Legislature(2023 - 2024)BARNES 124

01/17/2024 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 177 CRITICAL NATURAL MINERALS PLAN AND REPORT TELECONFERENCED
Heard & Held
+= HB 169 FISHERIES REHABILITATION PERMIT/PROJECT TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        January 17, 2024                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom McKay, Chair                                                                                                 
Representative George Rauscher, Vice Chair                                                                                      
Representative Thomas Baker                                                                                                     
Representative Kevin McCabe                                                                                                     
Representative Dan Saddler                                                                                                      
Representative Stanley Wright                                                                                                   
Representative Jennie Armstrong                                                                                                 
Representative Donna Mears                                                                                                      
Representative Maxine Dibert                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                   
                                                                                                                              
Representative Jesse Sumner                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 169                                                                                                              
"An Act relating to certain fish; and establishing a fisheries                                                                  
rehabilitation permit."                                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 177                                                                                                              
"An Act relating to critical and essential minerals and the                                                                     
global energy transition."                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 169                                                                                                                  
SHORT TITLE: FISHERIES REHABILITATION PERMIT/PROJECT                                                                            
SPONSOR(s): REPRESENTATIVE(s) CRONK                                                                                             
                                                                                                                                
04/24/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/24/23       (H)       FSH, RES                                                                                               
04/25/23       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
04/25/23       (H)       -- MEETING CANCELED --                                                                                 
04/27/23       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
04/27/23       (H)       Heard & Held                                                                                           
04/27/23       (H)       MINUTE(FSH)                                                                                            
05/08/23       (H)       RES WAIVED PUBLIC HEARING NOTICE, RULE                                                                 
                         23(A)                                                                                                  
05/08/23       (H)       FSH AT 9:00 AM GRUENBERG 120                                                                           
05/08/23       (H)       Moved CSHB 169(FSH) Out of Committee                                                                   
05/08/23       (H)       MINUTE(FSH)                                                                                            
05/09/23       (H)       FSH RPT CS(FSH) 5DP 1NR                                                                                
05/09/23       (H)       DP:    MCCABE,     STUTES,    MCCORMICK,                                                               
                        CARPENTER, VANCE                                                                                        
05/09/23       (H)       NR: HIMSCHOOT                                                                                          
05/10/23       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/10/23       (H)       -- MEETING CANCELED --                                                                                 
