02/23/2024 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HJR20 | |
| HB296 | |
| HB282 | |
| HB223 | |
| HB177 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 177 | TELECONFERENCED | |
| += | HB 281 | TELECONFERENCED | |
| += | HB 296 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 223 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| *+ | HJR 20 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 23, 2024
1:02 p.m.
DRAFT
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Stanley Wright
Representative Jennie Armstrong (via teleconference)
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 20
Urging withdrawal of proposed Bureau of Land Management
regulations affecting the National Petroleum Reserve in Alaska;
and urging meaningful engagement with tribes, local governments,
and affected communities.
- MOVED HJR 20 OUT OF COMMITTEE
HOUSE BILL NO. 296
"An Act relating to the powers of the board of agriculture and
conservation; relating to loans and limitations under the Alaska
Agricultural Loan Act; relating to federal crop insurance
contributions; relating to municipal and state procurement
preferences for agricultural products harvested in the state and
fisheries products harvested or processed in the state; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 282
"An Act 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
sale and lease of state land; relating to covenants and
restrictions on agricultural land; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 223
"An Act relating to the production tax and royalty rates on
certain gas; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 177
"An Act relating to critical and essential minerals and the
global energy transition."
- MOVED CSHB 177(RES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HJR 20
SHORT TITLE: NAT'L PETROLEUM RESERVE IN ALASKA
SPONSOR(s): REPRESENTATIVE(s) BAKER
02/14/24 (H) READ THE FIRST TIME - REFERRALS
02/14/24 (H) RES
02/19/24 (H) RES AT 1:00 PM BARNES 124
02/19/24 (H) -- MEETING CANCELED --
02/21/24 (H) RES AT 1:00 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 296
SHORT TITLE: AGRICULTURAL PRODUCTS/LOANS/SALES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/26/24 (H) READ THE FIRST TIME - REFERRALS
01/26/24 (H) RES
02/12/24 (H) RES AT 1:00 PM BARNES 124
02/12/24 (H) Heard & Held
02/12/24 (H) MINUTE(RES)
02/14/24 (H) RES AT 1:00 PM BARNES 124
02/14/24 (H) Heard & Held
02/14/24 (H) MINUTE(RES)
02/23/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 282
SHORT TITLE: STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/24 (H) READ THE FIRST TIME - REFERRALS
01/22/24 (H) TRA, RES, FIN
02/06/24 (H) TRA AT 1:00 PM BARNES 124
02/06/24 (H) Heard & Held
02/06/24 (H) MINUTE(TRA)
02/13/24 (H) TRA AT 1:30 PM BARNES 124
02/13/24 (H) Moved HB 282 Out of Committee
02/13/24 (H) MINUTE(TRA)
02/14/24 (H) TRA RPT 6DP 1NR
02/14/24 (H) DP: MINA, MCKAY, VANCE, SUMNER, C.
JOHNSON, MCCABE
02/14/24 (H) NR: STUTES
02/19/24 (H) RES AT 1:00 PM BARNES 124
02/19/24 (H) -- MEETING CANCELED --
02/21/24 (H) RES AT 1:00 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 223
SHORT TITLE: TAX & ROYALTY FOR CERTAIN GAS
SPONSOR(s): RAUSCHER
01/16/24 (H) PREFILE RELEASED 1/8/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) RES, FIN
01/31/24 (H) RES AT 1:00 PM BARNES 124
01/31/24 (H) Heard & Held
01/31/24 (H) MINUTE(RES)
02/07/24 (H) RES AT 1:00 PM BARNES 124
02/07/24 (H) <Bill Hearing Rescheduled to 02/09/24>
02/09/24 (H) RES AT 1:00 PM BARNES 124
02/09/24 (H) Heard & Held
02/09/24 (H) MINUTE(RES)
02/19/24 (H) RES AT 1:00 PM BARNES 124
02/19/24 (H) -- MEETING CANCELED --
02/21/24 (H) RES AT 1:00 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 177
SHORT TITLE: CRITICAL NATURAL MINERALS PLAN AND REPORT
SPONSOR(s): SADDLER
04/24/23 (H) READ THE FIRST TIME - REFERRALS
04/24/23 (H) RES, FIN
01/17/24 (H) RES AT 1:00 PM BARNES 124
01/17/24 (H) Heard & Held
01/17/24 (H) MINUTE(RES)
01/22/24 (H) RES AT 1:00 PM BARNES 124
01/22/24 (H) Heard & Held
01/22/24 (H) MINUTE(RES)
02/23/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE THOMAS BAKER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HJR 20.
STEVE ST. CLAIRE, Staff
Representative Thomas Baker
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Baker, prime
sponsor, presented reasons for bringing HJR 20 forth.
ANDY MACK, CEO
Kuukpik Corporation
Village Corporation for Nuiqsut
Nuiqsut, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
D.J. FAUSKE, Director
Government and External Affairs for North Slope Borough
Utquiagvik, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
KARA MORIARTY, President and CEO
Alaska Oil and Gas Association (AOGA)
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony in support of
HJR 20.
BRIDGET ANDERSON, Senior Vice President
External Affairs
Arctic Slope Regional Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
DOREEN LEAVITT, Director
Natural Resources
Inupiat Community of the North Slope
Barrow, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
CHERYL BOWIE, representing self
No address provided
POSITION STATEMENT: Testified in support of HJR 20.
NAGRUK HARCHAREK, President
Voice of the Arctic Inupiaq
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
KARI NORE, Director
External Affairs
Alaska Chamber of Commerce
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
LEILA KIMBRELL, Executive Director
Resource Development Counsel for Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 20.
