Legislature(2009 - 2010)BARNES 124

03/30/2009 01:00 PM RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 28 OPPOSE RESTRICTIONS ON OIL/GAS ACTIVITIES TELECONFERENCED
Moved CSHJR 28(RES) Out of Committee
*+ HCR 10 OPPOSE FED. CONTROL OF STATE LAND & WATER TELECONFERENCED
Moved CSHCR 10(RES) Out of Committee
*+ HJR 27 STATE SOVEREIGNTY TELECONFERENCED
Moved CSHJR 27(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 30, 2009                                                                                         
                           1:02 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Craig Johnson, Co-Chair                                                                                          
Representative Mark Neuman, Co-Chair                                                                                            
Representative Kurt Olson                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 28                                                                                                   
Urging the President  of the United States and  the United States                                                               
Congress not to adopt any  policy, rule, or administrative action                                                               
or  enact legislation  that  would  restrict energy  exploration,                                                               
development, and  production in  federal and state  waters around                                                               
Alaska, the  outer continental  shelf within  50 miles  of shore,                                                               
and  elsewhere  in  the continental  United  States;  urging  the                                                               
President of the United States  and the United States Congress to                                                               
encourage  and promote  continued  exploration, development,  and                                                               
production of domestic oil and gas resources.                                                                                   
                                                                                                                                
     - MOVED CSHJR 28(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 10                                                                                              
Urging  the Governor  to file  an action  to restrain  the United                                                               
States Department  of the Interior,  National Park  Service, from                                                               
intruding  on  the  sovereign  right of  the  state  to  exercise                                                               
jurisdiction over  navigable water and submerged  land and urging                                                               
the Governor  to allocate sufficient resources  to the Department                                                               
of Law, the  Department of Natural Resources,  and the Department                                                               
of  Fish and  Game  to defend  the state's  right  to manage  the                                                               
public use of its navigable water.                                                                                              
                                                                                                                                
     - MOVED CSHCR 10(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 27                                                                                                   
Relating to sovereign powers of the state.                                                                                      
                                                                                                                                
     - MOVED CSHJR 27(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 28                                                                                                                  
SHORT TITLE: OPPOSE RESTRICTIONS ON OIL/GAS ACTIVITIES                                                                          
SPONSOR(s): REPRESENTATIVE(s) JOHNSON                                                                                           
                                                                                                                                
03/23/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/09       (H)       ENE, RES                                                                                               
03/27/09       (H)       ENE REFERRAL WAIVED                                                                                    
03/30/09       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HCR 10                                                                                                                  
SHORT TITLE: OPPOSE FED. CONTROL OF STATE LAND & WATER                                                                          
SPONSOR(s): REPRESENTATIVE(s) HAWKER                                                                                            
                                                                                                                                
02/27/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/09       (H)       RES                                                                                                    
03/30/09       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HJR 27                                                                                                                  
SHORT TITLE: STATE SOVEREIGNTY                                                                                                  
SPONSOR(s): REPRESENTATIVE(s) KELLY                                                                                             
                                                                                                                                
03/19/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/19/09       (H)       RES                                                                                                    
03/30/09       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN BITTNER, Staff                                                                                                             
Representative Craig Johnson                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HJR 28 on behalf of the sponsor,                                                               
Representative Johnson.                                                                                                         
                                                                                                                                
JASON BRUNE, Executive Director                                                                                                 
Resource Development Council                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Supported HJR 28.                                                                                        
                                                                                                                                
MARILYN CROCKETT, Executive Director                                                                                            
Alaska Oil & Gas Association                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Supported HJR 28.                                                                                        
                                                                                                                                
TOM LAKOSH                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Opposed HJR 28, but suggested an amendment.                                                              
                                                                                                                                
REPRESENTATIVE MIKE HAWKER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As the sponsor, introduced HCR 10.                                                                       
                                                                                                                                
JOHN STURGEON                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Supported HCR 10.                                                                                        
                                                                                                                                
ROD ARNO, Executive Director                                                                                                    
Alaska Outdoor Council                                                                                                          
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Supported HCR 10.                                                                                        
                                                                                                                                
STAN LEAPHART, Executive Director                                                                                               
Citizens' Advisory Commission on Federal Areas                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Supported HCR 10.                                                                                        
                                                                                                                                
SCOTT HAMANN                                                                                                                    
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Supported HCR 10.                                                                                        
                                                                                                                                
REPRESENTATIVE MIKE KELLY                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As the sponsor, introduced HJR 27.                                                                       
                                                                                                                                
JAMES FLOYD                                                                                                                     
Tok, Alaska                                                                                                                     
POSITION STATEMENT:  Supported HJR 27.                                                                                        
                                                                                                                                
SCOTT HAMANN                                                                                                                    
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Urged that HJR 27 be strengthened.                                                                       
                                                                                                                                
ROD ARNO, Executive Director                                                                                                    
Alaska Outdoor Council                                                                                                          
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Supported HJR 27.                                                                                        
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  CRAIG  JOHNSON  called  the  House  Resources  Standing                                                             
Committee  meeting  to  order  at   1:02  p.m.    Representatives                                                               
Johnson, Neuman,  Wilson, Tuck, Seaton  were present at  the call                                                               
to order.   Representatives Olson  and Guttenberg arrived  as the                                                               
meeting was  in progress and  Representative Kawasaki  joined the                                                               
meeting via teleconference.                                                                                                     
                                                                                                                                
HJR 28-OPPOSE RESTRICTIONS ON OIL/GAS ACTIVITIES                                                                              
                                                                                                                              
1:03:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  first  order of  business                                                               
would be, HOUSE JOINT RESOLUTION  NO. 28, Urging the President of                                                               
the United  States and  the United States  Congress not  to adopt                                                               
any policy,  rule, or administrative action  or enact legislation                                                               
that   would  restrict   energy  exploration,   development,  and                                                               
production in federal  and state waters around  Alaska, the outer                                                               
continental shelf within 50 miles  of shore, and elsewhere in the                                                               
continental  United States;  urging the  President of  the United                                                               
States and  the United States  Congress to encourage  and promote                                                               
continued  exploration, development,  and production  of domestic                                                               
oil and gas resources.                                                                                                          
                                                                                                                                
JOHN BITTNER,  Staff, Representative Craig Johnson,  Alaska State                                                               
Legislature,  introduced  HJR  28  on  behalf  of  Representative                                                               
Johnson,  sponsor.   He  reviewed  the  history of  oil  drilling                                                               
within the Outer  Continental Shelf (OCS) beginning  in 1953 when                                                               
the U.S.  Congress passed the  Submerged Lands Act  which granted                                                               
individual  states the  right to  natural resources  on submerged                                                               
lands up to  three miles off of shore.   The act also re-affirmed                                                               
federal  claims to  all  resources on  OCS  submerged lands  from                                                               
three  miles   offshore  to  two   hundred  miles,  with   a  few                                                               
exceptions, he said.   Later that same year,  Congress passed the                                                               
Outer  Continental   Shelf  Lands   Act  outlining   the  federal                                                               
responsibilities over  these lands and authorizing  the Secretary                                                               
of  Interior  to  lease those  lands  for  resource  development.                                                               
Environmental  activism  in  the  1960s  and  1970s  resulted  in                                                               
passage of  the National Environmental  Policy Act and  the Clean                                                               
Air  Act, and  creation of  the Environmental  Protection Agency.                                                               
He said these and other regulatory  bills created the core of the                                                               
regulatory  framework  currently  applicable  to  all  extractive                                                               
industries.                                                                                                                     
                                                                                                                                
