Legislature(2003 - 2004)

05/02/2003 03:44 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                          May 2, 2003                                                                                           
                           3:44 p.m.                                                                                            
G                                                                                                                               
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Scott Ogan, Chair                                                                                                       
Senator Thomas Wagoner, Vice Chair                                                                                              
Senator Fred Dyson                                                                                                              
Senator Ralph Seekins                                                                                                           
Senator Kim Elton                                                                                                               
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Ben Stevens                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 149                                                                                                             
"An Act relating to timber and to the sale of timber by the                                                                     
state."                                                                                                                         
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
SB 149 - No previous action to record.                                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Senator Robin Taylor                                                                                                            
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Sponsor of SB 149                                                                                        
                                                                                                                                
Mr. Jeff Jahnke                                                                                                                 
Division of Forestry                                                                                                            
Department of Natural Resources                                                                                                 
550 W 7th Ave.                                                                                                                  
Anchorage, AK  99501-3356                                                                                                       
POSITION STATEMENT:  Supports SB 149                                                                                          
                                                                                                                                
Ms. Nancy Fresco                                                                                                                
Northern Alaska Environmental Center                                                                                            
830 College Rd.                                                                                                                 
Fairbanks, AK  99708                                                                                                            
POSITION STATEMENT:   Opposed to diminished public  input in CSSB
149(RES)                                                                                                                        
                                                                                                                                
Mr. Eric Pyne                                                                                                                   
Boreal Forest Products &                                                                                                        
 International Woodcutters Association                                                                                          
PO Box 82694                                                                                                                    
Fairbanks, AK                                                                                                                   
POSITION  STATEMENT:   Supports forestry  as prime  use of  state                                                             
forests                                                                                                                         
                                                                                                                                
Mr. Robert Ott                                                                                                                  
Tanana Chiefs Conference                                                                                                        
122 First Ave.                                                                                                                  
Fairbanks, AK  99701                                                                                                            
POSITION STATEMENT:   Opposed to diminished public  input in CSSB
149(RES)                                                                                                                        
                                                                                                                                
Ms. Emily Ferry                                                                                                                 
Southeast Alaska Conservation Council (SEACC)                                                                                   
449 6th St.                                                                                                                     
Juneau, AK 99801                                                                                                                
POSITION  STATEMENT:  Expressed  concern  about  limiting  public                                                             
input and changing the primary use designation                                                                                  
                                                                                                                                
Mr. Mike Sallee                                                                                                                 
PO Box 7603                                                                                                                     
Ketchikan, AK 99901                                                                                                             
POSITION STATEMENT:  Expressed concerns about SB 149                                                                          
                                                                                                                                
Mr. Matt Davidson                                                                                                               
Alaska Conservation Voters                                                                                                      
No address provided                                                                                                             
POSITION STATEMENT:  Expressed concerns about SB 149                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-38, SIDE A                                                                                                            
                                                                                                                              
CHAIR SCOTT  OGAN called the Senate  Resources Standing Committee                                                             
meeting to  order at  3:44 p.m.  Senators Wagoner,  Dyson, Elton,                                                               
Lincoln and  Chair Ogan  were present. The  committee took  up SB
149.                                                                                                                            
                                                                                                                                
           SB 149-TIMBER/ TIMBER SALES/ STATE FORESTS                                                                       
                                                                                                                                
SENATOR ROBIN TAYLOR, sponsor of  SB 149, told members he primary                                                               
introduced SB  149 to  promote resource  development, jobs  and a                                                               
new  revenue   stream  for   the  state.   He  worked   with  the                                                               
administration on  the committee  substitute (CS)  before members                                                               
for consideration. He  said Mr. Jeff Jahnke,  the state forester,                                                               
and  Jack  Phelps,  special  assistant   to  the  Governor,  were                                                               
available to answer questions. He  indicated his goal is to begin                                                               
the  development  and  stewardship  of  Alaska's  forests,  which                                                               
should  have  begun  42  years  ago.  He  hopes  that  with  this                                                               
legislation  and  the  encouragement of  this  administration,  a                                                               
terribly underutilized resource and asset can be developed.                                                                     
                                                                                                                                
MR. JEFF  JAHNKE, Director of  the Forestry  Division, Department                                                               
of  Natural Resources  (DNR), stated  support for  the CS  for SB
149.  He said  he would  present a  sectional analysis  by topic,                                                               
rather than consecutively by section. He explained:                                                                             
                                                                                                                                
     Committee substitute for SB  149 addresses the planning                                                                    
     requirements  for forest  management, including  forest                                                                    
     management  plans  for legislatively  designated  state                                                                    
     forests, five-year  schedules of timber  sales (FYSTS),                                                                    
     and the forest  land use plans, or what  we call FLUPs,                                                                    
     for individual timber sales.                                                                                               
                                                                                                                                
     Currently there  are two designated state  forests. One                                                                    
     is the Haines State Forest  and the other is the Tanana                                                                    
     Valley  State Forest.  Between the  two  of them,  they                                                                    
     compromise  about 2  million  acres  of forested  state                                                                    
     land and  there is  an additional  20 million  acres of                                                                    
     forested  state land  that is  forested state  land but                                                                    
     not currently in a state forest.                                                                                           
                                                                                                                                
     Let  me go  down through  the committee  substitute and                                                                    
     explain what we believe it does.                                                                                           
                                                                                                                                
     For forest land use plans,  what we call FLUPs, Section                                                                    
     1  moves   the  guidance   to  when   general  planning                                                                    
     requirements under  AS 38.04.065  apply to  forest land                                                                    
     use plans.  It does  not change the  requirements. This                                                                    
     is a  clean up. It  actually makes it read  much better                                                                    
     and it puts all of  the requirements together, both the                                                                    
     plans for the state forest  planning areas and the non-                                                                    
     state forest  planning areas. It actually  really helps                                                                    
     us in terms of consistency in the way we apply things.                                                                     
                                                                                                                                
     Section  2  deletes  a reference  to  consideration  of                                                                    
     information   on    collective   effects    of   forest                                                                    
     activities.  Consideration  of the  collective  effects                                                                    
     cannot be  done in our  FLUPs on a  sale-by-sale basis.                                                                    
     It's  very difficult.  It's  actually better  addressed                                                                    
     through   regional   planning   under   38.05.065   and                                                                    
     41.17.230.  So it's  better to  be done  in our  larger                                                                    
     forest plans or the regional plans.                                                                                        
                                                                                                                                