BRENT GOODRUM, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Responded to proposed amendments during the
hearing on HB 282 on behalf of the bill sponsor, House Rules by
request of the governor.
CHRISTY COLLES, Director
Division of Mining, Land, and Water
Alaska Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint presentation
regarding HB 282.
HEATHER O'CLARAY, Chief
State Right of Way
Division of Statewide Design and Engineering Services
Department of Transportation & Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Answered questions regarding HB 282.
LORI WEED, Acting Facilities Manager
School Finance and Facilities Section
Department of Education and Early Development
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 282.
ED KING, Staff
Representative McKay
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the changes in the committee
substitute for HB 223.
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor of HB 177, explained the
changes in the committee substitute.
ACTION NARRATIVE
1:01:59 PM
CHAIR MCKAY called the House Resources Standing Committee
meeting to order at 1:02 p.m. Representatives Baker, McCabe,
Saddler, Armstrong (via teleconference), Mears, and Dibert were
present at the call to order. Representatives Rauscher and
Wright arrived as the meeting was in progress.
HJR 20-NAT'L PETROLEUM RESERVE IN ALASKA
1:03:21 PM
CHAIR MCKAY announced that the first order of business would be
HOUSE JOINT RESOLUTION NO. 20, Urging withdrawal of proposed
Bureau of Land Management regulations affecting the National
Petroleum Reserve in Alaska; and urging meaningful engagement
with tribes, local governments, and affected communities.
1:03:55 PM
REPRESENTATIVE THOMAS BAKER, Alaska State Legislature, as prime
sponsor, presented the sponsor statement for HJR 20 [included in
the committee packet], which read as follows [original
punctuation provided]:
HJR 20 urges that the Bureau of Land Management (BLM)
withdraw a proposed rule affecting the National
Petroleum Reserve in Alaska (NPR-A). The Resolution
also urges meaningful engagement with tribes, local
governments and impacted communities. There are many
flaws with this proposed policy. In short, the rule
lacks meaningful engagement, lacks legal durability
and has flawed economics.
Lack of meaningful engagement. The timing and rollout
of the rule-making was messy. The BLM disregarded the
fall subsistence hunting and whaling seasons within my
district, despite pleas from my constituents to extend
the comment period and engage in formal consultation
outside of traditional hunting and whaling times. Yet,
BLM ignored those multiple requests. Inadequate time
was granted for organizations to respond meaningfully
during the public comment period and the BLM's
engagement with impacted communities was woefully
insufficient. The BLM failed to engage with impacted
communities and organizations as required by federal
law and agency policy. This all came at a time when
Alaskans were asked to comment on multiple projects
with overlapping public comment periods to include the
cancellation of leases within the 1002 Area and Ambler
Road projects.
Lack of legal durability. The proposed rule
fundamentally alters NPR-A's purpose and contravenes
both Naval Petroleum Reserves Production Act (NPRPA)
and congressional intent. The NPR-A was originally
created in 1923 for the purposes of oil and gas
development. Later in 1980, the NPRPA amendments
directed the Secretary of Interior to "conduct an
expeditious program of competitive leasing" in the
area. However, the BLM's proposed rule will treat 13.1
million acres of Special Areas in the NPR-A as defacto
wilderness. This rule lacks legal durability because
only Congress has the authority to set forth national
energy policy, and this proposed rule seeks to usurp
Congressional authority. Further, it has the potential
to impact future development within the NPR-A because
it shifts the national energy policy focus from
responsible development to surface estate
conservation. This has the potential to impact future
leasing and development with the NPR-A, as well as
potential tie-ins of satellite fields to the Trans
Alaska Pipeline. That is unacceptable for Alaska.
Flawed economics. Finally, the BLM failed to
adequately assess the economic impact this proposed
rule would have on North Slope communities, the
Federal Treasury, and the greater State of Alaska.
They did not account for the lost revenue to the North
Slope Borough, the Federal Treasury, and Alaskan
businesses. Furthermore, they did not identify or
assign value to the increased costs in services to
Alaskans by the Federal or State governments as a
result of the economic suffocation this proposed rule
would impose. If the proposed rule is published, our
ability to continue exploring and producing for oil
and gas in the NPR-A will be negatively impacted. It's
important to say again, the NPR-A was set aside for
the purpose of protecting our national energy
security. This will negatively impact our ability to
increase oil flowing through the Trans Alaska Pipeline
from the NPR-A. Our governments, organizations and
residents will be negatively impacted from the loss of
revenue, jobs and the multiplier effect of the
resource dollars.
1:06:30 PM
CHAIR MCKAY opened invited testimony.
1:06:42 PM
ANDY MACK, CEO, Kuukpik Corporation, Village Corporation for
Nuiqsut, spoke in support of HJR 20. He explained that Kuukpik
Corporation is the private landowner of 145,000 acres for
Nuiqsut village. For the past several decades, the corporation
has been involved in decisions regarding the National Petroleum
Reserve in Alaska (NPR-A). The corporation works for balanced
development; to protect the land; and to maintain subsistence
activities. Development is mitigated as much as possible to
avoid impacts. In many instances, Kuukpik has been at the
forefront of protecting the land. The corporation sees the most
concerning issue to be the impact on subsistence activities. He
drew the committee's attention to a particular section of the
proposed Bureau of Land Management (BLM) rule which suggests
that other things are more important than subsistence. He
pointed out the proposed rule is written so the effects would
spill out to additional areas and activities in the NPR-A
1:12:31 PM
D.J. FAUSKE, Director, Government and External Affairs for North
Slope Borough, spoke in support of HJR 20 on behalf of the North
Slope Borough. The borough is a home rule government which
represents over 10,000 residents, many communities, and the
entire national petroleum reserve. The new BLM regulations
would drastically change the terms Congress set for the NPR-A.
