Legislature(2011 - 2012)SENATE FINANCE 532
04/13/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB95 | |
| SB108 | |
| HB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 95 | TELECONFERENCED | |
| + | SB 108 | TELECONFERENCED | |
| + | HB 105 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 13, 2011
9:03 a.m.
9:03:22 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Chester Carson, Staff, Senator Dennis Egan; Rick Rogers,
Forest Resource Program Manager, Division of Forestry,
Department of Natural Resources; Chip Thoma, Juneau.
SUMMARY
SB 95 FRANK PALMER FERRY TERMINAL
SB 95 was REPORTED out of committee with a "do
pass" recommendation and with a new zero fiscal
note by the Senate Finance Committee for the
Department of Transportation and Public
Facilities.
SB 108 SPC. STEPHEN "MAX" CAVANAUGH OVERPASS
SB 108 was REPORTED out of committee with a "do
pass" recommendation and with previously
published fiscal note: FN1 (DOT/PF).
HB 105 SOUTHEAST STATE FOREST
HB 105 was HEARD and HELD in Committee for
further consideration.
SENATE BILL NO. 95
"An Act naming the ferry terminal located at Auke Bay
in Juneau the Frank Palmer Ferry Terminal."
9:05:10 AM
Senator Egan introduced SB 95. He stated that Frank Palmer
had worked for nearly five decades at the Auke Bay Ferry
Terminal. Palmer, who died the year prior at the age of 69,
had spent his life loading tractor trailers on the ferries
of the Alaska Marine Highway System. A Juneau freight
company had suggested that the terminal at Auke Bay be
named after Mr. Palmer in memorium, and idea which was then
echoed by several other freight companies.
CHESTER CARSON, STAFF, SENATOR EGAN, informed the committee
that Frank Palmer had grown up across the street from the
Auke Bay Ferry Terminal, and that he had worked in and
around the terminal for 47 years. He felt the renaming of
the terminal to the Frank Palmer Ferry Terminal was
fitting.
Co-Chair Stedman queried the zero fiscal note attached to
the bill. He understood that the Department of
Transportation believed that funds for the project could be
located internally.
Senator Egan stated that local trucking companies and other
freight services in Juneau had agreed to donate the sign to
the terminal.
Senator Olson asked if Frank Palmer was still alive.
Senator Egan replied in the negative.
Senator Olson asked if any other names had been put forward
to rename the terminal.
Senator Egan replied no.
Senator Egan MOVED to report SB 95 out of committee with
individual recommendations and the accompanying fiscal
note. There being NO OBJECTION it was so ordered.
SB 95 was REPORTED out of committee with a "do pass"
recommendation and with a new zero fiscal note by the
Senate Finance Committee for the Department of
Transportation and Public Facilities.
SENATE BILL NO. 108
"An Act naming the Dowling Road overpass at milepost
123.7 on the New Seward Highway the Spc. Stephen "Max"
Cavanaugh, Jr., Memorial Overpass."
9:09:26 AM
Senator McGuire explained that Stephen "Max" Cavanaugh had
been an Alaskan resident and military veteran. She stated
that prior to his death he had been recovering from brain
trauma suffered in Iraq. Mr. Cavanaugh struck a moose while
driving on the Dowling Road overpass at milepost 123.7 on
the New Seward Highway. He died from injuries incurred from
the accident. She shared that the legislation would name
the Dowling Road overpass at milepost 123.7 on the New
Seward Highway after Mr. Cavanaugh, both as tribute to his
service and as a reminder of the danger of moose collision.
Co-Chair Stedman explained that there was one fiscal note
from the Department of Transportation and Public Facilities
for $10,000 to pay for the installation of four new signs.
Senator McGuire MOVED to report SB 108 out of committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION it was so ordered.
SB 108 was REPORTED out of committee with a "do pass"
recommendation and with previously published fiscal note:
FN1 (DOT/PF).
HOUSE BILL NO. 105
"An Act relating to the Southeast State Forest; and
providing for an effective date."
9:13:36 AM
RICK ROGERS, FOREST RESOURCE PROGRAM MANAGER, DIVISION OF
FORESTRY, DEPARTMENT OF NATURAL RESOURCES, read from a
prepared statement (copy on file):
Background and Purpose
I am pleased to speak in support of HB105. This bill
is part of the state's effort to ensure that local
timber processing continues to be a piece of the
economy in Southeast Alaska. The majority of timber in
SSE is on federal land, but federal timber sales have
declined drastically. Local mills now depend heavily
on state timber for survival. Demand for Southeast
timber for wood energy is also increasing, further
raising the importance of securing a timber base in
this region.