     Section 3 deletes  the list of specific  uses that must                                                                    
     be considered in forest land  use plans. It replaces it                                                                    
     with  a  requirement that  FLUPs  on  land outside  the                                                                    
     state forest  consider non-timber forest  resources and                                                                    
     uses. This  change will  make preparational  FLUPs more                                                                    
     efficient  by  deleting  a requirement  that  each  and                                                                    
     every FLUP consider uses and  resources that may not be                                                                    
     pertinent to the individual area that the FLUP covers.                                                                     
                                                                                                                                
     Those  are the  three  changes that  deal with,  again,                                                                    
     what  we call  FLUPs,  which are  our  forest land  use                                                                    
     plans, which deal with individual timber sales.                                                                            
                                                                                                                                
     The second group of changes  [has] to do with the five-                                                                    
     year schedule  of timber sales.  Section 4  changes the                                                                    
     five-year schedule of timber sales  from an annual to a                                                                    
     biennial  requirement. This  reduces the  work required                                                                    
     in preparing and reviewing these  schedules but it also                                                                    
     keeps them  as a  valuable tool  for both  industry and                                                                    
     the  public who  is  interested in  being informed.  We                                                                    
     don't believe  it will,  in fact,  change the  level of                                                                    
     information that is being provided.                                                                                        
                                                                                                                                
     Section 5 changes the requirements  that the sale be on                                                                    
     two schedules preceding the sale  to a requirement that                                                                    
     sales have been  on one of the  two schedules preceding                                                                    
     the sale.  In other  words, instead  of having  to have                                                                    
     been in  the last two  five-year lists, it has  to have                                                                    
     been on one of the  last two biennial lists. So, again,                                                                    
     that is a change.                                                                                                          
                                                                                                                                
     Section 16  deletes the authority to  reoffer sales for                                                                    
     two years after their  initial offering without listing                                                                    
     them on  the five-year schedule. This  provision is not                                                                    
     needed given  the changes that  we've made -  that have                                                                    
     been made in Section 4 and Section 5.                                                                                      
                                                                                                                                
     That's  the body  of  the changes  that  deal with  the                                                                    
     five-year schedules.                                                                                                       
                                                                                                                                
     The next  ones I'm going  to discuss, and  probably the                                                                    
     biggest  body of  changes [are]  changes  to the  state                                                                    
     forest purposes and state forest management plans.                                                                         
                                                                                                                                
     Sections  8  and 9  address  management  plans for  the                                                                    
     Haines   State  Forest.   They  replace   the  specific                                                                    
     planning  requirements  for  the  Haines  State  Forest                                                                    
     Management   Area   in   AS   41.15.315(a)   with   the                                                                    
     requirements for  state forest  management plans  in AS                                                                    
     41.17.230. What that really does  is means that both of                                                                    
     our  state  forests  fall  under  the  same  management                                                                    
     criteria  and requirements  as  opposed  to having  two                                                                    
     separate ones.                                                                                                             
                                                                                                                                
     Specific  requirements  for consultation  between  DNR,                                                                    
     ADF&G  and  between  ADF&G  and  local  fish  and  game                                                                    
     advisory   committees  are   retained.  The   amendment                                                                    
     deletes the requirement for a  public hearing in Haines                                                                    
     and  Klukwan  prior  to   plan  adoption  and  revision                                                                    
     specifically.  They  delete  the requirements  for  the                                                                    
     plan to  be based  on an  inventory completed  over the                                                                    
     last  ten years  and  to  revise the  plan  when a  new                                                                    
     inventory  is done.  That's not  to say  they won't  be                                                                    
     based on inventories. That's required in other areas.                                                                      
                                                                                                                                
     Sections 11,  12, and 15  change a  management emphasis                                                                    
     in legislatively  designated state  forests from  a mix                                                                    
     of multiple use that  provides for timber management to                                                                    
     timber  management that  allows  other beneficial  uses                                                                    
     that are compatible with  timber. These sections change                                                                    
     the primary purpose of state  forests from multiple use                                                                    
     that   provides   for    production   utilization   and                                                                    
     replenishment of timber  resources to timber management                                                                    
     while allowing  for other  beneficial uses  and deletes                                                                    
     multiple  use  as a  principle  of  managing the  state                                                                    
     forest. These changes apply to  the Tanana Valley State                                                                    
     Forest. The Haines State  Forest purpose is established                                                                    
     in  a different  statute  and is  not  changed by  this                                                                    
     bill.                                                                                                                      
                                                                                                                                
     Section 14  makes the timing requirement  for review of                                                                    
     forest  management  plans  more flexible.  Rather  than                                                                    
     requiring a review  every five years, a  review will be                                                                    
     required  as   necessary.  This  will   preclude  time-                                                                    
     consuming  reviews  when  they  are  not  needed.  This                                                                    
     section  will  apply  to both  the  Tanana  Valley  and                                                                    
     Haines State Forest.                                                                                                       
                                                                                                                                
     Section  13  requires   that  forest  management  plans                                                                    
     consider non-timber  uses to the extent  that such uses                                                                    
     are compatible  with timber management.  In conjunction                                                                    
     with Section  3, this moves  the consideration  of non-                                                                    
     timber  uses  in  state  forests  from  the  individual                                                                    
     forest land  use plans, which  I mentioned  earlier, to                                                                    
     the  management plans  for the  state forest.  So we've                                                                    
     broadened  the  venue  for that  consideration  to  the                                                                    
     forest  instead   of  the  individual   projects.  This                                                                    
     section  will apply  to both  the  Tanana Valley  State                                                                    
     Forest and the Haines State Forest.                                                                                        
                                                                                                                                
     Section  16 deletes  the requirement  for proposals  of                                                                    
     new    state   forests    to   include    findings   of                                                                    
     incompatibility  for  the  timber and  non-timber  uses                                                                    
     previously listed  in AS 35.05.112(c). Section  16 also                                                                    
     deletes the requirement for  forest management plans to                                                                    
     be reviewed  by the Board  of Forestry and  other state                                                                    
     agencies  prior   to  adoption.   It  also   deletes  a                                                                    
     requirement   for  local   public  hearings   prior  to                                                                    
     adoption.  Again,  the  planning process  does  require                                                                    
     some  review  but  prior  to  adoption  of  the  forest                                                                    
     itself. Section  16 deletes the requirement  for forest                                                                    
     management  plans to  be  provided  to the  legislature                                                                    
     after adoption.                                                                                                            
                                                                                                                                
     The  amendments of  the state  forest and  state forest                                                                    
     management  plans will  not  require  revisions to  the                                                                    
     existing management  plans for the Tanana  Valley State                                                                    
     Forest  - and  that one  was just  completed, so  we're                                                                    
     quite happy that it won't require revisions.                                                                               
                                                                                                                                