The new regulations were set without consulting Alaska natives
or organizations located within the Arctic. An extension was
requested but denied. The rule will also affect oil flowing
through the pipeline.
1:17:41 PM
REPRESENTATIVE MCCABE referenced a book titled The Moral Case
for Fossil Fuels which brought to light the issue of life
expectancy among people in the Arctic. He asked Mr. Fauske to
comment on how the generation views oil.
MR. FAUSKE responded to the question with personal experiences,
referencing his family history. He also discussed the life
expectancy which was previously 56 years old. Now the average
life expectancy is between 68 and 69. People of the Arctic have
benefited greatly from oil exploration.
1:20:58 PM
CHAIR MCKAY called on several testifiers who could not be heard
due to technical difficulties.
1:22:05 PM
KARA MORIARTY, President and CEO, Alaska Oil and Gas Association
(AOGA), provided invited testimony in support of HJR 20. She
stated that the oil and gas industry expect to spend over 14
billion dollars in capital expenditures in a five-year period
from 2023 to 2028, much of which will be spent in the NPR-A.
This legislation appropriately requests BLM to withdraw its
proposed NPR-A rule which would be a complete shift in BLM
management of the area. The proposed rule presents many new
substantive standards which would have significant and adverse
impacts. Additionally, the proposed rule conflicts with
congressional intent and raises questions of legal durability of
the proposal.
1:25:28 PM
BRIDGET ANDERSON, Senior Vice President, External Affairs,
Arctic Slope Regional Corporation, spoke in support of HJR 20,
emphasizing the lack of input by people who live in the area.
She also called into question the necessity of the rule,
pointing out that the proper process was not followed. The
proposed rule is worded in such a way that it calls into
question whether the people who live in the area will be able to
use the land. There is unified support for HJR 20 from the
region.
1:28:40 PM
DOREEN LEAVITT, Director, Natural Resources, Inupiat Community
of the North Slope, spoke in support of HJR 20, drawing
attention particularly to the lack of notification. All eight
of the communities and nine federally recognized tribes are
impacted by the BLM decision. The tribes have a legal
entitlement to proper consultation which did not occur. The
tribes were left out of the decision-making process. This has a
direct impact on the land and the people, changing the tax base
as well as access to privately owned land.
1:31:47 PM
CHAIR MCKAY opened public testimony
1:32:27 PM
CHERYL BOWIE, representing self, spoke in support of HJR 20.
She discussed being born in Kotzebue and described personal
experiences regarding the issues of oil and gas. She described
the values of the Arctic.
1:36:21 PM
NAGRUK HARCHAREK, President, Voice of the Arctic Inupiaq, spoke
in support of HJR 20. He described the Voice of the Arctic
Inupiaq as a non-profit comprised of cities, tribes,
corporations, and regional organizations concerned with the
North Slope who are concerned about the future of the Arctic and
explained why the organization supports HJR 20.
1:38:04 PM
KARI NORE, Director, External Affairs, Alaska Chamber of
Commerce, spoke in support of HJR 20. She described the
diversity of the Alaska Chamber of Commerce membership. The
Chamber supports Alaska oil and gas exploration in Alaska's
federal areas. She pointed out that the NPR-A ensures America's
national energy security while balancing it with conservation.
1:39:42 PM
LEILA KIMBRELL, Executive Director, Resource Development Council
for Alaska, spoke in support of HJR 20. She described the work
of the Resource Development Counsel for Alaska (RDC) and
explained why the RDC supports the resolution. She emphasized
the potential for irresponsible development in the NPR-A and the
North Slope. Time is of the essence.
1:42:35 PM
CHAIR MCKAY closed public testimony.
1:42:44 PM
CHAIR MCKAY noted that there were no amendments.
1:42:56 PM
REPRESENTATIVE RAUSCHER moved to report HJR 20 out of committee
with individual recommendations and accompanying fiscal notes.
1:43:17 PM
REPRESENTATIVE MEARS objected for purpose of discussion. She
expressed appreciation for the resolution and pointed out that
all Alaskans have a responsibility to look out for the land for
the greater good.
REPRESENTATIVE MEARS removed her objection.
1:44:01 PM
REPRESENTATIVE SADDLER explained that what the BLM has done is
unconscionable; it seems the bureau is going to incrementally
choke off the life blood of the state.
1:44:57 PM
CHAIR MCKAY announced there being no objection, HJR 20 was
reported out of the House Resources Standing Committee.
1:45:11 PM
The committee took an at-ease from 1:45 p.m. to 1:48 p.m.
HB 296-AGRICULTURAL PRODUCTS/LOANS/SALES
1:48:19 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 296, "An Act relating to the powers of the board
of agriculture and conservation; relating to loans and
limitations under the Alaska Agricultural Loan Act; relating to
federal crop insurance contributions; relating to municipal and
state procurement preferences for agricultural products
harvested in the state and fisheries products harvested or
processed in the state; and providing for an effective date."
1:49:12 PM
The committee took an at-ease from 1:49 p.m. to 1:50 p.m.
1:50:21 PM
REPRESENTATIVE RAUSCHER moved to adopt the proposed committee
substitute (CS) for HB 296, Version 33-GH2386\B, Bullard,
2/12/24, as a working document. There being no objection,
Version B was before the committee.