05/12/23       (H)       RES AT 1:00 PM BARNES 124                                                                              
05/12/23       (H)       -- MEETING CANCELED --                                                                                 
01/17/24       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 177                                                                                                                  
SHORT TITLE: CRITICAL NATURAL MINERALS PLAN AND REPORT                                                                          
SPONSOR(s): REPRESENTATIVE(s) SADDLER                                                                                           
                                                                                                                                
04/24/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/24/23       (H)       RES, FIN                                                                                               

01/17/24 (H) RES AT 1:00 PM BARNES 124 WITNESS REGISTER REPRESENTATIVE MIKE CRONK Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented HB 169. DAVE STANCLIFF, Staff Representative Mike Cronk Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Gave the sectional analysis for HB 169 on behalf of Representative Cronk, prime sponsor. FLIP PRYOR, Aquaculture Section Chief Division of Commercial Fisheries Alaska Department of Fish & Game Juneau, Alaska POSITION STATEMENT: Provided information during the hearing on HB 169. JOE FELKL, Legislative Liaison Tok, Alaska POSITION STATEMENT: Provided information during the hearing on HB 169. KATIE MCCALL, Staff Representative Dan Saddler Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Gave the sectional analysis on HB 177 on behalf of Representative Saddler, prime sponsor. BRENT SHEETS, Director Petroleum Development Lab University of Alaska Fairbanks Fairbanks, Alaska POSITION STATEMENT: Co-offered a presentation during the hearing on HB 177. KAREN MATTHIAS, Executive Director Alaska Metal Mines Anchorage, Alaska POSITION STATEMENT: Co-offered a presentation during the hearing on HB 177. DEANTHA SKIBINSKI, Executive Director Alaska Miners Association Anchorage, Alaska POSITION STATEMENT: Co-offered a presentation during the hearing on HB 177. ACTION NARRATIVE 1:02:06 PM CHAIR TOM MCKAY called the House Resources Standing Committee meeting to order at 1:02 p.m. Representatives McCabe, Baker, Saddler, Wright, Mears, Armstrong, Dibert, and McKay were present at the call to order. Representative Rauscher arrived as the meeting was in progress. HB 169-FISHERIES REHABILITATION PERMIT/PROJECT 1:03:33 PM CHAIR MCKAY announced that the first order of business would be HOUSE BILL NO. 169, "An Act relating to certain fish; and establishing a fisheries rehabilitation permit." [Before the committee was CSHB 169(FSH).] 1:04:19 PM MIKE CRONK, Alaska State Legislature, as prime sponsor, read the sponsor statement for HB 169 [included in the committee packet], which read as follows [original punctuation provided]: This legislation would allow individuals, Alaskan corporations, school districts or other organizations to apply for a fish rehabilitation permit through the Dept. Fish & Game. If the commissioner grants a permit, the individuals, Alaskan corporations, school districts or other organizations would be allowed to collect a limited number of fish, fertilize and hatch the eggs and then place the un-fed natural fish back into the water where they were taken. This will boost the survival rate of the fertilized eggs to emergent fry stage from around 5 percent to roughly 90 percent. Similar types of fish rehabilitation permits are already allowed by the department for scientific research or other educational purposes, but these purposes are limited and thus the data collection, fish rehabilitation projects and fish population information is limited. This bill allows the private sector and the department to work together in a responsible collaborative effort to increase the natural salmon populations and scientific data collection throughout the state. This legislation will be one more tool that can be used to ensure that we both today and, in the future, maximize our resources as stated in our state constitution. Thus, Alaskans will benefit from Alaska's natural fish resources to help feed our families. 