Legislature(2019 - 2020)BUTROVICH 205
02/25/2019 03:30 PM Senate RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SJR7 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 7 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 25, 2019
3:30 p.m.
MEMBERS PRESENT
Senator Chris Birch, Chair
Senator John Coghill, Vice Chair
Senator Cathy Giessel
Senator Lora Reinbold
Senator Click Bishop
Senator Scott Kawasaki
Senator Jesse Kiehl
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 7
Requesting that the United States Department of the Interior
Bureau of Land Management implement an oil and gas leasing
program in the coastal plain of the Arctic National Wildlife
Refuge.
- MOVED SJR 7 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 7
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES
SPONSOR(s): SENATOR(s) BIRCH
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) RES
02/25/19 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
TREVOR FULTON, Staff
Senator Birch
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SJR 7.
FAITH MARTINEAU, Executive Director
Office of Project Management and Permitting
Alaska Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
CARL PORTMAN, Deputy Director
Resource Development Council
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
KARA MORIARTY, President and CEO
Alaska Oil and Gas Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
ALBERT FOGLE, Vice President
Alaska State Chamber of Commerce
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
LILLIAN POTHIER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
ADRIENNE TITUS, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
LOIS EPSTEIN, Engineer and Arctic Program Director
The Wilderness Society
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
FRAN MAUER, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
SARAH MAUPIN, member
Alaska Slope Regional Corporation
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
CRIS EICHENLAUB, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
VIKKI JO KENNEDY, representing self
Kodiak, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
PRINCESS LUCAJ, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
MISTY NICKOLI, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
ROSEMARY AHTUANGARUAK, representing self
Nuiqsut, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
JOHN SONIN, representing self
Douglas, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
ANNA SORENSEN, Director of Administration and Finance
Northern Alaska Environmental Center
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition of SJR 7.
ACTION NARRATIVE
3:30:22 PM
CHAIR CHRIS BIRCH called the Senate Resources Standing Committee
meeting to order at 3:30 p.m. Present at the call to order were
Senators Coghill, Giessel, Kawasaki, Reinbold, Kiehl, Bishop,
and Chair Birch.
SJR 7-ENDORSING ANWR LEASING; RELATED ISSUES
3:30:54 PM
CHAIR BIRCH announced the consideration of Senate Joint
Resolution 7 (SJR 7). He explained that SJR 7 endorses Arctic
National Wildlife Refuge (ANWR) leasing.
He opined that ANWR is critical to Alaska's future economy for
increasing Trans-Alaska Pipeline System's (TAPS) throughput. He
noted that Senator Giessel has provided the committee with a
summary of the 14 prior times that the Senate has collectively
generated an ANWR resolution, showing that the endorsement has
been a long-term effort on the part of the Senate.
CHAIR BIRCH said ANWR's development potential has an opportunity
to create thousands of jobs for Alaskans and bring in billions
in revenue for state coffers. SJR 7 would display an intent to
see progress made on AMWR's leasing program and show that Alaska
is indeed "open for business." The resolution will serve as a
31st Legislature's comment on the Draft Environmental Impact
Statement (EIS). He noted that March 13, 2019 is the closing
date for public testimony on the EIS.
3:32:14 PM
TREVOR FULTON, Staff, Senator Birch, Alaska State Legislature,
Juneau, Alaska, paraphrased the following sponsor statement for
SJR 7:
In late 2017 after nearly 40 years of effort by the
state and by Alaska's federal delegation, Congress
finally authorized an oil and gas leasing program for
ANWR with the passage of the Tax Cuts and Jobs Act;
that congressional authorization of ANWR activity is
what makes this resolution differ from the many
previous versions you have likely seen over the years.
Rather than urging Congress to open up ANWR, the
version before you today urges the executive branch,
specifically the Department of Interior, to stay the
course on a leasing program. A leasing program which
has just taken an important early step in the
regulatory process with the publication of the Draft
EIS just this December; that's what's different about
this version of ANWR resolution however much of the
rest remains the same.
The "whereases" of this resolution continue to focus
on the impressive oil and gas potential of ANWR which
is estimated at 7.7 billion barrels of oil and 7
trillion cubic feet of gas. The potential benefits of
ANWR could bring to Alaska and the rest of the
country, including generating over $100 billion in
state, federal, and local government revenues;
creating over 12,500 direct and indirect jobs at peak
employment; increasing throughput and extending the
life of TAPS; and enhancing the economics of the AKLNG
project; all while strengthening national security,
bolstering the U.S. economy, and providing affordable
energy to U.S. consumers.
The resolution also highlights advances in oil field
technology that have exponentially shrunk development
footprints over the years. The highlights of a 50-year
record of safe and responsible development on the
North Slope and the continued state commitment to
ensuring the health of the Porcupine and central
Arctic caribou herds and protecting the environment
and wildlife of Alaska's arctic region. Finally, it
also highlights the widespread support for responsible
development in the ANWR coastal plain by Alaskans in
general and specifically by residents of the North
Slope.
One of the goals of this resolution is to serve as the
31st Legislature's official comment on the BLM's "2018
Coastal Plain Oil and Gas Leasing Program Draft EIS,"
which was published in December. Comments submitted on
the Draft EIS will inform key decisions to made in the
final EIS which is scheduled for release later this
year; those key decisions include which areas of the
coastal plain would be offered for leasing as well as
the terms and conditions to be applied to those
leases. In order for this resolution to provide
meaningful input on the Draft EIS, this resolution
will have to make it through both bodies before that
March 13th deadline.
3:35:38 PM
SENATOR KIEHL asked what the state and local government portion
will be from the potential $100 billion in revenue from ANWR.
MR. FULTON explained the information is available from the Draft
EIS on the BLM website. He addressed section 3, page 236 in the
BLM report that noted projected revenue distribution over a 30-
year period as follows:
• Local governments: $1.2 billion;
• State government: $71 billion;
• Federal government: $32.5 billion.
SENATOR KAWASAKI addressed the fourth "whereas" in SJR 7 that
talks about two lease sales held by December 2024. He noted that
in the law the sales are referenced as, "Ten years after date of
enactment." He inquired if the "whereas" in the resolution is a
misprint.
MR. FULTON deferred the question to Faith Martineau with the
Alaska Department of Natural Resources (DNR).
SENATOR KAWASAKI specified that the law itself calls for a, "ten
year after enactment of the law." He asked if the actual
enactment would be 2028. He explained that he was trying to make
sure the form is correct.
3:38:46 PM
FAITH MARTINEAU, Executive Director, Office of Project
Management and Permitting, Alaska Department of Natural
Resources (DNR), Anchorage, Alaska, explained that section 20001
of the 2017 Tax Cuts and Jobs Act provides specific direction to
the Department of Interior and Bureau of Land Management (BLM)
to conduct not fewer than two lease sales within 10 years;
however, the first lease sale has to be enacted within 4 years
of the issuance of the finalization of that tax act, so that
would be 2022 because the act was passed in 2017.
SENATOR KAWASAKI asked about the fifth "whereas" regarding the
estimated 7.7 billion barrels of oil and 7 trillion cubic feet
of natural gas. He asked what the source was for the ANWR oil
and gas projections.
MR. FULTON replied that the information came from the Draft EIS
document, located on page 36, section 3. The quoted source is a
United States Geological Survey (USGS) report from 2005.
SENATOR KIEHL noted that the resolution allows for up to 2,000
acres of potential disturbance and asked how the acreage is
calculated. He inquired if Congress set limits or does the
federal government have rules about how the acreage is
calculated.
MR. FULTON responded that the acreage parameters were placed
within the 2017 Tax Act, (Public Law 115-97), and referenced as
follows:
In administering this section, the Secretary shall
authorize up to 2,000 surface acres of Federal land on
the Coastal Plain to be covered by production and
support facilities (including airstrips and any area
covered by gravel berms or piers for support of
pipelines) during the term of the leases under the oil
and gas program under this section.
MR. FULTON said the previous statement is what the law
prescribes. During the "scoping" process for the EIS document
there were a number of public comments asking for more
information. The Draft EIS provided additional information as
follows:
The BLM interprets the types of production and support
facilities that will count towards the 2,000 acre
limit as including any type of gravel or other fill-
constructed facility which touches the land surface to
include gravel pads used for processing facilities
including wells, production facilities, or pump or
compressor stations, gravel air strips or roads, and
any other area covered by gravel berms or piers for
support of pipelines.
3:42:51 PM
CHAIR BIRCH opened public testimony and said the committee will
first hear from invited testimony.
3:43:30 PM
MS. MARTINEAU disclosed that she also leads the state's
participation as a cooperating agency in the development of an
EIS for an oil and gas leasing program in ANWR's coastal plain.
She said she was calling to voice DNR's support for SJR 7. The
Department of Interior and BLM recently published its Draft EIS
which reflects potential implementation strategies, available
leasing areas, and lease stipulations.
She said the state's cooperating agency team has provided
comments to BLM on the Draft EIS prior to the March 13
commentary deadline. Selection of an alternative that provides
maximum flexibility to future decision makers is critical. The
alternative should consider new information such as exploratory
seismic data as well as existing local, state, and federal
permitting processes to facilitate responsible development,
production, and transportation of oil and gas resources to and
from ANWR's coastal plain. DNR, part of the cooperating agency
team, has reached out to the North Slope Borough and its
stakeholders to identify areas of potential alignment and
partnerships.
She said she believes SJR 7 will reinforce the importance of
responsible oil and gas development to the state and to all
Alaskans with the hope that the final resolution includes a
recommendation from the Alaska Legislature to maximize
flexibility for future decision makers as BLM determines how to
implement an oil and gas leasing program in the coastal plain.
3:46:50 PM
SENATOR KAWASAKI asked her to explain the role of the state's
cooperating agency team.
MS. MARTINEAU replied that the State of Alaska has a lot of
different departments and divisions and programs, each with its
own mission and responsibilities. She explained that to maximize
the efficiency and effectiveness of the state's commenting
opportunities, especially during federal plan reviews such as
with the EIS for the coastal plains oil and gas leasing program.
The Office of Project Management and Permitting coordinates
directly with agency representatives to collect comments. The
coordinated approach helps to ensure that the state has a
subject-matter expert for each of the different resource areas.
She detailed that the Department of Fish and Game has
specifically identified data and is including studies based on
monitoring for terrestrial mammals including caribou. The
Department of Environmental Conservation was key in identifying
existing monitoring information related to air quality and to
provide comments regarding spill response. The Department of
Natural Resources has been able to identify potential solutions
regarding water sources and the lack of abundant surface water
within the coastal plain area. She added that there are a number
of other resource areas where the state has provided comment as
well.
3:49:01 PM
CARL PORTMAN, Deputy Director, Resource Development Council
(RDC), Anchorage, Alaska, testified in support of SJR 7. She
said RDC has consistently supported opening ANWR's 1002 Area to
oil and gas development and detailed as follows:
• ANWR's coastal plain is considered America's best
onshore prospect for conventional oil and gas
discoveries.
• Alaska depends on the responsible development of its
natural resources to support its economy:
o The discovery of oil lead to Congress finally voting
in favor of Alaska's statehood.
• Alaska's North Shore:
o Produced more than 17 billion barrels of oil.
o Trans-Alaska Pipeline System (TAPS):
square4 Even though operating at one-quarter capacity,
oil production generated $2.7 billion in state
revenues in FY2018, accounting for 80 percent of
unrestricted general-fund revenues.
square4 AWWR's coastal plain production could increase
TAPS output to approximately two-thirds of its
capacity.
• North Slope oil industry:
o Over the past 40 years has demonstrated that energy
development and environmental stewardship can coexist.
o Proven track record of responsible development in
sensitive areas by protecting the environment,
wildlife, and subsistence needs of local residents.
o Generates thousands of jobs:
square4 Raised the standard of living,
square4 Significantly improved the quality of life,
square4 Breaks the cycle of dependency.
• ANWR's 1002 Area:
o 1.6-million-acre area.
o Non-wilderness portion of ANWR's coastal plain.
o Federal law requires the footprint of production and
support facilities to be limited to no more than 2,000
surface acres:
square4 Equivalent to 0.01 percent of ANWR's 19-million
acres.
• Economy:
o Oil and gas production will be required to power the
economy and serve as a bridge to the renewable and
green energy sources of the future.
o Every barrel of oil not developed in Alaska will
simply be imported from overseas where environmental
regulations are often weaker, and the carbon footprint
is larger.
3:53:27 PM
KARA MORIARTY, President and CEO, Alaska Oil and Gas
Association, Anchorage, Alaska, testified in support of SJR 7.
She said AOGA has long supported a leasing program for ANWR's
coastal plain. A statewide poll in January showed that 64
percent of Alaskans continue to support development in ANWR's
coastal plain region.
She explained the need for an ANWR leasing program as follows:
• ANWR's history:
o Formed in 1960 with 9 million acres.
o Expanded to 19 million acres in 1980 with the passage
of the Alaska National Interest Lands Conservation Act
(ANILCA).
o Over 90 percent of ANWR is permanently protected as
wilderness.
o Section 1002 of ANILCA, 1002 Area, a section of the
law that states that a small portion of ANWR's coastal
plain will be set aside for future oil and gas
development:
square4 Limited to 2,000 acres which is smaller than most
U.S. airport acreage.
• Need for additional oil and gas development:
o The U.S. Energy Information Administration (EIA)
predicts that by 2050, petroleum and other liquids
followed closely by natural gas, will remain by
multiple magnitudes the most consumed energy source in
the U.S.
o The International Energy Administration's prediction
for global demand is like EIA's prediction for the
U.S.
o The government has described the 1002 Area as the most
significant oil potential in the U.S.
o The 1002 Area is the largest onshore play in federal
land in the U.S.
o Production from the 1002 Area will reduce U.S.
reliance on foreign oil over the decades by almost
$600 billion.
• Safe oil and gas development:
o The oil-and-gas industry has a history of safe,
effective, and environmentally responsible development
of the Arctic, spanning almost five decades.
o Today's development is not the same as it was 40 years
ago:
square4 Typical oil pad in 1970 was 65 acres with an
underground drilling area of 3 miles.
square4 A new oil rig by Doyon, an Alaska native
corporation, has a total gravel pad of 12 acres
on the surface with an underground drilling area
of 150 miles.
MS. MORIARTY summarized that AOGA believes that the development
of ANWR's coastal plain will be good for the country and will
continue to build upon the jobs and revenues that the oil and
gas industry has contributed to the state for decades.
3:58:21 PM
ALBERT FOGLE, Vice President, Alaska State Chamber of Commerce,
Anchorage, Alaska, testified in support of SJR 7. He set forth
that responsible oil and gas development in the small fraction
of ANWR proposed for leasing will help ensure energy security
for decades. New oil production from the ANWR coastal plain has
the potential to increase throughput through TAPS, increase
thousands of jobs nationwide, generate billions of dollars in
government revenue for public services, and keep energy prices
affordable.
4:02:52 PM
LILLIAN POTHIER, representing self, Juneau, Alaska, testified in
opposition of SJR 7. She opined that ANWR should not be utilized
for oil and gas extraction. She said oil and gas are finite
resources and investment should be made in renewable energy
sources. ANWR's eco-system should not be impacted by human
development in any way.
4:05:32 PM
ADRIENNE TITUS, representing self, Fairbanks, Alaska, testified
in opposition of SJR 7. She said greenhouse gas and emissions
need to be reduced. She opined that the 1002 Area is the last
five percent of the North Slope that has not been explored and
the area needs to be left alone. She asserted that the North
Slope coastal communities are negatively impacted from climate
change as well as health impacts from oil and gas development.
4:10:04 PM
LOIS EPSTEIN, Engineer and Arctic Program Director, The
Wilderness Society, Anchorage, Alaska, testified in opposition
of SJR 7. She offered reasons for opposing SJR 7 as follows:
1. BLM's Draft EIS does not include a reasonable range of
alternatives, all the alternatives offer similar results in
impacts and production.
2. Even though the 2017 Tax Act limits surface disturbance to
2,000 acres, the Draft EIS excludes substantial acreage
throughout the ANWR coastal plain such as gravel mines, ice
roads, [inaudible], snow fences, raised structures, etc.
The footprint of production and support will be greater
than 2,000 acres. Additionally, while well pad sizes have
been reduced over the years, the rest of the industry's
footprint and impact have remained relatively unchanged.
3. Although TAPS is currently operating at less than its peak
flow, pipelines always are designed and operated to carry
less than peak flow. Oil production in ANWR is not
necessary to ensure TAPS remains viable and economic for
decades to come. DNR staff expects TAPS throughput to
continue increasing through the late 2020s due to new
discoveries.
4. The job claims made by some are highly misleading. Unless
the people who obtain jobs would otherwise be unemployed,
the jobs resulting from ANWR oil development do not create
new jobs. Most of the oil and gas workers in Alaska reside
out of state and thus their wages are largely sent out of
state.
5. Alaska's Arctic oil development has some real problems. One
employee died this past year, there have been blowouts
attributed to thawing permafrost during the past two years,
and Alaska's [inaudible] emissions requirements are well
behind other states' standards.
6. As information about the problems with potential seismic
operations and oil drillings in ANWR have been made
increasingly available to Alaskans, there has been growing
opposition, non-native and native, to allowing any
industrial activities on ANWR's coastal plain. A recent
poll showed over 44 percent of Alaskans opposed drilling in
ANWR.
7. Alaska will have a "black eye" nationally and globally for
unnecessarily destroying ANWR's iconic landscape. There
will be permanent impacts that will transform ANWR's near
pristine area.
4:14:11 PM
SENATOR REINBOLD noted that Ms. Epstein stated that the majority
of oil workers are out of state and asked what her source for
the labor data was. Senator Reinbold said her research has shown
70 percent to 90 percent of oil workers are "Alaska hire."
MS. EPSTEIN answered that her data was derived from a 2016 Draft
EIS report that stated on page 3-235, "64 percent of wages were
spent out of state."
4:15:26 PM
FRAN MAUER, representing self, Fairbanks, Alaska, testified in
opposition of SJR 7. He disclosed that he has been involved in
conservation issues in Alaska for 48 years. He reviewed the
history of how ANWR was established and opined that the American
people are being unjustifiably impacted by the loss of ANWR's
wild landscape due to the interest of the State of Alaska. He
said the state should work towards renewable energy projects and
alternative economic programs rather than focusing on the
economic benefits of oil.
4:19:56 PM
SARAH MAUPIN, member, Alaska Slope Regional Corporation (ASRC),
Fairbanks, Alaska, testified in opposition of SJR 7. She
addressed a study by the Alaska Community Action on Toxins
(ACAT) on the negative effects from oil drilling in the National
Petroleum Reserve in Alaska (NPRA). She said billions in revenue
is derived from oil production but not much of the money goes
towards regional schools or communities. She said many ASRC
shareholders have spoken against further drilling due to
concerns with health qualities and air qualities implicated by
oil drilling. She asserted that people are dying because of the
drilling that is happening, BLM has not conducted a responsible
EIS, and she is in opposition of drilling in ANWR.
4:26:06 PM
CRIS EICHENLAUB, representing self, Eagle River, Alaska,
testified in support of SJR 7. He said Alaska has the best
regulations on the planet for regulating resource development.
He opined that developing the state's resources for the maximum
value to the people is part of Alaska's constitution.
4:28:35 PM
VIKKI JO KENNEDY, representing self, Kodiak, Alaska, testified
in opposition of SJR 7. She said getting to ANWR is going to be
the problem. She asked that the state leave ANWR alone.
4:30:32 PM
PRINCESS LUCAJ, representing self, Fairbanks, Alaska, testified
in opposition of SJR 7. She said the public opinion on ANWR has
changed considerably since a recent Senate online poll that
showed that 44.5 percent of the respondents opposed oil and gas
lease sales in ANWR. She opined that it is not true to say that
the majority of Alaskans are in support of oil and gas lease
sales in ANWR. She said the state is in a lot of trouble and
needs to go in a different and innovative direction.
4:34:08 PM
MISTY NICKOLI, representing self, Fairbanks, Alaska, testified
in opposition of SJR 7. She opined that the state is paying out
its limited funds to the federal government and corporate
interests for their benefit to develop natural resources in
ANWR. She added that wildlife will be impacted and the cost to
human health is too great.