Pursuant to SCSHB 162(RES), the 25,291 acre Southeast
State Forest was established in June 2010. HB 105
would add an additional 23,181 acres of state lands to
the Southeast State Forest from state lands currently
available for timber harvest. The Division of Forestry
would then be able to manage the combined acreage
(48,4 72 acres) for a long-term supply of timber and
retain these lands in state ownership for multiple
uses. These forest lands will be managed as an
integrated unit and according to a state forest
management plan that will be developed via a public
process within the next two years. While the lands
were previously available for timber harvest before
the State Forest was established, the State Forest
designation ensures these productive forest lands will
remain in state ownership and contribute to the long
term viability of the timber based economy in
Southeast.
In 2009, the previous forest inventory was updated for
all general use lands managed by the Department of
Natural Resources (DNR) with forest management intent
language per the regions Area Plans. This data
provides the required supporting information on timber
volume, acreage and allowable harvest for this
request. The allowable harvest from these lands is
approximately 8.3 million board feet. The DNR manages
over 159,000 acres of uplands in Southern Southeast
Alaska. Timber management is allowed on approximately
one third of this land; the State actively manages
this timber base to supply wood to local processors.
The remaining land is designated primarily for other
uses including land sales, recreation, water
resources, and fish and wildlife habitat, including
over 65,073 acres of legislatively designated state
marine parks and critical habitat areas. Adding lands
to the State Forest will ensure that the State's most
suitable lands in Southeast remain available to
contribute to timber supply through the State's
ongoing timber sale program. Much of the State owned
timber land in Southeast Alaska was inherited from the
U.S. Forest Service and is comprised of young, second-
growth stands. Actively-managed second-growth stands
provide more timber volume per acre on shorter
rotations and can result in improved deer browse than
unmanaged stands. We can increase timber yield and
associated timber supply from state land by thinning
these stands. Thinning is a long-term investment and
is only justified if the land will continue to be
available for forest management.
Timber sales from these lands will be a mix of
domestic and export and will be based on economic
conditions and locations. As established by the 1984
Supreme Court Case of South Central Timber
Development, Inc vs. Esther Wunnicke, Commissioner
DNR, the state may not restrict round log exports due
to the interpretation of the interstate commerce
clause. In spite of these legal constraints the
Division has done a good job encouraging local
manufacturing of logs from State timber sales.
Approximately 87% of the timber sold from state lands
in southern Southeast over the past six years has been
processed by Alaska manufacturers.
The proposed additions to the Southeast State Forest
include 23 parcels (see chart in the briefing paper).
Approximately 21 percent of these lands are from five
parcels that had previously been reserved pending
legislative transfer to the University of Alaska. That
legislation did not pass freeing these lands for long-
term forest management in the State Forest. The
legislation includes general use lands on Prince of
Wales, Tuxekan, Gravina, Kosciusko, Revillagigedo,
Wrangell, Suemez, Mitkof, Kuiu, Dall, and Zarembo
Islands. Six of these parcels are adjacent or near
existing State Forest parcels.
The Division of Forestry worked with the Division of
Mining, Land, and Water (DML& W) to identify and
exclude lands that are priorities for the state land
disposal program. A consultation was also initiated
with the University of Alaska Statewide Office of Land
Management and University senior officials. A key
difference between a state forest designation and a
transfer of lands as proposed by previous legislation
is the continued long-term public ownership of these
lands as opposed to other development uses. The
Division also consulted with the Alaska Department of
Fish and Game to ensure there was internal alignment
on the list of proposed parcels, and there is. Several
other parcels were considered as part of our internal
due diligence process, but because of known concerns
and or potential for high controversy were not
included. Fish habitat and water quality are key
components of the Forest Resources and Practices Act
(FRPA) which have a series of regulations that will
apply to management of these parcels. Stream buffers
have a no cut 100 foot minimum width on both
anadromous and high value resident fish streams. The
next 100 to 300 foot zone may allow timber harvest,
but the activity must be consistent for both the
maintenance of important fish and wildlife habitat.