1:06:32 PM DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State Legislature, on behalf of Representative Cronk, prime sponsor, offered the sectional analysis for HB 169 [included in the committee packet]. He said Section 1 would create a new section [in AS 16.05] to create a fisheries enhancement permit. It would create [subsection (a)] for the activities that would be allowed under the new permit; [subsection (b)] that would prescribe an application form created by the department for those interested in gaining a permit; [subsection (c)] that would allow the Alaska Department of Fish & Game (ADF&G) commissioner to issue a permit under certain determinations; [subsection (d)] regarding factors that the commissioner would consider when deciding whether permit will be issued; [subsection (e)] that would require a permittee to collect and provide project data and reports requested by the department and to reasonably communicate with individuals affected by the project; [subsection (f)] that would set the timeline for when ADF&G must act on a permit; [subsection (g)] to enact requirements of a permittee to collect no more than 500,000 eggs [for fertilization], implement controls to avoid the introduction of nonindigenous pathogens; [subsection (h)] that would ensure that any fish released in state water with an enhancement project permit under this section would be available for common use, as are wild fish; [subsection (i)] that would specify the duration of a permit and how to extend a permit; and [subsection (j)] that would create definitions for the bill. MR. STANCLIFF said Section 2, [related to AS 16.05.871], would add a new subsection to state that fisheries enhancement projects under AS 16.05.855 shall be considered by the commissioner as outlined in AS 16.05.872(d) because precautions in subsection (d) will not damage a fish enhancement project. He explained that Section 3, [related to AS 16.10.375], would amend this section to allow enhancement projects created through this Act to be included in regional comprehensive salmon plans. MR. STANCLIFF reviewed the changes that had been made under CSHB 169(FSH), the version before the committee. He said some of the changes were recommended by people in the fishing industry while other changes were put forth by the department. The first change, on page 3, line 1, was the addition of the term "local wild" to the species of salmon. On page 4, line 5, the following words were deleted: "If the commissioner fails to act within that period, the application is approved and the department shall issue a permit." Another change was on page 4, line 18, where the following was added: "The commissioner may modify, suspend, or revoke a permit issued under this section for cause. If a permittee violates this section, the commissioner may, after providing the permittee notice and an opportunity to be heard, suspend or revoke a permit issued under this section." Finally, the "tribe" was added to page 4, line 24, as an entity to be considered in the issuing of permits. 1:10:02 PM MR. STANCLIFF, in response to Representative Saddler, said this new program would not conflict with existing programs. He added that CSHB 169(FSH) would enhance salmon reproduction by 85 percent. In response to Representative Rauscher, he said the plan would be fluid in terms of maximizing returns [of fish]. Further, he noted that schools districts would be involved in teaching students where salmon come from and how to increase the salmon populations. 1:14:49 PM FLIP PRYOR, Aquaculture Section Chief, Division of Commercial Fisheries, Alaska Department of Fish & Game, directed the committee to the last page of CSHB 169(FSH), which describes how existing regional hatcheries would continue with current management plans and incorporate local knowledge into the plan. 1:15:43 PM JOE FELKL, Legislative Liaison, Alaska Department of Fish & Game described the last section of CSHB 169(FSH) as a conforming amendment to existing regional salmon plans and rehabilitation plans already in place. 1:16:17 PM MR. PRYOR, in response to questions from Representative Mears, indicated that each application is judged on its own merit and multiple applications in the same spot would be analyzed according to the annual brood-stock of returning salmon. He said these factors would be taken into consideration during permit review. He reiterated that CSHB 169(FSH) would be an extension of the current aquatic resources and the same processes for evaluation. 1:18:27 PM REPRESENTATIVE MCCABE observed that the plan proposed under CSHB 169(FSH) differed from a regular hatchery. He understood the genesis of the legislation arose from an individual with a five- gallon bucket that began stocking their own stream with fertilized salmon eggs in gravel bars. He reassured the members that CSHB 169(FSH) would work in concert with the existing hatcheries around the state and would not serve as a mechanism to release too many eggs into a spawning system. 1:19:52 PM MR. PRYOR affirmed each regional hatchery has a plan for salmon enhancement that would fall under the same umbrella as the proposed legislation. In response to follow-up comments from Representative McCabe, he maintained that another level of oversight is a permit for fish transport and where they go. He said the difference is that a permit is not necessary for the program proposed under CSHB 169(FSH). He confirmed Representative McCabe's observation that the "bucket plan" was closer to nature with the limit of 500,000 eggs per person instead of releasing eggs from all over the place into different rivers. 