02/24/2014 02:06 PM House RES
| Audio | Topic | 
|---|---|
| Start | |
| HB161 | |
| HB79 | |
| HB246 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                       February 24, 2014                                                                                        
                           2:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Dan Saddler, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Mike Hawker                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Kurt Olson                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Scott Kawasaki (via teleconference)                                                                              
Representative Geran Tarr (via teleconference)                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 161                                                                                                              
"An  Act relating  to auctions  or raffles  for big  game harvest                                                               
permits  and  to  the selection  of  nonprofit  organizations  to                                                               
conduct  auctions and  raffles  for the  Department  of Fish  and                                                               
Game."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 161(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 79                                                                                                               
"An Act relating to the sale of timber on state land;                                                                           
establishing the Susitna State Forest; and providing for an                                                                     
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 246                                                                                                              
"An Act adding additional land and water to the Creamer's Field                                                                 
Migratory Waterfowl Refuge."                                                                                                    
                                                                                                                                
     - MOVED HB 246 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 161                                                                                                                  
SHORT TITLE: AUCTIONS FOR BIG GAME HARVEST PERMITS                                                                              
SPONSOR(s): REPRESENTATIVE(s) GATTIS                                                                                            
                                                                                                                                
03/11/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/13       (H)       RES                                                                                                    
04/10/13       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/10/13       (H)       Heard & Held                                                                                           
04/10/13       (H)       MINUTE(RES)                                                                                            
02/19/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/19/14       (H)       Heard & Held                                                                                           
02/19/14       (H)       MINUTE(RES)                                                                                            
02/24/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 79                                                                                                                   
SHORT TITLE: SUSITNA STATE FOREST; SALE OF TIMBER                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/18/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/13       (H)       RES                                                                                                    
02/24/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 246                                                                                                                  
SHORT TITLE: CREAMER'S FIELD REFUGE; WICKERSHAM HOUS                                                                            
SPONSOR(s): HIGGINS                                                                                                             
                                                                                                                                
01/21/14       (H)       PREFILE RELEASED 1/10/14                                                                               
01/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/14       (H)       RES                                                                                                    
02/24/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE LYNN GATTIS                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 161 and                                                                 
addressed changes incorporated in the proposed committee                                                                        
substitute, Version Y.                                                                                                          
                                                                                                                                
DOUG VINCENT-LANG, Acting Director                                                                                              
Division of Wildlife Conservation                                                                                               
Alaska Department of Fish & Game (ADF&G)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 161.                                                                     
                                                                                                                                
EDMUND FOGELS, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
hearing on HB 79.                                                                                                               
                                                                                                                                
JOHN "CHRIS" MAISCH, State Forester                                                                                             
Division of Forestry                                                                                                            
Department of Natural Resources (DNR)                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
hearing on HB 79.                                                                                                               
                                                                                                                                
REPRESENTATIVE PETE HIGGINS                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 246.                                                                    
                                                                                                                                
DOUG VINCENT-LANG, Acting Director                                                                                              
Division of Wildlife Conservation                                                                                               
Alaska Department of Fish & Game (ADF&G)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 246.                                                                     
                                                                                                                                
GEORGE HAPP, Vice President                                                                                                     
The Friends of Creamer's Field                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 246.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:06:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  DAN   SADDLER  called  the  House   Resources  Standing                                                             
Committee meeting  to order  at 2:06  p.m.   Representatives Tarr                                                               
(via  teleconference),  Kawasaki  (via  teleconference),  Seaton,                                                               
Olson, and Johnson,  Feige, and Saddler were present  at the call                                                               
to order.   Representatives P.  Wilson and Hawker arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
          HB 161-AUCTIONS FOR BIG GAME HARVEST PERMITS                                                                      
                                                                                                                                
2:07:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  announced that  the  first  order of  business                                                               
would be  HOUSE BILL  NO. 161.  "An Act  relating to  auctions or                                                               
raffles  for big  game harvest  permits and  to the  selection of                                                               
nonprofit organizations  to conduct auctions and  raffles for the                                                               
Department  of Fish  and  Game." [Before  the  committee was  the                                                               
proposed  committee  substitute  (CS)  for HB  161,  Version  28-                                                               
LS0530\Y, Bullard,  2/17/14, adopted  as the working  document on                                                               
2/19/14.]                                                                                                                       
                                                                                                                                
CO-CHAIR SADDLER  noted the committee previously  heard this bill                                                               
last year and again on February 19, 2014.                                                                                       
                                                                                                                                
