HJR 56.                                                                         
                                                                                                                                
DICK BISHOP, Vice President                                                                                                     
Alaska Outdoor Council                                                                                                          
211 Fourth Street, Number 302A                                                                                                  
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified in support of HJR 56.                                                                            
                                                                                                                                
WAYNE REGELIN, Director                                                                                                         
Division of Wildlife Conservation                                                                                               
Alaska Department of Fish & Game (ADF&G)                                                                                        
P.O. Box 25526                                                                                                                  
Juneau, Alaska  99802-5526                                                                                                      
POSITION STATEMENT:   Testified  that the  ADF&G does not  support                                                              
HJR 56.                                                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-17, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK  called  the House  Resources  Standing  Committee                                                              
meeting to  order at  2:10 p.m.   Members present  at the  call to                                                              
order  were   Representatives  Hudson,  Masek,   Cowdery,  Harris,                                                              
Morgan,  Barnes,  Joule  and  Kapsner.    Representative  Whitaker                                                              
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
[The following comments pertain to HJR 53.]                                                                                     
                                                                                                                                
REPRESENTATIVE  BARNES referred  to  an article  in the  Anchorage                                                            
Daily News written  by a Juneau correspondent,  dated February 29,                                                            
2000, entitled  "Wildlife is Food,  Bill Says," which  claims that                                                              
Representative  Barnes  forced  HJR   53  out  of  committee  over                                                              
Representative Hudson's objection.   [See minutes for February 28,                                                              
2000.]  She  maintained that she does not  remember Representative                                                              
Hudson objecting  to the resolution  moving out of  committee, but                                                              
rather  he stated  that  he  had a  concern.   She  indicated  her                                                              
understanding  that he  was going  to address  his concern  in the                                                              
House Judiciary Standing Committee, next committee of referral.                                                                 
                                                                                                                                
REPRESENTATIVE  BARNES also pointed  out that  it is common  for a                                                              
committee  member  to  object,  but  it does  not  mean  that  the                                                              
committee member  necessarily objects  to the  bill moving  out of                                                              
committee; rather,  the member wants  his or her objection  on the                                                              
record.  She stressed  that she does not feel in  any way that she                                                              
forced  HJR 53  out of  committee.   She also  clarified that  the                                                              
words "enhanced" and  "developed" were discussed at  length by the                                                              
committee with an attorney present.   She stated that she believes                                                              
the person  who wrote  the article  owes an  apology, because  the                                                              
committee worked  at length on the  issue.  She stressed  that she                                                              
is  very  disappointed  with  the article.    [End  of  discussion                                                              
relating to HJR 53.]                                                                                                            
                                                                                                                                
HB 290 - STRANDED GAS PIPELINE CARRIERS                                                                                       
                                                                                                                                
CO-CHAIR MASEK  announced that the  first order of  business would                                                              
be HOUSE BILL  NO. 290, "An Act relating to  stranded gas pipeline                                                              
carriers  and  to  the intrastate  regulation  by  the  Regulatory                                                              
Commission  of  Alaska of  pipelines  and pipeline  facilities  of                                                              
stranded gas pipeline carriers."                                                                                                
                                                                                                                                
[The bill had been heard on February  21, 2000, after which it was                                                              
assigned  to  a subcommittee  chaired  by  Representative  Barnes.                                                              
Before  the committee  was  CSHB 290(O&G).    However, a  proposed                                                              
committee   substitute   (CS),  version   1-LS1269\I,   Chenoweth,                                                              
2/25/00, had been drafted.]                                                                                                     
                                                                                                                                
Number 0447                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES pointed out  that the [subcommittee] working                                                              
group  had  consisting  of  herself,   Representative  Hudson  and                                                              
Representative Joule.   They had agreed upon four  amendments that                                                              
are incorporated  in the  proposed CS.   She read into  the record                                                              
the "issue,  resolution and effect  of amendment" for each  of the                                                              
four amendments:                                                                                                                
                                                                                                                                
     [Amendment 1]:  In drafting  the House Special Committee                                                                   
     on Oil and  Gas committee substitute, changes  were made                                                                   
     to  the   proposed  amendment  language,   dropping  the                                                                   
     phrase,  "that individually  consume"  and replacing  it                                                                   
     with  "in  which  the  consumption   by  customers  is."                                                                   
     Additionally, the  phrase "and each request  for service                                                                   
     by a public utility" was also dropped.                                                                                     
                                                                                                                                
     The resolution ... :  Restoring  the dropped phrases was                                                                   
     agreed to by  all working group members.   These changes                                                                   
     restore  the language in  the bill  to conform with  the                                                                   
     original amendment language.                                                                                               
                                                                                                                                
     Amendment  2:    The  Chairman   of  the  House  Special                                                                   
     Committee on  Oil and Gas introduced this  section as an                                                                   
     amendment,  with  the  stated   intention  of  providing                                                                   
     explicit   direction   to  the   commissioner   of   the                                                                   
     Department  of  Natural Resources  to  consider  whether                                                                   
     royalty oil or gas to be taken  in kind may be necessary                                                                   
     to  meet present  or  projected intrastate  domestic  or                                                                   
     industrial demand, and to require  legislative approval,                                                                   
     by law, before the commissioner  takes any action toward                                                                   
     the taking or disposal of royalty oil or gas.                                                                              
                                                                                                                                
     The  resolution ...:    The working  group  participants                                                                   
     concur that  CSHB 290(O&G), Section 1,  language related                                                                   
     to policy direction for the  commissioner is duplicative                                                                   
     of existing  statutory requirements in AS  38.05.182 and                                                                   
     AS 38.05.183(d).   The  working group participants  also                                                                   
     agreed  that the  language in  part  (b) has  unintended                                                                   
     consequences which  could prohibit the  DNR commissioner                                                                   
     from  performing  any  act related  to  the  taking  and                                                                   
     disposition  of  royalties,  including  accepting  state                                                                   
     royalty  checks from producers  without an explicit  act                                                                   
     of  law.   This  was agreed  to  be untenable,  and  the                                                                   
     working  group  participants  agreed to  recommend  that                                                                   
     Section 1 of the CS [CSHB 290(O&G)]  be deleted from the                                                                   
     bill.   Effect of the  amendment:  the amended  language                                                                   
     removes Section 1 from the current CS.                                                                                     
                                                                                                                                
     Amendment  3:   The administration  believed the  bill's                                                                   
     original language  modifying AS 38.35.120, the  Right of                                                                   
     Way  Leasing   Act,  introduced  unnecessary   ambiguity                                                                   
     regarding  the  state  pipeline  coordinator's  office's                                                                   
     oversight  of   the  LNG  plant  and   marine  terminal.                                                                   
     Additional  concerns  had  been   raised  by  the  Yukon                                                                   
     Pacific  Corporation that the  bill's original  language                                                                   
     in  this same  section  would,  in some  way,  prejudice                                                                   
     their existing  right-of-way lease for the  Anderson Bay                                                                   
     site.                                                                                                                      
                                                                                                                                