1:23:15 PM REPRESENTATIVE SADDLER asked for a primer on the different kinds of permits for fish hatcheries. 1:23:46 PM MR. PRYOR, in response to Representative Saddler, spoke about different types of permits for fish hatcheries. He said CSHB 169(FSH) would assess rehabilitation projects which aren't currently the focus of ADF&G. In response to a follow-up question, he spoke about incubation boxes. 1:26:00 PM MR. FELKL, in response to Representative Mears, affirmed that the fiscal note would allow for one part-time biologist to be stationed in Juneau. 1:26:31 PM REPRESENTATIVE MEARS had a science question and asked if there are other things to consider on a small-scale with HB 169. 1:26:59 PM MR. PRYOR replied, HB 169 is addressing egg and fry survival; most places in Alaska where salmon are struggling are not due to a habitat issue similar to the south, HB 169 would increase the number of fry into the spawning system to enhance habitat. 1:27:54 PM REPRESENTATIVE BAKER followed Representative Mears' comment regarding the fiscal note that was coming out of the unrestricted general fund. He wondered if the position could be repurposed into an existing position at Alaska Department of Fish & Game due to staff shortages in recent years. 1:28:21 PM MR. FELKL said the statewide aquaculture permitting and planning section has been reduced in past years. He said the Alaska Department of Fish & Game has looked at other options and it was determined that a part-time position is needed to do the additional work. 1:28:45 PM REPRESENTATIVE DIBERT said she was curious if this [program] was happening elsewhere and if we can learn from other states across the nation. 1:29:05 PM MR. PRYOR was unfamiliar with other states but said it was similar to aquatic resource permits that have been issued to the Auke Bay Laboratory that produced fish over a 3-year period. 1:29:44 PM CHAIR MCKAY invited Representative Cronk back to the testifiers table to answer further questions. 1:30:08 PM REPRESENTATIVE MCCABE asked Representative Cronk to elaborate on how far salmon have to travel up the Yukon River to spawn and why HB 169 is necessary for the Alaska Native community subsistence, culture, and day-to-day existence. He used another example from the Salcha River in the Interior that has one of the highest Chinook salmon returns. 1:30:51 PM REPRESENTATIVE CRONK said the Yukon River is a really long river with a lot of obstacles for salmon. He reported the Yukon River is noticing the lowest returns of salmon in history and fisherman haven't been able to subsistence-fish for Chinook in three years with only a little fishing for Chum salmon. He reemphasized the program design in HB 169 would essentially double the salmon returns that are happening today. He insisted in years past he had seen pictures of 40-60 lbs. Female Chinook in Eagle with a substantial amount of eggs; however, the fish returning in the last few years have been much smaller with fewer eggs. He said the essence of HB 169 is to return more fry to the rivers. He said the most important fish is the fish on the table and HB 169 aims to continue that "lifeway." REPRESENTATIVE CRONK used the Gulkana Hatchery as a global example that has produced millions of salmon in the Gulkana and Copper Rivers that have reached the international market. 1:33:29 PM CHAIR MCKAY invited closing comments. 1:33:35 PM REPRESENATIVE CRONK stated that Alaska is at a crossroads and needs to do something - anything that can benefit the fishery. 1:34:15 PM CHAIR MCKAY thanked staff and set an amendment deadline for January 22, 2024. CHAIR MCKAY announced that HB 169 was held over. 1:34:39 PM The committee took an at-ease from 1:34 p.m. to 1:37 p.m. HB 177-CRITICAL NATURAL MINERALS PLAN AND REPORT 1:37:57 PM CHAIR MCKAY announced the final order of business would be HOUSE BILL NO. 177, "An Act relating to critical and essential minerals and the global energy transition." CHAIR MCKAY noted that this is the first hearing on HB 177 in House Resources and there would be invited testimony with the intent to hold the bill in committee until the following week. 1:38:40 PM REPRESENTATIVE SADDLER, as prime sponsor, introduced HB 177. He offered HB 177 as a means for Alaska to be the lead in providing critical and essential minerals to the global market. He defined "essential minerals" as those that are necessary for industry and national defense; "critical minerals" are limited with no reliable or secure source. He provided examples of essential minerals: copper, tin, gold, zinc, graphite, lead, and silver. He also identified several lesser-known, essential minerals: molybdenum and chromium. He presented the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: These minerals are fundamental components of many of today's ubiquitous