03/15/2023 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB68 | |
| SB34 | |
| SB87 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 68 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
| *+ | SB 87 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
March 15, 2023
3:30 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Forrest Dunbar
Senator Matt Claman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 68
"An Act relating to public notice for a sale, appropriation, or
removal of water, or for filing a declaration of a right of
water; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 34
"An Act reestablishing the Citizens' Advisory Commission on
Federal Management Areas in Alaska; and providing for an
effective date."
- HEARD & HELD
SENATE BILL NO. 87
"An Act relating to a lumber grading training program and lumber
grading certificates; relating to use of lumber graded and
certified by a person holding a lumber grading training program
certificate; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 68
SHORT TITLE: PUBLIC NOTICE FOR WATER RIGHTS
SPONSOR(s): SENATOR(s) GIESSEL
02/10/23 (S) READ THE FIRST TIME - REFERRALS
02/10/23 (S) RES
03/15/23 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 34
SHORT TITLE: CITIZEN ADVISORY COMM ON FEDERAL AREAS
SPONSOR(s): SENATOR(s) KAUFMAN
01/18/23 (S) PREFILE RELEASED 1/13/23
01/18/23 (S) READ THE FIRST TIME - REFERRALS
01/18/23 (S) RES, FIN
03/15/23 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 87
SHORT TITLE: LUMBER GRADING PROGRAM
SPONSOR(s): SENATOR(s) BJORKMAN
03/01/23 (S) READ THE FIRST TIME - REFERRALS
03/01/23 (S) RES, FIN
03/15/23 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
RYAN RIVERS, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 68:
CHRISTY COLLES, Director
Division of Mining, Land, and Water
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-presented SB 68: Public Notice for Water
Rights.
TOM BARRETT, Water Resources Section Chief
Division of Mining Land and Water
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-presented SB 68: Public Notice for Water
Rights.
EMMA TORKELSON, Staff
Senator James Kaufman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 34.
TINA CUNNING, ANILCA Expert
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
34.
MEAD TREADWELL, former Lieutenant Governor
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
34.
TED SPRAKER, President
Kenai Chapter, Safari Club International
Soldotna, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
34.
SENATOR JESSE BJORKMAN, District D
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 87.
JEREMY DOUSE, Northern Region Forester
Division of Forestry and Fire Protection
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Delivered a presentation on local timber
grading during the hearing on SB 87.
ACTION NARRATIVE
3:30:11 PM
CO-CHAIR CLICK BISHOP called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Kaufman, Kawasaki, Dunbar, Claman, Co-Chair
Giessel, and Co-Chair Bishop. Senator Wielechowski arrived
during the course of the meeting
SB 68-PUBLIC NOTICE FOR WATER RIGHTS
3:31:24 PM
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
68 "An Act relating to public notice for a sale, appropriation,
or removal of water, or for filing a declaration of a right of
water; and providing for an effective date."
3:32:03 PM
SENATOR CATHY GIESSEL, District E, sponsor of SB 68, provided
the introduction to SB 68. The sponsor statement read as
follows:
[Original punctuation provided.]
Senate Bill 68 proposes changes to certain public
notice requirements relating to the sale,
appropriation, or removal of water, and for the
commencement of the process for determining the rights
of persons holding existing appropriations of water.
Specifically, SB 68 proposes that public notices, as
originally required in statute, instead be posted on
the Alaska Online Public Notice System. This change
would remove the current requirement that notices be
posted in a newspaper of general circulation in the
affected area. The bill would update, but not
substantively change, any other requirements for
notice by the commissioner to determine the rights of
persons holding existing appropriations, removal, or
sale of beneficial water use rights.
Eliminating the newspaper notice requirement would
prevent delays in the water permitting process and
save the applicants a significant amount of money
required for newspaper notice. The changes would
utilize the state's existing online public notice
system, which is available to most Alaskans at no
cost. All public notices posted on the online public
notice system are permanently retained for future
reference by interested parties, whereas newspaper
notices are much more difficult to retrieve. Utilizing
the online public notice system ensures that each
Alaska resident has equal access to public notices
rather than just newspaper subscribers or residents of
an affected area. Further, elimination of coordinating
newspaper publications reduces the permit processing
timeframe.
