Legislature(2021 - 2022)BARNES 124

05/09/2022 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 5/10/22 at 8:00 am --
+ SJR 23 SUPPORTING NAMING MTN AFTER GAIL PHILLIPS TELECONFERENCED
Moved SJR 23 Out of Committee
-- Invited & Public Testimony --
+ SB 177 MICROREACTORS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+= HB 120 STATE LAND SALES AND LEASES; RIVERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                          May 9, 2022                                                                                           
                           1:19 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Josiah Patkotak, Chair                                                                                           
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Zack Fields                                                                                                      
Representative Calvin Schrage                                                                                                   
Representative Sara Hannan                                                                                                      
Representative George Rauscher                                                                                                  
Representative Mike Cronk                                                                                                       
Representative Ronald Gillham                                                                                                   
Representative Tom McKay                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 23                                                                                                  
Expressing  the  support  of the  Alaska  State  Legislature  for                                                               
naming the  mountain between Cedar  Ridge and Hope Peak  south of                                                               
Anchorage after Gail Phillips.                                                                                                  
                                                                                                                                
     - MOVED SJR 23 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 177(RES)                                                                                                 
"An  Act  relating  to  nuclear   facility  siting  permits;  and                                                               
relating to microreactors."                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 120                                                                                                              
"An Act relating to state land;  relating to the authority of the                                                               
Department  of  Education and  Early  Development  to dispose  of                                                               
state  land;  relating to  the  authority  of the  Department  of                                                               
Transportation and  Public Facilities  to dispose of  state land;                                                               
relating to the authority of  the Department of Natural Resources                                                               
over  certain state  land; relating  to the  state land  disposal                                                               
income fund; relating  to the leasing and sale of  state land for                                                               
commercial  development;  repealing establishment  of  recreation                                                               
rivers  and  recreation river  corridors;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR 23                                                                                                                  
SHORT TITLE: SUPPORTING NAMING MTN AFTER GAIL PHILLIPS                                                                          
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
02/22/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/22       (S)       RES                                                                                                    
03/18/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/18/22       (S)       Moved SJR 23 Out of Committee                                                                          
03/18/22       (S)       MINUTE(RES)                                                                                            
03/21/22       (S)       RES RPT  4DP                                                                                           
03/21/22       (S)       DP: MICCICHE, KIEHL, KAWASAKI, STEVENS                                                                 
04/20/22       (S)       TRANSMITTED TO (H)                                                                                     
04/20/22       (S)       VERSION: SJR 23                                                                                        
04/25/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/25/22       (H)       RES                                                                                                    
05/09/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB 177                                                                                                                  
SHORT TITLE: MICROREACTORS                                                                                                      
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/01/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/01/22       (S)       CRA, RES                                                                                               
02/15/22       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
02/15/22       (S)       Heard & Held                                                                                           
02/15/22       (S)       MINUTE(CRA)                                                                                            
02/17/22       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
02/17/22       (S)       Heard & Held                                                                                           
02/17/22       (S)       MINUTE(CRA)                                                                                            
03/08/22       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/08/22       (S)       Moved SB 177 Out of Committee                                                                          
03/08/22       (S)       MINUTE(CRA)                                                                                            
03/09/22       (S)       CRA RPT  1DP 3NR                                                                                       
03/09/22       (S)       DP: HUGHES                                                                                             
03/09/22       (S)       NR: GRAY-JACKSON, MYERS, WILSON                                                                        
03/21/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/21/22       (S)       Heard & Held                                                                                           
03/21/22       (S)       MINUTE(RES)                                                                                            
04/06/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/06/22       (S)       <Bill Hearing Rescheduled to 4/8/22>                                                                   
04/08/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/08/22       (S)       <Bill Hearing Canceled>                                                                                
04/11/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/11/22       (S)       Heard & Held                                                                                           
04/11/22       (S)       MINUTE(RES)                                                                                            
04/20/22       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/20/22       (S)       Moved CSSB 177(RES) Out of Committee                                                                   
04/20/22       (S)       MINUTE(RES)                                                                                            
04/22/22       (S)       RES RPT CS  4DP 1NR 1AM  NEW TITLE                                                                     
04/22/22       (S)       DP: REVAK, KIEHL, VON IMHOF, MICCICHE                                                                  
04/22/22       (S)       NR: STEVENS                                                                                            
04/22/22       (S)       AM: KAWASAKI                                                                                           
05/04/22       (S)       TRANSMITTED TO (H)                                                                                     
05/04/22       (S)       VERSION: CSSB 177(RES)                                                                                 
05/05/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/05/22       (H)       RES                                                                                                    
05/09/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 120                                                                                                                  
SHORT TITLE: STATE LAND SALES AND LEASES; RIVERS                                                                                
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/01/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/21       (H)       RES, FIN                                                                                               
04/30/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/30/21       (H)       Heard & Held                                                                                           
04/30/21       (H)       MINUTE(RES)                                                                                            
05/12/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/12/21       (H)       Scheduled but Not Heard                                                                                
05/13/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/13/21       (H)       Heard & Held                                                                                           
05/13/21       (H)       MINUTE(RES)                                                                                            
05/02/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/02/22       (H)       Heard & Held                                                                                           
05/02/22       (H)       MINUTE(RES)                                                                                            
05/04/22       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
05/04/22       (H)       Scheduled but Not Heard                                                                                
05/06/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/06/22       (H)       Heard & Held                                                                                           
05/06/22       (H)       MINUTE(RES)                                                                                            
05/09/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BRIX HAHN, Staff                                                                                                                
Senator Donald Olson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Introduced SJR  23, on  behalf of  Senator                                                             
Olson, prime sponsor.                                                                                                           
                                                                                                                                
ROBIN PHILLIPS                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the hearing  on  SJR 23,  provided                                                             
invited testimony.                                                                                                              
                                                                                                                                
CHRISTINA CARPENTER, Director                                                                                                   
Division of Environmental Health                                                                                                
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Introduced CSSB  177(RES) on behalf  of the                                                             
Senate  Rules  Standing  Committee,  sponsor by  request  of  the                                                               
governor.                                                                                                                       
                                                                                                                                
TRAVIS MILLION, CEO                                                                                                             
Copper Valley Electric Association                                                                                              
Glennallen, Alaska                                                                                                              
POSITION  STATEMENT:    During  the  hearing  on  CSSB  177(RES),                                                             
provided   a  PowerPoint   presentation   titled  "Looking   into                                                               
Nuclear."                                                                                                                       
                                                                                                                                
BRENT GOODRUM, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the hearing  on  HB 120,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
KRISTIN "KRIS" HESS, Deputy Director                                                                                            
Division of Mining, Land and Water                                                                                              
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the hearing  on  HB 120,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
HEATHER O'CLARAY, Statewide Right-of-Way Chief                                                                                  
Division of Statewide Design and Engineering Services                                                                           
Department of Transportation and Public Facilities (DOT&PF)                                                                     
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the hearing  on  HB 120,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:19:44 PM                                                                                                                    
                                                                                                                                
CHAIR  JOSIAH  PATKOTAK  called   the  House  Resources  Standing                                                             
Committee meeting to order at  1:19 p.m.  Representatives Hannan,                                                               
Schrage, Gillham, Cronk, McKay, and  Patkotak were present at the                                                               
call  to order.   Representatives  Hopkins, Rauscher,  and Fields                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
        SJR 23-SUPPORTING NAMING MTN AFTER GAIL PHILLIPS                                                                    
                                                                                                                                
1:20:39 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be SENATE JOINT RESOLUTION NO.  23, Expressing the support of the                                                               
Alaska State  Legislature for naming  the mountain  between Cedar                                                               
Ridge and Hope Peak south of Anchorage after Gail Phillips.                                                                     
                                                                                                                                