Area Plans also provide for coastal buffers of 300 to
500 feet with additional recommendations for specific
parcels. During the development of the forest
management plan, a key consideration for the Neets Bay
parcel will be the maintenance of water quality and
quantity for the fish hatchery operation at the head
of the bay. Dialog with the Southern Southeast
Regional Aquaculture Association (SSRAA) is ongoing
concerning this legislation.
The Southeast State Forest would be managed as part
of the State Forest System under AS 41.17.200-.230.
Subsection (a) of Sec. 41.17.200 reads in part:
"The primary purpose in the establishment of state
forests is timber management that provides for the
production, utilization, and replenishment of timber
resources while allowing other beneficial uses of
public land and resources ".
In addition to timber management, State Forests are
open for multiple uses, including wildlife habitat and
harvest, mineral exploration and development,
transportation, recreation and tourism. State Forest
lands would be managed consistent with the management
intent under the current Prince of Wales Island and
Central Southeast area plans. Changes to management
intent would require public and interagency review
through adoption of a State Forest Management Plan
under AS 41.17.230.
9:19:43 AM
Mr. Rogers continued with his testimony:
Municipal Entitlements
One of the other demands on state land in SSE is to
fulfill land entitlements for new municipalities. To
avoid conflicts with the Wrangell Borough entitlement,
the Southeast State Forest bill specifies that the new
Wrangell Borough may select State Forest land within
the borough boundary. The Wrangell borough boundary
encompasses three parcels in the existing state forest
(Crittenden Creek and Bradfield Canal East and West),
and four parcels in the proposed additions (Eastern
Passage, Pat Creek, Pat Creek uplands and Earl West
Cove).
If additional municipalities are incorporated before
June 30, 2019, lands that were vacant, unappropriated,
unreserved land before establishment of the State
Forest would be included in the calculation of the
municipal entitlement acreage, but may not be
selected.
9:23:13 AM
Mr. Rogers continued:
Outreach
DNR has briefed many statewide groups and entities
across Southeast Alaska about this proposal,
including the Board of Forestry, SE Conference, local
governments, and the diverse groups participating in
the Tongass Futures Roundtable. These discussions
will continue and to date we have received letters in
support from the following organizations:
• the City of Coffman Cove,
• the Resource Development Council,
• the Alaska Forest Association,
• The Alaska Chapter of the Society of American
Foresters
• Southeast Conference
• Wrangell resident and forestry consultant, George
Woodbury
• The Juneau Chamber of Commerce
• The Alaska Board of Forestry
Senator Thomas asked about the role of federal lands in
Southeast in relation to state and timber corporation
lands.
Mr. Rogers referred to a pie chart: "Southeast Alaska
Public Land Summary" (copy on file). He replied that total
public lands comprised about 21 million acres, including
the north end of the Tongass National Forest at Yakutat to
Southern Southeast Alaska. He stated that the "Tongass
Timber Scheduled" section of the chart totaled 144,000
acres; the Haines State Forest was 286,000 acres; and the
existing Southeast State Forest was about 25,000 acres.
Co-Chair Stedman added that for all practical purposes most
of the public land in Southeast was owned by the federal
government.
Senator Olson wondered whether there was opposition to the
proposed forest.
Mr. Rogers referred to testimony from Southeast Alaska
Conservation Council (SEACC) in opposition to the bill. He
recalled that there had been individuals from the
communities who had voiced opposition.
9:28:47 AM
Senator Olson queried the opposition's viewpoint.
Mr. Rogers replied that some felt the wood would be
exported, and not support the mills in Alaska. He reported
that over the prior six years, 87 percent of the timber
sales went to local mills. He also stated that there was
some concern about balancing forest management with
fisheries, wildlife, and cultural resources. He pointed out
that the standards and requirements of the Forest Resources
and Practices Act and the additional planning requirements
set forth in the bill would address many of the concerns.
Senator Olson wondered whether there were letters of
support from communities close to the proposed forest.
Mr. Rogers replied that there was no official position from
other individual communities. He remarked that the
Southeast Conference membership included many of the
surrounding municipalities.
Co-Chair Stedman mentioned timber mills in Southeast, and
wondered how many mills would be affected.
Mr. Rogers replied that there very few timber mills
remained in Southeast Alaska. He stated that the Viking
Lumber Mill, near Craig, had relied on federal timber and
were experiencing significant difficulty in wood supply.