MR.  BITTNER noted  that  in the  1980s  Congress passed  various                                                               
area-specific moratoriums  on OCS  drilling and during  this time                                                               
petroleum  revenues dropped  markedly for  a variety  of reasons.                                                               
By 1990 the bans on drilling  had encompassed so much of the U.S.                                                               
Exclusive Economic Zone  that a blanket moratorium  on most areas                                                               
was enacted by the president.   In 2008, President Bush rescinded                                                               
this moratorium and Congress followed  suit by rescinding the ban                                                               
on  OCS  leasing.   This  allowed  the U.S.  Minerals  Management                                                               
Service  (MMS) to  start the  process of  offering OCS  lands for                                                               
lease.  He related that the  MMS estimates that 574 million acres                                                               
of the U.S.  OCS are currently off limits and  these banned areas                                                               
contain  an  estimated  17.8  billion barrels  of  oil  and  76.5                                                               
trillion cubic feet (TCF) of natural gas.                                                                                       
                                                                                                                                
MR.  BITTNER stated  that a  recently  released economic  report,                                                               
commissioned  by  Shell  Oil  on  the  economic  impacts  of  OCS                                                               
development in Alaska, projects that  roughly 35,000 jobs will be                                                               
created in the  state over the 50-year period  of OCS development                                                               
and exploration, with those jobs  representing a combined payroll                                                               
of  $72  billion.   Direct  petroleum  revenue  to the  state  is                                                               
estimated at  $5.8 billion, the  majority of which  will directly                                                               
impact local governments through property taxes.                                                                                
                                                                                                                                
MR. BITTNER said  President Obama is delaying the  lifting of the                                                               
OCS  drilling  moratorium  and   Interior  Secretary  Salazar  is                                                               
expressing  interest   in  closing   or  severely   limiting  OCS                                                               
exploration and  drilling in the Lower  48 in favor of  an as yet                                                               
uncrafted comprehensive energy plan.   He noted that this kind of                                                               
uncertainty   adversely   affects   potential   exploration   and                                                               
development  in these  areas because  companies cannot  afford to                                                               
risk huge sums  of capital to develop a resource  unless there is                                                               
a reasonable guarantee that their  investment will be secure.  To                                                               
this  effect,  he said  HJR  28  sends  a  clear message  to  the                                                               
President, Secretary of  the Interior, and Congress  that no laws                                                               
or  administrative orders  should be  passed that  would restrict                                                               
OCS drilling  and exploration in  Alaska or the  continental U.S.                                                               
The  resolution  further  urges  that  offshore  exploration  and                                                               
drilling be encouraged.                                                                                                         
                                                                                                                                
1:07:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NEUMAN asked  whether other  states have  come up  with                                                               
resolutions similar to HJR 28.                                                                                                  
                                                                                                                                
MR. BITTNER answered  that there has been a  pretty broad support                                                               
among several states  for OCS drilling.  It took  hold during the                                                               
recent  energy  crisis  when  oil   and  gas  was  expensive  and                                                               
alternative sources of petroleum were  being looked for.  He said                                                               
he does not  have any specific resolutions from  states, but that                                                               
Congress  has  passed  a resolution  urging  President  Obama  to                                                               
support OCS drilling.                                                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON   inquired  why  HJR  28   only  addresses                                                               
submerged lands as  far out as 50 miles rather  than the 200-mile                                                               
OCS limit.                                                                                                                      
                                                                                                                                
MR. BITTNER understood that this is  because HJR 28 only looks at                                                               
the  resources  in Alaska  and  most  of Alaska's  OCS  resources                                                               
currently  being considered  for development  are within  the 50-                                                               
mile range.                                                                                                                     
                                                                                                                                
CO-CHAIR  JOHNSON agreed  with  Mr.  Bittner.   Alaska  is not  a                                                               
signator on the Law of the  Sea Treaty, he added, so the decision                                                               
was to keep the distance close.                                                                                                 
                                                                                                                                
REPRESENTATIVE  SEATON   asked  whether   there  is   a  separate                                                               
designation of a 50-mile zone.                                                                                                  
                                                                                                                                
CO-CHAIR JOHNSON said there is not,  but that 50 miles is what is                                                               
being looked  at by Shell Oil  in the Chukchi and  Beaufort seas;                                                               
thus,  this is  the  area  that he  would  like  to address  when                                                               
Interior Secretary Salazar visits Alaska in April 2009.                                                                         
                                                                                                                                
1:10:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN  related that  representatives from  the Aleutian                                                               
Chain  and  Bristol  Bay  offered  their  support  for  off-shore                                                               
development while visiting Juneau  earlier this year because such                                                               
development would create jobs and be safe.                                                                                      
                                                                                                                                
REPRESENTATIVE TUCK noted that beginning  on page 2, line 31, the                                                               
resolution reads:   "in federal  and state waters  around Alaska,                                                               
the  outer  continental  shelf  within 50  miles  of  shore,  and                                                               
elsewhere  in the  continental United  States...."   He  inquired                                                               
whether "elsewhere in the continental  United States" expands the                                                               
resolution beyond Alaska's interests.                                                                                           
                                                                                                                                
MR. BITTNER replied  that HJR 28 specifically  focuses on Alaska,                                                               
but  does  include  provisions in  support  of  outer-continental                                                               
drilling off the rest of the continental United States.                                                                         
                                                                                                                                
CO-CHAIR  JOHNSON  added  that  the hope  is  other  states  will                                                               
support and include Alaska when they pass their own resolutions.                                                                
                                                                                                                                
REPRESENTATIVE   TUCK  expressed   his   concern  that   Alaska's                                                               
interests  not  be  tied  to  a  conglomerate  of  other  state's                                                               
interests and that Alaska speak for itself.                                                                                     
                                                                                                                                
1:12:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON noted  that the other states  might want to                                                               
address 200 miles  offshore rather than 50 miles,  given that 200                                                               
miles is what is included in the Law of the Sea Treaty.                                                                         
                                                                                                                                
CO-CHAIR JOHNSON  responded he would  not oppose amending  HJR 28                                                               
to  200  miles,  even  though  the  resolution  was  designed  to                                                               
encompass  the lease  sales that  are happening  in Alaska  right                                                               
now.  He  said he does not  want to have Canada  or Russia oppose                                                               
the resolution given that Alaska is  not a signator on the treaty                                                               
and technically does not have jurisdiction over the 200 miles.                                                                  
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  whether there  are any  reasons                                                               
where it  might not be in  the state's best interest  to develop,                                                               
such as geoducks or specific places.                                                                                            
                                                                                                                                
MR.  BITTNER said  he is  sure there  are, but  he does  not know                                                               
about any specific  sites since he does not  know the combination                                                               
of  biology and  potential petroleum  reserves.   He pointed  out                                                               
that before a  lease can be issued, and even  after it is issued,                                                               
significant environmental  and biological impact studies  must be                                                               
performed, which is taken into account.                                                                                         
                                                                                                                                