     The next topic is riparian management standards.                                                                           
                                                                                                                                
     Section   10  revises   the  conditions   for  imposing                                                                    
     riparian protection  standards on state lands  that are                                                                    
     more  stringent than  those established  in the  Forest                                                                    
     Resources  and Practices  Act.  This amendment  deletes                                                                    
     the reference  to FLUPs as  a basis for  requiring more                                                                    
     stringent standards  on timber sales outside  the state                                                                    
     forests.  Within  state forests,  additional  standards                                                                    
     could only be  imposed if the DNR  commissioner makes a                                                                    
     finding of compelling state interests.                                                                                     
                                                                                                                                
     The  last topic  is negotiated  timber sales  for local                                                                    
     manufactured  wood  products  - [indisc.]  called  one,                                                                    
     two, three sales  or 280 sales. There  are actually two                                                                    
     changes. The  first one is  it broadens the  area where                                                                    
     sales  under this  section  may  be offered.  Currently                                                                    
     offerings  are limited  areas  designated for  forestry                                                                    
     uses by an area plan.                                                                                                      
                                                                                                                                
CHAIR OGAN interrupted to ask which section Mr. Jahnke was                                                                      
referring to.                                                                                                                   
                                                                                                                                
MR. JAHNKE said Section 6 and continued.                                                                                        
                                                                                                                                
     Section  6 broadens  the area  where  sales under  this                                                                    
     section  may   be  offered.  Currently   offerings  are                                                                    
     limited  to areas  designated for  forestry uses  by an                                                                    
     area plan  to areas where  forestry is an  allowed use.                                                                    
     This  would allow  this sale  type in  areas that  have                                                                    
     more general designations,  such as resource management                                                                    
     on  general  use  where forestry  is  an  allowed  use.                                                                    
     Review of  proposed sales  through the  five-year state                                                                    
     timber  sale and  forest land  use  plan process  would                                                                    
     continue to  insure that proposed sales  are compatible                                                                    
     with the management of a particular location.                                                                              
                                                                                                                                
     Finally, this legislation makes  the definition of high                                                                    
     value added  wood products  more flexible.  The current                                                                    
     definition  is   a  list  of  specific   products  that                                                                    
     qualify.  As  most  of  you   are  probably  aware  and                                                                    
     particularly in a state where  we're trying to interest                                                                    
     additional  products  -  the production  of  additional                                                                    
     products  in the  State of  Alaska  - we  can only  add                                                                    
     those additional  products by regulation.  New products                                                                    
     are developed every year and  the regulatory process is                                                                    
     an  inefficient   means  to  determine   whether  these                                                                    
     products qualify  as high  value added.  This amendment                                                                    
     makes  the  statute  more   responsive  to  market  and                                                                    
     processing changes by allowing  the DNR commissioner to                                                                    
     determine whether  a product  not on the  existing list                                                                    
     has  received sufficient  processing  to  qualify as  a                                                                    
     high  value added  wood  product...To  qualify as  high                                                                    
     value  added   at  a  minimum,  the   product  must  be                                                                    
     processed beyond sawing and planing to qualify.                                                                            
                                                                                                                                
     And then  we did  make some  changes to  the individual                                                                    
     products. We  feel they do  a good job of  defining the                                                                    
     intent of what  high value added is  versus value added                                                                    
     so  we tried  to clean  up  what we  thought were  some                                                                    
     inconsistencies in that list  currently in statute, not                                                                    
     so  much because  we wanted  to prolong  the idea  that                                                                    
     that's  the only  product that  could be  classified in                                                                    
     those  but  more  as  an  example  of  what  those  two                                                                    
     categories  meant. And  then,  as I  said, this  change                                                                    
     would allow  the commissioner to determine  whether the                                                                    
     product meets one or the other of those criteria.                                                                          
                                                                                                                                
     ...We do  intend, either today  or first  thing Monday,                                                                    
     to  circulate  the  forest  practices  titles  -  41.17                                                                    
     titles to the board so  they have the opportunity to be                                                                    
     aware  of them  as  we've  done in  the  past with  the                                                                    
     board.                                                                                                                     
                                                                                                                                
SENATOR WAGONER moved  to adopt the proposed  CS, labeled Version                                                               
H, as the working document before the committee.                                                                                
                                                                                                                                
SENATOR ELTON objected for the purpose of discussion.                                                                           
                                                                                                                                
SENATOR LINCOLN asked why the  requirement for public hearings in                                                               
Haines and Klukwan was deleted from the CS.                                                                                     
                                                                                                                                
MR. JAHNKE  said there  will still be  an opportunity  for public                                                               
participation through  the revision of  the Haines plan  under AS                                                               
41.17.230. He  stated, "But because  of the change in  moving the                                                               
Haines  State  Forest  Plan underneath  41.17.270,  the  specific                                                               
requirement to hold those public hearings has been eliminated."                                                                 
                                                                                                                                
SENATOR LINCOLN  commented that  she would  like to  discuss that                                                               
further since those  areas will be affected by a  revision to the                                                               
plan. She then said  that a lot of control is  being given to the                                                               
DNR  commissioner in  this  whole process.  She  referred to  new                                                               
language  on  page  4,  lines  2  through  5,  and  asked  for  a                                                               
definition of "compelling state interest."                                                                                      
                                                                                                                                
MR.  JAHNKE  said the  idea  is  that  the commissioner  will  be                                                               
involved in  the evaluation process through  the state forester's                                                               
office and the commissioner's staff. He stated:                                                                                 
                                                                                                                                
     I'm  not sure  that I  can define  'compelling' but  if                                                                    
     they  believe that  there  is a  reason  to expand  the                                                                    
     riparian  buffer, that's  how  that can  happen and  it                                                                    
     would happen as  a result of a  recommendation from the                                                                    
     state forester's office and the commissioner's staff.                                                                      
                                                                                                                                
SENATOR LINCOLN said  she would pursue that question  at the next                                                               
hearing.                                                                                                                        
                                                                                                                                
CHAIR OGAN asked Mr. Jahnke to define "riparian standard."                                                                      
                                                                                                                                
MR.  JAHNKE  said  riparian standards  were  established  in  the                                                               
Forest  Practices Act  and pertain  to  the buffer  width and  to                                                               
allowable activities within that buffer.                                                                                        
                                                                                                                                