1:21:13 PM                                                                                                                    
                                                                                                                                
BRIX   HAHN,   Staff,   Senator  Donald   Olson,   Alaska   State                                                               
Legislature, introduced SJR 23 on  behalf of Senator Olson, prime                                                               
sponsor.   She presented the  sponsor statement [included  in the                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Born in Juneau and raised  in Nome, the late Speaker of                                                                    
     the House, Gail Phillips, was  an Alaskan at heart. She                                                                    
     left  an   impression  on   the  political   minds  and                                                                    
     philanthropic hearts of Alaskans.                                                                                          
                                                                                                                                
     In  her lifetime,  she spent  years  working for  local                                                                    
     airlines, teaching,  serving on  the board  of Iditarod                                                                    
     Trail  Race Committee,  owned  a  sporting goods  shop,                                                                    
     lead  the Homer  Chamber  of Commerce,  was elected  to                                                                    
     Homer's City Council, served on  the board of the Kenai                                                                    
     Peninsula  Borough  Assembly,  mined for  gold  on  the                                                                    
     Seward Peninsula  and, of course, served  in the Alaska                                                                    
     House of Representatives.                                                                                                  
                                                                                                                                
     She  brought  together   urban  republicans  and  rural                                                                    
     democrats to form  a coalition that she  led as Speaker                                                                    
     of the  House for two consecutive  terms. Following her                                                                    
     political career, Gail worked  as executive director of                                                                    
     the   Exxon-Valdez  Oil   Spill   Trustees,  and   upon                                                                    
     retirement   she   mentored  future   politicians   and                                                                    
     consulted for natural resource development in Alaska.                                                                      
     Upon her death, she was  actively serving on the boards                                                                    
     of the  Iditarod Trail Race  Foundation and  the Alaska                                                                    
     Aviation  Museum.  She  was  involved  in  her  church,                                                                    
     Anchor  Park United  Methodist and  all her  grandsons'                                                                    
     activities.                                                                                                                
                                                                                                                                
     She  was a  daughter,  sister, wife,  mother, aunt  and                                                                    
     grandmother.   Her  leadership   was  not   limited  to                                                                    
     politics alone,  her entire family benefitted  from her                                                                    
     guidance that she  learned at the knee  of Alaska State                                                                    
     Territorial Representative, L.E. Ost, her grandfather.                                                                     
                                                                                                                                
     Mountains are  stable, strong and brave,  Gail Phillips                                                                    
     lived her life with these defining attributes.                                                                             
                                                                                                                                
     Her  family and  I are  now advocating  for one  of her                                                                    
     favorite mountains  on the Kenai Peninsula  to be named                                                                    
     in her honor.                                                                                                              
                                                                                                                                
CHAIR PATKOTAK  announced that the  committee would  hear invited                                                               
testimony on SJR 23.                                                                                                            
                                                                                                                                
1:23:51 PM                                                                                                                    
                                                                                                                                
ROBIN PHILLIPS provided invited testimony  on SJR 23.  She stated                                                               
she is  representing the family  of Gail Phillips which  hopes to                                                               
have this mountain named federally as well [as by the state].                                                                   
                                                                                                                                
1:24:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  asked why this  mountain was one  of Gail                                                               
Phillips' favorite mountains on the Kenai Peninsula.                                                                            
                                                                                                                                
MS. ROBIN  PHILLIPS replied  that Gail  grew up  loving mountains                                                               
and was a  representative of the Kenai Peninsula.   She said that                                                               
upon her retirement Gail moved to  Anchorage and had a home built                                                               
that  overlooked the  mountains  of the  Kenai  Peninsula.   Gail                                                               
loved  the  drive  between  Homer  and  Anchorage,  Ms.  Phillips                                                               
continued,  and the  family looked  for  an unnamed  peak on  the                                                               
Kenai Peninsula  that Gail would have  been able to see  from her                                                               
home in Anchorage.                                                                                                              
                                                                                                                                
1:26:16 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK opened public testimony  on SJR 23, then closed it                                                               
after ascertaining that no one wished to testify.                                                                               
                                                                                                                                
1:26:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN stated  she has  no objection  to honoring                                                               
Ms. Gail  Phillips but that she  will be a  no vote on SJR  23 on                                                               
the House floor because she  is philosophically opposed to naming                                                               
natural  features with  human  names.   She  further stated  that                                                               
Alaska has returned to Indigenous names, such as Mount Denali.                                                                  
                                                                                                                                
1:28:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  related that  a few years  ago he  had the                                                               
honor of  talking with  the former  Speaker of  the House  at her                                                               
Anchorage  home and  he appreciates  Senator Olson  carrying this                                                               
joint resolution forward.                                                                                                       
                                                                                                                                
MS.  HAHN offered  her understanding  of Representative  Hannan's                                                               
statement.   She  noted that  SJR 23  doesn't guarantee  that the                                                               
mountain will be named, it just supports it.                                                                                    
                                                                                                                                
1:28:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS moved  to  report SJR  23 from  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.  There  being no objection, SJR 23 was  reported out of the                                                               
House Resources Standing Committee.                                                                                             
                                                                                                                                
                      SB 177-MICROREACTORS                                                                                  
                                                                                                                                
1:29:17 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  announced that the  next order of  business would                                                               
be CS FOR  SENATE BILL NO. 177(RES), "An Act  relating to nuclear                                                               
facility siting permits; and relating to microreactors."                                                                        
                                                                                                                                
CHAIR PATKOTAK noted  that this is the committee's  first time to                                                               
hear CSSB  177(RES) but  that the committee  has twice  heard the                                                               
companion bill, HB 299, and taken public testimony on HB 299.                                                                   
                                                                                                                                
1:29:49 PM                                                                                                                    
                                                                                                                                
CHRISTINA CARPENTER, Director,  Division of Environmental Health,                                                               
Department of  Environmental Conservation (DEC),  introduced CSSB
177(RES)  on  behalf  of the  Senate  Rules  Standing  Committee,                                                               
sponsor  by request  of the  governor.   She explained  that CSSB
177(RES)  would define  a microreactor  according to  the federal                                                               
definition  and  would  create  a  specific  carve-out  from  the                                                               
ongoing study  and legislative siting requirements.   She related                                                               
that  Senator Jesse  Kiehl worked  with DEC  on language  for two                                                               
amendments that  were incorporated  into the  bill by  the Senate                                                               
Resources Standing Committee.  She  explained that in lieu of the                                                               
current ongoing  study requirements for six  state agencies, CSSB
177(RES) would direct DEC to  coordinate and submit comments from                                                               
those agencies to the U.S.  Nuclear Regulatory Commission when an                                                               
Alaska  sited microreactor  license application  is put  forward.                                                               
She  said a  second amendment  added  language to  the bill  that                                                               
explicitly  obtains legislative  siting approval  for unorganized                                                               
boroughs.                                                                                                                       
                                                                                                                                
MS.  CARPENTER  deferred to  Mr.  Travis  Million of  the  Copper                                                               
Valley Electric  Association (CFEA) to provide  further testimony                                                               
on  CSSB  177(RES).   She  noted  that  CVEA is  an  electrically                                                               
isolated  electric  cooperative   in  Interior  and  Southcentral                                                               
Alaska, serving  Valdez, Glennallen,  and the  surrounding Copper                                                               
River  Basin, a  vast service  territory  of 160  miles north  to                                                               
south and  100 miles east  to west.   She said CVEA  is currently                                                               
conducting  a feasibility  study of  micro modular  reactor (MMR)                                                               
technology with the Ultra Safe Nuclear Corporation (USNC).                                                                      
                                                                                                                                
1:32:37 PM                                                                                                                    
                                                                                                                                
TRAVIS MILLION,  CEO, Copper Valley Electric  Association (CVEA),                                                               
provided  a PowerPoint  presentation [hard  copy included  in the                                                               
committee packet],  titled "Looking into Nuclear."   He displayed                                                               
the second slide,  "AGENDA," and said he will review  why CVEA is                                                               
looking at nuclear, what MMR  is and isn't, the environmental and                                                               
safety concerns,  the feasibility study,  and what CVEA  is doing                                                               
thus far for stakeholder engagement.                                                                                            
                                                                                                                                