The public is encouraged to utilize the
"Subscriptions" feature on the Alaska Online Public
Notice System website
(https://aws.state.ak.us/OnlinePublicNotices/) to
either register for all notifications through the
system, or to tailor what notifications from which
departments they wish to receive. The Department of
Natural Resources is eager to educate the public on
the benefits of using the online notice system; SB 68
enables notice to be delivered to Alaskans through the
power of the Internet.
3:34:36 PM
RYAN RIVERS, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, presented the following sectional
analysis for SB 68:
Section 1:
Amends AS 46.15.065(b)(2) by removing language
requiring that notice be by means of "a newspaper of
general circulation in the affected area" and
replacing that language to require notice be published
on the Alaska Online Public Notice System (AS
44.62.175) for a period of three weeks.
Section 2: Amends AS 46.15.133(b) by requiring that
notice be provided on the Alaska Online Public Notice
System (AS 44.62.175) and removing language requiring
that notice be by means of a newspaper of general
circulation in the affected area."
Section 3:
Adds an immediate effective date.
3:35:58 PM
CO-CHAIR BISHOP turned to invited testimony.
3:36:19 PM
CHRISTY COLLES, Director, Division of Mining, Land, and Water,
Department of Natural Resources, Anchorage, Alaska, thanked the
sponsor for introducing SB 68 because the current process has a
large impact on staff time and is costly for those who request
water rights. She deferred to Tom Barrett to start the
presentation.
3:37:16 PM
TOM BARRETT, Water Resources Section Chief, Division of Mining
Land and Water, Department of Natural Resources, Anchorage,
Alaska, spoke to the following to provide background on the
appropriation of water:
[Original punctuation provided.]
• Alaska Constitution Article 8 Section 13
• Title 46.15 Water Use Act
• Appropriation of Water
o Right to Use Water
?Permit
?Certificate
o Reservation of Water
3:40:21 PM
MR. BARRETT turned to slide 3, AS 46 Public Notice Requirements,
and spoke to the following to explain the current process to
publicly notice an application to use water:
[Original punctuation provided.]
• Alaska Statute 46.15.133 (b) requires that, "The
commissioner shall publish the notice in one issue
of a newspaper of general distribution in the area
of the state in which the water is to be
appropriated?"
• Once the Division of Mining, Land and Water (DMLW)
determines which newspaper best fits that
description, the identified newspaper is contacted
by DMLW, and a copy of the public notice is sent to
the newspaper in order to obtain both a quote of the
price of the ad and a copy of the proof of the ad
for review before authorizing publication of the ad.
• The applicant is also sent the proof and provided
with a contact at the newspaper in order to make
payment, pursuant to AS 46.15.133 (b).
• Once the proof has been accepted, the ad is run in
the newspaper with a date as close as possible to
the starting date of the online public notice.
• There is an exemption to public notice in regulation
11 AAC 93.100 for appropriations of 5,000 gallons of
water per day (gpd) or less.
3:42:48 PM
SENATOR KAWASAKI asked if Title 46 currently requires online
public notice.
MR. BARRETT said no; the statutes were written in 1966.
SENATOR KAWASAKI asked if the current process was to publish the
notice online and then the department helps the applicant get
the notice published in a newspaper.
MR. BARRETT clarified that DNR staff puts the notice in the
online public notice system.
3:43:52 PM
MR. BARRETT advanced to slide 4 to describe the inefficiencies
associated with newspaper notices. He spoke to the following
points:
[Original punctuation provided.]
• Identifying a newspaper of general distribution in
the area of the state in which the water is to be
appropriated is not clear, especially in rural
areas.
• A single day advertisement is a limited window of
time to provide notice.
• Online services to get information have become more
accessible since the Water Use Act was promulgated
in 1966.
• The cost of a single day newspaper advertisement for
a water right is expensive and can cost the
applicant $500 to $1,500, depending on the length of
the publication and the individual newspaper.
• It is expensive to extend a public notice in
newspapers.
• DMLW staff must carefully coordinate newspaper
publication dates with the Online Public Notice
system. He noted that
3:45:36 PM
SENATOR DUNBAR asked how many notices of water rights are
published in a year.
MR. BARRETT said the department publishes approximately 80 high-
volume water rights in an average year. He noted there is a
threshold below which notice is not required.
SENATOR DUNBAR asked if the major newspapers like ADN and the
Fairbanks News Miner publish most of the notices.