1:51:10 PM
REPRESENTATIVE MEARS moved to adopt Amendment 1 to HB 296,
Version B, labeled 33-GH2386\B.9, A.Radford/Bullard, 2/21/24,
which read as follows:
Page 1, line 3, following "to":
Insert "a report to the legislature on"
Page 5, line 19, through page 10, line 5:
Delete all material.
Renumber the following bill sections accordingly.
Page 10, line 14:
Delete ", as amended by secs. 11 and 13 of this
Act,"
Page 10, line 15:
Delete ", as amended by secs. 17 and 19 of this
Act"
Page 10, line 25:
Delete "whether to extend the changes made by
secs. 11, 13, 15, 17, 19, and 21 of this Act"
Insert "potential statutory changes to make
purchase preference programs more effective at
stimulating state agriculture"
Page 10, line 26, through page 11, line 9:
Delete all material.
Renumber the following bill sections accordingly.
Page 11, line 14:
Delete "secs. 2 - 10 and 23"
Insert "secs. 2 - 11"
Page 11, line 17:
Delete "26"
Insert "13"
Page 11, line 18:
Delete all material.
Renumber the following bill sections accordingly.
Page 11, line 19:
Delete "Sections 2 - 10 and 23"
Insert "Sections 2 - 11"
Page 11, line 20:
Delete all material.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
REPRESENTATIVE MEARS explained that the amendment resulted from
working on the Food Strategy Task Force in consultation with the
Governor's Office and the Department of Natural Resources (DNR).
One of the concerns regarded the purchasing requirements without
a dollar limit on some of those purchases. The task force was
interested in meaningful in-state purchases of local Alaska
food. There is definite support for continuing the purchase
preference, but more time is needed to collect data and work on
it.
1:52:46 PM
REPRESENTATIVE SADDLER asked Deputy Commissioner Goodrum to
speak to the amendment, pointing out it was a fairly substantial
deletion from the bill.
BRENT GOODRUM, Deputy Commissioner, Department of Natural
Resources (DNR), responded to Representative Saddler's question
about the amendment. He said he understands members' concerns
about the expanded procurement preference for a period of five
years. The hope is to keep the preference for state agencies
for at least five years. However, if the committee decides
otherwise, there is still Section 24 requiring an annual report
to the legislature. The data would better support future
recommendations to the legislature and help expand market
opportunities for Alaska farmers, including leveraging the state
institutional buying power.
1:54:02 PM
MR. GOODRUM responded to questions by the committee, explaining
that the department has sufficient staff time and resources to
review the preference information. He also said that the
department accepts the Amendment.
1:54:39 PM
REPRESENTATIVE SADDLER withdrew his objection. There being no
further objection, Amendment 1 was adopted.
1:54:49 PM
The committee took an at-ease from 1:54 p.m. to 1:55 p.m.
1:55:51 PM
REPRESENTATIVE MEARS moved to adopt Amendment 2 to HB 296,
Version B, labeled 33-GH2386\B.5, Klein/Bullard, 2/18/24, which
read as follows:
Page 3, lines 11 - 15:
Delete all material and insert:
"(3) shall be secured by a real estate or
chattel mortgage of any priority, except that the
portion of a loan that exceeds $500,000, when added to
prior indebtedness that is secured by the same
property, must be secured by a first mortgage;"
REPRESENTATIVE RAUSCHER objected for the purpose of discussion.
REPRESENTATIVE MEARS explained that Amendment 2 is about the
agricultural revolving loans funds. The loan requirements
outlined in the original language of the bill are unnecessary.
1:58:11 PM
MR. GOODRUM responded to a question from Representative Raucher
and explained that the department had no problem with Amendment
2.
1:58:49 PM
REPRESENTATIVE SADDLER questioned how far any priority can
extend regarding a loan.
REPRESENTATIVE MEARS responded that the issue can be addressed
in underwriting.
1:59:34 PM
REPRESENTATIVE RAUSCHER removed his objection. There being no
objection, Amendment 2 was adopted.
1:59:59 PM
REPRESENTATIVE RAUSCHER moved to adopt Amendment 3 to HB 296,
Version B, labeled 33-GH2386\B.13, Bullard, 2/23/24, which read
as follows:
Page 3, lines 7 - 10:
Delete all material and insert:
"(2) may not, when added to the outstanding
balance of other loans made under this chapter, exceed
a total outstanding balance of $3,000,000, adjusted
annually for inflation on July 1 of each year based on
the percentage increase in the Consumer Price Index
for all urban consumers for urban Alaska during the
previous calendar year, as determined by the United
States Department of Labor, Bureau of Labor Statistics
[$1,000,000];"
2:00:14 PM
REPRESENTATIVE SADDLER objected for the purpose of discussion.
REPRESENTATIVE RAUSCHER explained that Amendment 3 sets
percentages and other side bars. In addition, it changes the
amount of total outstanding balances from one million to three
million dollars.
REPRESENTATIVE SADDLER commented that the bill sets the
outstanding amount at the discretion of the board of
agriculture, but the amendment sets a hard dollar limit.
MR. GOODRUM explained that DNR had originally recommended
setting a new cap, and the three-million-dollar amount adjusted
for inflation should be sufficient. However, the department
would like to continue to review the language. In addition, the
department would like to see a conforming amendment changing the
effective date from July 1, 2025, to July 1, 2024.
REPRESENTATIVE SADDLER asked whether the committee needs a
conceptual amendment to change the effective date.
2:03:30 PM
The committee took a brief at-ease at 2:03 p.m.