2:08:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN GATTIS,  Alaska State Legislature, testifying                                                               
as prime  sponsor of HB 161,  said she would focus  her testimony                                                               
on concerns previously  raised on page 2, lines  17-21 of Version                                                               
Y.  The original version,  existing statutes, allowed funds to be                                                               
used  for anything  but lobbying  for political  purposes.   This                                                               
allowed the organization to use  funds for any purpose except for                                                               
political gain.  The new language [Section 3, page 3, lines 9-                                                                  
16] restricts  funds to organizations  that promote  education in                                                               
outdoor  traditions and  that conduct  conservation and  wildlife                                                               
protection  programs  and  allows  them to  conduct  auctions  or                                                               
raffles  approved by  the department.   This  language creates  a                                                               
limited scope  of what  the nonprofit can  do with  the proceeds.                                                               
She clarified  that the language  previously allowed  proceeds to                                                               
be  used  for  any  purpose  except  for  lobbying  or  political                                                               
purposes.    She  indicated that  lobbying  is  disallowed  under                                                               
Version  Y  since it  doesn't  fall  into  one of  the  allowable                                                               
expenditure categories.                                                                                                         
                                                                                                                                
REPRESENTATIVE GATTIS said  the expanded game list  adds one Dall                                                               
sheep.     She  reminded   members  that   substantial  testimony                                                               
suggested taking  this valuable  hunt away from  Alaskan hunters.                                                               
She pointed out  that of the 126 Dall sheep  permits to be issued                                                               
this year,  Alaska hunters foregoing  one animal for the  sake of                                                               
game management seems like an  appreciated sacrifice of the small                                                               
percentage  of  the  total  allowable take.    According  to  the                                                               
figures supplied by  Representative Tarr, only 46  percent of the                                                               
permits allotted  in the past 18  years were actually used.   She                                                               
would like to see this figure  increased and thinks a good way to                                                               
"drum  up"  interest by  sporting  groups  is to  increase  their                                                               
incentive to auction a permit.                                                                                                  
                                                                                                                                
2:10:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON noted 46 percent  of the tags allotted were                                                               
utilized.  He asked whether  the remaining tags were returned for                                                               
issuance or if those tags were unused.                                                                                          
                                                                                                                                
REPRESENTATIVE GATTIS  deferred to the Alaska  Department of Fish                                                               
& Game (ADF&G).                                                                                                                 
                                                                                                                                
DOUG   VINCENT-LANG,  Acting   Director,  Division   of  Wildlife                                                               
Conservation,  Alaska   Department  of   Fish  &   Game  (ADF&G),                                                               
understood the  question was  what happens to  tags that  are not                                                               
distributed to  this program.   He  answered that  typically they                                                               
are either  added back to the  draw permit pool or  are given out                                                               
"over the counter" as unallocated permits.                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON  understood  the  bill  would  expand  the                                                               
number of permits  from 19 to 42  per year.  He  wanted to ensure                                                               
that  if  the  permits  were  used  timely  that  they  would  be                                                               
available for the drawing permit  program.  He asked whether that                                                               
would occur or if the permits  would be issued "over the counter"                                                               
circumventing the drawing.                                                                                                      
                                                                                                                                
MR. VINCENT-LANG  replied it would  be his intent to  issue these                                                               
permits according  to HB  161; however, if  the permits  were not                                                               
used, that the ADF&G would  issue them "over the counter" through                                                               
the department's  registration permit system.   He did  not think                                                               
animals would not be harvested  that otherwise would be available                                                               
for harvest.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether  the  department will  know                                                               
sufficiently ahead  of time whether  unallocated permits  will be                                                               
available  for  the   drawing  pool  or  if   the  process  would                                                               
circumvent the drawing pool.                                                                                                    
                                                                                                                                
MR.  VINCENT-LANG answered  that  the  department typically  will                                                               
make  decisions  in the  fall  prior  before  the drawings.    He                                                               
anticipated   that   if  the   permits   were   not  issued   [to                                                               
organizations] that  the permits would  be placed in  the drawing                                                               
permit.                                                                                                                         
                                                                                                                                
2:14:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked how many  people who apply  for the                                                               
drawing permits actually do not claim the permits.                                                                              
                                                                                                                                
MR. VINCENT-LANG responded he would  have to get that information                                                               
by species and  area of the state, but he  generally thought that                                                               
in  many instances  the permits  are not  used for  a variety  of                                                               
reasons, for  example, people  could get  sick, and  travel plans                                                               
can change.                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHNSON  said he did  not need the specifics.   He                                                               
asked what happens to those permits that are unused.                                                                            
                                                                                                                                
MR.  VINCENT-LANG said  that if  the department  has time,  those                                                               
permits are issued "over the  counter" through registration hunts                                                               
for harvestable surpluses.                                                                                                      
                                                                                                                                
REPRESENTATIVE  JOHNSON  understood  that the  permits  that  are                                                               
drawn   through  the   regular  process   will  not   be  treated                                                               
differently than  those that are  sold via the raffle  or auction                                                               
process.   He  clarified  he understood  that  these are  treated                                                               
similarly.                                                                                                                      
                                                                                                                                
MR. VINCENT-LANG answered that that is his understanding.                                                                       
                                                                                                                                
2:15:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE   understood  that  if  the   nonprofit  has  not                                                               
requested the  permit, that it would  be placed in the  pool with                                                               
the rest of the permits.   These permits would be applied for and                                                               
drawn.   However, in  terms of  a regular  draw permit,  he asked                                                               
whether the  department knows if it  is not claimed prior  to the                                                               
end of  the hunt or  if the department must  wait to learn  it is                                                               
unused.  Second, if a person  draws a permit and knows in advance                                                               
they will  not use it, if  the person can transfer  the permit to                                                               
someone else.                                                                                                                   
                                                                                                                                
MR. VINCENT-LANG  responded that if  ADF&G knows that  someone is                                                               
not going to use the permit,  there is a wait list the department                                                               
can use  to reissue the  permit.   Typically, the ADF&G  does not                                                               
know since reporting happens after  the season closes.  The ADF&G                                                               
anticipates the  success rate in  the hunts and  typically offers                                                               
more  permits   than  the  number   of  animals   the  department                                                               
anticipates being  taken.  At the  end of the year,  if the ADF&G                                                               
has surpluses,  with low production,  the department  would award                                                               
them "over  the counter" in the  area offices.  However,  he said                                                               
that is rare for high-profile species  such as Dall sheep, but is                                                               
used more for moose or other species.                                                                                           
                                                                                                                                
CO-CHAIR   FEIGE   requested   further   clarification   on   the                                                               
transferability of permits.                                                                                                     
                                                                                                                                
MR.  VINCENT-LANG  replied that  the  department  does not  allow                                                               
transferability of permits.                                                                                                     
                                                                                                                                
2:17:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR said  that her  concern has  been addressed,                                                               
that in  terms of the unused  permits she wanted to  know whether                                                               
Alaskans  have a  way to  access them.   She  related that  often                                                               
these areas  are pretty desirable  areas to hunt species  such as                                                               
moose.    She  didn't  want  Alaskan  residents  to  have  missed                                                               
opportunities  to hunt.   Thus,  she supports  the bill  and will                                                               
want  to track  this going  forward in  terms of  the numbers  of                                                               
permits for nonprofit organizations under the bill.                                                                             
                                                                                                                                
CO-CHAIR SADDLER  indicated the bill  would double the  number of                                                               
permits  available for  auction  and increase  the percentage  to                                                               
nongovernmental  agencies  (NGOs).    The  bill  doesn't  have  a                                                               
referral  to  the  finance  committee.    He  asked  for  further                                                               
clarification on whether the bill has a fiscal impact.                                                                          
                                                                                                                                
MR. VINCENT-LANG responded that it  would be hard to predict, but                                                               
he  does not  expect  a fiscal  impact.   He  suspected that  the                                                               
overall  value of  the permits  will increase  the return  to the                                                               
state.   In some respects, he  thought it will actually  be more,                                                               
since  the activities  the nonprofits  will conduct  will benefit                                                               
the department and conservation.                                                                                                
                                                                                                                                
2:19:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER referred  to page 2, Version Y,  to the specific                                                               
language being  deleted that has  restricted use of  the proceeds                                                               
from being  used for political  activities for candidates  or for                                                               
lobbying  the  legislature.   He  asked  whether  the  department                                                               
concurs that it is okay to delete this language.                                                                                
                                                                                                                                
MR. VINCENT-LANG answered that he  does not believe anyone in the                                                               
department would ever  approve a project that would be  used as a                                                               
contribution  to   a  candidate  for  political   office  or  any                                                               
organization supporting  or opposing  a ballot proposition  or to                                                               
pay for expenses associated with  lobbying the legislature or the                                                               
administration  given  the  language  used  to  replace  it  that                                                               
indicates  proceeds can  only  be used  to  support education  in                                                               
outdoor  traditions   projects  and  conservation   and  wildlife                                                               
protection programs.   He said he did not think  anyone would use                                                               
the proceeds for activities outlined in the deleted language.                                                                   
                                                                                                                                
2:20:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER said  it is  his intention  in voting  for this                                                               
bill to  not allow proceeds  to be  used for contribution  to any                                                               
political   office   or  to   support   or   oppose  any   ballot                                                               
propositions.                                                                                                                   
                                                                                                                                
2:21:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to report  the proposed  committee                                                               
substitute  (CS)  for HB  161,  Version  Y, labeled  28-LS0530\Y,                                                               
Bullard,    2/17/14,   out    of   committee    with   individual                                                               
recommendations and  the accompanying  fiscal note.   There being                                                               
no  objection, the  CSHB  161(RES) was  reported  from the  House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                
The committee took an at-ease from 2:21 p.m. to 2:23 p.m.                                                                       
                                                                                                                                
           HB 79-SUSITNA STATE FOREST; SALE OF TIMBER                                                                       
                                                                                                                                
2:23:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER announced that the  next order of business would                                                               
be HOUSE BILL NO.  79, "An Act relating to the  sale of timber on                                                               
state land; establishing the Susitna  State Forest; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
2:24:25 PM                                                                                                                    
                                                                                                                                
EDMUND FOGELS,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department  of  Natural  Resources  (DNR), introduced  HB  79  on                                                               
behalf  of  the  administration,  stating  that  the  bill  would                                                               
establish a  new state  forest in  the Susitna  Valley.   The new                                                               
state forest would encompass 763,000  acres in a number of blocks                                                               
throughout the Susitna  Valley.  The state  forest proposal would                                                               
ensure that  these tracts of  forest land would  remain available                                                               
for  long-term forest  management  enabling  more investment  and                                                               
access.   This  bill would  also allow  the Division  of Forestry                                                               
more flexibility to offer negotiated  timber sales for the larger                                                               
sales of 500,000 board feet or  larger.  Both of these provisions                                                               
would give the state more tools  to address the growing demand in                                                               
Southcentral and  in the Southeast  and Interior Alaska  for more                                                               
timber  sales and  the growing  demand  for biomass  energy.   He                                                               
indicated  these  provisions  are recommendations  in  the  final                                                               
report from  the Governor's Alaska  Timber Jobs Task  Force under                                                               
critical  elements  of the  governor's  support  to increase  the                                                               
economic contributions from our wise timber management.                                                                         
                                                                                                                                
2:25:47 PM                                                                                                                    
                                                                                                                                
JOHN  "CHRIS"  MAISCH,  State  Forester,  Division  of  Forestry,                                                               
Department of Natural Resources (DNR),  stated that as Mr. Fogels                                                               
said, this bill would create  the Susitna State Forest and expand                                                               
the  DNR's authority  to negotiate  timber sales  statewide.   He                                                               
provided background  on timber sales,  noting that DNR  may offer                                                               
timber sales,  either competitively or through  negotiation.  The                                                               
division's  preferred way  of offering  timber  sales is  through                                                               
competitive bid  timber sales, but  the negotiated  sales provide                                                               
the  department the  ability to  tailor  some sales  to meet  the                                                               
needs  of  local  processors  in   areas  that  lack  competitive                                                               
interest or where  there is competitive from round  log export in                                                               
a  region  with  constrained  timber supply.    For  example,  in                                                               
Southeast Alaska it has long  been the administration's policy to                                                               
support and  create jobs as  opposed to just focusing  on revenue                                                               
generation.                                                                                                                     
                                                                                                                                
MR.  MAISCH  said  that  Section   1  amends  AS  38.05.110,  the                                                               
authority to sell timber and  material, particularly, timber.  It                                                               
would add subsection (c) to  clarify that the commissioner of DNR                                                               
may  determine  which  applicable  sale method  is  in  the  best                                                               
interest of the state for each timber sale.                                                                                     
                                                                                                                                
MR. MAISCH reviewed the different  authorities the department has                                                               
under AS  38.05.  He related  that AS 38.05.115 applies  to small                                                               
negotiated sales,  sales under 500,000  board feet.   In Interior                                                               
Alaska  that would  be  on  10-15 acre  parcels  or  less and  in                                                               
Southeast Alaska it  could range from one acre on  a good site to                                                               
several acres.   He characterized those as  typically being small                                                               
operators that have small sawmills  or other operations that want                                                               
to  negotiate a  sale.   These  contracts would  be  one year  in                                                               
length.                                                                                                                         
                                                                                                                                
2:28:12 PM                                                                                                                    
                                                                                                                                
MR. MAISCH  turned to  AS 38.05.117  regarding the  salvage sales                                                               
related  to forest  resources and  practices, for  fire, insects,                                                               
and disease.  He said  AS 38.05.118 pertains to large, negotiated                                                               
sales.                                                                                                                          
                                                                                                                                
MR.  MAISCH referred  to AS  38.05.120, which  are sales  done by                                                               
competitive or sealed bids or  public auction, with the objective                                                               
of obtaining the best price for the timber.                                                                                     
                                                                                                                                
MR. MAISCH referred to AS  38.05.123 as the value-added authority                                                               
that allows for  sales of up to 10 years  in length, specifically                                                               
targeted at encouraging  and developing value-added manufacturing                                                               
facilities.  An  excellent example of this would  be the Superior                                                               
Hardwoods, a mill located in Fairbanks.                                                                                         
                                                                                                                                
MR. MAISCH related that Section 2  will amend AS 38.05.118 (a) to                                                               
clarify two sections of the  current statute, including the Five-                                                               
year Schedule of Timber Sales  [AS 38.05.113] and the Forest Land                                                               
Use Plan [AS 38.05.112], which  are important parts of the public                                                               
process.  This means these  two documents must be completed, even                                                               
for large negotiated sales, which is just good business he said.                                                                
                                                                                                                                
2:30:04 PM                                                                                                                    
                                                                                                                                
MR. MAISCH related the other change  in Section 2 is the addition                                                               
of wood  fiber.  The department  has had interest in  biomass and                                                               
biomass  sales  and  fiber.    In  response  to  a  question,  he                                                               
acknowledged  "fiber"  is  what  he  was  referring  to  in  this                                                               
section.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON  inquired whether  fiber includes  peat and                                                               
if it would affect any  actions the legislature took with respect                                                               
to peat.                                                                                                                        
                                                                                                                                
MR. MAISCH  answered no; that  this definition of fiber  does not                                                               
include peat as  described in current statute.   He characterized                                                               
fiber  as being  a woody  material.   Returning to  the sectional                                                               
analysis, he explained that Section  4 removes restrictions under                                                               
AS 38.05.118  (c) that  indicate negotiated  sales of  timber are                                                               
only allowed in areas of  high unemployment, excess manufacturing                                                               
capacity  [or exist  within two  years of  the sale],  and excess                                                               
allowable cut.   The department found these three  criteria to be                                                               
problematic  when  stacked together.    He  reiterated that  this                                                               
recommendation would strike all three criteria.                                                                                 
                                                                                                                                
2:32:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  whether   the  current  restriction  on                                                               
negotiated sales requires all three elements must be present.                                                                   
                                                                                                                                
MR. MAISCH answered  that is correct.  He specified  that this is                                                               
covered in regulation under 11 AAC 71.055.                                                                                      
                                                                                                                                
2:32:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether this  provision would  only                                                               
apply to sales greater than 500,000 board feet.                                                                                 
                                                                                                                                
MR.  MAISCH agreed  that  is  correct.   This  change would  only                                                               
affect  the large  negotiated  sales under  the  authority in  AS                                                               
38.05.118.                                                                                                                      
                                                                                                                                
MR.  MAISCH related  that  Sections  5, 6,  and  7 are  basically                                                               
"housekeeping"  changes that  address  when  the sections  become                                                               
effective.  More specifically, he  stated that Sections 1, 2, and                                                               
4 will  have an immediate  effective date and the  other sections                                                               
will become effective on July 1, 201[4].                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON referred to  Section 2, to the requirements                                                               
of Forest Land  Use Plans, and asked whether that  relates to the                                                               
setbacks from streams.                                                                                                          
                                                                                                                                
MR. MAISCH answered that the  Forest Land Use Plan (FLUP) relates                                                               
to AS 38.05.112,  which requires the state to  do a site-specific                                                               
plan for  each timber sale.   This section would address  many of                                                               
the other  multiple uses that  occur in  an area.   However, this                                                               
sections does not  address stream setbacks or  buffers, which are                                                               
covered under  the state Forest  Practices Act (FPA)  under Title                                                               
41.  Further,  this law applies to state,  municipal, and private                                                               
land with respect  to how timber sales are conducted  and the act                                                               
is designed to protect fish habitat  and water quality.  The FLUP                                                               
would address anadromous streams,  high-value resident streams in                                                               
the sales areas  and what types of buffers  and protections would                                                               
be put in  place as part of  the timber sale effort,  but the FPA                                                               
is found in a different section of statute.                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON asked  for further  clarification that  if                                                               
the bill passed it won't override the FPA in any way.                                                                           
                                                                                                                                
MR.  MAISCH acknowledged  that  is correct,  that  this does  not                                                               
affect the state FPA or  weaken any protections for water quality                                                               
or fish habitat.                                                                                                                
                                                                                                                                
2:35:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER  asked for further  clarification on  the public                                                               
notice requirements for large, negotiated sales.                                                                                
                                                                                                                                
MR. MAISCH answered  that the standard public notice  is called a                                                               
"940 notice"  which is a  standard notice process that  the state                                                               
undergoes for  any type  of activity that  would affect  not only                                                               
timber sales but  any type of sales of materials.   This includes                                                               
web-based noticing,  print-based noticing,  and often will  be in                                                               
local newspapers.                                                                                                               
                                                                                                                                
2:36:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  for  further  clarification on  the                                                               
500,000 board feet and the acreage.                                                                                             
                                                                                                                                
MR. MAISCH responded that the number  of acres will depend on the                                                               
productivity  of the  site.   For example,  the boreal  forest in                                                               
Interior  Alaska is  less  productive, so  the  acreage would  be                                                               
greater  than  in Southeast  Alaska.    In Interior  Alaska,  the                                                               
approximate average would be 6,000-8,000  board feet per acre and                                                               
in southern  Southeast Alaska an  average old growth  stand would                                                               
be approximately 28,000  board feet per acres,  but second growth                                                               
stand can  be up to  80,000 board feet  per acre.   He reiterated                                                               
that those sales only run for one  year at a time since the sales                                                               
are  considered  small.    A   typical  operator  that  mills  or                                                               
manufacturers less  than a half  million board feet is  usually a                                                               
one  to two  person operation  with  many of  them consisting  of                                                               
family-owned businesses.  In response  to a question, he repeated                                                               
the board feet per area.   In Interior Alaska it could range from                                                               
5,000 -  8,000 board feet  per acre, but it  could go as  high as                                                               
25,000  per acres;  however, the  average would  be approximately                                                               
6,000 board  feet per  acre.  In  southern Southeast  Alaska, the                                                               
average for  old growth  is around  26,000-28,000 board  feet per                                                               
acre.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON  asked  whether  the  one  year  timeframe                                                               
wouldn't be  very practical for  a person setting up  biomass for                                                               
heating.                                                                                                                        
                                                                                                                                
MR.  MAISCH  answered that  the  proposed  changes are  under  AS                                                               
38.05.118, for the large negotiated  sales whereas the ones under                                                               
AS  38.05.115 are  considered the  small negotiated  sales.   The                                                               
aforementioned  changes  only  affect   the  authority  under  AS                                                               
38.05.118,  which can  be up  to 25  years in  length and  can be                                                               
negotiated.  The  sales under AS 38.05.115 would  cover sales one                                                               
year or less  and can also be negotiated.   Everything else about                                                               
the sales would essentially be the same.                                                                                        
                                                                                                                                
2:39:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON qualified  he is  in agreement  with doing                                                               
this, but  is still trying to  figure if lease sales  longer than                                                               
one year can be let for smaller units interested in biomass.                                                                    
                                                                                                                                
MR.  MAISCH answered  yes; that  the applicant  can apply  and it                                                               
becomes part of  the best interest finding in Section  1 in which                                                               
the commissioner  has the ability  to determine the type  of sale                                                               
method best  fits the potential  purchaser.  In  those instances,                                                               
the  department  would suggest  to  a  smaller operator  to  seek                                                               
authority under  AS 38.05.118 since it  can be up to  25 years in                                                               
length or the authority under AS  38.05.123 for up to 10 years in                                                               
length.  Finally, the sale could  be done under a competitive bid                                                               
process without any  real time limit, he said.   He indicated the                                                               
default method would be the competitive bid process.                                                                            
                                                                                                                                
2:41:08 PM                                                                                                                    
                                                                                                                                
MR.  MAISCH referred  to Section  4 to  the Susitna  State Forest                                                               
provision.  He  characterized this as the "meat" of  the bill and                                                               
establishes 763,000 acres  of lands in 33 different  parcels.  He                                                               
referred to a  map in members' packets.   The aforementioned area                                                               
encompasses two  area plans, the Matanuska-Susitna  Area Plan and                                                               
the Southeast  Susitna Area Plans.   These plans were  updated in                                                               
the past few years and  made specific recommendations on forestry                                                               
classified   lands.      Lands  are   classified   as   forestry,                                                               
agricultural, and  other types of uses.   The concept of  a state                                                               
forest was  discussed extensively in  the two area  plan updates.                                                               
This  set  the stage  for  this  proposal.    The purpose  is  to                                                               
legislatively  designate  a state  forest  to  ensure that  large                                                               
tracts  of  land  will  remain  available  for  long-term  forest                                                               
management, provide  a sustainable supply  of timber, and  have a                                                               
strong state  timber base.   He indicated that the  state forests                                                               
are  managed  on  a multiple-use  sustained  yield  principle  as                                                               
indicated  in Alaska's  Constitution and  as embodied  in various                                                               
statutes.                                                                                                                       
                                                                                                                                
MR. MAISCH  said one of  the key  things that happens  with state                                                               
forests [is  public participation].  Seven  different communities                                                               
held  public meetings  in 2009,  including Glacier  View, Willow,                                                               
Wasilla, Sutton,  Talkeetna, Anchorage,  and Trapper Creek.   Six                                                               
additional open houses  were held to discuss the area  plans.  In                                                               
2012,  12 meetings  were  held in  communities  such as  Houston,                                                               
Talkeetna,  Wasilla,  as well  as  coming  before the  Matanuska-                                                               
Susitna  Borough  Assembly,  and   providing  two  "webinars"  to                                                               
provide outreach to  those "off the grid" who  couldn't travel to                                                               
meetings held on  the road system.  In 2013,  the department held                                                               
10  additional meetings  and  had  a booth  at  the Palmer  State                                                               
Fairgrounds,  at  the  Cook  Inlet  Region  Economic  Development                                                               
Summit held  in Anchorage.   Additionally, the department  used a                                                               
variety  of media  to highlight  the  state forest  concept.   He                                                               
characterized the outreach as being  an extensive outreach to the                                                               
public and  the communities.   He said  that the state  forest is                                                               
about  developing  access  and   giving  communities  a  "working                                                               
landscape."  The state forest  supports economic development, the                                                               
communities, and  doing "good things"  in the  environment, which                                                               
hinges on the Forest Practices Act.                                                                                             
                                                                                                                                
2:44:34 PM                                                                                                                    
                                                                                                                                
MR.  MAISCH  related that  currently,  the  department has  built                                                               
about 17 miles  of all-season road in the  state classified lands                                                               
and 23  miles of all  winter roads.   This winter  the department                                                               
will be  working on the  Little Susitna Access Project  that will                                                               
build a winter  road over to the Little Susitna  River and an ice                                                               
bridge will cross  and continue on to the Fish  Creek blocks to a                                                               
point in which  the department will offer a timber  sale on state                                                               
land.   Additionally,  the road  will provide  access to  borough                                                               
agriculture disposal land.                                                                                                      
                                                                                                                                
MR. MAISCH  reported that this  summer the department  will begin                                                               
work on an  "all-season" portion to take the current  road to the                                                               
banks  of the  Little  Susitna River,  and undertake  engineering                                                               
work for a permanent bridge crossing.                                                                                           
                                                                                                                                
MR. MAISCH related he has  heard concern expressed that this will                                                               
be a  "lock up" and  multiple use  or access will  be restricted.                                                               
He pointed out how the  department manages other state forests to                                                               
illustrate  how state  forest lands  are  managed, including  the                                                               
Tanana  Valley State  Forest, the  Haines State  Forest, and  the                                                               
Southeast  State Forest.   The  other  state forests  demonstrate                                                               
that the  state forests are very  friendly for a wide  variety of                                                               
multiple uses, in  particular, motorized use.  In  fact, the road                                                               
systems represent a very friendly  environment for motorized uses                                                               
of  all kinds.   Motorized  use has  been allowed  in appropriate                                                               
areas  on  road  systems  that are  designed  for  logging  truck                                                               
traffic  that  can  certainly support  all-terrain  vehicles  and                                                               
other types of motorized recreational uses.                                                                                     
                                                                                                                                
2:46:16 PM                                                                                                                    
                                                                                                                                
MR. MAISCH pointed out that state  forests are very much used for                                                               
hunting access  and some groups  in the  Matanuska-Susitna valley                                                               
want a bigger  state forest.  He vouched for  the state forest in                                                               
Fairbanks  that  now  has  several  hundred  miles  of  roads  is                                                               
extensively used for all types of recreational activities.                                                                      
                                                                                                                                
MR. MAISCH related that this is  an opportunity to use a piece of                                                               
state-owned  land  as an  engine  to  help develop  the  region's                                                               
economy and  access.   In Fairbanks  a multi-million  dollar mill                                                               
operates due to the state  forest, Superior Pellet, LLC, that has                                                               
operated  for five  years producing  wood pellets  and compressed                                                               
wood logs.  He characterized this  as a great example to use low-                                                               
quality  wood fiber  to  produce a  high-quality  product.   This                                                               
means the high-quality logs can be  used by sawmills.  He offered                                                               
his belief that  the same type of scenario would  play out in the                                                               
Matanuska-Susitna valley.                                                                                                       
                                                                                                                                
2:47:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether roads  exist in  areas that                                                               
may be  subject to disposal.   He asked whether a  process exists                                                               
so  any culverts  will be  maintained as  fish-passable standards                                                               
upon transfer,                                                                                                                  
                                                                                                                                
MR. MAISCH  answered that if  the division builds  those crossing                                                               
structures, they  will be compliant with  the FPA.  If  the roads                                                               
are forestry  roads, the roads  will typically have  easements so                                                               
the road  will be maintained as  a forestry road.   One exception                                                               
would be in  an unincorporated area in which the  borough has not                                                               
yet  formed  and may  select  land.    He couldn't  envision  any                                                               
instance in the Matanuska-Susitna valley  that would move to some                                                               
other  type  of ownership  if  it  was  designated in  the  state                                                               
forest.  More  specifically, to answer the  question, the DOT&PF,                                                               
the borough, or  a road service area are  possibilities, but they                                                               
would need to comply with the  same types of standards with which                                                               
the division must also comply.                                                                                                  
                                                                                                                                
2:49:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER  asked what the response  from local governments                                                               
has been.                                                                                                                       
                                                                                                                                
MR. MAISCH answered  that the division has  held several meetings                                                               
with  the  Matanuska-Susitna  Borough, including  three  meetings                                                               
before the  full assembly.   Last year  a resolution  was brought                                                               
before the  MSB by Mayor  DeVilbiss, but did  not pass.   The DNR                                                               
has been  working to identify  any issues, but the  assembly just                                                               
generally did not  support it.  Some  individual members strongly                                                               
supported the resolutions.                                                                                                      
                                                                                                                                
2:50:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  whether   any  of  the  boundaries                                                               
changed based on the public process.                                                                                            
                                                                                                                                
MR. MAISCH answered  yes; in terms of the  area planning process,                                                               
some significant changes were made.   Less acreage was classified                                                               
as forestry acres  and the plans were split into  two area plans.                                                               
The City of  Houston had expressed concern about  a parcel within                                                               
the  city limits  that could  potentially block  some access  for                                                               
recreational development.  The DNR  proposed removing that parcel                                                               
from  the  bill,  which  can  be  incorporated  into  a  proposed                                                               
committee substitute at a later point, he said.                                                                                 
                                                                                                                                
[HB 79 was held over.]                                                                                                          
                                                                                                                                
        HB 246-CREAMER'S FIELD REFUGE; WICKERSHAM HOUSE                                                                     
                                                                                                                                
2:52:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  announced that  the  final  order of  business                                                               
would be HOUSE  BILL NO. 246, "An Act adding  additional land and                                                               
water to the Creamer's Field Migratory Waterfowl Refuge."                                                                       
                                                                                                                                
2:52:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   PETE   HIGGINS,    Alaska   State   Legislature,                                                               
testifying as  the prime sponsor,  introduced HB 246.   He stated                                                               
that  this bill  would add  additional lands  to Creamer's  Field                                                               
Migratory Waterfowl  Refuge.  He characterized  this as basically                                                               
being a  boundary change that  would incorporate a total  of four                                                               
additional parcels  adjacent to  Creamer's Field.   This  land is                                                               
state-owned land purchased by the state  - some in 2001 - and the                                                               
land has been transferred to  the refuge.  These acquired parcels                                                               
have been managed as refuge lands.                                                                                              
                                                                                                                                