     The sponsor  group concern:  The sponsor  group's intent                                                                   
     in the bill's  original language was to exclude  the LNG                                                                   
     plant and marine terminal only  from the common-carriage                                                                   
     covenant  requirement  under the  Right  of Way  Leasing                                                                   
     Act, and not  to modify any current  existing regulatory                                                                   
     oversight or to affect any existing  right-of-way lease.                                                                   
                                                                                                                                
     Resolution:  The Department  of Law has drafted language                                                                   
     which resolves  the concern  to the satisfaction  of all                                                                   
     parties -  the Administration (SPCO), the  sponsor group                                                                   
     and  the   Yukon  Pacific  Corporation.     The  amended                                                                   
     language removes  the requirement for the LNG  plant and                                                                   
     marine  terminal  to be  in  common carriage  under  the                                                                   
     Right of Way  Leasing Act, without affecting  the SPCO's                                                                   
     delegated authority under the Act, thus Amendment 3.                                                                       
                                                                                                                                
     Amendment 4:  The Section 8  language.  The issue is the                                                                   
     Regulatory  Commission  of Alaska  (RCA)  believes  that                                                                   
     intrastate  tariffs  for  the  gas  pipeline  should  be                                                                   
     calculated  utilizing the  tariff  methodology from  the                                                                   
     Pacific  Utilities  Act (42.05),  which  is a  different                                                                   
     methodology than  that provided for by the  Pipeline Act                                                                   
     (AS  42.06).   According  to the  RCA,  a utility  rate-                                                                   
     making  methodology  will  result   in  more  affordable                                                                   
     tariffs  for the intrastate  transportation of  gas than                                                                   
     will the Pipeline Act rate-making methodology.                                                                             
                                                                                                                                
     The sponsor  group concern:  The sponsor  group believes                                                                   
     that this requirement creates  a regulatory hybrid which                                                                   
     reduces  the  clarity  and certainty  intended  in  this                                                                   
     legislation.  The underlying  statutory requirements for                                                                   
     tariffs  under both  the Public  Utilities  Act and  the                                                                   
     Pipeline Act  are the same.   AS 42.05.381(a)  under the                                                                   
     Public  Utilities  Act  and AS  42.06.370(a)  under  the                                                                   
     Pipeline Act both impose the  identical requirement that                                                                   
     tariff  rates be  "just and  reasonable."   The  sponsor                                                                   
     group  believes the  appropriate time  for the  detailed                                                                   
     determination  of what should  or should not  be allowed                                                                   
     in an intrastate  tariff will be when filed  tariffs are                                                                   
     before the RCA for its consideration  as to whether they                                                                   
     are  just and  reasonable.   This  section  of the  bill                                                                   
     needlessly  creates   uncertainty  about   the  intended                                                                   
     regulatory regime.  ...                                                                                                    
                                                                                                                                
     [Resolution]:    The working  group  could  not reach  a                                                                   
     consensus on  this particular amendment;  ... therefore,                                                                   
     it has been  removed from the bill.  And  I believe that                                                                   
     the whole  question of  any detailed tariff  methodology                                                                   
     in this  piece of proposed  legislation is premature  at                                                                   
     this time.                                                                                                                 
                                                                                                                                
REPRESENTATIVE BARNES  said the focus  of this legislation  is and                                                              
should  continue  to  be  the  removal  of  commercial  regulatory                                                              
impediments to the  successful marketing of LNG for  export to the                                                              
Asian  market and  in-state  use.   The  original legislation  was                                                              
purposefully kept simple and targeted  to those things that needed                                                              
to  be changed  for  the  project to  be  taken seriously  in  the                                                              
marketplace.  She concluded:                                                                                                    
                                                                                                                                
     We did not  try to address all the various  issues which                                                                   
     will ultimately come up if we  have a project, nor could                                                                   
     we, at this  point; it's simply too early.   Thus, those                                                                   
     are the reasons for the four  specific amendments, which                                                                   
     are contained in the proposed CS before you.                                                                               
                                                                                                                                
Number 1035                                                                                                                     
                                                                                                                                
CO-CHAIR  HUDSON made a  motion to  adopt the  proposed CS  for HB
290,  version 1-LS1269\I,  Chenoweth,  2/25/00, as  a work  draft.                                                              
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
CO-CHAIR MASEK thanked the working group.                                                                                       
                                                                                                                                
CO-CHAIR HUDSON  commended Representative Barnes for  bringing the                                                              
appropriate parties  to the  table.  He  said that he  thinks they                                                              
have met their charge.                                                                                                          
                                                                                                                                
REPRESENTATIVE COWDERY wondered if  the use of gas in the pipeline                                                              
would be limited to anyone along the line.                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES  replied no, nor  does it limit the  size of                                                              
the pipeline being built.                                                                                                       
                                                                                                                                
REPRESENTATIVE COWDERY  wondered how much  money will be  spent to                                                              
build an LNG facility that will accommodate the pipeline.                                                                       
                                                                                                                                
REPRESENTATIVE  BARNES explained that  before beginning  debate on                                                              
the  original enabling  legislation,  HB  393, the  Department  of                                                              
Natural Resources  (DNR) and the Department of  Revenue (DOR), who                                                              
had  hired  a consultant,  had  come  before the  legislature  and                                                              
provide the  facts on the  costs of the  pipeline.   She indicated                                                              
that Commissioner  John Shively of  the DNR was present  and could                                                              
comment on that.                                                                                                                
                                                                                                                                
Number 1336                                                                                                                     
                                                                                                                                
JOHN  SHIVELY,  Commissioner,  Department  of  Natural  Resources,                                                              
stated that the  estimates have varied quite a bit.   He explained                                                              
that when  they started the  project the estimates  varied between                                                              
$11 and $15  billion for the whole  project.  He pointed  out that                                                              
one of  the major  efforts of the  sponsor group  is to  bring the                                                              
cost down, because they recognize  that the economics on the upper                                                              
end of those  figures is not realistic  in terms of being  able to                                                              
sell LNG.                                                                                                                       
                                                                                                                                
REPRESENTATIVE COWDERY  wondered where the primary  field would be                                                              
initially with  the gas, and  if there is  a sequence of  how that                                                              
might be utilized.                                                                                                              
                                                                                                                                
MR. SHIVELY  explained that the gas  primarily is at  Prudhoe Bay.                                                              
He also pointed  out that Point Thompson has  significant reserves                                                              
that could be tied in, and there  are other gas-prone areas on the                                                              
North Slope that have not been explored yet.                                                                                    
                                                                                                                                
Number 1444                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WHITAKER indicated that  his original  concern was                                                              
that it be  established that there  be no higher priority  for in-                                                              
kind royalty  gas than in-state usage  for both the near  term and                                                              
the long term.   He explained that  it is not possible  for him to                                                              
ascertain whether  or not the  proposed CS accomplishes  that goal                                                              
at this point.   He mentioned that  the other top priority  at the                                                              
time the  bill was  initially discussed  was future access  rules,                                                              
and that  those future  access rules  be fair  and equitable.   He                                                              
stressed that without having more  time to review the proposed CS,                                                              
he  cannot  determine that  the  proposed  CS provides  for  that.                                                              
However, understanding that time  was of the essence, he indicated                                                              
he had no objection to the proposed  CS moving from the committee.                                                              
                                                                                                                                