1:15:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  inquired whether  HJR 28 would  override the                                                               
wishes  of local  communities participating  in the  Coastal Zone                                                               
Management Plan.                                                                                                                
                                                                                                                                
MR.  BITTNER answered  that he  understands the  resolution would                                                               
not because it  deals only with the views on  OCS drilling of the                                                               
President, Secretary of the Interior, and Congress.                                                                             
                                                                                                                                
CO-CHAIR  JOHNSON interjected  that a  resolution only  indicates                                                               
the legislature's wishes; it has  no legal standing and would not                                                               
affect the Coastal Zone Management Plan.                                                                                        
                                                                                                                                
CO-CHAIR JOHNSON opened public testimony.                                                                                       
                                                                                                                                
1:16:28 PM                                                                                                                    
                                                                                                                                
JASON BRUNE, Executive Director, Resource Development Council                                                                   
(RDC), supported HJR 28 on behalf of the RDC.  He testified from                                                                
the following written statement [original punctuation provided]:                                                                
                                                                                                                                
     RDC  is  a   statewide,  non-profit,  membership-funded                                                                    
     organization founded  in 1975.   The RDC  membership is                                                                    
     comprised  of individuals  and companies  from Alaska's                                                                    
     oil  and gas,  mining, timber,  tourism, and  fisheries                                                                    
     industries,  as  well  as Alaska  Native  corporations,                                                                    
     local  communities,   organized  labor,   and  industry                                                                    
     support firms.  RDC's purpose  is to link these diverse                                                                    
     interests together  to encourage a  strong, diversified                                                                    
     private  sector  in  Alaska   and  expand  the  state's                                                                    
     economic  base through  the responsible  development of                                                                    
     our natural resources.                                                                                                     
                                                                                                                                
     Oil and gas resources  located in the Outer Continental                                                                    
     Shelf  out  to 200  miles  are  vital to  the  economic                                                                    
     viability of  a gas  pipeline to the  Lower 48  and the                                                                    
     continued  operation  of   the  Trans  Alaska  Pipeline                                                                    
     System  [TAPS].    Indeed,  an  additional  15  TCF  of                                                                    
     natural gas  must be discovered  for either  the Trans-                                                                    
     Canada or  Denali pipeline projects to  be economically                                                                    
     viable over the long term.   In addition, throughput in                                                                    
     TAPS continues its decline from  2.1 million barrels of                                                                    
     oil  per day  in  the  late 80s  to  one-third of  that                                                                    
     today.   This  trend  can be  reversed with  production                                                                    
     from   the  OCS   where   we   should  be   encouraging                                                                    
     development, not hampering it.                                                                                             
                                                                                                                                
     No  one   has  more  care  for   the  environment  than                                                                    
     Alaskans,  and  OCS  development  has  a  strong  track                                                                    
     record.    It  has   coexisted  with  other  industries                                                                    
     including fishing,  in Cook Inlet,  the North  Sea, and                                                                    
     the Gulf  of Mexico.  Energy  exploration, development,                                                                    
     and  production  in  federal and  state  waters  around                                                                    
     Alaska will  occur in an  environmentally-sensitive and                                                                    
     responsible  manner   overseen  by  the   strongest  of                                                                    
     regulatory   regimes.      When   necessary,   seasonal                                                                    
     operating  restrictions  and   mitigation  measures  to                                                                    
     avoid  conflicts  with  other resource  users  will  be                                                                    
     employed.                                                                                                                  
                                                                                                                                
     Given  the nation  will remain  heavily reliant  on oil                                                                    
     and gas  development for decades, America  must harness                                                                    
     the  significant  energy  resources  beneath  its  most                                                                    
     promising onshore and offshore oil  and gas basins.  It                                                                    
     is   important  to   take   into  consideration,   when                                                                    
     formulating  public policy,  that for  every barrel  of                                                                    
     oil America  refuses to  develop domestically,  it will                                                                    
     have little choice  but to import an  equal amount from                                                                    
     overseas  -  where   weaker  environmental  regulations                                                                    
     often apply.                                                                                                               
                                                                                                                                
     With the  impact high-energy  prices have  on Americans                                                                    
     and their economy,  the U.S. has a  moral obligation to                                                                    
     develop  domestic energy  sources, and  the OCS  is the                                                                    
     ideal location.  The resources  located in the OCS will                                                                    
     buy us the time we  need to develop the alternative and                                                                    
     renewable energy resources that  will someday break our                                                                    
     reliance on foreign oil.                                                                                                   
                                                                                                                                
MR. BRUNE,  in regard to  earlier discussion, stated  that leases                                                               
currently held in the Chukchi Sea  are located between 60 and 120                                                               
miles offshore, in the Beaufort Sea  they are up to 25 miles, and                                                               
in the North  Aleutian Basin the prospective areas are  out to 25                                                               
miles.                                                                                                                          
                                                                                                                                
CO-CHAIR JOHNSON  asked whether Mr. Brune  would support changing                                                               
the 50 miles to 200 miles.                                                                                                      
                                                                                                                                
MR. BRUNE supported the 200 miles.                                                                                              
                                                                                                                                
1:21:06 PM                                                                                                                    
                                                                                                                                
MARILYN   CROCKETT,  Executive   Director,  Alaska   Oil  &   Gas                                                               
Association  (AOGA), stated  that AOGA  is the  trade association                                                               
for Alaska's  oil and gas industry  and it supports HJR  28.  She                                                               
testified as follows:                                                                                                           
                                                                                                                                
     Passage  of  this  resolution will  send  an  important                                                                    
     message to the President  and lawmakers in the nation's                                                                    
     capital  that  Alaska  recognizes the  role  that  this                                                                    
     state  can play  in securing  critical domestic  energy                                                                    
     supplies.     An  energy  plan  for   the  nation  will                                                                    
     absolutely need to include Alaska  since this state has                                                                    
     over   30   percent   of   the   nation's   technically                                                                    
     recoverable resources.  In the  offshore alone, the MMS                                                                    
     estimates that  Alaska's OCS  contains an  estimated 27                                                                    
     billion barrels of  oil and 132 trillion  cubic feet of                                                                    
     natural gas  resources.   Furthermore, ...  the Chukchi                                                                    
     Sea  Basin  ...  has  been characterized  as  the  most                                                                    
     promising    and   materially    undeveloped   offshore                                                                    
     petroleum base  in the  U.S.   So, clearly,  Alaska can                                                                    
     play  a  very,  very  critical role  in  terms  of  the                                                                    
     nation's energy supply.                                                                                                    
                                                                                                                                
MS. CROCKETT noted that in addition  to the jobs and payroll that                                                               
would result  within Alaska from  OCS development,  $1.3 trillion                                                               
would  be  generated by  OCS  development  in  the Lower  48  for                                                               
federal, state,  and local government,  as well as  160,000 jobs.                                                               
She said the  oil and gas industry has already  spent billions of                                                               
dollars  for  the  rights  to   explore  and  develop  these  OCS                                                               
resources offshore  of Alaska.   While  harsh climate  and remote                                                               
locations are  challenges to  OCS development, HJR  28 is  a step                                                               
toward  mitigating  other types  of  challenges,  such as  access                                                               
restriction.                                                                                                                    
                                                                                                                                