REPRESENTATIVE  HIGGINS said  that question  arose as  to whether                                                               
hunting could still  occur if the land is designated  as a refuge                                                               
and  the answer  is yes.    There isn't  any plan  to change  the                                                               
activities currently being done on these parcels.                                                                               
                                                                                                                                
REPRESENTATIVE  HIGGINS explained  that the  refuge is  currently                                                               
managing the  lands the statutes  must be changed to  reflect the                                                               
actual boundaries  to ensure that  the Creamer's  Field Migratory                                                               
Waterfowl Refuge can control the land.                                                                                          
                                                                                                                                
2:54:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  understood that nothing in  the bill would                                                               
change the  statutory purposes.   He  understood that  ADF&G will                                                               
change the management  plans, but those plans  must correspond to                                                               
the statutory purpose.                                                                                                          
                                                                                                                                
REPRESENTATIVE HIGGINS answered that is correct.                                                                                
                                                                                                                                
2:55:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  whether there  has  been  consideration                                                               
given to managing this land for other purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE HIGGINS  answered no, that  the land was  given to                                                               
the refuge  in 2001  and everyone  has been using  it.   The only                                                               
question that has  arisen is whether the  activities would change                                                               
if the land  was designated as part of the  refuge and the answer                                                               
is no.                                                                                                                          
                                                                                                                                
CO-CHAIR SADDLER  understood this  will not change  the character                                                               
of the management or recreational activities on the land.                                                                       
                                                                                                                                
REPRESENTATIVE HIGGINS  answered that it  would not.   In further                                                               
response to  a question, he  said that Creamers Field  is located                                                               
on College Road  near the Fairgrounds.  The  property in question                                                               
goes farther north and the land is boggy in the summer.                                                                         
                                                                                                                                
CO-CHAIR  SADDLER   asked  whether  there  has   been  any  known                                                               
opposition to the bill designating the land as refuge land.                                                                     
                                                                                                                                
REPRESENTATIVE HIGGINS answered no.                                                                                             
                                                                                                                                
2:57:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  inquired how  the four  parcels were  acquired by                                                               
the state.                                                                                                                      
                                                                                                                                
REPRESENTATIVE HIGGINS  replied that in 2001  the state purchased                                                               
the  parcels with  the intention  of  giving the  parcels to  the                                                               
[Creamer's Field Migratory Waterfowl] Refuge.                                                                                   
                                                                                                                                
2:58:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  asked   whether  there   has  been   any                                                               
opposition to HB 246.                                                                                                           
                                                                                                                                
DOUG   VINCENT-LANG,  Acting   Director,  Division   of  Wildlife                                                               
Conservation, Alaska  Department of  Fish & Game  (ADF&G), stated                                                               
that  one  individual expressed  concern  about  his use  of  the                                                               
refuge to  train his dogs.   Only one  section of the  refuge has                                                               
been  restricted from  dogs and  it consists  of some  ponds that                                                               
were  constructed  for waterfowl  enhancement.    He stated  that                                                               
these  parcels will  not have  any restrictions  in terms  of the                                                               
current  activities.   Additionally,  the DNR  has been  managing                                                               
these  lands in  accordance with  the refuge  plan for  some time                                                               
without hearing a lot of complaints.                                                                                            
                                                                                                                                
2:59:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  assumed DNR  was  consulted  in terms  of  the                                                               
drafting of the bill.                                                                                                           
                                                                                                                                
REPRESENTATIVE HIGGINS answered that is correct.                                                                                
                                                                                                                                
2:59:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER opened public testimony on HB 246.                                                                             
                                                                                                                                
3:00:09 PM                                                                                                                    
                                                                                                                                
GEORGE  HAPP, Vice  President, The  Friends  of Creamer's  Field,                                                               
stated  that the  Friends of  Creamer's Field  offers educational                                                               
programs on the  refuge.  The organization  supports the addition                                                               
of  lands  to the  refuge  in  the  interests of  more  efficient                                                               
government to  have it all  managed within the refuge  instead of                                                               
managing the  lands "consistent" with  the refuge.   He concluded                                                               
by saying "And we support the plan."                                                                                            
                                                                                                                                
3:01:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER, after  first determining no one  else wished to                                                               
testify, closed public testimony on HB 246.                                                                                     
                                                                                                                                
REPRESENTATIVE OLSON  asked whether there  is any reason  to hold                                                               
the bill over since it is non-controversial.                                                                                    
                                                                                                                                
CO-CHAIR SADDLER said he didn't think so.                                                                                       
                                                                                                                                
3:01:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE moved  to report  HB  246 out  of committee  with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There  being no  objection, HB  246 was  reported from  the House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                
3:01:58 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 3:02 p.m.                                                                 
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