REPRESENTATIVE  BARNES   said  she  does  not  believe   that  the                                                              
subcommittee  did anything  to the  bill that  would preclude  in-                                                              
state use,  nor did  they do  anything that  denied access  to the                                                              
pipeline.  She believes they came  out of subcommittee with a fair                                                              
bill,  and it was  her understanding  that  the bill  was to  be a                                                              
simple regulatory bill to allow the  projects to move forward with                                                              
some  certainty in  contracts, without  it  being too  cumbersome.                                                              
She believes the bill does that, she concluded.                                                                                 
                                                                                                                                
REPRESENTATIVE WHITAKER  clarified that there was  no inference to                                                              
the proposed CS  having a negative effect, but simply  that he has                                                              
not  had time  to  understand the  ramifications  of the  inherent                                                              
changes.  He reiterated that he has no objection to its moving.                                                                 
                                                                                                                                
Number 1650                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE commented that  there has been a lot of press                                                              
over the  past year  about the Alaska  Gasline Port Authority  and                                                              
what  they have  tried to  do, because  it  involves the  boroughs                                                              
along the route:  Valdez, Fairbanks  and the North Slope.  He said                                                              
he  has  looked over  the  letter  from  the Alaska  Gasline  Port                                                              
Authority, and  it is of some concern  to him that the  people who                                                              
have a big impact  on the project and are trying  to get something                                                              
going are not onboard.                                                                                                          
                                                                                                                                
REPRESENTATIVE BARNES  indicated she has also received  the letter                                                              
from the  Alaska Gasline  Port Authority  regarding  HB 290.   She                                                              
reiterated that  she does  not believe that  anything in  the bill                                                              
limits the size  of the pipeline or the amount of  gas that can be                                                              
used  in-state.   Nor  does  she  believe  that the  Alaska  State                                                              
Legislature, at any  time, has taken a position  of supporting any                                                              
plan set forth  by the Alaska Gasline Port Authority,  the sponsor                                                              
group, Yukon Pacific Corporation  or anyone else.  The legislature                                                              
has worked on  enabling legislation that will ensure  that the gas                                                              
is in the marketplace  in a timely manner, and that  will give the                                                              
commissioner the  tools that are  necessary if and when  a project                                                              
of any size  or scope is able  to go forward.  Writing  a piece of                                                              
legislation that  gives one  an advantage over  another is  not in                                                              
Alaska's  best interest.   She  believes  it is  in Alaska's  best                                                              
interest for  those groups that propose  a project that  is viable                                                              
under  any of  the proposed  pieces  of legislation  that they  go                                                              
forth to the commissioner with their  facts and once they are able                                                              
to persuade him then he can come before the legislature.                                                                        
                                                                                                                                
CO-CHAIR  MASEK referred  to the  letter from  the Alaska  Gasline                                                              
Port Authority and stated:                                                                                                      
                                                                                                                                
     This concern  has never  been discussed in  conversation                                                                   
     with my  office, or  during any  meeting of the  working                                                                   
     group.   It was  made clear  at last Monday's  [February                                                                   
     21] hearing  that any concerned  party was to  meet with                                                                   
     the  working  group  to  have   concerns  discussed  and                                                                   
     possible amendments  drafted.  During the  working group                                                                   
     meeting last Thursday in Commissioner  Shively's office,                                                                   
     the  Port Authority  said they  no  longer had  concerns                                                                   
     with HB  290 and  that they  neither support nor  oppose                                                                   
     the bill.   Nothing  in HB 290  limits or restricts  the                                                                   
     in-state use of natural gas.   HB 290 is not designed to                                                                   
     support any particular project.   Before any North Slope                                                                   
     natural gas pipeline project  can proceed, no matter the                                                                   
     size of the  pipe, certain changes to  existing statutes                                                                   
     are required.                                                                                                              
                                                                                                                                
Number 1995                                                                                                                     
                                                                                                                                
CO-CHAIR   HUDSON   said  he   would   like  to   reiterate   what                                                              
Representative  Barnes  stated.    There  was  no  intent  in  the                                                              
legislation  to show  any preference  or to  create anything  that                                                              
provided  a   preferential  opportunity  for  any   contractor  or                                                              
operator  to build  the pipeline.   He  said there  was also  full                                                              
support  for  in-state use  to  be a  high  priority,  if not  the                                                              
highest priority.   He asked that the people who  wrote the letter                                                              
give the committee  something specific to look at,  which they can                                                              
probably take  a look at in the  next committee of referral  or on                                                              
the House floor.   He clarified that the size was  not intended to                                                              
be confining,  but rather  it was intended  to express a  fair and                                                              
equitable process.   He indicated that he does not  know where the                                                              
problem  is coming  from,  but that  it sounds  as  if "they"  are                                                              
saying that the  Port Authority does not support  HB 290 since the                                                              
bill  is   designed  to   support  a   project  size  that   could                                                              
substantially limit  or restrict the in-state use  of natural gas.                                                              
He wondered how  that is possible since nothing  has been received                                                              
that would show how or where that  would be the case.  He stressed                                                              
that the  bill had not  been altered  appreciably.  The  intent of                                                              
the working group  and the subcommittee chair was  to try to bring                                                              
everyone  to the  table  and come  up with  language  that was  as                                                              
neutral  and  accommodating  as   possible,  which  believes  they                                                              
achieved.                                                                                                                       
                                                                                                                                
Number 2113                                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS  asked whether  Amendment 3 gives  the Joint                                                              
Pipeline Office the oversight for the terminal and pipeline.                                                                    
                                                                                                                                
REPRESENTATIVE BARNES answered, "That is correct."                                                                              
                                                                                                                                
REPRESENTATIVE WHITAKER  indicated that he is also  puzzled by the                                                              
letter  from  the Alaska  Gasline  Port  Authority, and  is  still                                                              
looking for  a reason why  they object.   He pointed out  that the                                                              
bill,  as  originally proposed,  restricted  possible  access  and                                                              
usage  of  in-state   gas,  but  that  has  been   eliminated  and                                                              
maintained through  the proposed CS.   He noted that  the stranded                                                              
gas portion of the  title was removed, so that a  project that did                                                              
not require  falling under  the auspices  of HB  393 would  not be                                                              
required to  participate under  the rules of  HB 393.   He pointed                                                              
out that it  is possible that there  may be projects, such  as the                                                              
Alaska Gasline Port Authority [proposes],  that do not require the                                                              
tax break associated with HB 393.   He stated that HB 290 has been                                                              
greatly  improved,  and  he  is  in  support  of  moving  it  from                                                              
committee.                                                                                                                      
                                                                                                                                