technologies, such as computers and household appliances. To keep our economy and our day- to-day lives moving forward, we need to ensure we have a plan for accessing these critical resources. Demand for critical and essential minerals has increased in recent years and is likely to continue to increase, possibly exponentially as the demand for renewable energy sources grows. Critical and essential minerals are a key element of many emerging energy technologies, ranging from electric vehicles to solar panels. What's more, critical and essential minerals are also increasingly essential components of the high- technology industrial processes and weapons systems that play increasingly important roles in maintaining a strong national defense. Currently, China is home to most of the global market for processing and refining critical minerals, which has concerning implications for the health of our nation's economy, and the strength of our nation's armed services and defense capabilities. It is vitally important that our nation be able to reliably produce such minerals and use them to manufacture technology- forward products and systems. HB 177 helps meet that imperative. It directs the Alaska government to assess the state's potential as an alternative source of these minerals, identify strategies to attract industry investment, and review the possible impacts of potential regulatory regimes. This proposal has the potential to not only decrease our reliance on imported critical minerals, but also increase investment in Alaska's natural resource industry. Alaska has an opportunity to position itself as a competitive source of critical and essential minerals in the global supply chain. HB 177 requires the Departments of Natural Resources and Commerce, Community, and Economic Development to provide the information that industry experts and state officials need to take the next steps toward making Alaska a globally competitive source of critical and essential minerals. 1:42:41 PM KATIE MCCALL, Staff to Representative Saddler, on behalf of Representative Saddler, prime sponsor, gave the sectional analysis for HB 177 [included in the committee packet], which read as follows [original punctuation provided]: Section 1, Subsection (a) Page 1, Lines 3-15 & Page 2, Lines 1-4 Subsection (a) of HB 177 adds a new section of uncodified law to direct the Office of the Governor to develop a plan for the state to encourage exploration, production, and refining of the minerals needed to support emerging renewable energy technologies. The plan must specifically identify strategies to attract industry investment and position the state's critical mineral production at the center of U.S. production and manufacturing initiatives employing critical minerals. The plan must also review the impacts of various regulatory frameworks on mineral development. Section 1, Subsection (b) Page 2, Lines 5-18 Subsection (b) of HB 177 directs the Department of Natural Resources to provide a report to the Legislature by the start of the legislative session in January 2026 that compares the state's current mineral production and potential future production to national and global production of critical and essential minerals. The report must identify strategies to increase industry exploration and state production of critical and essential minerals in the next three, five, and 10 years. The report must also compare the state's permitting timelines and exploration incentives to those in other jurisdictions. The department may consult with other state and federal agencies, the University of Alaska, industry representatives, and advocacy organizations to compile the required information for the report. Section 1, Subsection (c) Page 2, Lines 19-31 & Page 3, Line 1 Subsection (c) of HB 177 directs the Department of Commerce, Community, and Economic Development to provide a report to the Legislature by the start of the legislative session in January 2026 that identifies the state's role in the global energy transition. The report must include the potential role of Alaska's mineral resources in the supply chain for electric batteries, solar panels, wind turbines, and consumer devices. The department may consult with the appropriate state and federal agencies to compile the required information for the report. The report must include the value of the state's location in the global supply chain and identify strategies for in-state innovation, manufacturing, and transportation for the next three, five, and 10 years. 1:45:38 PM REPRESENTATIVE ARMSTRONG said he was curious why working with local communities wasn't explicitly written into the HB 177 draft. 1:46:28 PM REPRESENTATIVE SADDLER believed it was written into HB 177 from an existing system of legislation and said he did not see any reason to leave out language that included input from local communities. 1:46:57 PM REPRESENTATIVE ARMSTRONG followed up with the suggestion of adding "other relevant products that may come up" to HB 177. 1:47:28 PM REPRESENTATIVE SADDLER said he thought it was a good idea in order to keep up with the rate of technology. 1:47:41 PM CHAIR MCKAY announced invited testimony on HB 177. 1:48:15 PM BRENT SHEETS, Director, Petroleum Development Lab, University of Alaska Fairbanks, joined invited testimony via Teams. He explained the lab are heavily involved in resources issues in addition to petroleum. He informed the committee that the lab is involved in carbon capture and sequestration, small-scale coal technology, and rare earth mineral projects. He updated the committee that the petroleum engineering program is transitioning to the energy resources engineering program. 1:49:34 PM MR. SHEETS, via a PowerPoint [hard copy included in the committee packet], moved to slide 2, titled "Mineral Resources," with a map showing current mines and advanced mineral exploration projects with potential mines highlighted in red. He emphasized the partnership between the University of Alaska Fairbanks (UAF) and the Division of Geological and Geophysical Surveys (DGGS). He imparted Alaska has numerous untapped mineral resources that could be developed. He cited the recent finds of world-class Germanium and Gallium deposits in Ray River, near the Yukon River, which would be attractive for the state to lease to developers. 1:51:41 PM MR. SHEETS moved to slide 3, titled "Background-Alaska's Critical Mineral Potential," that displayed a bar chart of the underdeveloped critical minerals in Alaska. He said Alaska has the potential to supply most of the commodities shown on the graph, especially zinc, which Alaska in leads market production thanks to Red Dog Mine. 1:53:06 PM MR. SHEETS advanced to slide 4, titled "Applications/Products," that proposed the use of these minerals for magnetic products, metal alloys, defense mechanisms, catalysts, glass and polishing compounds, ceramics and phosphors. 1:53:50 PM MR. SHEETS described slide 5, titled "Carbon Ore, Rare Earth, & Critical Minerals," which outlined the vision to bring Alaska's Carbon Ore, Rare Earth-Critical Minerals (CORE-CM) into perspective and echo the mission to establish a CORE-CM industry in Alaska by working with industry and other stakeholders to identify opportunities and address challenges. 1:54:45 PM MR. SHEETS moved to slide 6, titled "Budget By Phase," and outlined three phases of how to compete with China. He posited, Phase 1 is a planning period, Phase 2 and 3 will be a cost challenge but with the partnership and funding with DGGS, UAF can count on an in-kind match. He stressed the importance of that partnership and suggested bringing in the Department of Environmental Conservation for additional input. 1:56:30 PM MR. SHEETS moved to slide 7, titled "Overview," which listed the following Department of Energy and equivalent UAF/DGGS tasks: Task 2, Basinal Assessments; Task 3, Waste Stream Reuse; Task 4, Strategies for Infrastructure, Industries and Businesses; Task 5, Technology Assessment, Development and Field Testing; Task 6, AK-TIC; and Task 7, Stakeholder Outreach and Education. He pointed out that rare earth elements (REE) are not that rare but are difficult to mine economically. 2:02:53 PM MR. SHEETS moved to slide 8, titled "REE Value Chain," which illustrates the progress of value from exploration to mining to on-site concentrations to separation to metal making and, finally, to alloy production. 2:05:15 PM MR. SHEETS moved to slide 9, titled "Additional Assets," highlighting additional resources from DGGS such as: ICP-MS installation; hyperspectral imaging; an advanced instrumentation laboratory; bioreactors to separate elements from ores without the use of acids; and the UAS/UAF effort to expand mining training. 2:07:15 PM CHAIR MCKAY thanked Mr. Sheets and expressed his excitement about the subject matter especially for those having visited Iceland and toured the energy infrastructure of that country. 2:08:21 PM REPRESENTATIVE MEARS asked Mr. Sheets if there were requirements for continuing through the phases that would need support from the legislature. 2:08:48 PM MR. SHEETS replied the main one would be the ability to meet matching funds with DGGS to progress through all of the phases of the budget. He said the department has a 20 percent cost match. 2:10:05 PM MS. MCCALL, in response to a comment by Representative Mears, pointed out there are two fiscal notes for HB 177. 2:10:49 PM REPRESENTATIVE DIBERT expressed to Mr. Sheets her excitement regarding where HB 177 is heading and indicated she would like to know about the critical minerals in Ray River and whether the communities and workforce have a bridge between them to provide local jobs moving forward. 2:12:18 PM KAREN MATTHIAS, Executive Director, Alaska Metal Mines, provided invited testimony in support of HB 177. She reiterated the increasing demand for essential and critical metals in several sectors of the economy. She warned that imports from adversarial countries are a risk; therefore, the U.S. needs more domestic mineral production and Alaska should be part of the solution. She contended the term "critical minerals" is defined differently by DGGS, DNR, and other departments and changes through time. Ms. Matthias pointed out that copper is not on the United States Geological Survey (USGS) critical mineral list as an example opposed to the United States Department of Energy. Ms. Matthias emphasized the amount of copper needed to produce clean energy is insufficient to meet the Federal Government's goals. In addition, Ms. Matthias highlighted the rich goal and silver deposits in Alaska. 2:15:30 PM MS. MATTHIAS said there are only a small number of mines which have economic challenges to develop; she suggested a diverse mining economy for the state to succeed. Ms. Matthias advocated for HB 177 to encourage investment, exploration, and production. 2:17:57 PM DEANTHA SKIBINSKI, Executive Director, Alaska Miners Association, as invited testifier expressed AMA's support of the bill and made suggestions for its improvement. She echoed that the majority of the minerals that have been mentioned are being sourced from foreign nations with tenuous connections with the U.S. She said passage of legislation such as HB 177 would send a powerful message to investors that Alaska is "a jurisdiction of choice" in which to invest. She recommended the committee remove references to the global energy transition because it describes "an unrealistic pivot from fossil fuel energy generation." She emphasized that relying on only renewable energy "is not a reality for Alaska or the world." She said AMA suggests the word "expansion" could be used in the discussion. That said, she concluded that HB 177 outlines how Alaska's mining industry should play a role in providing the essential minerals needed to provide energy technology. 2:21:02 PM REPRESENTATIVE MCCABE expressed appreciation of the suggestion for the change from transition to expansion and indicated that he would offer that amendment. 2:21:37 PM REPRESENTATIVE SADDLER was amenable to such an amendment and offered the term "energy addition" as an alternative. 2:21:50 PM CHAIR MCKAY asked Mr. Sheets to further explain slide 6 "Budget By Phase" expenditures and asked if he was looking for funds from the legislature. 2:23:13 PM MR. SHEETS said the slide pointed out what the "DOE" should be. He attested the state will have to contribute a $1.7 million match in order to meet the proposed 20 percent requirement. 2:24:53 PM CHAIR MCKAY remarked that when work is done in the budget subcommittee addressing DNR, its members will refer to the DGGS budget. 2:25:28 PM REPRESENTATIVE BAKER asked how landowners will be incorporated under HB 177 and said he wanted to make sure local traditional ecological knowledge incorporated into the proposed legislation. 2:26:38 PM REPRESENTATIVE SADDLER answered that DNR has worked well with local communities and listened to input from tribal organizations and he said he was confident those voices have been heard and incorporated. 2:27:25 PM CHAIR MCKAY thanked the committee and set the amendment deadline for 12:00 p.m. Monday, January 22, 2024. CHAIR MCKAY announced that HB 177 was held over. 2:28:22 PM ADJOURNMENT There being no further business before the committee, the House Resources Standing Committee meeting was adjourned at 2:28 p.m.

Document Name Date/Time Subjects
HB 177 Presentation 1.17.24.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 177 Sponsor Statement version A.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 177 Sectional Analysis version A.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 177 Supporting Document - 2022 Critical Minerals List.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 177 Supporting Document - 2022 U.S. Net Import Reliance over 50 Map.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 177 Supporting Document - 2022 U.S. Net Import Reliance.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB177 Support letter from Alaska Metal Mines.pdf HRES 1/17/2024 1:00:00 PM
HB 177
HB 169 - Moist Air Incubator Photo.pdf HFSH 4/27/2023 10:00:00 AM
HFSH 5/8/2023 9:00:00 AM
HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 - Gulkana Incubation Picture.pdf HFSH 4/27/2023 10:00:00 AM
HFSH 5/8/2023 9:00:00 AM
HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 Support Letter. Copper Valley Chamber of Commerce.pdf HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 Support Letter. Mentasta Council.pdf HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 Yakutat Support letter Fisheries Enhancement Permit 4.6.17.pdf HRES 1/17/2024 1:00:00 PM
HB 169
HB-169 Sectional Analysis (ver B).pdf HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 - Summary of Changes (A to B).pdf HRES 1/17/2024 1:00:00 PM
HB 169
HB 169 Sponsor Statement.pdf HRES 1/17/2024 1:00:00 PM
HB 169