SENATOR SEEKINS  added that  SB 88  updates the  Forest Practices                                                               
Act  and  is  moving  through the  legislative  process  now.  It                                                               
establishes certain  riparian standards.  For example,  trees can                                                               
be  logged up  to a  certain  distance from  particular types  of                                                               
streams.   He clarified that  riparian standards refer  to upland                                                               
standards rather than water standards.                                                                                          
                                                                                                                                
CHAIR  OGAN  said  he  did not  know  whether  "compelling  state                                                               
interest" is defined in statute.                                                                                                
                                                                                                                                
SENATOR  SEEKINS  said  he  understands   that  if  the  riparian                                                               
standard  allows trees  to  be  harvested within  100  feet of  a                                                               
stream  but DNR  believes doing  so would  be detrimental  to the                                                               
health of the stream, DNR might require a 200 foot buffer.                                                                      
                                                                                                                                
CHAIR OGAN  said he  believes a  compelling state  interest would                                                               
require balancing Alaska constitutional  obligations to manage on                                                               
a  sustained  yield  basis. He  clarified  that  sustained  yield                                                               
applies to all resources, such as fish and wildlife.                                                                            
                                                                                                                                
SENATOR  LINCOLN said  that is  why  she asked  for a  definition                                                               
because the term "compelling state interests" is nebulous.                                                                      
                                                                                                                                
CHAIR  OGAN  agreed  that  it   is  important  to  establish  the                                                               
definition in the record.                                                                                                       
                                                                                                                                
SENATOR  SEEKINS commented  that  the bill  establishes that  the                                                               
state is to  harvest its timber products using  a sustained yield                                                               
principle.                                                                                                                      
                                                                                                                                
SENATOR  WAGONER pointed  out  that he  visited  Australia a  few                                                               
years ago  and was most  impressed by Australia's tree  farms. He                                                               
hopes the  state establishes a tree-farming  program to accompany                                                               
its  logging program  so that  future generations  will never  be                                                               
without  forest   resources.  He  thought   Australia's  forestry                                                               
management is fantastic.                                                                                                        
                                                                                                                                
CHAIR OGAN  commented that this  legislation changes  the primary                                                               
use of  forests from multiple  use to  forestry. He said  when he                                                               
flies  over   Southeast  Alaska,   he  can  instantly   tell  the                                                               
difference  between private  timber sale  land and  public timber                                                               
sale  land. The  public timber  sales are  logged according  to a                                                               
sustained  yield principle.  He noted  that private  timber sales                                                               
are not  subject to the  same regulations or  riparian standards.                                                               
He asked whether  the CS will affect the  requirement that public                                                               
timber sales follow the sustained yield principle.                                                                              
                                                                                                                                
MR. JAHNKE said he does not  see this legislation as changing the                                                               
Division of Forestry's approach  to sustained yield management of                                                               
forestry.   That   principle   is   well   established   in   the                                                               
Constitution.                                                                                                                   
                                                                                                                                
CHAIR OGAN  noted it  does change the  primary use  from multiple                                                               
use to forestry.                                                                                                                
                                                                                                                                
MR.  JAHNKE said  it  changes the  focus,  particularly on  state                                                               
forests.                                                                                                                        
                                                                                                                                
CHAIR OGAN asked  if the Division of Forestry will  still have to                                                               
balance  its other  constitutional mandates  to manage  the other                                                               
resources in its stewardship that  might be impacted by forestry,                                                               
such as fish and game.                                                                                                          
                                                                                                                                
MR. JAHNKE said it would.                                                                                                       
                                                                                                                                
CHAIR OGAN took public testimony.                                                                                               
                                                                                                                                
MS.   NANCY  FRESCO,   Northern   Alaska  Environmental   Center,                                                               
expressed the  following concerns. This legislation  takes away a                                                               
lot of  the public's ability  to have input, especially  in areas                                                               
that are  not terribly  contentious. The  public process  for the                                                               
revision of  the Tanana Valley  State Forest Management  Plan was                                                               
very  positive and,  because  it is  not  controversial now,  she                                                               
believes it  is a  mistake to disallow  future public  input. She                                                               
also expressed  concern about changes to  the riparian standards.                                                               
SB  88  is a  reintroduction  of  what was  HB  131  in the  last                                                               
session.  That bill  made  it all  of  the way  to  a floor  vote                                                               
without any  controversy but was  not enacted as  the legislature                                                               
ran out of  time. She would hate  to see SB 149  undermine all of                                                               
the  effort that  went into  designating good  riparian standards                                                               
for the  Interior. She said  streamlining and  reducing paperwork                                                               
can be  positive but only if  an adequate amount of  public input                                                               
occurs. She  said the Environmental  Center's biggest  concern is                                                               
the primary  use change from  multiple use to  timber management.                                                               
The Center  believes it  is critical to  retain the  multiple use                                                               
standard for the Tanana Valley  State Forest. That forest is used                                                               
for  hunting,  recreation,  jobs,  subsistence,  and  other  uses                                                               
besides timber.                                                                                                                 
                                                                                                                                
MR.  ERIC  PYNE, representing  his  company  named Boreal  Forest                                                               
Products,  and   the  Interior  Woodcutters'   Association,  told                                                               
members the Interior Woodcutter's  Association was established in                                                               
the 1970s and pushed for the  creation of the Tanana Valley State                                                               
Forest. The Association  would like to see an  emphasis on timber                                                               
management while  allowing for  other uses. He  said he  spends a                                                               
lot of  time in the Tanana  Valley State Forest and  is amazed at                                                               
the number  of activities that  go on there. Providing  access to                                                               
the  Tanana Valley  State forest  has attracted  more people,  an                                                               
important aspect of  Fairbanks. He said timber  creates roads and                                                               
trails because  many of  the timber  sales require  that parallel                                                               
trails be  put in. He said  the timber industry does  many things                                                               
to promote recreation and other  uses within the state forest. He                                                               
does not  feel that  the timber industry  limits people's  use of                                                               
that forest.                                                                                                                    
                                                                                                                                
MR. PYNE  said the state  forest comprises about 2  million acres                                                               
while  state parks  comprise about  20 million  acres. Therefore,                                                               
the equivalent of only 10 percent  of state parks is set aside as                                                               
an  area that  primarily emphasizes  timber. He  informed members                                                               
the Association  sent, in written  form, suggested  amendments to                                                               
SB 149.  Some of those additions were included in Version H.                                                                    
                                                                                                                                
MR. JIM  MACKOVJAK, representing  himself, asked what  portion of                                                               
the timber produced  from state forest lands will be  sold to the                                                               
round log  export sector. He  said he views exporting  round logs                                                               
as  exporting jobs  and he  does  not believe  that is  something                                                               
Alaska wants to do right now.                                                                                                   
                                                                                                                                
MR. JAHNKE  said he  did not have  specific numbers  but believes                                                               
the  state has  exported a  very small  amount of  its timber  as                                                               
round  logs. He  estimated that  only three  of the  56 currently                                                               
active timber sales  export any logs and those are  from sales on                                                               
the Kenai  where pulp is the  only product that can  be made from                                                               
logs that have been damaged by spruce-bark beetles.                                                                             
                                                                                                                                
CHAIR  OGAN said  he thought  Mr. Mackovjak  was concerned  about                                                               
Southeast Alaska  because it is  unlikely all of those  logs will                                                               
be used for value-added products in local mills.                                                                                
                                                                                                                                
MR. JAHNKE replied:                                                                                                             
                                                                                                                                
     Mr. Chairman,  because of the  nature of  our ownership                                                                    
     in Southeast, our real niche  is to provide logs to the                                                                    
     small  and  medium-sized  operators  in  the  Southeast                                                                    
     that, frankly, can't compete  for larger Forest Service                                                                    
     timber  sales because  of the  larger contiguous  areas                                                                    
     that the  Forest Service  has. So,  I would  not expect                                                                    
     this bill to have any  impact on the general proportion                                                                    
     of our  timber sales that are  processed locally, which                                                                    
     is by far and away the largest proportion.                                                                                 
                                                                                                                                
MR. MACKOVJAK said  he received a booklet  from the Knowles-Ulmer                                                               
Administration a few weeks ago.  A statement in that booklet says                                                               
that  during  their administration,  180  million  board feet  of                                                               
timber was sold  off of state land and about  half of that amount                                                               
was used to make value-added products.  He said he was curious to                                                               
find out what the other 90 million board feet were used for.                                                                    
                                                                                                                                
MR. JAHNKE said  the vast majority of the timber  sold for export                                                               
from state land  has been bark beetle timber from  the Kenai area                                                               
and  some  from  the  Haines  State Forest  while  it  was  still                                                               
marketable because  of its  condition. DNR  has exported  a small                                                               
amount of round,  green spruce during the last few  years but the                                                               
vast majority of the export has been salvaged timber.                                                                           
                                                                                                                                
CHAIR OGAN asked if anything  in the bill addresses an allocation                                                               
of or export ban on high value timber.                                                                                          
                                                                                                                                
MR.  JAHNKE  replied, "Mr.  Chairman,  No,  there is  nothing  in                                                               
there."                                                                                                                         
                                                                                                                                
MR. MACKOVJAK suggested putting a tax on exported round logs.                                                                   
                                                                                                                                
CHAIR OGAN noted Mr. Mackovjak's suggestion.                                                                                    
                                                                                                                                
MR.  ROBERT  OTT,  representing   the  Tanana  Chiefs  Conference                                                               
forestry  program,  acknowledged  that  he  was  unaware  of  the                                                               
changes made in the  CS so he has not had  time to consider them.                                                               
He asked  to make two  points. He does not  believe it is  a good                                                               
idea to  eliminate public involvement  from forest  planning. The                                                               
Division of  Forestry does a  good job planning timber  sales and                                                               
considering  other  uses, but  it  is  not  always privy  to  all                                                               
information.  The public  provides input  about local  issues. He                                                               
noted during  the recent  Unit 2 planning  process in  the Tanana                                                               
Valley State Forest,  a special management area was  set up above                                                               
the old  village of Minto. That  area is important to  the Native                                                               
people so  the state  acknowledged a  special management  area to                                                               
accommodate their use  of it. He said his second  comment is that                                                               
he is  not sure how changing  the primary use of  the forest from                                                               
multiple use to  timber production will affect Native  use of the                                                               
land. He said issues may arise from subsistence use of the land.                                                                
                                                                                                                                
CHAIR OGAN  maintained that the Alaska  Constitution requires the                                                               
resources to  be managed  on a sustained  yield basis  subject to                                                               
preferences amongst  beneficial uses. He felt  this bill probably                                                               
reflects the highest preference of these lands as timber.                                                                       
                                                                                                                                
SENATOR  DYSON said  it  is his  understanding  that during  pre-                                                               
contact  times   the  Native  people   on  the   Kenai  practiced                                                               
controlled burning  of the  forested area  to increase  the moose                                                               
graze. He believes  that timber harvesting [could  result in more                                                               
moose  graze areas].  He  asked if  that was  a  practice in  the                                                               
Interior.                                                                                                                       
                                                                                                                                
MR.  OTT said  he could  not answer  that but  agreed that  moose                                                               
habitat can be enhanced through  forest management. He noted that                                                               
a  lot  of  subsistence  activities are  compatible  with  forest                                                               
management, such  as berry production. However,  he cautioned the                                                               
lack of public input will  be an issue if incompatibilities occur                                                               
around the villages situated near the state forest.                                                                             
                                                                                                                                
SENATOR  DYSON  said  if  forest burning  had  been  an  historic                                                               
practice,  it  might  be  a  case  in  which  the  Tanana  Chiefs                                                               
Conference could work together with the forestry managers.                                                                      
                                                                                                                                
MR.  OTT  said   that  would  be  possible  as   long  as  public                                                               
involvement is provided for.                                                                                                    
                                                                                                                                
CHAIR OGAN added that lightning was  probably the cause of a fair                                                               
amount of fires in the Interior.                                                                                                
                                                                                                                                
SENATOR SEEKINS commented  that he does not read the  bill to say                                                               
that  public input  will not  be allowed.  He said  that so  many                                                               
times, in the area of public  input, you get, "layers upon layers                                                               
of public input." He asked where the bill prevents public input.                                                                
                                                                                                                                
CHAIR OGAN  noted the  language on page  3, lines  17-19, removes                                                               
the  requirement that  a public  hearing  be held  in Haines  and                                                               
Klukwan.                                                                                                                        
                                                                                                                                
SENATOR  SEEKINS  said the  language  on  lines 21-29  says  that                                                               
either department may not adopt  regulations without prior review                                                               
at a  public hearing in  Haines and Klukwan.  He said he  sees no                                                               
meaningful diminishment of the public hearing process.                                                                          
                                                                                                                                
CHAIR OGAN asked Mr. Jahnke to address that issue.                                                                              
                                                                                                                                
TAPE 03-38, SIDE B                                                                                                            
                                                                                                                                
MR.  JAHNKE   said  this  bill   in  no  way   eliminates  public                                                               
participation  in developing  forest management  plans for  state                                                               
forests. It  remains the  department's responsibility  to involve                                                               
the public and it does not limit public participation.                                                                          
                                                                                                                                
CHAIR  OGAN  asked if  Section  8  eliminates public  involvement                                                               
during the  planning process  but Section  9 provides  for public                                                               
involvement during the regulation process.                                                                                      
                                                                                                                                
MR. JAHNKE said that is correct.                                                                                                
                                                                                                                                
SENATOR  LINCOLN  said she  feels  there  is a  great  difference                                                               
between  where that  language was  taken from  and moved  to. She                                                               
said that  [Section 8]  refers to developing  the plan,  which is                                                               
preliminary.  [Section 9],  which refers  to the  management plan                                                               
and regulations,  is after the  fact, therefore the  residents of                                                               
Haines  and  Klukwan will  not  be  part  of the  early  planning                                                               
process.  She pointed  out that  this  will not  only impact  the                                                               
people of Haines  and Klukwan, but the prior review  by the Board                                                               
of Forestry  has been removed  so the board  will not be  part of                                                               
the  early  planning  process.  Therefore,  the  plan  design  is                                                               
strictly up  to the commissioner  and no public  involvement will                                                               
occur until the proposed regulations are released.                                                                              
                                                                                                                                
CHAIR OGAN asked why the Board  of Forestry is being taken out of                                                               
the loop.                                                                                                                       
                                                                                                                                
SENATOR ELTON interjected  to say he reads those  sections to say                                                               
that  all that  is  required of  DNR when  it  is developing  the                                                               
management  plan is  that DNR  discuss the  plan with  the Alaska                                                               
Department of Fish and Game  (ADF&G) and each municipality before                                                               
adopting regulations  that govern  fish and  wildlife management.                                                               
Then,  a  public  hearing  is  required  during  the  process  of                                                               
adopting regulations.                                                                                                           
                                                                                                                                
MR. JAHNKE  said he  believes the Board  of Forestry  was deleted                                                               
primarily because the  Board of Forestry is  actively involved in                                                               
all of  AS 41.17, which charges  the Board to be  involved in any                                                               
revisions  to  state  forest  plans.  DNR did  not  feel  it  was                                                               
necessary to restate that mandate in SB 149.                                                                                    
                                                                                                                                
SENATOR ELTON  asked Mr. Jahnke to  respond, at a later  date, to                                                               
the fact  that if  the Board  must be  involved, why  remove that                                                               
language. He  said it is clear  to him the regulations  cannot be                                                               
adopted  by  either department  without  prior  review or  public                                                               
hearings  but  it  is  not  clear that  decisions  made  under  a                                                               
management plan require public involvement.                                                                                     
                                                                                                                                
MS. EMILY  FERRY, representing the Southeast  Alaska Conservation                                                               
Council (SEACC),  described SEACC's  membership and said  she has                                                               
not had a chance to look at  the changes made in the CS. However,                                                               
the  effects  on  the  public   process  need  to  be  considered                                                               
carefully. She  believes changing the focus  from multiple-use to                                                               
timber  management is  unacceptable. She  said that  Ketchikan is                                                               
still reeling from the University  of Alaska land sale. That sale                                                               
provided little notification and  opportunity for public comment.                                                               
Now, the  Mountain Point community  is outraged as  the [indisc.]                                                               
watershed is  clear-cut and residents' property  values drop. The                                                               
Division of  Forestry's five-year timber sale  schedule, regional                                                               
planning review, and  forest land use plans were  all designed to                                                               
insure that these types of nasty surprises do not occur.                                                                        
                                                                                                                                
MS.  FERRY said  in  the case  of the  Haines  State Forest,  the                                                               
public worked hard  to achieve a plan that  offers balanced views                                                               
of the state's forest resources.  It's unacceptable to reduce the                                                               
function of  the public to that  of a rubber stamp.  All forested                                                               
state lands in Southeast Alaska are  used for much more than just                                                               
logging.  They   are  used  for   tourism  and   recreation,  and                                                               
subsistence hunting, gathering and fishing.                                                                                     
                                                                                                                                
MS. FERRY said  she has not visited the tree  farms of Australia,                                                               
but she  has visited  those in  Georgia. She  is appalled  at the                                                               
idea of  turning the incredible  diversity and life  of Southeast                                                               
Alaska  into a  sterile tree  farm. Temperate  rainforests create                                                               
more  biomass  than any  other  ecosystem  in the  entire  world.                                                               
Regarding jobs, she said the state  needs to focus on turning its                                                               
logged timber into a value added industry.                                                                                      
                                                                                                                                
SENATOR  SEEKINS noted  of the  millions  of acres  of forest  in                                                               
Southeast Alaska, only 400,000 are  available for timber harvest.                                                               
He questioned how Southeast Alaska  will turn into a sterile tree                                                               
farm.                                                                                                                           
                                                                                                                                
CHAIR  OGAN pointed  out there  is a  lot of  spruce bark  beetle                                                               
damage  in the  Haines area.  He said  if that  hits the  rest of                                                               
Southeast, it  will decimate  the forest like  it has  across the                                                               
bay from Homer.                                                                                                                 
                                                                                                                                
SENATOR WAGONER  said he  represents the part  of Alaska  that is                                                               
most  affected by  the spruce  bark beetle.  He has  listened for                                                               
almost  30 years  to various  people suggest  how to  address the                                                               
problem. In  the meantime, the  spruce bark beetles  killed about                                                               
90  percent  of the  timber  worth  harvesting. If  the  infected                                                               
timber is  not harvested  quickly, it becomes  a total  waste. He                                                               
said he hopes someone prevents  that from happening in Southeast.                                                               
One way  to do that  is with  a good forestry  management program                                                               
that will  remove the aged  timber that is susceptible  to spruce                                                               
bark beetles.                                                                                                                   
                                                                                                                                
SENATOR SEEKINS said  the land owned by the  University of Alaska                                                               
is not subject to the provisions of  AS 38 so the process used to                                                               
sell that  land is not the  same as the state's  process. He said                                                               
comparing  the  two  processes   is  like  comparing  apples  and                                                               
oranges.                                                                                                                        
                                                                                                                                