Number 2268                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY commented  on the letter where it says that                                                              
the  Alaska Gasline  Port  Authority  would have  as  much gas  as                                                              
possible  used and  consumed  within the  state,  with the  excess                                                              
being available  to Asia.   He said it seems  that the use  of the                                                              
gas in-state would  be a very low percentage, to  make the project                                                              
go.   He wondered  how much  of the  12 percent  royalty would  be                                                              
necessary for in-state needs.  In  looking at Alaska's history, he                                                              
noted, the in-state  needs have been dealt with by  the state with                                                              
its  share  of  the  royalty.   He  indicated  that  he  does  not                                                              
understand the letter,  and suggested probably about  3 percent of                                                              
the line's  capacity would be used  for in-state use.   He pointed                                                              
out that  there always have  been  power  cost problems  for rural                                                              
Alaska, and he believes it would  be feasible to shift some of the                                                              
LNG to rural Alaska.                                                                                                            
                                                                                                                                
REPRESENTATIVE HUDSON  made a motion to move CSHB  290 [version 1-                                                              
LS1269\I,  Chenoweth, 2/25/00]  out of  committee with  individual                                                              
recommendations  and  the  attached  fiscal notes;  he  asked  for                                                              
unanimous consent.   There being  no objection, CSHB  290(RES) was                                                              
moved from the House Resources Standing Committee.                                                                              
                                                                                                                                
HJR 56 - CONST. AM: WILDLIFE INITIATIVES                                                                                      
                                                                                                                                
Number 2525                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK announced that the  next order of business would be                                                              
HOUSE  JOINT RESOLUTION  NO.  56, proposing  an  amendment to  the                                                              
Constitution   of  the   State  of   Alaska  prohibiting   certain                                                              
initiatives relating to wildlife.                                                                                               
                                                                                                                                
REPRESENTATIVE  MORGAN, Alaska State  Legislature, sponsor  of HJR
56, informed the  committee that he had introduced  the resolution                                                              
in  light  of  what happened  in  1996  on  the  same-day-airborne                                                              
initiative  and in  1998  on the  wolf initiative.    He read  his                                                              
sponsor statement:                                                                                                              
                                                                                                                                
     This legislation  removes wildlife  management from  the                                                                   
     ballot  initiative process  in Alaska.   The framers  of                                                                   
     our  constitution   restricted  the  ballot   initiative                                                                   
     process  in  Article  XI,  Section   7,  of  the  Alaska                                                                   
     Constitution.   Section 7 exempts certain  subjects from                                                                   
     the ballot  and referendum process.  I  believe wildlife                                                                   
     management is an appropriate subject for exemption.                                                                        
                                                                                                                                
     Our  wildlife interests  are best managed  in Alaska  by                                                                   
     Alaskans.    Removing  wildlife   from  the  ballot  and                                                                   
     referendum process  will ensure that wildlife  decisions                                                                   
     are  made  in Alaska  based  on sound  science,  prudent                                                                   
     management,  and  in an  open  and  fair process.    The                                                                   
     alternative  is  a repeat  of  the last  two  elections,                                                                   
     where special-interest  groups from the Lower  48, using                                                                   
     emotion   and  political   agendas,  attacked   Alaska's                                                                   
     outstanding wildlife management system.                                                                                    
                                                                                                                                
     Alaska  is  not alone  in  this  fight.   In  1998,  the                                                                   
     citizens  of Utah  and Minnesota  passed  constitutional                                                                   
     amendments  to protect wildlife  management and  hunting                                                                   
     in their  states.   Presently, there are  constitutional                                                                   
     amendments   to   protect    wildlife   management   and                                                                   
     traditional wildlife uses working  their way through the                                                                   
     state legislatures of Arizona, Idaho and North Dakota.                                                                     
                                                                                                                                
     Legislative  counsel has  advised  that the  legislature                                                                   
     possesses  the power to  amend the Alaska  constitution,                                                                   
     subject to a  vote of the people, but does  not have the                                                                   
     power to  make sweeping  revisions that radically  alter                                                                   
     the powers  of governmental branches.   Counsel believes                                                                   
     HJR 56 amounts to an amendment  of the constitution, not                                                                   
     a  revision,   [which  is]  within  the  power   of  the                                                                   
     legislature.                                                                                                               
                                                                                                                                
Number 2780                                                                                                                     
                                                                                                                                
SANDRA MATTIE testified via teleconference  from Fairbanks, noting                                                              
that  she is  a local  business  owner and  is  involved with  the                                                              
Coalition for  the Alaskan  Way of Life  (CAWL), the  Caribou Calf                                                              
Protection  Program, and  the Alaska  Trappers  Association.   She                                                              
indicated  that recent  firsthand  experience in  the 1998  ballot                                                              
issue  over Proposition  9 had  made  her aware  that the  biggest                                                              
threat to  Alaska's wildlife comes  from animal rights  extremists                                                              
from both outside  and inside Alaska, who are  abusing the state's                                                              
precious  initiative process  to  shackle the  state's ability  to                                                              
properly manage fish and game.                                                                                                  
                                                                                                                                
MS. MATTIE  said steps  need to  be taken  to protect the  state's                                                              
wildlife treasures for  Alaskans as well as visitors  to the state                                                              
who have a true concern for making  sure that the state's wildlife                                                              
is a lasting  and abundant resource.   She said she  believes that                                                              
the landslide outcome  of Proposition 9 has proven  the concern of                                                              
the vast majority of Alaskans with  a 64 percent victory; it was a                                                              
victory that  came at  a very high  price in  dollars and  time to                                                              
many  individuals forced  to participate  in an  arena that  never                                                              
should  have involved  wildlife issues  in the  first place.   She                                                              
stated that  the Alaska system  of wildlife management  has worked                                                              
well over the years.                                                                                                            
                                                                                                                                
MS. MATTIE said the Alaska Department  of Fish & Game (ADF&G), the                                                              
Board of  Game and the Alaska  State Legislature have  worked well                                                              
together  to preserve  Alaska's wildlife  for  everyone to  enjoy.                                                              
She indicated animal rights groups  are using "ballot-box biology"                                                              
to circumvent  the process  that has been  used for decades.   She                                                              
suggested that when special-interest  groups do not get their way,                                                              
it proves that the  system is working.  She stated  that HJR 56 is                                                              
fair for  all parties concerned,  because it makes  the initiative                                                              
process off-limits  to hunters  as well  as animal rights  groups.                                                              
HJR  56 only  protects  wildlife,  and that  is  exactly what  the                                                              
wildlife  in  the  state  needs.   She  added  that  she  strongly                                                              
supports the passage of HJR 56.                                                                                                 
                                                                                                                                
Number 2911                                                                                                                     
                                                                                                                                
PETE  BUIST,  Co-Chair, Coalition  for  the  Alaskan Way  of  Life                                                              
(CAWL), testified  via teleconference  from Fairbanks.   He stated                                                              
that CAWL  is a unique and  diverse group spanning both  rural and                                                              
urban  wildlife  interests.    In its  initial  effort  to  oppose                                                              
Proposition 9,  the wolf-snare initiative  on the 1998  ballot, it                                                              
organized 150,000  registered voters.   He urged the  committee to                                                              
support HJR 56.  He said that after  seeing the damage that large,                                                              
well-funded  animal  rights groups  have  tried  to do  by  ballot                                                              
initiatives in the last two general  elections, CAWL believes that                                                              
it is important that Representative  Morgan's resolution be passed                                                              
and  brought  to the  people  of  Alaska  to  vote on.    Alaska's                                                              
wildlife is simply too important  to all Alaskans to be managed on                                                              
the basis of  a series of popular  votes; one has only  to look at                                                              
the current political manipulation of the wolf management issue.                                                                
                                                                                                                                
TAPE 00-17, SIDE B                                                                                                              
                                                                                                                                
MR.  BUIST further  stated that  wildlife  ballot initiatives  can                                                              
lend  themselves  to  extremely  disingenuous  campaigns  to  gain                                                              
popularity,  and the animal  rights groups  that commonly  sponsor                                                              
them do  not seem at all  constrained by any  truth-in-advertising                                                              
laws.  He also  pointed out that wildlife ballot  initiatives lend                                                              
themselves  to  the  fundraising  efforts  of  the  animal  rights                                                              
groups.   He stressed  that Alaska's  wildlife enthusiasts  simply                                                              
cannot  compete with  those groups;  although  they raised  enough                                                              
money to  fight the  wolf-snare initiative,  he wondered  why they                                                              
should be  forced to do  it every two  years just to  defend their                                                              
way  of   life.    He  concluded   that  by  supporting   HJR  56,                                                              
[legislators]  can  help  to  ensure  that  Alaska's  wildlife  is                                                              
managed by science  tempered with public discussion,  not the ugly                                                              
politics of popularity and big-money campaigns.                                                                                 
                                                                                                                                
Number 2851                                                                                                                     
                                                                                                                                
WAYNE  HEIMER,   Board  Member,  National  Foundation   for  North                                                              
American Wild Sheep, testified via  teleconference from Fairbanks.                                                              
He  stated  that  his organization  is  a  nonprofit  conservation                                                              
organization  that  is  hunting-oriented and  has  8,000  members,                                                              
approximately 400 of whom live in  Alaska.  He explained that they                                                              
believe initiatives  are peaceful forms of social  revolution that                                                              
are  appropriate  when  the  electorate  cannot  assert  its  will                                                              
through  the established  process.   He added  that he  is also  a                                                              
retired wildlife  biologist with 25 years' experience  with ADF&G;                                                              
his last five  years at the department were spent  researching the                                                              
history of state and federal wildlife  management regulations.  He                                                              
stressed that the wildlife management  system in Alaska is perhaps                                                              
the most open of all state regulatory  processes; hence, it is the                                                              
least likely  to need legitimate  initiative-type remedies  and is                                                              
the  most  logical  candidate  for  removal  from  the  initiative                                                              
process.  He encouraged passage of HJR 56.                                                                                      
                                                                                                                                
Number 2764                                                                                                                     
                                                                                                                                
STANLEY  NED,   Tanana  Chiefs   Conference  Incorporated   (TCC),                                                              
testified via teleconference from  Fairbanks in support of HJR 56.                                                              
He said  TCC hopes HJR  56 will make  sure that wildlife  does not                                                              
become another  bargaining chip for  special-interest groups.   He                                                              
pointed  out that  it  is also  fair  for all  parties  concerned,                                                              
because it makes the initiative process  off-limits to hunters and                                                              
animal rights groups alike; it only protects wildlife.                                                                          
                                                                                                                                
Number 2715                                                                                                                     
                                                                                                                                
PATRICK  WRIGHT,  President,  Scientific  Management  of  Alaska's                                                              
Resource  Treasures  (SMART), testified  via  teleconference  from                                                              
Anchorage.   He explained that  SMART is a nonprofit  organization                                                              
with a  major thrust to  educate interested individuals  about the                                                              
wisdom  of professional  and  scientific  management  of fish  and                                                              
game.   He stated that  SMART fully supports  HJR 56.   He pointed                                                              
out  that SMART  is greatly  involved with  preserving the  Public                                                              
Trust Doctrine  embodied in  Article XIII  of the Constitution  of                                                              
the State  of Alaska.   The Public  Trust Doctrine maintains  that                                                              
government  has the  duty, on behalf  of the  people, to  protect,                                                              
manage and conserve renewable wildlife  resources; therefore, that                                                              
responsibility   cannot  be  delegated   to  the  electorate   for                                                              
determination  by popular vote.   Therefore,  HJR 56, proposing  a                                                              
constitutional  amendment  to  finally stop  extreme  groups  from                                                              
abusing  Alaska's   democratic  game   management  system,   is  a                                                              
significant first step in bringing sanity back to the process.                                                                  
                                                                                                                                
MR.  WRIGHT  indicated "ballot-box  biology"  is  not the  way  to                                                              
manage Alaska's natural  resources.  Alaska has  an extensive open                                                              
and  public process  by  which  to determine  wildlife  management                                                              
policies and regulations.  Alaskans  should use this system rather                                                              
than deciding these  critical issues on the basis  of emotion from                                                              
30-second  sound  bites.   He  concluded  that SMART  stands  with                                                              
Representative  Morgan  in defense  of  Alaska's  wildlife in  the                                                              
reasonable and  systematic management of time-tested,  established                                                              
methods.                                                                                                                        
                                                                                                                                
Number 2561                                                                                                                     
                                                                                                                                
NANCY HILLSTRAND  testified  via teleconference  from Homer.   She                                                              
stated that  she believes in  a balanced wildlife  management that                                                              
serves  the people  for  common use,  and  which protects  healthy                                                              
wildlife  populations for  multiple species.   She explained  that                                                              
initiatives  may   not  be  the   ultimate  avenue   for  wildlife                                                              
management,  but maybe  [legislators]  should look  at the  larger                                                              
issue this uncovers; she asked them  to ask the questions, "Why is                                                              
this occurring?   Why  are wildlife  initiatives happening?"   She                                                              
said the  majority of Alaskans have  not been allowed to  pay into                                                              
wildlife management and therefore  have been given the backseat in                                                              
policy.   It  is healthy  to have  people  rise up  and be  heard,                                                              
debate  the issue,  and  come up  with a  solution;  this is  what                                                              
democracy  is all  about.   Rather  than  trying  to "squash"  the                                                              
outcry  of  the people,  [lawmakers]  should  hear what  they  are                                                              
trying to say, in  order to try to figure out  a solution and come                                                              
up with  a consensus that  serves all  Alaskans, so that  they are                                                              
not setting up special privileges  and exclusive rights, which the                                                              
constitution abhors.  She urged the  committee to look at what the                                                              
real problem  is and  to look  at what they  can do  to come  to a                                                              
better  understanding  and balance,  so  that there  aren't  these                                                              
battles all of the time.                                                                                                        
                                                                                                                                