1:23:30 PM                                                                                                                    
                                                                                                                                
TOM LAKOSH  stated that he  is a victim  of the Exxon  Valdez oil                                                               
spill and  while he  does not  have a  problem with  offshore gas                                                               
exploration and  development, he  does have grave  concerns about                                                               
Alaska's   inadequate   oil   spill  prevention   and   response,                                                               
particularly  in  Alaska's  ice-bearing waters  and  extreme  sea                                                               
states.   He  said he  has  researched oil  spill prevention  and                                                               
response technology  and when he  presented that technology  at a                                                               
2003  conference, experts  agreed  that the  technology would  be                                                               
effective in Alaska's  waters.  He related, however,  that a "BP"                                                               
representative told  him the  company did  not need  better spill                                                               
response  because the  Department  of Environmental  Conservation                                                               
gives  an   exemption  from  the  oil   spill  response  planning                                                               
standards when  there is more than  10 percent ice on  the water.                                                               
This seems very irresponsible, he said.                                                                                         
                                                                                                                                
MR.  LAKOSH contended  that  Alaska  is 10  years  behind in  the                                                               
standard  for evaluating  oil spill  response effectiveness.   He                                                               
said he must therefore oppose  HJR 28 if it promotes continuation                                                               
of this  ineffective oil spill  response.  He requested  that the                                                               
resolution's language  be amended  to exclude improved  oil spill                                                               
prevention and response  from any restrictions that  the state or                                                               
federal government may  impose on offshore development.   He said                                                               
he does  not like to  think that committee members  would violate                                                               
the  constitutional   right  to  reasonable  concurrent   use  of                                                               
Alaska's  resources,   of  which  subsistence  has   the  highest                                                               
priority  and would  be  adversely affected  by  the present  oil                                                               
spill  regulation  which  is totally  ineffective  at  preventing                                                               
damage to subsistence resources.                                                                                                
                                                                                                                                
1:27:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON said  that HJR 28 does say  safe and responsible                                                               
exploration.  He  explained that since it is a  resolution, not a                                                               
bill, it does not exempt anyone  from oil spill requirements.  He                                                               
said he will follow up on the 10 percent ice exemption.                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON inquired  whether Mr.  Lakosh had  written                                                               
testimony.                                                                                                                      
                                                                                                                                
MR. LAKOSH said he does not, but  that he would like to follow up                                                               
with Representative Seaton directly  to further explain the exact                                                               
impediments  to  effective  oil spill  recovery  in  both  arctic                                                               
conditions and  high seas that  are not being  properly addressed                                                               
by the Department of Environmental  Conservation, the MMS, or the                                                               
U.S. Coast Guard.                                                                                                               
                                                                                                                                
CO-CHAIR  JOHNSON urged  Mr. Lakosh  to  get with  Representative                                                               
Seaton or himself because if there  is technology to do it right,                                                               
then that should be implemented.                                                                                                
                                                                                                                                
1:29:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  whether eliminating  the  term  50                                                               
miles from page 2, line 21,  would satisfy Mr. Brune in regard to                                                               
not restricting OCS development.                                                                                                
                                                                                                                                
MR. BRUNE responded that it  would be the aforementioned location                                                               
as well  as on page 1,  line 4, and  that it could be  changed to                                                               
say up to  the 200 mile Exclusive  Economic Zone.  He  said it is                                                               
correct that there are areas  in which Alaska's jurisdiction does                                                               
not extend that far, given other nations that border the state.                                                                 
                                                                                                                                
CO-CHAIR JOHNSON  said the committee  will probably look  at some                                                               
kind of an  amendment on this.  He closed  public testimony after                                                               
ascertaining that no one else wished to testify.                                                                                
                                                                                                                                
CO-CHAIR  NEUMAN  moved  that   the  committee  adopt  Conceptual                                                               
Amendment 1 as follows:                                                                                                         
                                                                                                                                
     Page 1, line 4, following "within":                                                                                        
          Delete "50"                                                                                                           
          Insert "200"                                                                                                          
                                                                                                                                
     Page 2, line 21, following "within":                                                                                       
          Delete "50"                                                                                                           
          Insert "200"                                                                                                          
                                                                                                                                
     Page 2, line 31, following "within":                                                                                       
          Delete "50"                                                                                                           
          Insert "200"                                                                                                          
                                                                                                                                
1:32:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  objected  for discussion  purposes.    He                                                               
asked whether  the co-chair  wishes to  restrict the  distance to                                                               
200 miles  or would it  be better  to say "the  Outer Continental                                                               
Shelf controlled  by the U.S."   He noted there is  a bill before                                                               
Congress that would extend U.S. jurisdiction beyond 200 miles.                                                                  
                                                                                                                                
CO-CHAIR  JOHNSON said  it  is  not his  intention  to limit  the                                                               
distance  and perhaps  the  amendment could  state  200 miles  or                                                               
whichever  is greater.    He asked  whether the  Law  of the  Sea                                                               
Treaty  would   go  potentially   150  miles  beyond   the  Outer                                                               
Continental  Shelf or  if the  Outer  Continental Shelf  extended                                                               
more than 200 miles.                                                                                                            
                                                                                                                                
REPRESENTATIVE  SEATON answered  that  if  the Outer  Continental                                                               
Shelf extends  beyond 200 miles,  then under  the Law of  the Sea                                                               
Treaty the U.S.  could extend its jurisdiction  beyond 200 miles,                                                               
but only as far as the U.S. Outer Continental Shelf.                                                                            
                                                                                                                                
REPRESENTATIVE GUTTENBERG  commented that  he would like  to have                                                               
someone   with  offshore   expertise  tell   the  committee   the                                                               
difference between  the jurisdictions  and what the  result would                                                               
be  if  the  language  is  changed to  that  being  suggested  by                                                               
Representative Seaton.                                                                                                          
                                                                                                                                
1:34:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  said he agrees  with the 200 miles  and is                                                               
only  bringing   this  up  because   of  discussions   about  the                                                               
jurisdiction possibly being extended beyond 200 miles.                                                                          
                                                                                                                                
CO-CHAIR JOHNSON said the resolution  should not be based on what                                                               
may happen  in the future, given  that the Law of  the Sea Treaty                                                               
has not yet been ratified.                                                                                                      
                                                                                                                                
CO-CHAIR  NEUMAN said  the  committee should  deal  with the  way                                                               
things are today.                                                                                                               
                                                                                                                                
CO-CHAIR JOHNSON concurred.                                                                                                     
                                                                                                                                
REPRESENTATIVE   SEATON  pointed   out  that   he  objected   for                                                               
discussion  and  is  not  offering  an  amendment  to  Conceptual                                                               
Amendment 1,  but he just  wanted the discussion  for legislative                                                               
history to show  that the intent is not to  restrict the distance                                                               
to 200 miles  should U.S. control of the  Outer Continental Shelf                                                               
be extended beyond that distance.  He withdrew his objection.                                                                   
                                                                                                                                
CO-CHAIR  JOHNSON,  after  ascertaining   there  was  no  further                                                               
objection, announced that Conceptual Amendment 1 has passed.                                                                    
                                                                                                                                
1:37:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NEUMAN moved  to  report  HJR 28,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal note.                                                                                                               
                                                                                                                                