The mill had begun to rely on state timber sales to stay in
business. He noted that the annual requirement for the mill
was 20 million board feet per year, but annual board
footage from state lands was only 8 million. He opined the
limitations concerning how the land base could be utilized,
but if it was properly managed there could be further
support of the timber industry. He mentioned that there
were enhancements in the bill directed at the other smaller
timber mills.
Co-Chair Stedman explained that the mill was relatively
small, as was the state forest, because most of the land in
Southeast was federally owned.
Co-Chair Stedman referred to a zero fiscal note from the
Department of Natural Resources.
9:35:04 AM
CHIP THOMA, JUNEAU, explained that the proposed lands were
originally intended for community development. He expressed
concern that the lands would eventually be clear cut. He
declared that Rowan Bay and Hook Arm were inappropriate
locations for timber cutting, because the areas had been
cut in the few years prior. He stressed that most of the
Native Corporation land was located on Prince of Wales
Island.
Co-Chair Hoffman noted that there was a projected decrease
in population in Southeast Alaska, so community development
would be impossible. He wondered how the lands could be
intended for community expansion when the surrounding
communities were decreasing.
Mr. Thoma replied that the lands should be designated to
the communities' intentions, rather than combining them
with the State Forest and designating them for logging.
9:38:26 AM
Co-Chair Stedman referred to the 2010 Trend Magazine (copy
on file), and looked at population forecasts mentioned by
Co-Chair Hoffman. He stated that the Southeast region was
negative 14 percent, Prince of Wales Island would decrease
by 34 percent, Wrangell/Petersburg would decrease 34.6
percent, Juneau would decrease 1.5 percent, and Sitka would
decrease 7 percent. He stressed that there were different
mechanisms that the legislature used to respond to
population growth and decline.
Senator Egan wondered whether there would be clear-cutting
of the acreage.
Mr. Rogers replied that most of the lands were in second
growth, and hoped to foster the land. He stressed that
clear-cutting was the primary means of managing timber,
with a regeneration applied to the stripped land. He stated
that there would be some pre- commercial thinning but that
the land was public and stricter mandates would be applied.
Senator Olson queried plans for reclamation after the
commercial cutting.
Mr. Rogers stated that the Forest Resources and Practices
Act had a mandatory re-forestation requirement. He stated
that Southeast Alaska had a requirement to have stocking
standards applied within 5 years of cutting. He stressed
that there was heavy natural seeding in Southeast, and that
it was rare to invest in planting trees in Southeast. He
stated that the act had high standards for road
maintenance, with emphasis on water quality and fish
passage.
HB 105 was HEARD and HELD in Committee for further
consideration.
9:45:24 AM
RECESSED
ADJOURNMENT
3:11:04 PM
The meeting was adjourned at 3:11 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| NEW SB 95 DOT Fiscal Note 041211.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 95 |
| HB 105 SE Land Summary 2.22.2011.pdf |
HFIN 3/22/2011 1:30:00 PM SFIN 4/13/2011 9:00:00 AM |
HB 105 |
| SB 95 - Emails of Support.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 95 |
| SB 95 - Frank Palmer Obituary.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 95 |
| SB 95 - Letters of Support.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 95 |
| SB 95 - Sponsor Statement.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 95 |
| SB 108 SPONSOR STATEMENT.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 108 |
| SB 108 Support Documents - Congressman Young (Cavanaugh) 030811.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 108 |
| SB 108 Support Letter to governor from Cavanaugh 033010.PDF |
SFIN 4/13/2011 9:00:00 AM |
SB 108 |
| HB 105 AFA Letter of Support 1.12.2011.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 BOF Support Letter 4-1-11.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 Coffman Cove Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 JCB Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 Land Ownership and Mill Status.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 Parcel Maps 12.20.2010.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 RDC Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 SAF Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 Value Added 3.30.2011.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 105 Vicinity Map.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
| HB 24 SCS FIN Version D.pdf |
SFIN 4/13/2011 9:00:00 AM |
HB 24 |
| HB 24 SFIN FN for DCCED.pdf |
SFIN 4/13/2011 9:00:00 AM |
HB 24 |
| HB 119 HarborTransfers.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
| HB 119 SCS FIN Version E.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
| HB 126 SCS FIN Version E.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 126 |
| HB 126 SFIN for DPS.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 126 |
| HB 119 AHFC Letter 020811.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
| SB 119 Critical Habitat map.pdf |
SFIN 4/13/2011 9:00:00 AM |
SB 119 |
| HB 119 Buccanerr Energy Letter.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |