01/17/2024 01:00 PM House RESOURCES
| Audio | Topic | 
|---|---|
| Start | |
| HB169 | |
| HB177 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 177 | TELECONFERENCED | |
| += | HB 169 | TELECONFERENCED | |
                    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.