2:04:27 PM
REPRESENTATIVE SADDLER moved to adopt Conceptual Amendment 1 to
Amendment 3, which would advance the effective date of the new
hard cap on the loans as discussed in Amendment 3.
2:04:50 PM
REPRESENTATIVE RAUSCHER objected for the purpose of discussion.
MR. GOODRUM said the department was in favor of the conceptual
amendment.
2:05:37 PM
REPRESENTATIVE RAUSCHER removed his objection. There being no
further objection, Conceptual Amendment 1 to Amendment 3 was
adopted.
2:05:48 PM
CHAIR MCKAY announced there being no objection, Amendment 3, as
amended, was adopted. [The objection previously stated by
Representative Saddler was treated as withdrawn.]
2:06:12 PM
REPRESENTATIVE RAUSCHER moved to adopt Amendment 4 to HB 296,
Version B, labeled 33-GH2386\B.10, Bullard, 2/21/24, which read
as follows:
Page 2, line 5:
Delete "or"
Insert "[OR]"
Page 2, line 6, following "machinery":
Insert "; or
(v) the cost of shipping to and within the
state for the purposes listed in (i) - (iv) of this
subparagraph"
Page 2, line 17, following "state":
Insert "for the purposes listed in (i) - (iv) of
this subparagraph"
CHAIR MCKAY objected for the purpose of discussion.
REPRESENTATIVE RAUSCHER explained the amendment was for the
purpose of consistency.
MR. GOODRUM stated the department saw this as a "belt and
suspenders amendment" and had no objection.
2:07:16 PM
CHAIR MCKAY removed his objection. There being no objection,
Amendment 4 to HB 296 was adopted.
2:07:42 PM
REPRESENTATIVE MEARS explained that she would not be offering
Amendment 5.
2:07:55 PM
REPRESENTATIVE RAUSCHER moved to adopt Conceptual Amendment [6]
to HB 296, to include provisions that mandate the Division of
Agriculture and the State Procurement Office to evaluate and
enhance the process of institutional purchases, so Alaska grown
products are integrated into institutional contracts and
procurement processes.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
2:09:01 PM
REPRESENTATIVE MEARS expressed her support for state purchases
of local foods.
REPRESENATIVE BAKER objected to Conceptual Amendment 6 for the
purpose of discussion.
REPRESENTATIVE RAUSCHER requested information regarding DNR's
perspective on this amendment.
MR. GOODRUM explained that this is an area the department needs
to do more work on, and it is willing to do so. The department
is supportive of learning more about procurement and
institutional buying power in the state to create more markets
for agriculture.
2:10:00 PM
The committee took a brief at-ease at 2:10 p.m.
2:10:20 PM
REPRESENTATIVE RAUSCHER asked if there was more discussion
regarding the amendment.
REPRESENTATIVE SADDLER requested clarification of the date
stated on the conceptual amendment.
CHAIR MCKAY noted that Representative Baker removed his
objection.
REPRESENTATIVE RAUSCHER withdrew Conceptual Amendment 6,
explaining that it needed more work.
2:11:36 PM
The committee took an at-ease from 2:11 p.m. to 2:14 p.m.
2:14:00 PM
CHAIR MCKAY announced HB 296, as amended, was held over.
HB 282-STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT
2:14:16 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 282, "An Act 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
sale and lease of state land; relating to covenants and
restrictions on agricultural land; and providing for an
effective date."
2:14:48 PM
BRENT GOODRUM, Deputy Commissioner, Department of Natural
Resources (DNR), presented opening remarks for HB 282, state
land disposals. He explained the state manages over 100 million
acres of land within the state and 65 million acres of tideland
belonging to citizens of the state of Alaska. This legislation
[HB 282] would serve to cut red tape; create flexibility and
responsiveness within state departments; and open additional
opportunities for everyday Alaskans. The bill would streamline
land transfer functions from the state that would allow the
Department of Transportation and Public Facilities and the
Department of Education and Early Development to directly
transfer lands no longer needed for their original purposes to
private parties. The bill would also work to create flexible
leasing requirements; incorporate adaptable road standards; and
provide necessary financial support for the development of state
lands in preparation for sales to Alaskans. The legislation
would also help facilitate commercial sales by introducing a new
statute for land leasing and sales and would enable expanded
agricultural use to be inclusive of land activities such as bed
and breakfasts to offset agricultural costs. The result opens
lands for the use of everyday Alaskans.
2:17:15 PM
CHRISTY COLLES, Director, Division of Mining, Land, and Water,
Alaska Department of Natural Resources, on behalf of the
sponsor, House Rules by request of the governor, gave a
PowerPoint presentation, titled "HB 282 State Land:
Disposal/Sale/Lease/Restrict," [hardcopy included in the
committee packet]. She presented slide 1, "Overview," which
read as follows [original punctuation provided]:
• Authorize the Department of Education & Early
Development (DEED) and the Department of
Transportation & Public Facilities (DOT&PF) to
directly dispose of surface land, rather than
transferring land to the Department of Natural
Resources (DNR) for conveyance
• Increase the cap on the Land Disposal Income Fund
(LDIF)
• Update and improve provisions relating to DNR's land
disposal procedures in AS 19.30, AS 38.04, AS 38.05
• Amends agricultural use restrictions
• Add a new statute relating to leases and sales of
land for commercial development
MS. COLLES moved to slide 2, "Authority for Direct Disposal of
State Land," which read as follows [original punctuation
provided]:
• Proposed amendments allow the Department of
Education and Early Development (amending AS
14.07.030) and Department of Transportation & Public
Facilities (amending AS 35.20.070) to sell land
directly to private parties
Streamlining land disposals, reducing multi-agency
involvement
Expanding eligible recipients beyond federal, state
agencies, and political subdivisions
MS. COLLES said the amendments would streamline the conveyance
of land by removing a duplicative multi-agency process. Two
recent examples where the Department of Education and Early
Development (DEED) has transferred title to DNR for conveyance
to a third party are Japonski Island in Sitka and Telephone Hill
in Juneau. Public notices and other regulations would still
apply to such conveyances.