4:36:44 PM
ROSEMARY AHTUANGARUAK, representing self, Nuiqsut, Alaska,
testified in opposition of SJR 7. She said she had hoped that
the vision of protecting an area along the Arctic coast from oil
and gas development would be a vision that was maintained for a
traditional way of life. She said tons of emissions from oil and
gas development on the North Slope is impacting people and
wildlife.
4:41:13 PM
JOHN SONIN, representing self, Douglas, Alaska, testified in
opposition of SJR 7. He opined that the state is stuck on the
dependence of oil production and should find alternatives for
economic and health reasons.
4:44:12 PM
ANNA SORENSEN, Director of Administration and Finance, Northern
Alaska Environmental Center, Fairbanks, Alaska, testified in
opposition of SJR 7. She said several myths have been presented
by proponents of SJR 7. ANWR's coastal plain is an ecological
link between the Brooks Range and the Beaufort Sea. President
Eisenhower protected the "coastal plain" as part of the 8.9
million-acre ANWR for the purpose of preserving unique wildlife,
wilderness and recreation values. ANILCA in 1980 prohibited oil
and gas development in Section 1003 where development required
an act of Congress.
She summarized that a recent poll shows that the majority in
favor of oil and gas development, 55 percent versus 44 percent,
is a slim majority and the two-thirds majority noted in earlier
testimony has been shrinking consistently over time and more
Alaskans are opposing drilling in ANWR.
4:48:17 PM
SENATOR KIEHL noted that Ms. Sorensen had started to comment on
the 2,000-acre disturbance area and asked that she complete her
comment.
MS. SORENSEN specified that previous testimony had noted that no
more than 2,000 acres at any given time would impact ANWR, but
the Northern Alaska Environmental Center believes that the
calculation was false and would provide their estimation to the
committee.
4:49:28 PM
CHAIR BIRCH closed public testimony.
CHAIR BIRCH announced that his intent is to move SJR 7 out of
committee if it is the will of the committee due to the March 13
deadline on receiving testimony for the EIS.
4:49:49 PM
SENATOR GIESSEL noted that SJR 7 represents the sixth resolution
that she has had the opportunity to vote "yes" on. She disclosed
that she had spoken at two of the public scoping meetings that
were held by the Department of Interior. She said her only
criticism of SJR 7 is the resolution only speaks about revenue
and the environment, the resolution does not speak to the
positive impact on Alaska's people that resource development
represents.
She referenced an article that was published in May 2018 in the
Journal of American Medical Association (JAMA). Research in the
JAMA article relates to life expectancy and the change from 1980
to 2014, specifically if people were living longer or not in
counties across the United States. She disclosed that the
affiliations for the researchers for the JAMA article were from
the Institute of Health Metrics and Evaluation, University of
Washington-Seattle; and the Department of Public Health,
Rotterdam, Netherlands. She pointed out that the two
organizations had nothing to do with oil. She referenced a map
that exemplified the results from the article that showed the
North Slope, Northwest Arctic Borough, parts of the Aleutians,
and Southeast had the highest life expectancy increase, 8 to 13-
year increase in life expectancy from 1980 to 2014.
She pointed out that during the time from 1980 to 2014, TAPS
came on line where the North Slope began to produce oil, and the
Red Dog Mine near Kotzebue began producing. The two noted
projects created jobs and the jobs brought increased income,
access to health care, education, and additional assets. The
research in the JAMA article looked at what factors contributed
to the change in life expectancy and in fact those criteria
accounted for 82 percent of the impact causing the increase in
life expectancy. She asserted that the JAMA article is very
concrete, objective, unsolicited documentation that resource
development is good for Alaskan's health.
She said she shared the concerns for the environment, noting
that she is a lifelong Alaskan like other members in the
committee. She opined that the greatest threat to the
environment is poverty and that is what the legislators are
trying to overcome in Alaska, bringing wealth to Alaskans,
bringing access to clean water, health care, education, jobs,
and income. She set forth that she is going to be quite pleased
to vote "yes" on SJR 7.
4:53:26 PM
SENATOR KAWASAKI commented on "whereases" in the resolution, the
first one on page 3, "Safe and responsible oil and gas
exploration development over the past 50 years without adverse
effects on the environment." He said when the Legislature is
putting out definitive policy, he questioned whether the
previous statement was true, maybe to a varying degree.