REPRESENTATIVE TUCK  objected and expressed his  concern with the                                                               
language "and  elsewhere in the  continental United  States" that                                                               
appears on  page 1, line  4, as well  as several other  places in                                                               
the  resolution.   He  said it  is not  in  Alaska's interest  to                                                               
impose something on  other states and trying  to exercise control                                                               
over other states  could create a backlash.  Because  he does not                                                               
like it when other states  pass resolutions about Alaskan issues,                                                               
he said it concerns him when Alaska does this to other states.                                                                  
                                                                                                                                
CO-CHAIR  JOHNSON  said  the term  imposed  is  wishful  thinking                                                               
because  this is  only a  resolution and  a communication  to the                                                               
President and  others asking  them to  take Alaska's  wishes into                                                               
consideration.   He  said that  because  the resolution  supports                                                               
something rather than  opposes something, each state  can use the                                                               
resolution as it wishes.                                                                                                        
                                                                                                                                
1:39:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  withdrew his  objection and  reiterated that                                                               
he would not want another state doing this to Alaska.                                                                           
                                                                                                                                
CO-CHAIR JOHNSON offered  his assurance that he would  not try to                                                               
impose the committee's will on any other state.                                                                                 
                                                                                                                                
REPRESENTATIVE GUTTENBERG  stated that even if  the resolution is                                                               
successful in  prompting action,  that action might  be prevented                                                               
by  the current  policies  and regulations  such  that no  leases                                                               
could occur.  He urged caution in what is being asked for.                                                                      
                                                                                                                                
CO-CHAIR JOHNSON said he is clear in what he is asking for.                                                                     
                                                                                                                                
CO-CHAIR NEUMAN again moved to report  HJR 28, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal  note.  There  being no objection, CSHJR  28(RES) was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                              
HCR 10-OPPOSE FED. CONTROL OF STATE LAND & WATER                                                                              
                                                                                                                              
1:42:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced that the  next order of business would                                                               
be, HOUSE  CONCURRENT RESOLUTION NO.  10, Urging the  Governor to                                                               
file an  action to restrain  the United States Department  of the                                                               
Interior, National Park Service,  from intruding on the sovereign                                                               
right of the state to  exercise jurisdiction over navigable water                                                               
and  submerged   land  and  urging   the  Governor   to  allocate                                                               
sufficient resources to the Department  of Law, the Department of                                                               
Natural Resources, and the Department  of Fish and Game to defend                                                               
the  state's right  to manage  the  public use  of its  navigable                                                               
water.                                                                                                                          
                                                                                                                                
1:43:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE HAWKER, Alaska  State Legislature, noted that                                                               
the issue addressed by HCR  10 - protecting Alaska's jurisdiction                                                               
over  navigable water  and submerged  land -  was brought  to his                                                               
attention by  a constituent.   He said  his research  of Alaska's                                                               
statehood rights found that the  ownership of submerged lands and                                                               
navigable waters  is guaranteed  to the state  and the  state has                                                               
the providence  over these; however,  the federal  government has                                                               
consistently tried to  usurp those rights.  It  is incumbent upon                                                               
legislators to  defend the  state's land  rights and  land claims                                                               
process   from  federal   government  actions   that  have   been                                                               
infringing upon the right to manage those lands, he said.                                                                       
                                                                                                                                
REPRESENTATIVE  HAWKER drew  attention  to a  February 13,  2009,                                                               
letter from  the Citizens' Advisory  Commission on  Federal Areas                                                               
to  the state's  acting  attorney  general.   He  read the  first                                                               
sentence of the letter:  "In  1996, over the strong objections of                                                               
the  State  of  Alaska  and others,  the  National  Park  Service                                                               
adopted regulations which improperly  extended its management and                                                               
enforcement authorities over state  owned navigable waters within                                                               
units of  the National Park  System."  This  federal encroachment                                                               
on Alaska's sovereign  right to manage its land  resources is the                                                               
problem, he argued.                                                                                                             
                                                                                                                                
REPRESENTATIVE HAWKER  said that  while the  State of  Alaska has                                                               
been pursuing its title to  submerged lands and navigable waters,                                                               
it has  not been  quite as  diligent in  protecting its  right to                                                               
those submerged lands  and navigable waters.  Thus,  HCR 10 urges                                                               
the governor to take legal action  now to stop this preemption of                                                               
Alaska's  rights.   He  pointed  out that  there  is a  technical                                                               
amendment  that would  urge  the  governor to  take  any and  all                                                               
appropriate legal actions, including legal status, he added.                                                                    
                                                                                                                                
1:46:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN  understood people were using  submerged lands on                                                               
the Yukon  River for  float planes,  boat launching,  and driving                                                               
four-wheelers  were   issued  citations  by  the   National  Park                                                               
Service.  He asked Representative  Hawker to expand on this point                                                               
of contention.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HAWKER deferred to  John Sturgeon, the constituent                                                               
who brought  this issue to  his attention and  who is on  line to                                                               
testify.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  TUCK inquired  about the  zero fiscal  note given                                                               
that HCR 10 asks for action to be taken.                                                                                        
                                                                                                                                
REPRESENTATIVE HAWKER  replied that there is  a budget allocation                                                               
inside  the  Department  of  Law for  an  entire  section  called                                                               
"Statehood Defense";  therefore it is already  funded through the                                                               
annual  appropriations  process.   He  said  the resolution  will                                                               
remind the staff in this section  of how important this is to the                                                               
legislature and to continue to pursue their work.                                                                               
                                                                                                                                
1:49:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON opened public testimony on HCR 10.                                                                             
                                                                                                                                
JOHN  STURGEON said  he  is  a business  owner  and  has been  in                                                               
Alaska's  forest products  industry for  the last  39 years.   He                                                               
spoke in  support of HCR 10  on behalf of himself  as an outdoors                                                               
sportsman.  He testified as follows:                                                                                            
                                                                                                                                
     The State of Alaska is  incrementally losing one of its                                                                    
     most  cherished and  valuable  sovereign  rights -  the                                                                    
     right to  manage its navigable  waters.   Management of                                                                    
     portions of rivers, such as  the Yukon River, are being                                                                    
     taken away  by the  federal government.   The  State of                                                                    
     Alaska   must   take   strong   and   decisive   action                                                                    
     immediately or  watch while  it loses  forever hundreds                                                                    
     of miles  of rivers, thousands of  lakes, and thousands                                                                    
     of miles of tideland.                                                                                                      
                                                                                                                                
     Under equal footing doctrine, the  statehood act, and a                                                                    
     submerged  land act,  the  state  assumed ownership  at                                                                    
     statehood  of  submerged   lands  of  navigable  waters                                                                    
     between ordinary  high water marks and  below mean high                                                                    
     tide.   The state acquired  the full power  and control                                                                    
     over navigable  waters of the  state regardless  of the                                                                    
     ownership  for  watercraft   use,  mining,  recreation,                                                                    
     commerce,   et  cetera,   except   for  when   Congress                                                                    
     specifically reduces  a state's authority.   An example                                                                    
     of that  would be the  Coast Guard  when it comes  to a                                                                    
     boating regulation  for safety  purposes.   The state's                                                                    
     constitution,  statutes,  and regulations  clearly  say                                                                    
     the state  owns and  manages these submerged  lands and                                                                    
     navigable  waters  and  its   citizens  have  free  and                                                                    
     unrestricted    access,    unless   restricted    under                                                                    
     regulations  authorized   by  the   state  legislature.                                                                    
     Alaska's law could not be clearer on this issue.                                                                           
                                                                                                                                