JOE MATTIE, Board  Member, Alaska Trappers  Association, testified                                                              
via teleconference from Fairbanks.   A local business owner who is                                                              
involved with  the Coalition  for the Alaska  Way of Life  and the                                                              
Caribou Calf Protection Program,  Mr. Mattie explained that he has                                                              
been a resident  of Alaska for 30 years and has  spent the last 20                                                              
years traveling throughout Alaska  pursuing an occupation as a fur                                                              
buyer.  He  has had the good  fortune of meeting  countless people                                                              
and their  families, in many villages  and communities.   He noted                                                              
that  on a  typical fur-buying  day, he  would land  on a  village                                                              
airstrip and would  be met by several trappers who  would take him                                                              
to  the  community  hall;  soon the  hall  would  be  filled  with                                                              
trappers who would  visit and share information on  fur prices and                                                              
concerns about wildlife in their area.                                                                                          
                                                                                                                                
MR. MATTIE  pointed out  that young people  learn about  the pride                                                              
and dignity  that comes  from providing  for themselves  and later                                                              
for  their  families; he  has  watched  them  grow up  and  become                                                              
productive adults.  He stressed that  Alaska's wildlife and way of                                                              
life  are being  threatened by  multimillion-dollar animal  rights                                                              
organizations outside of Alaska that,  he believes, abuse Alaska's                                                              
ballot  initiative process  for their  own  selfish and  deceptive                                                              
reasons.   He stated that he  certainly believes HJR 56  should be                                                              
passed  if  making  wildlife issues  exempt  from  the  initiative                                                              
process is what it takes to protect Alaska's wildlife.                                                                          
                                                                                                                                
Number 2299                                                                                                                     
                                                                                                                                
BILL  HAGAR,  Member  of  Executive   Committee,  Alaska  Wildlife                                                              
Conservation  Association,   testified  via  teleconference   from                                                              
Fairbanks.  He  thanked Representative Morgan for  introducing HJR
56.  He indicated  that he is one of the 90,000  licensed and paid                                                              
members who  attempt to hunt  and harvest Alaska's  game resources                                                              
and also  spend time viewing.   He explained that  harvesting game                                                              
does not and will not exclude viewing.   HJR 56 speaks properly to                                                              
ADF&G's constant cry to remove game  management from politics.  He                                                              
concluded that HJR  56 is long overdue and has  complete rural and                                                              
urban support.                                                                                                                  
                                                                                                                                
CO-CHAIR  MASEK called  an at-ease  at 2:14 p.m.;  she called  the                                                              
committee back  to order at  2:15 p.m.   She pointed out  a letter                                                              
that  was sent  to the  committee  from Kenneth  Jacobus, who  was                                                              
unable to testify, stating that he supports HJR 56 and HJR 53.                                                                  
                                                                                                                                
Number 2079                                                                                                                     
                                                                                                                                
SUSAN SCHRADER, Conservation Advocate,  Alaska Conservation Voters                                                              
(ACV), stated:                                                                                                                  
                                                                                                                                
     Our  40  Alaskan  organizations   and  business  members                                                                   
     represent  over 22,000  registered Alaskan  voters.   We                                                                   
     have consistently opposed efforts  by the legislature to                                                                   
     limit  Alaskan's  constitutional  right  to  participate                                                                   
     directly   in  the   law-making   process  through   the                                                                   
     initiative process,  and for that reason we  are opposed                                                                   
     to this resolution.                                                                                                        
                                                                                                                                
     We  are  opposed  for  several   reasons.    While  this                                                                   
     proposed  amendment to  the constitution  appears to  be                                                                   
     limited to initiatives dealing  with wildlife, on a more                                                                   
     fundamental  level it  represents an  erosion of  public                                                                   
     access to government.   As we've heard from  other folks                                                                   
     testifying  today,   we  can  debate  this   "ballot-box                                                                   
     biology"  issue   endlessly,  but  when  one   group  of                                                                   
     Alaskans are  denied an opportunity to address  an issue                                                                   
     they  strongly believe  in  by the  initiative  process,                                                                   
     then the freedom  of all Alaskans to express  their will                                                                   
     through direct democracy is threatened.                                                                                    
                                                                                                                                
     Public  policy   issues  addressed  by   the  initiative                                                                   
     process  receive far more  discussion, far more  debate,                                                                   
     than many of  the hundreds of bills that  are passed out                                                                   
     of  this  building  each  year.   The  process,  on  the                                                                   
     initiative process,  is out in the open and  at contrast                                                                   
     to  the often-clandestine  process that  can occur  with                                                                   
     some bills as they become law.                                                                                             
                                                                                                                                
     Supporters  of  this  resolution   endorse  placing  the                                                                   
     scientific  process of wildlife  management firmly  back                                                                   
     into the hands of [ADF&G] and  the Board of Game.  Let's                                                                   
     remember  that  [AF&G]  clearly   needs  to  take  their                                                                   
     direction from  the legislature,  and the Board  of Game                                                                   
     essentially  is handpicked  by the  legislature.   Thus,                                                                   
     the  initiative  process  is  one  major  way  that  all                                                                   
     Alaskans can perform an important  check on the power of                                                                   
     the legislature.                                                                                                           
                                                                                                                                
     Alaskans   are  being   asked  in   this  amendment   to                                                                   
     relinquish  their right to  vote on wildlife  management                                                                   
     issues on  the grounds that  we're not competent  enough                                                                   
     to do  so, we don't understand.   Instead, we  are being                                                                   
     told  to trust  those  decisions resulting,  right  now,                                                                   
     from an  unbalanced process that currently  promotes the                                                                   
     principles of  intensive game management and  the values                                                                   
     of  consumptive users  to  the near-exclusion  of  other                                                                   
     users of the resource.                                                                                                     
                                                                                                                                
     I would agree  with the other folks that  have testified                                                                   
     that  our constitution's  sustained  yield and  multiple                                                                   
     use  provisions   have  served  all  Alaskans   and  our                                                                   
     wildlife  quite well;  it protects  the interest of  all                                                                   
     beneficial   users.     Those   same   framers  of   our                                                                   
     constitution  who were wise  enough to put Article  VIII                                                                   
     into it also included the initiative  process.  They had                                                                   
     faith  in  the  ability of  Alaskans  to  make  informed                                                                   
     decisions through the initiative  process, and obviously                                                                   
     that faith that  our framers had is not being  shared by                                                                   
     the legislature.                                                                                                           
                                                                                                                                
     The legislature,  as we  know, has  ways to reverse  the                                                                   
     initiative process  if they see  fit; SB 74  that passed                                                                   
     into law last year was a fine  example.  So it is within                                                                   
     the  legislature's  power  to   correct  any  legitimate                                                                   
     problems that might result from  the initiative process.                                                                   
     Clearly  the  system  is not  broken,  and  clearly  the                                                                   
     wildlife  of Alaska are  not going to  be safer  if this                                                                   
     tool of  democracy is  taken away  from the citizens  of                                                                   
     Alaska.                                                                                                                    
                                                                                                                                
Number 1876                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOULE  referred   to  HJR  53,  HB  349,  and  Ms.                                                              
Schrader's  position statement  on those  issues where it  states,                                                              
"Alaska Conservation  Voters supports wildlife  management actions                                                              
that are based  on unbiased scientific studies."   He asked why it                                                              
was omitted in her position statement on HJR 56.                                                                                
                                                                                                                                
MS.  SCHRADER responded  that  in her  position  statement on  the                                                              
other two issues, she is suggesting  that the management decisions                                                              
should be based on unbiased science  and should reflect the values                                                              
of most Alaskans.  It gets to the  debate of whether it is science                                                              
or politics  that is running  the wildlife management  system, and                                                              
she believes  that everyone  would  agree it is  a combination  of                                                              
both.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  JOULE agreed that  there is a  lot to be  said for                                                              
its being a combination of both.   He said initiatives come around                                                              
when there is  little money; while there are many  pockets to draw                                                              
from  in the  Alaskan community,  those pockets  have limits,  but                                                              
they can  draw on the  many pockets of  the nation.   He explained                                                              
that the  ability to  be for  or against  something gets  unevenly                                                              
tipped,  and it is  oftentimes those  who feel  strongly about  an                                                              
issue who  put their  money where  their mouths  are and  beat the                                                              
initiative back.                                                                                                                
                                                                                                                                
REPRESENTATIVE   JOULE  stated   that   the  only   constitutional                                                              
amendment  that  he  thought  he  could support  was  the  one  on                                                              
subsistence, and [the  legislature] has gone around  and around on                                                              
that issue.   He  indicated that  it comes to  the point  where he                                                              
sees how the scales  get tipped.  He has a little  bit of faith in                                                              
the people that are appointed by  the Governor and approved by the                                                              
legislature, he said.   He pointed out that there  is a process by                                                              
which people can bring a background  of expertise to deal with the                                                              
issues.  As he  gives more consideration to the  concept of taking                                                              
wildlife  management out  of the initiative  process, he  realizes                                                              
that [people]  can still  use the  legislative process,  the board                                                              
process, the advisory board process  and all of the offices within                                                              
to address  the issues.  He said  that he does believe  that ADF&G                                                              
has done as  apt a job as it  can, and that is where  the politics                                                              
come in.                                                                                                                        
                                                                                                                                
MS.  SCHRADER responded  that  the  key word  is  "balance."   She                                                              
referred back  to Ms. Hillstrand's  question asking what  the real                                                              
problem is  and what  is bringing the  initiatives to  the ballot.                                                              
She stated that it is because many  Alaskans, when it came down to                                                              
the same-day-airborne  initiative,  felt that  the balance  of the                                                              
Board of Game, the advisory committees  and ADF&G - which is given                                                              
a  certain   direction   by  the   legislature's  intensive   game                                                              
management program - was being lost.                                                                                            
                                                                                                                                
Number 1508                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE indicated balance  can mean so many different                                                              
things to  different people.   He  pointed out  that on  any given                                                              
ballot initiative,  nothing says that a like percentage  of people                                                              
who signed  the initiative  have to be  representative of  all the                                                              
voting districts; there might be  one signature from two-thirds of                                                              
the  district,  which  does  not  mean that  there  is  a  balance                                                              
regarding how the  people around the state feel on  the issue.  He                                                              
concluded that balance  can be skewed.  If an  initiative required                                                              
[signatures] from 5 or 10 percent  of [voters of] the whole state,                                                              
it would have  a harder time getting  on the ballot, but  would be                                                              
reflective of the whole state.                                                                                                  
                                                                                                                                
MS.  SCHRADER  pointed out  that  all  registered voters  have  an                                                              
opportunity at the  polls to let their voices be  heard.  Although                                                              
they  could   debate  the  whole  petition   [signature-]gathering                                                              
situation,  the bottom  line  remains that  all  Alaskans who  are                                                              
registered to vote can vote and make their views heard that way.                                                                
                                                                                                                                
Number 1393                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES indicated that  certainly every Alaskan that                                                              
is registered  to vote  can vote,  but it is  also true  that many                                                              
people  believe  that  there  was   false  advertising  and  false                                                              
information   given   out  to   the   voting  public   [on   prior                                                              
initiatives].    She  clarified  that  the  legislature  does  not                                                              
handpick the Board of Game, but rather  the Governor submits names                                                              
to  the  legislature  to  be confirmed  or  not  confirmed.    She                                                              
referred  to  Ms.  Schrader's  comments  about  the  legislature's                                                              
restriction of the people's voice  through the initiative process.                                                              
She pointed out that the founding  fathers, in Article XI, Section                                                              
7, of the  Constitution of the  State of Alaska, clearly  laid out                                                              
the restrictions  on the initiative  and referendum process.   She                                                              
read from Article XI, Section 7:                                                                                                
                                                                                                                                
     The initiative  shall not be used to  dedicate revenues,                                                                   
     make  or repeal  appropriations,  create courts,  define                                                                   
     the jurisdiction of courts or  prescribe their rules, or                                                                   
     enact  local or  special  legislation.   The  referendum                                                                   
     shall  not  be applied  to  dedications of  revenue,  to                                                                   
     appropriations, to  local or special legislation,  or to                                                                   
     laws  necessary for  the immediate  preservation of  the                                                                   
     public peace, health, or safety.                                                                                           
                                                                                                                                
Number 1151                                                                                                                     
                                                                                                                                
MS. SCHRADER said  that her choice of words was  not skillful when                                                              
she  stated  that   the  Board  of  Game  is   handpicked  by  the                                                              
legislature.    She explained  that  she  is  very aware  of  that                                                              
process, and  she is  aware of  the constitution as it  relates to                                                              
restrictions  on  the  initiative  process.    However,  the  fact                                                              
remains that  when a governor  proposes a  candidate who is  not a                                                              
strong  supporter  of  consumptive  use,  that  person  will  have                                                              
difficulty  in  getting  confirmed   by  the  legislature.    Many                                                              
Alaskans  feel  that  there  is not  balance  in  the  process  of                                                              
wildlife management  and that they  need to preserve  their rights                                                              
under  the constitution  to  address  that imbalance  through  the                                                              
initiative process.                                                                                                             
                                                                                                                                
CO-CHAIR MASEK  noted that in the  debates she has  witnessed, the                                                              
question  that  keeps  coming  up   has  to  do  with  access  and                                                              
restrictions  on hunting and  fishing.  She  pointed out  that the                                                              
restrictions  on the  people who  have  lived in  Alaska for  many                                                              
years in  the rural areas  are being  affected by issues  like the                                                              
wolf initiative.  She stated that  there have been no restrictions                                                              
on  wildlife viewing  and photography,  yet there  have been  many                                                              
restrictions with regard to hunting.                                                                                            
                                                                                                                                