MR.  MILLION proceeded  to the  third slide,  "WHY NUCLEAR."   He                                                               
stated that in  June [2021] the CVEA board  developed a strategic                                                               
plan for the cooperative, with one  of the five major goals being                                                               
to develop a plan to reduce  the cooperative's use of diesel fuel                                                               
for power  generation on  its system.   He  related that  CVEA is                                                               
nearly  100 percent  hydropower  in the  summer,  with an  annual                                                               
average of 70  percent hydropower.  In the  winter, he continued,                                                               
CVEA must rely  on diesel fuel at its generation  plants that use                                                               
either diesel or  a fossil fuel called light  straight run (LSR),                                                               
which comes from the Petro Star  Refinery, and which puts CVEA at                                                               
the whim of what fuel prices do.   He pointed out that in January                                                               
2021 CVEA  paid under $2  per gallon for  fuel and that  in March                                                               
2022 CVEA  paid nearly $4.50 per  gallon, plus at times  the fuel                                                               
cost spiked  to over $5 per  gallon for delivery to  CVEA's power                                                               
plants.   Mr.  Million noted  that this  year winter  came early,                                                               
resulting in CVEA  going from an average 30  percent hydro spread                                                               
over the winter to 20 percent  hydro, causing some of the biggest                                                               
increases  seen in  CVEA's history;  normally the  rate is  about                                                               
$0.19 per kilowatt hour in the  summer when on hydropower, but it                                                               
spiked to over $0.42 per kilowatt  hour this winter.  He said the                                                               
CVEA board wants to develop a plan  to get off diesel fuel and to                                                               
find ways  to get  rid of  the fluctuation of  fuel cost  so that                                                               
long term energy cost is stable for  many years to come.  He also                                                               
noted that reducing emissions from  fossil fuel power plants is a                                                               
major concern of  the CVEA board.  The CVEA  board has considered                                                               
wind  power, he  continued, but  the CVEA  service territory  has                                                               
marginal  Class 2  winds with  high turbulence,  so wind  doesn't                                                               
work.   Mr. Million said solar  power works great in  the summer,                                                               
but CVEA is already 100  percent hydropower then and that doesn't                                                               
solve  the cooperative's  wintertime issues.   He  said CVEA  has                                                               
looked at  geothermal, biomass, every  hydro asset that  could be                                                               
available  in  its  region,  and   interties  like  the  Railbelt                                                               
Intertie project.                                                                                                               
                                                                                                                                
1:36:02 PM                                                                                                                    
                                                                                                                                
MR. MILLION  addressed the two  photographs on the  fourth slide,                                                               
"MICRO MODULAR REACTOR (MMR)?"   He said the light water reactors                                                               
depicted in  these photos are  currently deployed  throughout the                                                               
U.S.  and the  world  and they  are typical  in  the gigawatt  or                                                               
thousands of  megawatt range.   But, he continued, these  are not                                                               
what is being talked about with micro modular reactors.                                                                         
                                                                                                                                
MR. MILLION moved to the fifth  slide, "MMR SIZE COMPARISON."  He                                                               
explained that  the upper left  picture shows the footprint  of a                                                               
standard light water reactor, typically  about a gigawatt in size                                                               
and taking up 50-plus acres.   The reactor building, he added, is                                                               
the red  cylindrical building in the  middle of the picture.   He                                                               
then drew attention to the blue  rectangle on the lower right and                                                               
explained that  it is  the footprint of  a micro  modular reactor                                                               
like  the one  CVEA  is  looking at  through  Ultra Safe  Nuclear                                                               
Corporation (USNC)  and which takes up  approximately five acres.                                                               
He  said the  yellow square  is  the reactor  building, which  is                                                               
about  the size  of  a  40-foot Conex  buried  vertically in  the                                                               
ground.   To provide a size  comparison, he noted that  the green                                                               
rectangle to  the left of the  MMR is a football  field, and that                                                               
the MMR is essentially the size of two football fields.                                                                         
                                                                                                                                
MR. MILLION  turned to the  sixth slide, "What is  a microreactor                                                               
and why?"   He stated CVEA is looking at  this technology because                                                               
it fits the cooperative's system very  well, which is about a 20-                                                               
megawatt summertime  load, peaking at  about 15 megawatts  in the                                                               
wintertime.   With CVEA's  little bit  of hydro,  he said,  a 10-                                                               
megawatt reactor would be about the  perfect size to take care of                                                               
wintertime  needs.   A second  benefit in  addition to  producing                                                               
electricity, he noted, is the  microreactor's process heat, which                                                               
could be  utilized for  industrial applications,  specifically in                                                               
the Valdez area.   He specified that a  microreactor meets CVEA's                                                               
needs by reducing carbon emissions  from its diesel power plants,                                                               
by addressing safety with this  newer technology, and by having a                                                               
long-time stable cost because the  design that CVEA is looking at                                                               
has between 20 and 40 years between needing to refuel.                                                                          
                                                                                                                                
1:38:54 PM                                                                                                                    
                                                                                                                                
MR. MILLION continued  to the seventh slide,  "Ultra Safe Nuclear                                                               
FCM Fuel,"  and stated  that this  microreactor uses  TRISO fuel.                                                               
He explained  that the blue dots  in the picture are  the uranium                                                               
pellets, which are  about the size of a poppy  seed.  These poppy                                                               
seed pieces of  uranium are triple coated in  silicon carbide, he                                                               
continued, and  then they  are set  in an array  as shown  in the                                                               
picture where they  are again coated in more  silicon carbide and                                                               
graphite.   He  said  this  keeps all  the  radiation intact  and                                                               
prevents it from  leaking out and from  thermally "running away";                                                               
it keeps the temperature from coming  up.  It is called "walkaway                                                               
safe,"  he  continued, because  if  there  is  a failure  to  the                                                               
cooling system,  personnel can walk  away since by physics  it is                                                               
going to  keep its temperature regulated  on its own and  that is                                                               
one  of the  nice  things with  this fuel  design.   Mr.  Million                                                               
further  noted  that this  fuel  design  was implemented  in  the                                                               
1970s, so it's not new technology.   What is new, he said, is the                                                               
manufacturing  technologies  and the  three-dimensional  printing                                                               
that now allow mass production of this fuel.                                                                                    
                                                                                                                                
                                             TM                                                                                 
MR. MILLION displayed  the eighth slide, "MMR   Energy System REM                                                               
2-Unit Layout for Remote Energy  Management."  He stated that the                                                               
diagrammatic represents  a generic layout of  a two-reactor plant                                                               
of about 10  megawatts, like what CVEA  is currently considering.                                                               
Regarding water  used for steam generation  becoming radioactive,                                                               
he said  it's a closed water  system.  He specified  that the two                                                               
reactors depicted on  the left are cooled with  helium, and since                                                               
helium is an inert gas, it  cannot absorb any radiation.  Heat is                                                               
taken from the reactor to a  heat exchanger where one side of the                                                               
heat  exchanger has  helium and  the  other has  molten salt,  he                                                               
continued.  The molten salt heats  up from that reaction, then it                                                               
goes  through another  heat exchanger  where the  other side  has                                                               
water or steam.  Through  this process, Mr. Million stated, there                                                               
is no  way for the radiation  to propagate down and  get into the                                                               
water  source.   This closed  loop totally  contained system,  he                                                               
added, doesn't require a river or any body of water for cooling.                                                                
                                                                                                                                
MR.   MILLION   discussed   the   ninth   slide,   "Projects   in                                                               
Development."  He  advised that if CVEA's  feasibility study goes                                                               
through, the cooperative will not be  the first one given USNC is                                                               
currently working  on a  project set  to come  online in  2026 at                                                               
Chalk River in Canada.  He said  USNC also has a project in place                                                               
with the University of Illinois where  a test reactor will be put                                                               
in the  middle of  campus where  it will  be utilized  and tested                                                               
through  the  university's radiological  engineering  department.                                                               
So, he  continued, if  it pencils  out for  CVEA to  move forward                                                               
with this project,  the cooperative would be number  three of the                                                               
USNC deployed reactors.  However,  he noted, the project would be                                                               
the first  commercial reactor potentially  within the  nation and                                                               
within USNC's fleet.                                                                                                            
                                                                                                                                
1:42:53 PM                                                                                                                    
                                                                                                                                
MR.  MILLION   moved  to  the   tenth  slide,   "CVEA/USNC  Joint                                                               
Feasibility  Study."   He related  that  the economics  is a  big                                                               
driver as  to whether  this will  work; it won't  be as  cheap as                                                               
CVEA's hydropower,  but it would  be far  less than what  CVEA is                                                               
presently paying for  diesel.  So, he said, CVEA  is shooting for                                                               
something  in   between  that   will  balance   generation  costs                                                               
throughout  the  year to  be  the  same  rate  year round.    The                                                               
feasibility study is looking at  potential locations to determine                                                               
whether there is a mix that  could work well there, he continued.                                                               
The  only downfall,  he  noted,  is that  there  is presently  no                                                               
industrial  application for  the heat  in the  Copper Basin.   He                                                               
related  that  the  feasibility study  is  looking  at  benefits,                                                               
concerns, and issues for the  community.  He explained that given                                                               
USNC is  the manufacturer  of this  technology and  involved with                                                               
the feasibility  study, CVEA brought in  an Anchorage engineering                                                               
firm, Electric Power Systems (EPS),  a firm that works with every                                                               
utility  in Alaska,  primarily designing  generation distribution                                                               
transmission as well as  installing, operating, and commissioning                                                               
these  things.   He said  EPS is  doing most  of the  feasibility                                                               
study from  the standpoint  of integration and  cost, as  well as                                                               
some of the  environmental impact, and USNC  is looking primarily                                                               
at  the nuclear  side  of  the feasibility  study.   Mr.  Million                                                               
estimated that  the feasibility study  would be completed  by the                                                               
end of  summer [2022],  at which  time the  CVEA board  will take                                                               
public comment and then decide whether to move forward.                                                                         
                                                                                                                                
MR.  MILLION  continued  to  the eleventh  slide,  "CVEA  &  USNC                                                               
Engagement," and discussed stakeholder  engagement.  He explained                                                               
that CVEA normally  wouldn't start talking to the  public until a                                                               
feasibility  study had  been conducted  and the  results were  in                                                               
hand; however,  given the word  "nuclear" can be a  trigger point                                                               
for people,  he said CVEA  wanted to get  out front and  hear the                                                               
concerns  of communities  and what  opportunities  CVEA might  be                                                               
overlooking that could be integrated  into the feasibility study.                                                               
In Valdez presentations  have been given to the  city council, he                                                               
stated, and  open public  meetings have been  held in  Valdez and                                                               
with the  Greater Copper Basin  Chamber of Commerce.   One-on-one                                                               
meetings with individual stakeholders  have also been undertaken,                                                               
he noted.   He related  that most  of the questions  are similar,                                                               
such  as  how CVEA  is  dealing  with  the safety  concerns,  the                                                               
environmental concerns, and getting rid of the hazardous waste.                                                                 
                                                                                                                                
MR. MILLION addressed the issue of  waste.  He said CVEA has been                                                               
given a guarantee by USNC.   Refueling would occur once every 20-                                                               
40 years,  he related,  and when  the fuel comes  out it  will be                                                               
stored in a cask that is safe to  be around and which is how most                                                               
nuclear waste  is stored in the  U.S. today.  The  fuel would sit                                                               
on site  anywhere from  six months  to two years  to allow  it to                                                               
cool, he  said, and once  cooled USNC  would transport it  out of                                                               
Alaska and at  that point it is USNC's  responsibility to dispose                                                               
of the  [spent] fuel at  either an interim USNC  storage facility                                                               
or through  the U.S. Government to  dispose of it in  a long-term                                                               
storage  solution.    Mr.  Million  explained  that  the  Nuclear                                                               
Regulatory Commission requires that funding  be put in place when                                                               
licensing a nuclear  reactor like this, such that  if the company                                                               
were to go out of business  there would already be funds in place                                                               
to get rid of the nuclear fuel waste at that point in time.                                                                     
                                                                                                                                
1:48:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER thanked Mr.  Million for such an in-depth                                                               
presentation.                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK  inquired about  the dollar  amount that  would be                                                               
put aside at licensing for long-term fuel storage.                                                                              
                                                                                                                                
MR. MILLION  replied that  CVEA isn't far  enough along  into the                                                               
feasibility study to know what those costs might be.                                                                            
                                                                                                                                
1:49:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM  offered his understanding that  HB 199 is                                                               
the companion  bill to  SB 177.   He  recalled that  there wasn't                                                               
much  opposition to  HB  199,  but said  he  is  getting lots  of                                                               
opposition  to  CSSB 177(RES).    He  asked  whether there  is  a                                                               
difference  in  the  two  bills  that  is  creating  the  current                                                               
opposition that wasn't there before.                                                                                            
                                                                                                                                
MR. MILLION responded  he isn't sure why the  opposition would be                                                               
different  given  the bills  are  identical  except for  the  two                                                               
amendments on  the Senate side.   He said most of  the opposition                                                               
he has  heard has been  consistent on  both the House  and Senate                                                               
sides, and he personally hasn't heard any additional opposition.                                                                
                                                                                                                                
REPRESENTATIVE GILLHAM stated that most  of the opposition has to                                                               
do with storage.   He related that he didn't  get this opposition                                                               
when discussing HB 199, so he is curious as to why he is now.                                                                   
                                                                                                                                
1:50:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  asked whether  CVEA is negotiating  a ramp                                                               
down in  prices with  USNC assuming that  as the  company deploys                                                               
more of these  across the U.S. it can achieve  profitability at a                                                               
lower price point than in the initial negotiation.                                                                              
                                                                                                                                
MR.  MILLION answered  that this  will be  coming up  through the                                                               
feasibility  study since  CVEA is  looking at  different options,                                                               
such as whether  CVEA owns and operates or whether  USNC owns and                                                               
operates and  CVEA buys the power.   So, he continued,  CVEA will                                                               
look at  that for a long-term  contract if it buys  power through                                                               
USNC.  He allowed that Representative  Fields has a good point to                                                               
keep in mind.                                                                                                                   
                                                                                                                                
1:51:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked whether  anything in existing statute                                                               
prevents CVEA from applying for permission and siting.                                                                          
                                                                                                                                
MR. MILLION replied, "Not necessarily  anything that precludes us                                                               
from being able  to do it, but definitely some  ... hurdles."  He                                                               
said having to bring a  siting requirement to the legislature and                                                               
trying to get  that approved could be difficult  depending on who                                                               
is in the  legislature in any given year.   So, he continued, the                                                               
amendments to the  bill would make it easier  and more attractive                                                               
for the  manufacturers to  want to look  at Alaska  for deploying                                                               
these, especially in  remote communities.  While he  won't say it                                                               
is a hindrance, he added,  it could be potentially more difficult                                                               
to get siting authority as the statute is written today.                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN asked  whether  Mr. Million  can point  to                                                               
where those challenges are in  the existing statute or whether it                                                               
is something that an agency has said will be problematic.                                                                       
                                                                                                                                
MR.  MILLION  responded he  has  heard  it through  agencies  and                                                               
through his  knowledge of the  process   anything  coming through                                                               
the  legislature versus  keeping it  more of  a local  control is                                                               
going to  be more time consuming  and burdensome.  He  said he is                                                               
answering the question on the  standpoint that anytime siting the                                                               
land must go through the state  or federal government it can be a                                                               
very  time-consuming  process [as  opposed  to  going through  an                                                               
agency] like DEC or U.S. Bureau of Land Management (BLM).                                                                       
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  whether  Mr. Million  was  led  to                                                               
believe  that  CVEA's project  could  not  go forward  without  a                                                               
change in statute.                                                                                                              
                                                                                                                                
MR.  MILLION answered  no, CVEA  wasn't told  one way  or another                                                               
whether it could go through based on statute.                                                                                   
                                                                                                                                
1:53:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN presumed  that because  CVEA's feasibility                                                               
study is  not yet  done, there  is not an  exact site  where CVEA                                                               
would want the project.   She offered her understanding, based on                                                               
current statute  and what CSSB  177(RES) attempts to do,  that if                                                               
Mr. Million were  here today with a specific  site, the committee                                                               
could  approve  it.    She  said  much  of  the  hesitation  from                                                               
legislators  and the  opposition  being heard  is  that it  would                                                               
throw out a  requirement that any specific  nuclear projects come                                                               
before the  legislature along  with the  ability for  everyone in                                                               
the  state to  engage  on  a project  and  get  answers to  their                                                               
questions  about where  the waste  will  be stored  and what  the                                                               
local hazards  are from tsunami  to earthquake, as opposed  to it                                                               
being up  to a  local government, a  utility, and  state agencies                                                               
that have had  no previous regulatory oversight  with nuclear and                                                               
no  additional dollars  through staffing  according to  their own                                                               
fiscal note.   That is the hesitation for many  people, she said,                                                               
not CVEA's individual project.   She asked whether she is correct                                                               
in understanding  that CVEA is  five to seven years  from needing                                                               
it and that  CVEA's feasibility study this summer  should lead to                                                               
a specific location.                                                                                                            
                                                                                                                                
MR. MILLION replied  that the feasibility study  should give CVEA                                                               
a couple  different potential locations  and CVEA would  make its                                                               
decision on whether  to go ahead based on that  and economics, as                                                               
well as other considerations.                                                                                                   
                                                                                                                                
REPRESENTATIVE HANNAN said  she looks forward to  hearing about a                                                               
specific project next year.                                                                                                     
                                                                                                                                
1:56:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS  asked   whether   the  Municipality   of                                                               
Anchorage would have local  control oversighting of microreactors                                                               
should  this bill  pass.    He further  asked  whether there  are                                                               
differences  among the  different  types  of jurisdictions  apart                                                               
from the unorganized boroughs.                                                                                                  
                                                                                                                                
MS.  CARPENTER responded  that under  [CSSB 177(RES)],  organized                                                               
boroughs would  have the ability  to make that  siting authority,                                                               
and  if  a borough  is  unorganized  then the  legislature  would                                                               
retain that siting authority.                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS surmised  that  that  means the  Anchorage                                                               
Assembly would  have the authority  to say where such  a facility                                                               
could be sited within the Municipality of Anchorage.                                                                            
                                                                                                                                
MS.  CARPENTER  answered that  is  correct,  the Municipality  of                                                               
Anchorage would be able to have that authority.                                                                                 
                                                                                                                                
REPRESENTATIVE FIELDS  requested that the committee  chair obtain                                                               
confirmation that this is also  the interpretation of Legislative                                                               
Legal  Services because  that might  provide  some assurance  for                                                               
Anchorage residents that there is a degree of public review.                                                                    
                                                                                                                                
CHAIR PATKOTAK  confirmed he would do  so.  He said  he thinks it                                                               
is  like  any other  situation  that  comes up  that  unorganized                                                               
boroughs don't  have the authority  to determine  for themselves,                                                               
and it runs  through the House and Senate  Community and Regional                                                               
Affairs Standing Committees.                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  requested that Legislative  Legal Services                                                               
advise  the committee  on  whether  first-class boroughs  without                                                               
planning and  zoning authority and  second-class cities  can have                                                               
their city councils [issue] permits.                                                                                            
                                                                                                                                
1:59:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GILLHAM   asked   whether  the   reason   behind                                                               
microreactors is for a more stable energy source or for cost.                                                                   
                                                                                                                                
MR.  MILLION replied  that the  biggest thing  for CVEA  is lower                                                               
energy cost and long-term stability  over at least a 40-year life                                                               
of the plant.   He pointed out  that a 40-year life  of the plant                                                               
is  the life  of the  license on  a microreactor,  and it  can be                                                               
renewed after that, much like  CVEA's hydropower plants typically                                                               
have a  40- or 50-year license  and then CVEA renews  the license                                                               
to  extend  it.   Long-term,  stable,  lower-cost energy  is  the                                                               
primary driver, he added.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GILLHAM   asked  what  CVEA  will   do  with  its                                                               
hydropower plants.                                                                                                              
                                                                                                                                
MR. MILLION responded that what  is nice about this technology is                                                               
it doesn't have to come on and stay  on, it can be turned off and                                                               
on as  needed.   He said  CVEA would  run 100  percent hydropower                                                               
when hydropower  is available and  bring the reactor  down either                                                               
just to  produce heat  for industrial processes  or shut  it down                                                               
until it  is needed at the  beginning of winter, then  ramp it up                                                               
with  the wintertime  generation.   Doing that,  he noted,  would                                                               
extend the  life of the  fuel even longer, so  if the fuel  has a                                                               
10-year life when run  at 100 percent for 24 hours  a day, 7 days                                                               
a week, 365 days  a year, then running it at  half the time would                                                               
get almost a 20-year life out of the fuel.                                                                                      
                                                                                                                                
2:01:18 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK opened  public testimony  on CSSB  177(RES), then                                                               
closed it after ascertaining that no one wished to testify.                                                                     
                                                                                                                                
2:01:40 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:01 p.m. to 2:02 p.m.                                                                       
                                                                                                                                
2:02:28 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK stated that the  committee would conduct potential                                                               
follow-up on CSSB 177(RES) on 5/10/22.                                                                                          
                                                                                                                                
[CSSB 177(RES) was held over].                                                                                                  
                                                                                                                                
           HB 120-STATE LAND SALES AND LEASES; RIVERS                                                                       
                                                                                                                                
2:02:38 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the final order  of business would                                                               
be HOUSE BILL  NO. 120, "An Act relating to  state land; relating                                                               
to  the  authority  of  the Department  of  Education  and  Early                                                               
Development to dispose  of state land; relating  to the authority                                                               
of  the Department  of Transportation  and  Public Facilities  to                                                               
dispose  of  state  land;  relating   to  the  authority  of  the                                                               
Department  of   Natural  Resources  over  certain   state  land;                                                               
relating to the state land  disposal income fund; relating to the                                                               
leasing  and  sale  of state  land  for  commercial  development;                                                               
repealing  establishment  of  recreation  rivers  and  recreation                                                               
river corridors; and  providing for an effective  date."  [Before                                                               
the committee was the proposed  CS, Version 32-GH1634\G, Bullard,                                                               
4/22/22  ("Version  G"),  adopted  as  the  working  document  on                                                               
5/2/22.]                                                                                                                        
                                                                                                                                
2:03:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt  Amendment 1 to Version G of                                                               
HB 120, labeled 32-GH1634\G.2, Bullard, 5/5/22, which read:                                                                     
                                                                                                                                
     Page 1, lines 1 - 7:                                                                                                       
          Delete "relating to access roads; relating to                                                                       
     state  land;  relating to  contracts  for  the sale  of                                                                  
     state   land;  relating   to  the   authority  of   the                                                                  
     Department  of  Education   and  Early  Development  to                                                                  
     dispose  of state  land; relating  to the  authority of                                                                  
     the Department of  Transportation and Public Facilities                                                                  
     to dispose of state land;  relating to the authority of                                                                  
     the Department of Natural  Resources over certain state                                                                  
     land; relating to the state  land disposal income fund;                                                                  
     relating  to  the  leasing  and  sale  of  state  land;                                                                  
     relating to covenants  and restrictions on agricultural                                                                  
     land;"                                                                                                                   
                                                                                                                                
     Page 1, line 10, through page 13, line 19:                                                                                 
          Delete all material.                                                                                                  
                                                                                                                                
     Page 13, line 20:                                                                                                          
          Delete "Sec. 17"                                                                                                    
          Insert "Section 1"                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, line 16:                                                                                                          
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR PATKOTAK objected for the purpose of discussion.                                                                          
                                                                                                                                
2:03:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS explained Amendment  1 would delete all the                                                               
land sale language in the  bill, leaving intact the Alaska Native                                                               
Vietnam veteran  land exchange  provision, which  has a  sense of                                                               
urgency and a broad appeal.   He maintained the bill is two bills                                                               
combined in one:   a very broad land sale bill kind  of tied to a                                                               
Vietnam veteran land exchange.  One  part of the bill is somewhat                                                               
controversial  with  lots  of   important  policy  questions,  he                                                               
stated,  which  is very  different  in  nature from  the  Vietnam                                                               
veteran  land exchange.    He  said his  preference  is that  the                                                               
Alaska Native Vietnam veterans land  exchange be advanced rapidly                                                               
and   to  leave   the   thorny  land   sale   issues  for   later                                                               
consideration.                                                                                                                  
                                                                                                                                
2:04:58 PM                                                                                                                    
                                                                                                                                
BRENT GOODRUM,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department  of  Natural  Resources   (DNR),  responded  that  DNR                                                               
believes all the provisions within  the bill are important issues                                                               
dealing with  state land.   He  said DNR  agrees that  the Alaska                                                               
Native  Vietnam veteran  portion  is an  important  part of  this                                                               
bill, which  is why  the administration put  it forward,  but DNR                                                               
believes that all the provisions are appropriate to go forward.                                                                 
                                                                                                                                
2:04:54 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK removed his objection to Amendment 1.                                                                            
                                                                                                                                
REPRESENTATIVE RAUSCHER [objected to Amendment 1].                                                                              
                                                                                                                                
2:06:11 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Fields, Hopkins,                                                               
Hannan, and  Schrage voted in favor  of Amendment 1 to  Version G                                                               
of HB 120.  Representatives  McKay, Cronk, Rauscher, Gillham, and                                                               
Patkotak voted against  it.  Therefore, Amendment 1  failed to be                                                               
adopted by a vote of 4-5.                                                                                                       
                                                                                                                                
2:06:54 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:06 p.m. to 2:10 p.m.                                                                       
                                                                                                                                
2:10:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt  Amendment 2 to Version G of                                                               
HB 120, labeled 32-GH1634\G.3, Bullard, 5/5/22, which read:                                                                     
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "relating to access roads;"                                                                                  
                                                                                                                                
     Page 1, lines 2 - 3:                                                                                                       
          Delete "relating to the authority of the                                                                            
        Department of Education and Early Development to                                                                      
     dispose of state land;"                                                                                                  
                                                                                                                                
     Page 1, line 10, through page 3, line 31:                                                                                  
          Delete all material.                                                                                                  
                                                                                                                                
     Page 4, line 1:                                                                                                            
          Delete "Sec. 3"                                                                                                     
          Insert "Section 1"                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR PATKOTAK objected for the purpose of discussion.                                                                          
                                                                                                                                
2:10:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  explained Amendment 2.   He recounted that                                                               
in a previous hearing the  committee discussed the different land                                                               
disposal  processes for  the Department  of  Education and  Early                                                               
Development  (DEED), the  Department of  Transportation &  Public                                                               
Facilities (DOT&PF), and DNR.   He said Version G would authorize                                                               
DEED, DOT&PF,  and DNR to  sell land through some  new processes,                                                               
and he is concerned because  these proposed processes are not the                                                               
same for each department and will  not produce the same degree of                                                               
competitiveness in  disposal of property and  therefore return to                                                               
the state.  He said  the proposed processes also have differences                                                               
in terms of  degree to which the public feels  like it has notice                                                               
and  input  on  disposal.     The  concept  in  Amendment  2,  he                                                               
explained, is that if land is  going to be disposed more quickly,                                                               
it  should  be via  a  consistent  process  through DNR.    Under                                                               
Amendment 2,  he continued, the  expedited land  disposal process                                                               
would remain  the same for DNR  as is contemplated in  Version G;                                                               
however,  land  disposals  for  DEED and  DOT&PF  would  be  done                                                               
through DNR, which is consistent with  what happens now.  He said                                                               
it's important  the public get  a good  return on the  high value                                                               
parcels held  by DEED and DOT&PF,  and that is more  likely to be                                                               
had  through  DNR.   He  stated  that  he  doesn't want  to  have                                                               
inconsistent land disposal processes across departments.                                                                        
                                                                                                                                
2:12:33 PM                                                                                                                    
                                                                                                                                
KRISTIN "KRIS"  HESS, Deputy Director,  Division of  Mining, Land                                                               
and  Water   (DMLW),  Department  of  Natural   Resources  (DNR),                                                               
responded that DEED has a  written process, goes through a public                                                               
process, and  gets the most value  for its properties.   She said                                                               
disposals must  be evaluated  and approved  by the  [Alaska State                                                               
Board  of Education  & Early  Development].   So, she  continued,                                                               
DEED  has a  process  similar  to DNR's  process  for selling  or                                                               
disposing  of land  that is  no  longer necessary  to meet  their                                                               
needs.   Regarding roads,  she related that  DNR worked  with the                                                               
Alaska  Municipal  League (AML)  and  received  support for  that                                                               
process.                                                                                                                        
                                                                                                                                
2:13:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  offered closing  comments on  Amendment 2.                                                               
He said he  knows DNR manages a  lot more land than  do the other                                                               
agencies, but that the lands under  DEED and DOT&PF could be very                                                               
high value parcels because of  their proximity to roads and other                                                               
infrastructure.   He stated  he wants to  ensure these  lands are                                                               
used  for  the  best  public  purpose and,  if  that  is  private                                                               
commercial  development, then  there should  be public  input and                                                               
best yield received for that asset.                                                                                             
                                                                                                                                
CHAIR PATKOTAK removed his objection to Amendment 2.                                                                            
                                                                                                                                
REPRESENTATIVE RAUSCHER objected  to Amendment 2.   He said there                                                               
are other moving pieces to the processes.                                                                                       
                                                                                                                                
CHAIR  PATKOTAK  requested Ms.  Hess  to  provide further  detail                                                               
regarding AML's support and the  provisions outlined on pages 1-3                                                               
regarding the DEED and DOT&PF disposal process.                                                                                 
                                                                                                                                
2:15:16 PM                                                                                                                    
                                                                                                                                
MS. HESS  answered that DNR  worked with AML to  develop language                                                               
that  was  satisfactory   regarding  construction  standards  and                                                               
maintenance.   She said DNR has  two letters from AML  in support                                                               
of Version  G, Section 2,  and what it does  for DNR in  terms of                                                               
having  to construct  roads for  subdivisions.   Regarding DEED's                                                               
ability to  sell its own  land, she  stated that DEED  would seek                                                               
the input of stakeholders and  other agencies before going out to                                                               
the  public, and  then it  would follow  a public  process.   She                                                               
related that DEED  is supportive of keeping the  provision in the                                                               
bill that would  allow DEED the flexibility to sell  land that is                                                               
no longer necessary for the agency's purposes.                                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS asserted  that local governments supporting                                                               
consistent  construction and  maintenance standards  is different                                                               
from  supporting  a  land  disposal  process  within  a  specific                                                               
department.   He  offered  his understanding  that  Ms. Hess  was                                                               
speaking  to  the  maintenance standards  of  access  roads,  not                                                               
whether DOT&PF can directly dispose of property.                                                                                
                                                                                                                                
MR. HESS  agreed she was  speaking to the  construction standards                                                               
rather than  DOT&PF being able  to dispose  of land by  itself as                                                               
the state  agency.   She explained that  DOT&PF already  has that                                                               
ability for  its roads  under Title 19,  but the  agency's public                                                               
facilities are  under Title  35 and this  provision in  Version G                                                               
makes it all consistent for DOT&PF  to dispose of land that is no                                                               
longer necessary for road purposes as  well as to dispose of land                                                               
that is no longer needed for public facilities.                                                                                 
                                                                                                                                
2:17:56 PM                                                                                                                    
                                                                                                                                
HEATHER  O'CLARAY,  Statewide  Right-of-Way  Chief,  Division  of                                                               
Statewide   Design  and   Engineering  Services,   Department  of                                                               
Transportation  & Public  Facilities  (DOT&PF), confirmed  DOT&PF                                                               
does have independent authority to  dispose of land.  She further                                                               
confirmed that  DOT&PF's rules are different  for properties that                                                               
are  considered public  works or  facilities  that were  acquired                                                               
under AS 35, which this bill  addresses, then they are for AS 19,                                                               
which this bill  does not address, or AS 02  Aviation, which this                                                               
bill also  does not address.   She added that because  of the way                                                               
AS 35 is  currently written, DOT&PF does not  have regulations to                                                               
do disposal under AS 35.                                                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS  stated that, given this  clarification, he                                                               
has less concern about this provision  in Version G.  He withdrew                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
2:19:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN moved to adopt  Amendment 3 to Version G of                                                               
HB 120, labeled 32-GH1634\G.7, Bullard, 5/8/22, which read:                                                                     
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "relating to the leasing and sale of state                                                                   
     land;"                                                                                                                   
                                                                                                                                
     Page 7, line 20, through page 11, line 14:                                                                                 
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR PATKOTAK objected for the purpose of discussion.                                                                          
                                                                                                                                
2:19:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN explained  Amendment  3  would remove  the                                                               
entirety of Section 13, a  provision which she believes sidesteps                                                               
nearly a  half century  of planning processes  that have  been in                                                               
law.   She said  Section 13 would  allow de  facto noncompetitive                                                               
sole  source leasing  on sales  of state  land without  having to                                                               
comply  with  state area  land  management  plans for  processes,                                                               
which  are painstakingly  public, exhaustive,  and a  mainstay of                                                               
why  Alaskans believe  the state's  land management  is adequate.                                                               
Section  13,  she added,  would  open  the strong  potential  for                                                               
sweetheart  deals.   While the  department  has no  intent to  do                                                               
that, she continued, intent does  not carry forward on that level                                                               
once someone has nominated a piece  of land which he or she found                                                               
attractive for a business that  may have previously been excluded                                                               
because of an extensive public  process of a land management area                                                               
plan.    She  said  deleting  Section 13  relieves  many  of  her                                                               
concerns with the  bill and ensures that state  land disposals go                                                               
through  and comply  with  the area  land  management process,  a                                                               
completely public  process from  start to finish  so there  is no                                                               
opportunity for  a sweetheart deal  and manipulation of  what has                                                               
been a sound practice in Alaska.                                                                                                
                                                                                                                                
MS.  HESS  responded that  individuals  could  nominate land  for                                                               
either lease  or sale, but if  it is not properly  classified for                                                               
disposal, DNR would still have  to go through that public process                                                               
and reclassify it so that it  would be available for either lease                                                               
or sale.   The bill as  currently written, she said,  also allows                                                               
the  commissioner to  consider those  nominations  but maybe  not                                                               
take them  up.  So,  she continued, DNR  feels there is  a public                                                               
process  as it  would consider  the area  plans and  the planning                                                               
process, and it  would go through that same public  process if it                                                               
needs  to  be  classified  so  that it  would  be  available  for                                                               
disposal.                                                                                                                       
                                                                                                                                
2:23:00 PM                                                                                                                    
                                                                                                                                
MS.  HESS, responding  further to  Representative Hannan,  stated                                                               
that in application, she is an attorney.                                                                                        
                                                                                                                                
REPRESENTATIVE HANNAN  noted that  Ms. Hess  used the  terms "can                                                               
consider" and  "could."  Previous  explanations she  has received                                                               
from the department,  she related, were that  the commissioner is                                                               
to "consider" the land management  plan, but it is not restricted                                                               
to that,  so the  commissioner "could" decide  to take  an action                                                               
that  is in  direct conflict  with an  area land  management plan                                                               
because the commissioner is to  [consideration is not a mandate].                                                               
She  expressed her  concern that  while this  administration does                                                               
not  have the  intent to  do that,  a situation  would be  set up                                                               
where  the  mandate for  an  area  land management  plan  becomes                                                               
subjective language of  "may."  She asked whether  she is correct                                                               
that this  would therefore  mean a  public process  prescribed in                                                               
law would now say that  the department and its commissioner could                                                               
decide to do something different, and the law would allow it.                                                                   
                                                                                                                                
MS.  HESS  answered that  that  is  not  the way  the  department                                                               
interprets  this  provision   of  Section  13.     She  said  the                                                               
commissioner  can consider  a  nomination to  lease  or sell  the                                                               
land; the commissioner doesn't have  to consider that, but if the                                                               
commissioner chooses  to consider  that nomination then  it would                                                               
have to  go through the  area plan  process for amending  an area                                                               
plan if  it's proper  depending on weighing  a bunch  of factors.                                                               
That  would  go  through  a  public  process  of  classifying  or                                                               
changing  the classification  if it's  appropriate; there  may be                                                               
times  when it  is not  appropriate to  change a  classification,                                                               
such as for  a highly mineralized area.  So,  Ms. Hess continued,                                                               
a nomination  is what  the commissioner "can  consider."   If the                                                               
commissioner  chooses to  consider that  nomination for  either a                                                               
lease or  sale, she  said, then  the area plan  is going  to come                                                               
into play because it must  be properly classified to move forward                                                               
with that lease or sale, and  that would be a full public process                                                               
by DNR that takes in public comment.                                                                                            
                                                                                                                                
2:26:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS  agreed   with  Representative   Hannan's                                                               
assessment that  the department "could"  ignore these plans.   He                                                               
put forth the Hatcher Pass Land Use  Plan as an example of a plan                                                               
that had years of public input  from multiple user groups, and he                                                               
expressed his concern  that under Section 13 a key  piece of land                                                               
could  be  liquidated  because   this  section  would  allow  the                                                               
department to ignore  all that public input.   He maintained that                                                               
Section 13  would enable  liquidation, for  example, of  a public                                                               
access  that would  be  contrary to  the  public interest,  which                                                               
troubles him.   He said  Section 13 is inconsistent  with maximum                                                               
benefit from development of a resource.                                                                                         
                                                                                                                                
2:28:25 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK requested  a refresher  on the  mechanics of  the                                                               
bill  as it  relates to  sole sourcing  versus competitively  bid                                                               
lands put up for sale.   He offered his understanding that when a                                                               
piece of land is appealed to  be sold, the department is going to                                                               
consider the best  return for the state.  He  inquired about what                                                               
triggers the determination  that it is an outright  sale versus a                                                               
competitively bid process.                                                                                                      
                                                                                                                                
MS.  HESS replied  that currently  leases under  10 years  do not                                                               
have to be  competitive, but leases longer than 10  years must be                                                               
a  competitive process.   She  said the  area plan  must properly                                                               
classify the land  to be available for either  lease or disposal.                                                               
She stated  that DNR considers  its area  plans all the  time and                                                               
there are many reasons why area  plans are amended or changed for                                                               
a specific  purpose.  But,  she continued, it would  still follow                                                               
the public processes for changing  that classification of an area                                                               
plan for a specific purpose for  a specific need such as lease or                                                               
sale if it is not currently classified like that.                                                                               
                                                                                                                                
2:30:09 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK posed  a scenario  in which  a sale  has occurred                                                               
where  an  organized  city or  borough  controls  the  permitting                                                               
process locally, and  he offered his understanding  that it would                                                               
still have  to meet that  bar.  He  related that during  his time                                                               
serving on the  North Slope Borough, the  borough exercised Title                                                               
19 powers that everything is  a conservation district, and anyone                                                               
interested in  commercial aspects  must come before  the assembly                                                               
through a long  and critical process to change the  land use plan                                                               
for  that  area from  a  conservation  district to  a  multi-use,                                                               
recreational,  or industrial  district.   He  surmised that  this                                                               
bill  would not  undermine  any municipal  authorities or  powers                                                               
that a potential private landowner would have to go through.                                                                    
                                                                                                                                
MS. HESS  confirmed that  that is  correct.   She said  that once                                                               
land is  sold from state ownership  to private hands, if  the now                                                               
private property is in a  municipality or borough with zoning and                                                               
powers,  the   private  landowner   will  have  to   follow  that                                                               
municipality's  rules  and regulations  regarding  classification                                                               
needs for permitting for that borough or municipality.                                                                          
                                                                                                                                
2:32:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM asked  how someone with a  cabin on leased                                                               
state lands could buy that land.                                                                                                
                                                                                                                                
MS. HESS  answered that currently  a person can nominate  land to                                                               
be sold  because the  department has  that ability  under current                                                               
state statutes.  She  said the owner of a cabin  on a state lease                                                               
could come to the department and  nominate it for a sale, and the                                                               
area plan is going to have to allow for that to happen.                                                                         
                                                                                                                                
REPRESENTATIVE GILLHAM related that  this question was brought up                                                               
to him  by cabin owners who  want to buy  the land.  He  said the                                                               
cabin owners  are paying property  taxes on land they  don't own,                                                               
and they want to know how to  buy that property and whether it is                                                               
DNR that they would approach.                                                                                                   
                                                                                                                                
MS.  HESS responded  that the  cabin owners  are probably  paying                                                               
taxes to  the local  municipality on  the improvements  that they                                                               
own because  the lease/permit holder  doesn't own  the underlying                                                               
land.  If  the cabin owners want to buy  the underlying land, and                                                               
assuming  it  is not  in  a  legislatively designated  area,  she                                                               
continued, they could nominate it  and ask the department to sell                                                               
it to them.   Like what is in Section 13,  she added, anybody can                                                               
ask the  state to sell  a piece of  land and then  the department                                                               
evaluates and goes  through that public process as  to whether it                                                               
is appropriate to sell the  underlying land.  Responding further,                                                               
she confirmed the prospective purchaser would come to DNR.                                                                      
                                                                                                                                
CHAIR  PATKOTAK  thanked  Ms. Hess  for  underlining  Section  13                                                               
leases and sales of land on commercial developments.                                                                            
                                                                                                                                
2:34:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN,  regarding Section  13, recalled  that Ms.                                                               
Hess had earlier  assured her that if a parcel  was nominated for                                                               
commercial  development, DNR  couldn't just  redo the  process if                                                               
the area management plan didn't  allow it.  Representative Hannan                                                               
maintained, however, that Section  13 does allow the commissioner                                                               
to  classify or  reclassify the  land  and that  that process  of                                                               
classification is substantially  less than what it  takes to redo                                                               
a  management plan  to  say that  the parcel  could  be sold  for                                                               
commercial development.   She asked  whether Ms. Hess  knows what                                                               
the differences  are between  reclassifying something  within the                                                               
management plan and redoing the management plan.                                                                                
                                                                                                                                
MS. HESS answered that AS 38.05.300  and AS 38.04.065 lay out the                                                               
processes for classifying land or  reclassifying land, and either                                                               
way it  must go  through the  public process.   She said  all the                                                               
factors that  current state statutes  require must be  weighed in                                                               
terms of balancing those needs  and determining whether it can be                                                               
properly classified to be sold out of state ownership.                                                                          
                                                                                                                                
REPRESENTATIVE HANNAN said  the description given to  her is that                                                               
that reclassification  public process is substantially  less than                                                               
what a management  plan process is.  Although Ms.  Hess is saying                                                               
that there is still a  public process, Representative Hannan said                                                               
she presumes that the notification  is not very extensive and can                                                               
be done in one meeting, one  hearing.  She asked how similar this                                                               
proposed  process  is  to  the   extensive  and  exhaustive  area                                                               
management plan process that involves all entities.                                                                             
                                                                                                                                
MS. HESS confirmed  that DNR's area plans  take considerable time                                                               
to  develop  from  start  to finish  and  include  public  input,                                                               
meetings,  and talking  with local  landowners and  stakeholders.                                                               
She said the same thing  also happens with DNR's reclassification                                                               
process.  She said DNR looks  for public input and weighs a bunch                                                               
of factors  that are required  under state statutes.   She stated                                                               
that it might be a discrete portion  of the area plan that DNR is                                                               
looking to change  but it doesn't de minimize  the public process                                                               
that  DNR must  follow and  the  input that  DNR receives  before                                                               
determining if it's appropriate to reclassify those lands.                                                                      
                                                                                                                                
2:38:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  expressed  his concern  about  notice  to                                                               
adjacent  landowners  in  [Section  13].     He  posited  that  a                                                               
significant piece of public property  with public access and huge                                                               
public benefits that  has been through a  10-year management plan                                                               
process could  be disposed  of through, say,  a mailing  to three                                                               
people, an  online public  notice during  hunting season  when no                                                               
one is  paying attention,  and notice in  a local  newspaper that                                                               
few people  read, and therefore no  one might notice.   He stated                                                               
that important public lands need  to go through a rigorous public                                                               
process.  However,  Section 13 is designed to  dispose as quickly                                                               
as possible  with minimal  public input,  and this  public notice                                                               
issue gets at the problem with Section 13, he argued.                                                                           
                                                                                                                                
2:39:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY called the question.                                                                                       
                                                                                                                                
2:40:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS opined  that ensuring  there is  good and                                                               
proactive  public  notice  is  the  right  direction  for  making                                                               
certain  that all  the affected  property owners  and users  know                                                               
what is  happening in  an area.   He said  he will  be supporting                                                               
Amendment 3 to ensure Alaskans are not left out of the process.                                                                 
                                                                                                                                
CHAIR PATKOTAK removed his objection to Amendment 3.                                                                            
                                                                                                                                
REPRESENTATIVE RAUSCHER objected to Amendment  3.  He stated that                                                               
the auction process isn't good for someone obtaining a loan.                                                                    
                                                                                                                                
2:41:00 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Schrage, Hannan,                                                               
Hopkins, and  Fields voted in favor  of Amendment 3 to  Version G                                                               
of HB 120.   Representatives Gillam, Rauscher,  Cronk, McKay, and                                                               
Patkotak voted against  it.  Therefore, Amendment 3  failed to be                                                               
adopted by a vote of 4-5.                                                                                                       
                                                                                                                                
[HB 120 was held over.]                                                                                                         
                                                                                                                                
2:41:50 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House Resources Standing Committee meeting was recessed to                                                                  
8:00 a.m. on 5/10/22 [which was subsequently delayed to 3:00                                                                    
p.m. and reconvened at 3:05 p.m. on 5/10/22].                                                                                   

Document Name Date/Time Subjects
SB 177 Presentation CVEA 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
SB 177
SJR 23 Image of Family With Mountain 3.18.2022.jpg HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Image of Mountain Aerial 3.18.2022.jpg HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Image of Mountain From Deck 3.18.2022.jpg HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Image of Mountain Location 3.18.2022.jpg HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Letter of Support Cappelletti 03.16.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Letter of Support Judy Brady 03.14.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Letter of Support Kim Griffith 03.12.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Letter of Support Debardelaben 03.17.2022.pdf HRES 5/9/2022 1:00:00 PM
SJR 23
SJR 23 Letter of Support Ralph Samuels 03.16.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Sponsor Statement 3.18.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SJR 23 Letter of Support DeBardelaben 3.18.2022.pdf HRES 5/9/2022 1:00:00 PM
SRES 3/18/2022 3:30:00 PM
SJR 23
SB 177 Sectional Analysis 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
SB 177
SB 177 Explanation of Changes Version B 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
SB 177
HB 120 Amendment Fields G.2 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
HB 120
HB 120 Amendment Fields G.3 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
HB 120
HB 120 Testimony Packet Three 5.9.2022.pdf HRES 5/9/2022 1:00:00 PM
HB 120
HB 120 Amendment Hannan G.7 5.9.22.pdf HRES 5/9/2022 1:00:00 PM
HB 120