He addressed another "whereas" and noted testimony from Nuiqsut
that questioned whether Iupiat residents were supportive of the
development. He added that he can not tell whether the
resolution endorses a specific proposal moving forward. He said
he is always uncomfortable saying he supports something that is
several hundred pages and he has not had a chance to read. He
asked if the committee is supporting a specific alternative or
not. He pointed out that one of the Draft EIS alternatives is no
action and the remaining alternatives have varying degrees of
action.
MR. FULTON specified that there were four action alternatives
identified in the Draft EIS, one of which is the "no action"
alternative, the other three being continually more restrictive
than the previous. The intent was not to endorse any specific
alternatives, but the resolution endorses and urges the
Department of Interior to continue with the important process
regarding ANWR. The Draft EIS is the first step in a long
regulatory process, an important step, and the intent is to
encourage progress on the leasing program in general rather than
one of the specific alternatives.
4:56:37 PM
He addressed Senator Kawasaki's question regarding the "whereas"
pertaining to support from the North Slope Borough residents and
referenced a resolution supporting ANWR development that was
passed September 8, 2017 from the "Voice of the Arctic Iupiat"
which consists of the following members:
• Arctic Slope Native Association,
• Arctic Slope Regional Corporation,
• Atqasuk Corporation,
• City of Anaktuvuk Pass,
• City of Atqasuk,
• City of Utqiagvik (Barrow),
• City of Point Hope,
• City of Wainwright,
• Ilisagvik College,
• Kaktovik Iupiat Corporation,
• Native Village of Atqasuk,
• Native Village of Kaktovik,
• Native Village of Point Hope,
• Native Village of Point Lay,
• North Slope Borough,
• Nunamiut Corporation,
• Olgoonik Corporation,
• Tikigaq Corporation,
• Ukpeagvik Iupiat,
• Wainwright Tribal Council.
SENATOR KIEHL noted that previous ANWR resolutions contained
language that is not contained in SJR 7 and detailed as follows:
• Called for using some of the revenues for the development
of renewable and alternative energy resources in the state.
• Called for exploration development and production activity
to be conducted in a manner that protects the environment
and the population levels of the Porcupine caribou herd.
• Called for the use of the state's workforce to the maximum
extent possible.
He asked if there was a particular reason why the previously
noted language was not present in SJR 7 and inquired if the
resolution's sponsor would be amenable to adding the language.
4:58:58 PM
MR. FULTON asked that Senator Kiehl reiterate each language
topic individually.
SENATOR KIEHL requested he address "alternative energy in the
state."
MR. FULTON answered that language would be outside the scope of
the audience that the resolution is aimed towards. Previous
resolutions had been addressed towards Congress, SJR 7 is
directed towards the Department of Interior regarding the Draft
EIS.
SENATOR KIEHL asked him to address the "Porcupine caribou herd
and using the state's workforce."
CHAIR BIRCH replied that his office will follow up with the
requested information.
SENATOR BISHOP commented that he respects everyone's opinion,
pro and con; however, the fact remains that the state does not
have a federal treasury and cannot print money. He emphasized
that he wants to see the state get to renewables as fast as
possible, but it needs a cash stream to be able to pay for the
renewables whether the renewable project is the Susitna Dam,
wind farm, LNG project, or a propane project in rural Alaska. He
said $0.64/kilowatt hour in rural Alaska with power cost
equalization (PCE) is a lot of money. He stated that he wants to
work with his counterparts in the Senate to lower energy costs
across the state, but revenue is needed to do it. He added that
the seven trillion cubic feet of gas in the Point Thomson area
is almost fuel-grade quality gas and the quicker the gas can get
online the quicker the state can lower its carbon footprint. He
said he will support SJR 7.
5:01:33 PM
SENATOR COGHILL moved to report SJR 7, [work order 31-LS0544\M],
from committee with individual recommendations and attached zero
fiscal note.
5:01:41 PM
CHAIR BIRCH said there being no objection, the motion carried.
5:01:48 PM
At ease.
5:03:34 PM
CHAIR BIRCH called the committee back to order.
5:03:58 PM
There being no further business to come before the committee,
Chair Birch adjourned the Senate Resources Standing Committee
meeting at 5:03 p.m.