Number 0999                                                                                                                     
                                                                                                                                
MS. SCHRADER  pointed out  that wildlife  viewing and  photography                                                              
are restricted.   For  example, Pack  Creek is  closed to  viewing                                                              
from 9 p.m. to 9 a.m.                                                                                                           
                                                                                                                                
REPRESENTATIVE BARNES responded that  the restrictions set at Pack                                                              
Creek are so that  people do not get eaten by a  bears.  She added                                                              
that she herself  has a serious conflict of interest,  because her                                                              
daughter is a photographer and believes  that wildlife should only                                                              
be photographed.                                                                                                                
                                                                                                                                
CO-CHAIR  HUDSON  referred  to Ms.  Schrader's  mention  that  the                                                              
question  is,  constitutionally,  whether  it  should  be  through                                                              
politics or  through science.   He suggested  that these  kinds of                                                              
issues should  be based on science,  and then the question  is how                                                              
to get  the best  science.   He views  the legislative process  as                                                              
being out in the open, he said, where  the public has the right to                                                              
see what [legislators] do, what they  say and who testifies before                                                              
them.                                                                                                                           
                                                                                                                                
CO-CHAIR  HUDSON  suggested that  the  question  is whether  sound                                                              
science  is  better  served  by  having  the  public  vote  on  an                                                              
initiative -  where the science has  not been revealed  but public                                                              
relations have  been - or  whether the  public should vote  on the                                                              
legislators themselves.   He pointed  out that if the  public does                                                              
not agree with  his input, then he will definitely  hear about it,                                                              
and  it impacts  his daily  living:   they send  letters and  give                                                              
testimony.  He stated that it is  not just a question of trying to                                                              
disrupt  the  public's  opportunity  to  participate;  rather,  he                                                              
believes  it is  not in  the public's  best interests  to have  it                                                              
decided on the basis of popularity or a sound bite.                                                                             
                                                                                                                                
MS. SCHRADER  pointed out another  problem:  scientists  have data                                                              
that  can disagree.    In McGrath,  there is  not  enough data  to                                                              
determine what the  problems are.  She stressed the  need for more                                                              
sound science instead of just going  ahead with wolf control.  She                                                              
indicated  that   when  the  legislature  passes   intensive  game                                                              
management statutes  that are so  restrictive, it simply  ties the                                                              
hands of  all the  wildlife biologists,  who are  unable to  apply                                                              
their  data  because  of  being   restricted  by  intensive  game-                                                              
management statutes.                                                                                                            
                                                                                                                                
Number 0492                                                                                                                     
                                                                                                                                
DICK BISHOP, Vice President, Alaska  Outdoor Council (AOC), stated                                                              
that the AOC strongly supports HJR  56.  He stressed that "ballot-                                                              
box biology" is not the way to manage renewable resources.                                                                      
                                                                                                                                
WAYNE  REGELIN,  Director,  Division   of  Wildlife  Conservation,                                                              
Alaska  Department  of  Fish  &  Game,  pointed  out  that  ballot                                                              
initiatives  in  wildlife management  have  been  used across  the                                                              
nation  and have  created  some  significant problems  in  several                                                              
states.  He stated that the ADF&G  does not support HJR 56 because                                                              
it fails  to recognize  that there  is more  to management  of the                                                              
public's  wildlife resource  than the application  of science  and                                                              
technical expertise.   Wildlife management must  also consider and                                                              
respond to the values  held by the public about how  they want the                                                              
wildlife to be managed.                                                                                                         
                                                                                                                                
MR. REGELIN told  members that science-based management  should be                                                              
responsive to the  goals and objectives of the  Alaskan people for                                                              
the  conservation and  utilization  of their  wildlife  resources.                                                              
There  are   many  options  for   wildlife  management   that  are                                                              
biologically  sustainable  and,  therefore,  consistent  with  the                                                              
sustained yield  principle.  There  are many different  views, and                                                              
the initiative  process is the most  direct way for the  public to                                                              
sort out  their views on  public policies;  taking it away  is not                                                              
something  that the  department can  support.   He indicated  that                                                              
wildlife   management   does  involve   scientific   and   special                                                              
expertise, but so does administration  and other public functions.                                                              
There appears  to be no reason  to single out  wildlife management                                                              
as a subject  too complex for the public to  make policy decisions                                                              
about through the initiative process.                                                                                           
                                                                                                                                
REPRESENTATIVE  BARNES wondered if  Mr. Regelin  was aware  of the                                                              
initiative process that chose to allocate fish.                                                                                 
                                                                                                                                
MR. REGELIN replied yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  BARNES  asked whether  Mr.  Regelin had  supported                                                              
that.                                                                                                                           
                                                                                                                                
MR. REGELIN replied no.                                                                                                         
                                                                                                                                
REPRESENTATIVE  BARNES suggested  that what  Mr. Regelin  had just                                                              
said flies in the face of his testimony.                                                                                        
                                                                                                                                
TAPE 00-18, SIDE A                                                                                                              
Number 0057                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOULE asked  whether the  advisory committees  and                                                              
the Board  of Fisheries and  Board of Game, during  deliberations,                                                              
take  into consideration  the  public sentiment  at  the time,  in                                                              
addition to science.                                                                                                            
                                                                                                                                
MR.  REGELIN replied  that  ADF&G tries  to  provide a  scientific                                                              
basis  for  groups like  the  advisory  committees to  make  sound                                                              
decisions, and  it is their job to  meld in the public  and social                                                              
aspects.  He  explained that the advisory committees  in the rural                                                              
communities are very representative  of the people.  In the larger                                                              
communities,  the  people feel  that  [these  groups] are  not  as                                                              
representative  of the  community  at large  because  they are  so                                                              
heavily  dominated by  hunters and  trappers.   He indicated  that                                                              
when the  issue gets  to the Board  of Game, anyone  can put  in a                                                              
proposal or come  and testify, and then the Board  of Game listens                                                              
to all of the different public input  and the biology, and makes a                                                              
decision.  He  believes the system works, he concluded,  and it is                                                              
one which he is proud of.                                                                                                       
                                                                                                                                
REPRESENTATIVE  JOULE   indicated  that  he  believes   there  are                                                              
examples  where  the  larger  communities  are  not  dominated  by                                                              
hunters  and trappers,  but rather  have strong  conservationists.                                                              
He also said that he believes the  whole process, all the way from                                                              
the advisory committees to the legislature,  is under pretty heavy                                                              
public scrutiny and guidance.                                                                                                   
                                                                                                                                
CO-CHAIR MASEK closed the public testimony on HJR 56.                                                                           
                                                                                                                                
REPRESENTATIVE MORGAN made a motion  to move HJR 56 from committee                                                              
with individual recommendations and  the attached fiscal note; she                                                              
asked for  unanimous consent.   There being  no objection,  HJR 56                                                              
moved from the House Resources Standing Committee.                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK  adjourned the  House Resources Standing  Committee                                                              
meeting at 3:50 p.m.                                                                                                            
                                                                                                                                

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