MS.   JAN  DAWE,   Alaska  Boreal   Forest   Council,  said   her                                                               
understanding is that  the opportunity for public  input will not                                                               
be reduced but  there would be a lessening of  the requirement to                                                               
hold public  hearings. The Council  believes the  opportunity for                                                               
public  dialog in  the management  process is  what consensus  is                                                               
built upon.  It is not enough  to have public input;  people need                                                               
the  opportunity  to  hash  out  ideas.  The  result  of  holding                                                               
hearings  on contentious  projects is  that support  is built  to                                                               
move forward with certain projects.  She noted that the Council's                                                               
major concern is changing the  top priority of the state forests.                                                               
She  questioned  whether multiple  use  and  sustained yield  are                                                               
twin-governing principles in the Alaska Constitution.                                                                           
                                                                                                                                
MS. DAWE said  in the Interior, the Council has  been involved in                                                               
a collaborative effort to look  at timber and the integrated non-                                                               
commercial  uses  of  the  resource base  with  the  Division  of                                                               
Forestry,  the  University  of  Alaska, and  a  number  of  other                                                               
institutes.  She cautioned  making  timber  management the  first                                                               
priority use  of the  state forests before  knowing the  value of                                                               
extracted non-timber  forest products.  She pointed out  DNR has,                                                               
just this month,  put into regulation the offering  of permits to                                                               
users of non-timber forest products.  DNR will be able to collect                                                               
a  lot of  information from  these applications.  She offered  to                                                               
provide members with more information.                                                                                          
                                                                                                                                
MR.  MIKE  SALLEE, a  Ketchikan  sawmill  operator, said  at  the                                                               
outset, SB  149 looks  like the  "timbercentric brainchild"  of a                                                               
person who harvests timber. He  said regarding a previous comment                                                               
about the tree farms in  Australia, he visited New Zealand, which                                                               
used to have a lot of  Cowry (ph) trees. Those primary old-growth                                                               
trees are  now just about  gone. They were disease  resistant and                                                               
very valuable  trees. The trees  being grown now must  be treated                                                               
to keep from  rotting. He said as a Ketchikan  resident, he spent                                                               
a lot of time working on  the Southern Southeast Area Plan. He is                                                               
concerned  with SB  149's effect  on the  public input  into that                                                               
plan  and he  wants to  see it  contain as  much public  input as                                                               
possible.  He  is  concerned  about  removing  the  multiple  use                                                               
aspect.                                                                                                                         
                                                                                                                                
MR. SALLEE said  he was raised on Gravina Island.  He is not sure                                                               
how this legislation will affect  the state lands on that island.                                                               
He is  concerned about  the cumulative  impact of  timber harvest                                                               
and how that  affects adjoining lands. He said  ever since timber                                                               
harvests were geared up in  Southeast in the 1950s, whoever owned                                                               
the land  to be logged treated  it as though it  was isolated. He                                                               
pointed out that a lot of  the trees on borough land, adjacent to                                                               
the University of  Alaska land that was logged,  have blown down.                                                               
The borough  is now in  the position  of having to  clear-cut its                                                               
land because the remaining trees will blow down anyway.                                                                         
                                                                                                                                
MR. SALLEE said, regarding comments  about the state land acreage                                                               
relative  to   the  entire  Tongass,  Southeast   Alaska  is  not                                                               
homogeneously  covered  with  timber. As  a  resource  extractor,                                                               
almost  every resource  he has  been involved  in, whether  it be                                                               
diving,  commercial fishing,  or  logging,  is habitat  specific;                                                               
each resource is  not found everywhere. To speak of  all acres in                                                               
the Tongass as homogeneous is a poor description.                                                                               
                                                                                                                                
CHAIR OGAN  said this  bill will  not affect  any logging  in the                                                               
Tongass.                                                                                                                        
                                                                                                                                
MR. MATT  DAVIDSON, Alaska Conservation  Voters, told  members he                                                               
just received  a copy of the  CS this afternoon and  finds, given                                                               
the short time  frame, it is difficult to  understand the impacts                                                               
of the CS  as it is very complex and  different from the original                                                               
bill.   He said the  discussions about the changes  from multiple                                                               
use  to timber-first  management  on state  forested  lands is  a                                                               
major issue.  He believes  more emphasis  on planning  for timber                                                               
sales has  been put on  the area plans.  He said, under  the area                                                               
plans,  communities submit  comments on  what should  be done  on                                                               
those lands.  In Southeast, the majority  of state-selected lands                                                               
were  not   selected  for  timber  purposes   but  for  community                                                               
purposes. Therefore,  it would  behoove the  state to  change the                                                               
emphasis on those lands without  talking to the communities. Many                                                               
of those  areas are watersheds  or could be used  for settlement.                                                               
He  said  the northern  section  of  Prince  of Wales  Island  is                                                               
heavily  impacted  by  timber  activities,  primarily  by  Native                                                               
corporations  and the  U.S. Forest  Service. The  remaining state                                                               
lands  that are  unlogged  on  Prince of  Wales  Island are  very                                                               
important to the residents of the communities.                                                                                  
                                                                                                                                
MR.  DAVIDSON said  he  is  concerned about  the  changes to  the                                                               
planning  process. He  does not  believe  the sectional  analysis                                                               
does  justice to  the changes  in the  CS. He  sees Section  1 as                                                               
taking away the  ability to look to the Forest  Land Use Plans to                                                               
determine  the   impacts  of  individual  timber   sales  on  the                                                               
resources of  that area.  The area  plan is  a general  plan that                                                               
does  not contain  any details  of local  areas. The  Division of                                                               
Forestry does  the local plans and  needs to look at  that area's                                                               
features to determine potential impacts  to it. Any limits to the                                                               
time the  Division of Forestry  takes to  look at the  impacts to                                                               
individual  sales should  be considered  carefully.  He said  one                                                               
thing that  did not  get addressed  [in the  sectional analysis],                                                               
regarding   the   value-added   changes,  is   considering   pulp                                                               
production as high  value and giving it  special dispensation. SB
180, the source of this  value-added consideration, was developed                                                               
by a  coalition of  people who  wanted to  make sure  that timber                                                               
from state lands is used in state.                                                                                              
                                                                                                                                
MR.  DAVIDSON said  he agrees  with  previous speakers'  concerns                                                               
about limits to  public involvement and involvement  by the Board                                                               
of  Forestry.   He  also  believes  the   Legislature  should  be                                                               
concerned  that it  will not  be consulted  about changes  to the                                                               
plan. He commented:                                                                                                             
                                                                                                                                