2:19:47 PM
REPRESENTATIVE MEARS questioned what mechanisms DEED and the
Department of Transportation & Public Facilities (DOT&PF) use
for taking over and selling land.
MS. COLLES pointed out that the lands in question would be very
specific. She deferred to Lori Weed of DEED and Heather
O'Claray of DOT&PF for additional information.
2:20:40 PM
HEATHER O'CLARAY, Chief, State Right of Way, Division of
Statewide Design and Engineering Services, Department of
Transportation & Public Facilities, responded to Representative
Mears' question by briefly describing the department's existing
authority for disposing of properties, specifically facilities
properties.
REPRESENTATIVE MEARS questioned whether a separate fiscal note
was needed rather than a line item in the bill's fiscal note.
MS. O'CLARAY explained that currently DOT&PF has existing
regulations, and this falls withing their purview.
2:22:46 PM
LORI WEED, Acting Facilities Manager, School Finance and
Facilities Section, Department of Education and Early
Development, explained that DEED has existing authority to
dispose of land parcels to certain entities; the department has
someone on staff who deals with conveyance of properties.
2:23:38 PM
MS. COLLES continued with the next slide, "Land Disposal Income
Fund (LDIF)," which read as follows [original punctuation
provided]:
• The LDIF holds deposits from the state land disposal
program
• Under current law, the portion of the fund in excess
of $5 million is to be deposited in the state general
fund
• The bill raises state land disposal income fund cap
from $5 million to $12 million
• Boosts spending authority for larger projects
• Addresses inflation since 2000; cap unchanged for 20
years
• Adjustment to funding cap, not appropriation
• Department can request limit increase in annual
report
2:24:47 PM
REPRESENTATIVE SADDLER clarified that this does not represent a
new appropriation but rather just a larger account that money
can go into. He asked what the most immediate impact of
expanding the Land Disposal Income Fund (LDIF) would be.
MS. COLLES agreed about the fund and explained that it was an
initial step for growth.
2:25:52 PM
MS. COLLES returned to the PowerPoint and moved to slide 5,
"Agricultural Land Lease and Sale Procedures," which read as
follows [original punctuation provided]:
• Amendment to AS 38.05.321 allows broader use of
agricultural land and improvements
• Currently an agricultural landowner can only use the
land for purposes that are incidental to and not
inconsistent with agricultural land
• Proposed amendment would now allow an agricultural
landowner to use land for purposes that are consistent
with and do not interfere with the primary purpose
2:26:33 PM
REPRESENTATIVE MEARS asked where the income from selling land
would go into the LDIF. She questioned how using the LDIF met
the appropriations standards.
MS. COLLES explained how the LDIF worked.
MR. GOODRUM provided additional information regarding the LDIF
and appropriations.
2:28:44 PM
REPRESENTATIVE RAUSCHER asked about the reasons for changing the
cap from $5 million to $12 million.
MS. COLLES described the reverse sweep in fiscal year 2022 (FY
22) and how the money listed is an adjustment to the funding cap
rather than an appropriation.
REPRESENTATIVE RAUSCHER asked whether $12 million would be spent
in a year.
MS. COLLES responded that it would depend and described how the
LDIF is similar to a bank account.
2:31:01 PM
MS. COLLES presented slide 6, "Agricultural Land Lease and Sale
Procedures," which read as follows [original punctuation
provided]:
• Amendment to AS 38.05.321 allows broader use of
agricultural land and improvements
• Currently an agricultural landowner can only use the
land for purposes that are incidental to and not
inconsistent with agricultural land
• Proposed amendment would now allow an agricultural
landowner to use land for purposes that are consistent
with and do not interfere with the primary purpose
MS. COLLES continued with slide 7, "Access Road Construction,"
which read as follows [original punctuation provided]:
• Amends AS 19.30.080 to specify that access roads to
surface disposals may be developed at a pioneer
standard
Clarifying language on right-of-way widths within
municipal boundaries
Align with municipal zoning requirements to the same
extent as private developers
MS. COLLES moved to slide 8, "Land Sale Procedures," which read
as follows [original punctuation provided]:
• Land sale disposal contracts
Longer purchase terms from 20 years to 30 years
Consistency in terms from "Foreclosure" to
"Termination"
Allows for paid in full purchase when existing
infrastructure would increase liability of financing a
land sale purchase contract
2:32:56 PM
REPRESENTATIVE RAUSCHER asked about the use of the term
"termination" rather than "foreclosure" of contracts and whether
DNR has terminated contracts.
MS. COLLES explained how DNR contracts differ from banking
contracts and confirmed that the department has terminated
contracts.
MS. COLLES advanced to slide 8, "Survey Requirements for
Leases," which read as follows [original punctuation provided]:
• Discretion of cadastral surveys for long-term leases
Survey could be required where infrastructure
boundaries or access
management is in the best interest of the state
Reduces the financial and administrative burden on
industries
Industry is challenged by current requirements
• Ex: Renewable energy projects, grazing leases
2:34:36 PM
REPRESENTATIVE MEARS commented about the accuracy of satellite
surveys and inquired about setbacks and whether there is a
buffer to reduce conflicts.