     In  addition, ANILCA  [Alaska  National Interest  Lands                                                                    
     Conservation  Act], under  section 103(c),  states that                                                                    
     regulations adopted  for national  parks only  apply to                                                                    
     the  federal  lands  and not  state  or  private  lands                                                                    
     within  those designated  areas,  and navigable  waters                                                                    
     are  considered ...  state lands  within those  ANILCA-                                                                    
     designated areas.  Beginning  in 1996, the ... National                                                                    
     Park Service  placed another  layer of  regulation over                                                                    
     the  State of  Alaska's management  on these  navigable                                                                    
     waters.                                                                                                                    
                                                                                                                                
MR. STURGEON  cited several examples  of federal  regulation that                                                               
he  personally knows  about  on the  Yukon River.    He said  the                                                               
actions of the National Park  Service are, in effect, voiding the                                                               
state's legitimate  jurisdiction on its navigable  waters, and he                                                               
is therefore urging the legislature  to help stop this by passing                                                               
HCR 10.                                                                                                                         
                                                                                                                                
1:54:07 PM                                                                                                                    
                                                                                                                                
ROD ARNO,  Executive Director, Alaska Outdoor  Council, supported                                                               
HCR 10  on behalf of  the council's 2,500 individual  members and                                                               
48 clubs.   He  related that  in 1996  the National  Park Service                                                               
determined this  was simply a  clarification of a prior  law, and                                                               
since then it has frequently  attempted to use this regulation to                                                               
further restrict access  in numerous areas of the  state.  Alaska                                                               
is a unique area due to  its lack of infrastructure and roads, he                                                               
said,  therefore this  access on  navigable  waters is  extremely                                                               
important to  all Alaskans,  and particularly  to members  of the                                                               
council.   He  applauded Representative  Hawker for  listening to                                                               
his constituent and putting forth HCR 10.                                                                                       
                                                                                                                                
1:56:19 PM                                                                                                                    
                                                                                                                                
STAN LEAPHART, Executive  Director, Citizens' Advisory Commission                                                               
on Federal Areas,  explained that the commission  is charged with                                                               
determining  the impact  of federal  management, agency  actions,                                                               
regulations,  and management  decisions  on the  citizens of  the                                                               
State of Alaska.   He related that Mr.  Sturgeon testified before                                                               
the  commission's  November  [2008]  meeting in  regard  to  this                                                               
issue.     After  subsequent   follow-up  work,   the  commission                                                               
determined it  should recommend to the  attorney general's office                                                               
and the  governor that  the state takes  the necessary  action to                                                               
resolve this issue.                                                                                                             
                                                                                                                                
MR. LEAPHART stated  that ANILCA has some  very specific language                                                               
that allows access  to rivers and lakes.  He  said the commission                                                               
believes the state's authority to  regulate its waters should not                                                               
be  impeded by  the  provisions  of ANILCA,  nor  should they  be                                                               
impeded  by  National  Park  Service regulations.    So  far  the                                                               
National  Park Service  has been  constrained in  enforcing these                                                               
regulations over  the past 12  years, but there is  evidence that                                                               
this  may  be  changing  as  seen by  the  increasing  number  of                                                               
citations issued to people engaged  in activities that are lawful                                                               
under state regulations.                                                                                                        
                                                                                                                                
MR.  LEAPHART  expressed the  commission's  concern  that if  the                                                               
National Park  Service's regulations are allowed  to stand, other                                                               
federal land  management agencies might decide  to promulgate the                                                               
same restrictive regulations.  Such  action would affect millions                                                               
of  acres  of federal  lands  within  national wildlife  refuges,                                                               
national  forests, and  wild  and scenic  river  areas, he  said;                                                               
thus, the commission supports HCR 10.                                                                                           
                                                                                                                                
2:00:53 PM                                                                                                                    
                                                                                                                                
SCOTT HAMANN maintained  it is time for Alaskans  to assert their                                                               
rights.   He said he  agrees with  all of the  previous testimony                                                               
and urged that HCR 10 be moved forward.                                                                                         
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no one else wished to testify.                                                                                                  
                                                                                                                                
CO-CHAIR  NEUMAN  moved  that the  committee  adopt  [Conceptual]                                                               
Amendment 1, as follows:                                                                                                        
                                                                                                                                
     Page 2, line 17, following "by the state,":                                                                                
        Delete "issuing citations to placer miners that                                                                         
     have valid state permits,"                                                                                                 
                                                                                                                                
     Page 2, line 25, following "the Governor to":                                                                              
          Delete "file suit against the United States                                                                           
     Department of the Interior, National Park Service,"                                                                        
          Insert "pursue all available legal options"                                                                           
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion purposes.                                                                         
                                                                                                                                
SENATOR OLSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE GUTTENBERG objected for discussion purposes.                                                                     
                                                                                                                                
2:03:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON offered  the following  friendly amendment                                                               
to Amendment 1:                                                                                                                 
                                                                                                                                
     Page 1, line 1, following "Governor to":                                                                                   
          Delete "file an action"                                                                                               
          Insert "pursue all legal options"                                                                                     
                                                                                                                                
CO-CHAIR  JOHNSON, after  ascertaining  there  was no  objection,                                                               
announced that  the friendly amendment to  [Conceptual] Amendment                                                               
1  has passed.   [Conceptual]  Amendment 1,  as amended,  was now                                                               
before the committee.                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON asked whether Amendment  1 was offered as a                                                               
conceptual amendment.                                                                                                           
                                                                                                                                
CO-CHAIR  JOHNSON understood  Amendment 1  to be  conceptual even                                                               
though Co-Chair Neuman did not state it as such.                                                                                
                                                                                                                                
REPRESENTATIVE SEATON withdrew his objection.                                                                                   
                                                                                                                                
SENATOR OLSON withdrew his objection.                                                                                           
                                                                                                                                
REPRESENTATIVE GUTTENBERG withdrew his objection.                                                                               
                                                                                                                                
CO-CHAIR  JOHNSON, after  ascertaining  there  was no  objection,                                                               
announced that  Conceptual Amendment  1, as amended,  has passed.                                                               
He said HCR 10 was now before the committee.                                                                                    
                                                                                                                                
2:04:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  offered his opinion that  the National                                                               
Park  Service's   long-term  goal  is  to   eliminate  all  human                                                               
habitation from a particular area  along the Yukon River, despite                                                               
there being human presence in this  area since the Gold Rush.  He                                                               
said he therefore thinks HCR 10 is appropriate.                                                                                 
                                                                                                                                
CO-CHAIR  NEUMAN moved  to  report  HCR 10,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal  note.  There  being no objection, CSHCR  10(RES) was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                
HJR 27-STATE SOVEREIGNTY                                                                                                      
                                                                                                                              
2:07:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  final  order of  business                                                               
would be,  HOUSE JOINT RESOLUTION  NO. 27, Relating  to sovereign                                                               
powers of the state.                                                                                                            
                                                                                                                                
REPRESENTATIVE MIKE KELLY, Alaska  State Legislature, first noted                                                               
that the  content of HJR  27 is identical  to that  of HR 9.   He                                                               
said  the federal  government's  encroachment  on states'  rights                                                               
seems to be  dialing up.  He read the  following from his sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
     According   to  the   National   Conference  of   State                                                                    
     Legislatures, "the  volume of federal  legislation that                                                                    
     preempts state  authority has increased"  and "pressure                                                                    
     continues to mount for Congress  and the White House to                                                                    
     support  federal usurpation  of  state  authority in  a                                                                    
     variety  of areas  such as  criminal law,  tort reform,                                                                    
     driver's license security and the environment."                                                                            
                                                                                                                                
REPRESENTATIVE KELLY added that Alaska's  right to manage its own                                                               
fish and game,  navigable waters, and R.S. 2477 have  all taken a                                                               
nasty turn, and now the federal  funds for fighting the fight for                                                               
state access  have been taken away.   He pointed out  that HJR 27                                                               
could  have  had  more strident,  secession-like  language  which                                                               
would have made several of  his constituents happy.  However, the                                                               
reason for a less strident  resolution is because in other states                                                               
the resolutions  with the  more strident  language did  not pass.                                                               
He said that if Alaska  does not receive favorable treatment upon                                                               
stating its  demands in this manner,  then he will lead  the pack                                                               
for making Alaska's actions more strident.                                                                                      
                                                                                                                                
2:11:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLY  related  that   four  states  have  passed                                                               
sovereignty bills,  22 states  have introduced  such legislation,                                                               
and Alaska is  among the 12 states expected  to pass legislation.                                                               
Although  some states  have rejected  strident language,  he said                                                               
three states have more strident language than that of HJR 27.                                                                   
                                                                                                                                
REPRESENTATIVE   KELLY   explained   that  the   [United   States                                                               
Constitution] was written under  the principle of positive grant,                                                               
which  means  that  the  federal   government  is  authorized  to                                                               
exercise only those powers which  are positively granted to it by                                                               
the  constitution.   Thus,  if  a  power  is  not listed  in  the                                                               
constitution, then the  federal government does not have  it.  He                                                               
said members  must keep  in mind that  the founders  envisioned a                                                               
confederation of  states, not  a one-size-fits-all  solution, and                                                               
HJR 27 asserts Alaska's sovereign rights.                                                                                       
                                                                                                                                
2:14:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN  related that the  cost of improving  a nine-mile                                                               
road  in  his  district  doubled because  of  federal  government                                                               
requirements.  He  cited several examples of demands  made by the                                                               
federal government and  surmised that the gist of HJR  27 is that                                                               
the federal  government tells Alaska  what to do and  sometimes a                                                               
carrot is provided to force the action and sometimes not.                                                                       
                                                                                                                                
REPRESENTATIVE  KELLY answered  that this  is precisely  so, from                                                               
Alaska from managing  its own fish and game to  access to its own                                                               
navigable waters.                                                                                                               
                                                                                                                                
REPRESENTATIVE GUTTENBERG pointed out  that there is a difference                                                               
between intent and what is actually meant.                                                                                      
                                                                                                                                
2:18:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON opened public testimony.                                                                                       
                                                                                                                                
JAMES FLOYD  applauded Representative Kelly's efforts  and stated                                                               
that the  legislature can always  follow this resolution  with an                                                               
act should there be  more things that need to be  said.  There is                                                               
a lot of citizen concern  that the federal government is stepping                                                               
beyond  its scope  of power  on many  different issues,  he said.                                                               
The states  entered a  contract with each  other called  the U.S.                                                               
Constitution, and  this contract created the  federal government;                                                               
thus, it  is the states  that have  the authority and  the power.                                                               
He  reported that  since  the 1990s,  47  legislatures have  been                                                               
involved with this  type of Tenth Amendment resolution.   In this                                                               
regard,  he  read several  statements  made  by legislators  from                                                               
states around the U.S.                                                                                                          
                                                                                                                                
2:23:02 PM                                                                                                                    
                                                                                                                                
SCOTT HAMANN stated  that while he understands  the reasoning for                                                               
toning down the  resolution, the time for being  nice has passed.                                                               
He urged that  some teeth be put into legislation  and one way to                                                               
do  so would  be  to withhold  the federal  tax  monies that  are                                                               
collected in  the state  until the  federal government  does what                                                               
Alaska  is  requesting.    The federal  government  will  not  be                                                               
receptive until something like this is done, he said.                                                                           
                                                                                                                                
2:24:24 PM                                                                                                                    
                                                                                                                                
ROD  ARNO, Executive  Director,  Alaska  Outdoor Council,  stated                                                               
that HJR  27 is not strident  enough.  As director  of the Alaska                                                               
Outdoor  Council  and  as  a member  of  the  Citizens'  Advisory                                                               
Commission of  Federal Areas  (CACFA), he said  he has  seen over                                                               
and over  again the  loss of  access, the loss  of fish  and game                                                               
management, and the loss of  fish and game allocations because of                                                               
federal encroachment.  He urged that HJR 27 be passed.                                                                          
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no one else wished to testify.                                                                                                  
                                                                                                                                
2:25:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said  it seems to him that  the language on                                                               
page 2,  lines 17-19, says  Alaska wants federal monies  but does                                                               
not want to be told what to do  with the money.  He asked whether                                                               
Representative Kelly  would be amenable to  deleting the language                                                               
"or lose federal funding" because  it diminishes the forcefulness                                                               
of the resolution.                                                                                                              
                                                                                                                                
REPRESENTATIVE KELLY replied  that there was a  lot of discussion                                                               
on this  while the resolution was  being toned down.   He said he                                                               
thinks it  is important to have  this language because it  is one                                                               
of  the ways  the  federal government  consistently enforces  its                                                               
inappropriate overreach.   The federal government  has taken away                                                               
250  million  acres of  productive  land  and  has not  kept  its                                                               
promise  on the  Arctic  National Wildlife  Refuge  (ANWR).   The                                                               
federal  government takes  away from  the state  every chance  it                                                               
gets, yet  he is made to  feel embarrassed about saying  that the                                                               
federal government  should not use  money to make the  state feel                                                               
better.   He said the resolution  is stating that the  money sent                                                               
to Alaska  is being  used to  force the state  to breaks  its own                                                               
Tenth Amendment  rights.  The  resolution is not about  money, it                                                               
is about  the rights  Alaska has  a state;  therefore he  said he                                                               
prefers to leave this language in.                                                                                              
                                                                                                                                
2:30:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON stated  that he has sat  through numerous budget                                                               
subcommittee  meetings where  the state  replaced federal  funds,                                                               
most of  which came  with a  stipulation that  the state  must do                                                               
something  or  lose  the  funding.   Often  such  funds  suddenly                                                               
disappear and  the state is  left holding  the bag and  having to                                                               
determine whether  to continue  the program.   He urged  that the                                                               
resolution not be softened any further.                                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON clarified  that  he is  not attempting  to                                                               
soften the resolution.   Rather, the language makes  it appear to                                                               
him that  what is  really being talked  about is  getting federal                                                               
money and  he sees these words  as softening the resolution.   He                                                               
agreed  to keep  the language  in, given  that this  is what  the                                                               
sponsor would like.                                                                                                             
                                                                                                                                
CO-CHAIR JOHNSON  added that he  reads the language  as requiring                                                               
the state to pass legislation or lose federal funding.                                                                          
                                                                                                                                
CO-CHAIR NEUMAN commented  that there could be  an additional "Be                                                               
It Resolved" that returns some of  the carrots so the state could                                                               
get some of its freedoms back.                                                                                                  
                                                                                                                                
REPRESENTATIVE KELLY  responded that  a list  should be  made and                                                               
specific  action directed,  and if  there is  no action  then the                                                               
next step  can be discussed.   He said  he believes it  best that                                                               
the first step not be a threat.                                                                                                 
                                                                                                                                
2:34:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  suggested adding  a  comma  after the  word                                                               
penalties and after  the word sanctions on page 2,  line 18, as a                                                               
way of providing clarification.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON surmised that  adding the commas would make                                                               
"threat of civil or criminal  penalties" one thought, "sanctions"                                                               
a second  thought, and  "requires states  to pass  legislation or                                                               
lose federal funding" a third thought.                                                                                          
                                                                                                                                
REPRESENTATIVE TUCK answered correct.                                                                                           
                                                                                                                                
CO-CHAIR JOHNSON  said he  does not think  the commas  change the                                                               
substance or the meaning, it just breaks things out.                                                                            
                                                                                                                                
REPRESENTATIVE SEATON  stated that  the commas  would get  to the                                                               
problem he is talking about.                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLY said this appears  to be okay at the moment,                                                               
but he reserves the right to come back if it is not.                                                                            
                                                                                                                                
2:37:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK moved  that the  committee adopt  Conceptual                                                               
Amendment 1 as follows:                                                                                                         
                                                                                                                                
     Page 2, line 18, following "penalties"                                                                                     
          Insert ","                                                                                                            
                                                                                                                                
     Page 2, line 18, following "sanctions":                                                                                    
          Insert ","                                                                                                            
                                                                                                                                
CO-CHAIR  JOHNSON, after  ascertaining  there  was no  objection,                                                               
announced that Conceptual Amendment 1 has passed.                                                                               
                                                                                                                                
REPRESENTATIVE  TUCK  recalled  discussions  he  and  his  fellow                                                               
Anchorage  School District  board  members had  about whether  to                                                               
refuse federal  funds and  not participate in  the No  Child Left                                                               
Behind mandate.   However, it was decided that loss  of the funds                                                               
would  have put  too much  of a  burden on  the school  district.                                                               
Although a  third of Alaska's  economy is from federal  funds, he                                                               
said there are  times the state must flex  and remind authorities                                                               
of its  rights, but  this is  not to  be construed  that he  is a                                                               
secessionist.   He said  he hopes  there is  enough money  in the                                                               
"Statehood  Defense Fund"  to cover  the resolution  and Alaska's                                                               
best interests.                                                                                                                 
                                                                                                                                
2:40:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON inquired whether it  would be beneficial to send                                                               
this to the governors of all 50 states.                                                                                         
                                                                                                                                
REPRESENTATIVE KELLY agreed that this is a good idea.                                                                           
                                                                                                                                
REPRESENTATIVE SEATON asked whether  the resolution would be sent                                                               
to other legislatures or governors.                                                                                             
                                                                                                                                
CO-CHAIR JOHNSON  replied that his  intent was governors,  but he                                                               
has no problem with it going to both legislatures and governors.                                                                
                                                                                                                                
REPRESENTATIVE KELLY  agreed as  long as it  would not  require a                                                               
fiscal note.                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON pointed  out that it can  be done electronically                                                               
at no cost.                                                                                                                     
                                                                                                                                
CO-CHAIR  JOHNSON  moved  that  the  committee  adopt  Conceptual                                                               
Amendment  2  which  would  "send  copies  [of  HCR  10]  to  the                                                               
governors and  heads of  the legislature,  both bodies,  with the                                                               
exception  of Nebraska  which  only  has one."    There being  no                                                               
objection, Conceptual Amendment 2 was passed.                                                                                   
                                                                                                                                
2:42:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG expressed his  belief that page 2, line                                                               
19,  weakens  the  resolution  because  the  legislature  has  no                                                               
control over how the media might spin the federal money aspect.                                                                 
                                                                                                                                
CO-CHAIR JOHNSON  disagreed, saying  he thinks it  just separates                                                               
it out and more clearly defines it.                                                                                             
                                                                                                                                
REPRESENTATIVE TUCK  said the  language on  line 19  is confusing                                                               
and could be  diminishing because he had taken line  19 to be one                                                               
concept instead of two concepts.   He suggested adding a comma on                                                               
line 19 after  the word legislation so it would  separate it into                                                               
two concepts.                                                                                                                   
                                                                                                                                
CO-CHAIR JOHNSON pointed out that  the sponsor has agreed to work                                                               
with  Legislative  Legal  and Research  Services  to  ensure  the                                                               
verbiage is  proper, plus there  is a  public record of  what the                                                               
committee is looking  for.  He said that instead  of amending the                                                               
resolution further he  would like to advance it as  it is because                                                               
this can  be brought  up again once  the committee  substitute is                                                               
seen.                                                                                                                           
                                                                                                                                
2:45:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK stated  that no one is looking  to lessen the                                                               
resolution, just help it.                                                                                                       
                                                                                                                                
CO-CHAIR  NEUMAN  said he  likes  the  resolution  as it  is  and                                                               
Representative Kelly  can request that  it go to the  House Rules                                                               
Standing Committee if there needs to be a change.                                                                               
                                                                                                                                
CO-CHAIR  JOHNSON clarified  that  his purpose  for a  conceptual                                                               
amendment was  not to hold  it up, but  to give members  one more                                                               
look at  the resolution  before advancement.   He said  he thinks                                                               
all of  the resolutions before  the committee today [HJR  28, HCR
10,  HJR 28]  are important  to the  state and  reflect why  many                                                               
people came  to Alaska and chose  to stay.  Alaska  needs to flex                                                               
its muscle every chance it can get, he added.                                                                                   
                                                                                                                                
CO-CHAIR  NEUMAN moved  to  report  HJR 27,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal  note.  There  being no objection, CSHCR  27(RES) was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                
2:47:42 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:48 p.m.                                                                 

Document Name Date/Time Subjects
CSHCR 10(RES).pdf HRES 3/30/2009 1:00:00 PM
HCR 10
CSHJR 27(RES).pdf HRES 3/30/2009 1:00:00 PM
HJR 27
HJR 28 Packet.pdf HRES 3/30/2009 1:00:00 PM
HJR 28
HCR 10 Packet.pdf HRES 3/30/2009 1:00:00 PM
HCR 10
HJR 27 Packet.pdf HRES 3/30/2009 1:00:00 PM
HJR 27
CSHJR 28(RES).pdf HRES 3/30/2009 1:00:00 PM
HJR 28
HCR 10 NPS Water Regs.pdf HRES 3/30/2009 1:00:00 PM
HCR 10
HCR 10 zero fiscal note.pdf HRES 3/30/2009 1:00:00 PM
HCR 10
HJR 27 zero fiscal note.pdf HRES 3/30/2009 1:00:00 PM
HJR 27
HJR 28 zero fiscal note.pdf HRES 3/30/2009 1:00:00 PM
HJR 28