     The planning document -  especially we're talking about                                                                    
     giving it  a lot more  power. On one hand  we're saying                                                                    
     we're  limiting the  review under  the Forest  Land Use                                                                    
     Plan, the  small plans -  the area specific  plans, and                                                                    
     we're  relying on  these bigger  plans.  The next  time                                                                    
     we're saying we're going to  limit the public review of                                                                    
     these bigger  plans. So, which  is it going to  be? Are                                                                    
     we going  to review  - are we  going to  have expedited                                                                    
     review  on one  side and  have good  review on  another                                                                    
     side or are  we going to have expedited  review on both                                                                    
     sides and  then the  public really doesn't  know what's                                                                    
     going on? And  then you run into problems  like you had                                                                    
     in  Ketchikan  where  there wasn't  a  requirement  for                                                                    
     public  review. There  was public  notice in  the paper                                                                    
     and it wasn't  caught by the people who  live there and                                                                    
     suddenly an  outfit from the  Lower 48 is  cutting down                                                                    
     timber that no one really knew about.                                                                                      
                                                                                                                                
MR.  DAVIDSON   said  he  is  additionally   concerned  with  the                                                               
expansion of  negotiated sales for value-added  local manufacture                                                               
to  general  use  lands.  DNR  is using  the  general  use  lands                                                               
designation  extensively in  its land  use plans.  He said  as he                                                               
reads it, timber would become  the primary purpose of general use                                                               
lands.  He requested  that members  of  the public  be given  the                                                               
opportunity  to  testify  at  further   hearings  in  the  Senate                                                               
Resources  Committee  because  it   is  a  complicated  piece  of                                                               
legislation with broad impacts.                                                                                                 
                                                                                                                                
5:02 p.m.                                                                                                                     
                                                                                                                                
SENATOR WAGONER said he is from  an area in Idaho and is familiar                                                               
with  the pulp  industry. He  asked Mr.  Davidson to  explain his                                                               
statement that paper pulp is not a high value added product.                                                                    
                                                                                                                                
MR.  DAVIDSON said  he  believes the  forest  lands of  Southeast                                                               
deserve to be  made into more things than toilet  paper. He is in                                                               
the process  of building a deck  on his house with  local timber.                                                               
Under the  pulp mill  contracts in Ketchikan  and Sitka,  many of                                                               
the same timber he is using is  turned into pulp. He said he does                                                               
not consider  pulp to  be the  highest value  of those  trees. He                                                               
said the  list in SB  180 did not include  pulp. He did  not hear                                                               
any discussion  about why  pulp needs  to be  included as  a high                                                               
value use.  There are  other sources  of pulp,  but there  are no                                                               
other sources for  old growth timber, which is  rot resistant and                                                               
has high  value. He  questioned why  broaden the  SB 180  list to                                                               
something that is not going to benefit small, local mills.                                                                      
                                                                                                                                
CHAIR OGAN stated that DNR is  not turning high value timber into                                                               
pulp.                                                                                                                           
                                                                                                                                
SENATOR SEEKINS  said he  has many relatives  in the  Midwest who                                                               
have been in  the pulp business for years. He  said he would have                                                               
a  hard time  telling  them that  is not  a  high value  business                                                               
because they have been feeding their  families from it for a long                                                               
time. He said  he would not mind  having a few of  those jobs for                                                               
some of the logs that no  one would want to make other high-value                                                               
products from.                                                                                                                  
                                                                                                                                
SENATOR ELTON said one of  the important points made in testimony                                                               
today  is  that  it  is  important  to  be  able  to  have  these                                                               
discussions in the communities that will be affected.                                                                           
                                                                                                                                
SENATOR  LINCOLN noted  that she  would  have to  leave soon  and                                                               
asked that  Chair Ogan  schedule the  bill later  in the  week in                                                               
order to  give everyone time to  decipher the changes in  the CS.                                                               
She  added  that  the  Senate Resources  Committee  is  the  only                                                               
committee of  referral, other than the  Senate Finance Committee,                                                               
so she asked that members be given ample time to consider it.                                                                   
                                                                                                                                
CHAIR OGAN said  he would consider Senator  Lincoln's request and                                                               
that it  is not his policy  to move legislation out  of committee                                                               
after one hearing. He pointed out  the 24-hour rule has gone into                                                               
effect and  legislators do not  have the  luxury of time  at this                                                               
point  in  the session.  He  asked  Mr.  Davidson to  finish  his                                                               
testimony.                                                                                                                      
                                                                                                                                
MR. DAVIDSON indicated the sponsor said  the purpose of SB 149 is                                                               
to get more  timber into production. He  maintained the committee                                                               
would  benefit  from  having  a discussion  with  DNR  about  the                                                               
purpose of  this legislation and  whether there is a  shortage of                                                               
state timber  available. He said  there are good reasons  to move                                                               
forward  with  streamlining  projects,  but the  changes  in  the                                                               
public process  and the  change from multiple  use to  other uses                                                               
that  are  compatible  with   timber  production  are  compelling                                                               
reasons to find  out from the Division of  Forestry whether there                                                               
is  an unmet  demand for  timber. He  said he  would like  to buy                                                               
local timber  but that is  not available  right now. He  does not                                                               
know whether  this bill  will change that.  It might  help people                                                               
from other  states come in  and export state timber  with minimal                                                               
processing without employing Alaskans  or making timber available                                                               
to local residents.                                                                                                             
                                                                                                                                
SENATOR ELTON removed  his objection to adopting  the CS, Version                                                               
H, therefore the motion carried.                                                                                                
                                                                                                                                
SENATOR  SEEKINS stated  that according  to the  back-up material                                                               
provided by  staff, the Board  of Forestry has  a duty by  law to                                                               
provide  a forum  for representatives  of  affected interests  to                                                               
discuss  and attempt  to resolve  relevant issues.  That duty  to                                                               
provide a  public process  cannot be overridden  by the  CS under                                                               
consideration.                                                                                                                  
                                                                                                                                
CHAIR OGAN said he would like  to see what the committee might do                                                               
to make sure that the term "value added" has significance.                                                                      
                                                                                                                                
SENATOR  WAGONER  commented that  he  has  spent  a lot  of  time                                                               
talking  to people  from Southeast  communities this  year. Those                                                               
communities  are   dying  economically  and  the   residents  are                                                               
screaming for  an opportunity to do  what SB 149 does.  This bill                                                               
will reinvigorate some  of those communities. He  said, in regard                                                               
to a  comment about  tree farms  being sterile,  he can  think of                                                               
nothing more beautiful  in the Kenai Peninsula than  a tree farm.                                                               
It might take 50 years to  produce trees that can generate a good                                                               
income, so such a project would have to begin soon.                                                                             
                                                                                                                                
There  being  no  further testimony,  CHAIR  OGAN  adjourned  the                                                               
meeting.                                                                                                                        

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