MS. COLLES answered that there is nothing in statute that
addresses such a buffer, but it is something that could be done
by statute or regulation. A description of commercial and
public development was continued with slide 9, "Land for
Commercial Development," which read as follows [original
punctuation provided]:
• Stimulate economic development
• Offers land for leasing, and sale, by requesting
proposals
For state land identified or nominated as a
Qualified Opportunity Zone
For state land nominated by the public
• Land nominated cannot exceed 640 acres
For any other state land the commissioner deems
appropriate for commercial development
• Nominated land may need to be reclassified
Provide additional public notice beyond normal AS
38.05.945
2:37:40 PM
REPRESENTATIVE MEARS inquired about state land nominated for the
public and what process private individuals would use.
MS. COLLES described how the nomination process for commercial
development would work and what would happen if there was
competition for a parcel.
2:39:06 PM
MS. COLLES presented the sectional analysis of HB 282, slides 10
through 13, which read as follows [original punctuation
provided]:
• Section 1: Amends AS 14.07.030 to expand authority
for land disposals for Dept. of Education and Early
Development
• Section 2: Amends AS 19.30.080 for access road
development related to surface disposals within a
municipal boundary
• Section 3: Reenacted authority to Dept. of
Transportation & Public Facilities to expand authority
to vacate and dispose of land
• Section 4: Raises state land disposal income fund
cap from $5 million to $12 million
• Section 5: Removes the requirement of a cadastral
survey for a long-term lease under AS 38.05.070
• Section 6: Grants the commissioner discretion to
require a cadastral survey for a long-term lease
issued under AS 38.05.070
• Section 7: Repeals and reenacts AS 38.05.055 to
clarify requirements for public auction or sealed bid
as the default methods for sale of state land
• Section 8: Amends AS 38.05.065(a) to allow a longer
term of 30 years for contracts
• Section 9-12: Updates AS 38.05.065(c), (d), and (f)
with consistent industry terms
• Section 13: Amends AS 38.05.065(h) for consistency
in land sale disposals
• Section 14: Adds new section (j) to AS 38.05.065 for
consistency in land sale disposals and new section (k)
to reduce liability to the state
• Section 15: Adds new section to AS 38.05 (AS
38.05.086) for nomination, lease, and sale of land for
commercial development
• Section 16: Amends AS 38.05.321 to expand allowable
uses on conveyed agricultural land
• Section 17: Amends AS 38.05.965 to include term
definitions
• Section 18: Repeals AS 38.05.065(b) to conform with
updates in previous section 13
• Section 19: Provides immediate effective date
2:43:21 PM
REPRESENTATIVE RAUSCHER asked how many land disposal programs
the state has currently.
MS. COLLES replied that there were two land sales currently. In
response to a follow-up question, she explained that none of the
lands for sale were Mental Health Trust Land.
MS. COLLES presented the fiscal note on slide 14, which read as
follows [original punctuation provided]:
• FY 2025 $655.4 (5 positions)
• Two Permanent Full-Time Natural Resource Specialists
3
• Two Permanent Full-Time Natural Resource Specialist
2
• One Permanent Full-Time Appraiser 1
These positions will support timely adjudication of
the expanded Land Sales with Commercial Development
program applications
• FY 2026-2030 $630.4 annually
2:45:20 PM
CHAIR MCKAY announced an amendment deadline of February 27.
2:45:54 PM
CHAIR MCKAY announced that HB 282 was set aside.
2:46:17 PM
The committee took an at-ease from 2:46 p.m. to 2:47 p.m.
HB 223-TAX & ROYALTY FOR CERTAIN GAS
2:47:17 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 223,"An Act relating to the production tax and
royalty rates on certain gas; and providing for an effective
date."
2:47:20 PM
REPRESENTATIVE RAUSCHER moved to adopt the proposed committee
substitute (CS) for HB 223, Version 33-LS0886\S, Nauman,
2/10/24, as a working document.
CHAIR MCKAY objected for purposes of discussion.
2:47:45 PM
ED KING, Staff, Representative Tom McKay, Alaska State
Legislature, explained the purpose of the committee substitute
for HB 223 was to combine the governor's royalty bill with the
bill sponsor's ideas and reviewed those changes. The summary of
changes [included in the committee packet], read as follows
[original punctuation provided]:
House Bill 223
Cook Inlet Royalty Reduction
Summary of Changes from Version B to S
Change 1: A new bill section 1 was added to expand the
commissioner's list of required actions.
Change 2: The new subsection AS 38.05.180(mm) was
expanded to include oil and provide more clarity.
(Previous bill section 2, CS page 8 beginning line 27)
Change 3: Another subsection, AS 38.05.180(nn) was
added to provide a definition for "new gas."
(CS page 9 beginning line 7)
Change 4: The provisions relating to production tax
reduction were removed.
(Previous bill sections 3-6)
Change 5: A new bill section was added to include the
calculation of prevailing market value for natural gas
to the Commissioner of Revenue's duties.
(CS page 9 beginning line 22)
Change 6: Transition language was added to authorize
the commissioner to modify lease agreements to
incorporate the changes made by this bill.
(CS page 9 beginning line 25)
Change 7: The January 1, 2025 effective date for the
production tax related bill sections became moot and
were deleted.
2:49:47 PM
CHAIR MCKAY said he would extend the amendment deadline on HB
223.
CHAIR MCKAY removed his objection to the motion to adopt the
proposed CS. There being no further objection, Version S was
before the committee as a working document.
CHAIR MCKAY announced that HB 223 was held over.
HB 177-CRITICAL NATURAL MINERALS PLAN AND REPORT
2:50:12 PM
CHAIR MCKAY announced that the final order of business would be
HOUSE BILL NO. 177, "An Act relating to critical and essential
minerals and the global energy transition."
REPRESENTATIVE RAUSCHER moved to adopt the proposed committee
substitute (CS) for HB 177, 33-LS0744\B, Dunmire, 2/21/24, as
the working document.
CHAIR MCKAY objected for the purpose of discussion.
2:50:52 PM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature, as prime
sponsor, presented and explained the changes in HB 177 from the
original bill version to Version B. The summary of changes
[included in the committee packet] read as follows [original
punctuation provided]:
Summary of Changes: Version A to Work Draft Version B
House Bill 177
"An Act relating to critical and essential minerals
and the global energy transition."
Page 1, Line 1
Version B removes the words "and the global energy
transition" from the bill title.
Section 1, Subsection (a) Page 1, Lines 3-15
Subsection (a) was revised to convey the legislature's
intent that the State of Alaska develop a strategic
plan to increase critical and essential mineral
development activity in the state. Version A of the
bill limited this task to the Office of the Governor,
but Version B expands the scope by including the
entire state government in the development of this
strategic plan.
Version B also removes references to the end products
that critical and essential minerals can be used in to
avoid the implication that critical and essential
minerals only have a limited use, when in fact there
are a wide array of uses for these minerals.
Section 1, Subsection (b) Page 2, Lines 1-16
Subsection (b) was amended by deleting the list of
specific minerals found in Version A and replacing it
with language directing the Department of Natural
Resources to rely on the most recent critical minerals
lists published by the United States Department of
Energy and the United States Department of the
Interior, Geological Survey.
Subsection (b) was further amended to add "Native
corporations" to the list of stakeholders that the
Department of Natural Resources may consult with when
developing the report. Language was also added to this
subsection requiring the commissioner to post the
finalized report on the department's website.
Section 2, AS 44.33.431(c) Page 2, Lines 17-24
Subsection (c) of Version A, which directed the
Department of Commerce, Community, and Economic
Development to provide a report, was deleted. In its
place, Section 2 of Version B amends the Alaska
Minerals Commission statute by adding the requirement
that the commission also make recommendations related
to strategies for increasing critical and essential
mineral development in the state
2:53:34 PM
REPRESENTATIVE MEARS suggested that specific energy uses might
be identified under HB 177.
REPRESENTATIVE SADDLER explained his preference to keep the bill
broad to leave the option open to incorporate future uses such
as new energy.
REPRESENTATIVE MEARS clarified her question but commented that
it might be outside the scope of this bill.
2:56:15 PM
[The objection to adopting Version B was treated as withdrawn.]
REPRESENTATIVE RAUSCHER moved to report CSHB 177 (RES), Version
33-LS0744\B, Dunmire, 2/21/24, out of committee with individual
recommendations and the accompanying fiscal notes.
2:56:36 PM
There being no objection, CSHB 177., as amended, was reported
out of the House Resources Standing Committee.
2:57:02 PM
CHAIR MCKAY set the amendment deadline for HB 222 for February
29 at 5 p.m.
2:57:34 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 20 Sponsor Statement.pdf |
HRES 2/19/2024 1:00:00 PM HRES 2/23/2024 1:00:00 PM |
HJR 20 |
| HB 296 Clean-up CS.pdf |
HRES 2/23/2024 1:00:00 PM |
HB 296 |
| HB282.Ver.A.Sectional Analysis.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DEED.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DNR2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.SponsorStmt.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB 282, SB 199 State Land_Disposal_Sale_ Briefing Paper 02.06.2024.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 SB 199 |
| HB 282 Transmittal Letter State Land Disposal without enclosures 01.22.24.pdf |
HRES 2/19/2024 1:00:00 PM HRES 2/23/2024 1:00:00 PM |
HB 282 |
| HB 282 DNR State Land_Disposal_Sale_Lease_Restrict Presentation 02.19.24.pdf |
HRES 2/19/2024 1:00:00 PM HRES 2/23/2024 1:00:00 PM |
HB 282 |
| HB 223 CS.pdf |
HRES 2/19/2024 1:00:00 PM HRES 2/23/2024 1:00:00 PM |
HB 223 |
| HB 177 Committee Substitute.pdf |
HRES 2/23/2024 1:00:00 PM |
HB 177 |
| HB 296 HRES Amendment Packet.pdf |
HRES 2/23/2024 1:00:00 PM |
HB 296 |
| HB 296 DNR Responses to HRES Questions 02.15.2024.pdf |
HRES 2/23/2024 1:00:00 PM |
HB 296 |
| HB 223 Summary of Changes (B to S).pdf |
HRES 2/23/2024 1:00:00 PM |
HB 223 |
| HJR 20 Alaska Delegation Letter on OIRA NPR-A Review.pdf |
HRES 2/23/2024 1:00:00 PM |
HJR 20 |
| HB 177 Summary of Changes ver. A to ver. B.pdf |
HRES 2/23/2024 1:00:00 PM |
HB 177 |
| HJR 20 Supporting Document NPR-A Working Group Resolution Requesting NEPA Analysis 2.6.24.pdf |
HRES 2/23/2024 1:00:00 PM |
HJR 20 |
| HJR 20 Letter of Support ICAS NSB ASRC Final 02.16.2024.pdf |
HRES 2/23/2024 1:00:00 PM |
HJR 20 |