MR. BARRETT said that would be his guess.
CO-CHAIR BISHOP asked if the 80 high-volume water rights
applications are to use 5,000 gallons or more per day, and that
volumes under 5,000 are considered de minimis and don't need
public notice.
MR. BARRETT replied that's correct.
3:47:14 PM
MR. BARRETT advanced to slide 5, Online Public Notice Benefits,
and discussed the following points:
[Original punctuation provided.]
• The Alaska Online Public Notice System (Online
System) is available to everyone.
• There is no cost to applicants.
• Public notices are easily extended at no cost.
• Additional documents, maps, and figures can be
attached.
• Submitting comments to DMLW through links provided
in the Online System is easy and accurately sends
the comment to the correct destination.
• Anyone can establish a subscription to get notified
of specific topics, such as water rights.
• The Online System permanently archives public
notices for future reference.
• DMLW already utilizes the Online System for land and
mining notices.
CO-CHAIR BISHOP asked if the subscription would be mailed to his
address in Bush Alaska if he didn't have access to the Internet.
MR. BARRETT clarified that this notice is distributed to email
addresses. He noted that many people in remote areas access
their email periodically using the public access at a local
school. They're able to get to the email within the two-week
public comment period. He noted that the graphic on the upper
right of the slide included directions on how to sign up for the
subscriptions.
3:50:01 PM
MR. BARRETT turned to the table on slide 6, Water Use Fees from
11 AAC 05.260(b), to illustrate the magnitude of the advertising
costs. He directed attention to the third category in the first
column, "(7) Appropriation of water > 5,000 gpd and < 30,000
gpd." These are small entity users such as schools, businesses,
small utilities, and farmers. The fee to issue them a permit is
$595 and the cost to advertise that permit is often more than
that. He calculated that 80 high-volume water rights publicized
per year multiplied by $750 for the average newsprint cost
totals $60,000. He said that's how much these Alaskans are
paying for advertising every year and SB 68 would eliminate that
cost.
3:51:34 PM
MS. COLLES turned to slide 7 to discuss the public notice
requirements under AS 38.
[Original punctuation provided.]
• In 2012, the passage of HB 361 modernized public
notice requirements in AS 38.05.945, the statute
that provides general notice provisions in the
Alaska Land Act.
• AS 38.05.945 now requires notice on the Alaska
Online Public Notice System and one of the
following:
o Newspapers
o Public service announcements
o Posting in conspicuous location
o Notification of known or likely affected
parties
o Publication of a legal notice
o Another method calculated to reach affected
persons
SENATOR KAWASAKI asked for confirmation that she said that the
department has not had problems with people saying they had not
seen the published notices.
MS. COLLES replied that there have been instances of people not
getting their mail or their address no longer being accurate,
but they didn't hear complaints that people didn't see the
notice because it was not available in the newspaper. She
continued to say the department is always looking for ways to
deliver notices to individuals, other than knocking on doors.
3:54:16 PM
MS. COLLES concluded the presentation by speaking to the
following points:
[Original punctuation provided.]
• DNR supports SB 68
o Notification to affected parties in addition to
the Online Public Notice System.
o It aligns with other notice requirements under
Title 38.
o It will save Alaskans unnecessary advertising
costs that can exceed the cost of a water right.
o A process efficiency will be realized as DNR staff
will be relieved of the responsibility to
coordinate duplicative notifications.
o The reduction in staff efforts will enable them to
work on processing additional applications.
o Statutory requirement to contact potentially
affected appropriators of record by certified
mail still applies.
SENATOR CLAMAN recalled that the Alaska Online System was
implemented in 1985 or 1986. He asked if there had been any
complaints about that system since the department started using
it more for state notices.
MS. COLLES said not to her knowledge. She agreed with Senator
Giessel that the public appeared happy with the online notices.
She acknowledged that it was important to continue to educate
the public about this no-cost tool.
SENATOR CLAMAN noted that the lieutenant governor's office
manages the online system, and asked whether she had
communicated with that office to see whether they'd encountered
any problems.
MS. COLLES answered no.
3:56:45 PM
CO-CHAIR BISHOP held SB 68 in committee.
3:56:53 PM
At ease
SB 34-CITIZEN ADVISORY COMM ON FEDERAL AREAS
3:57:02 PM
CO-CHAIR BISHOP reconvened the meeting and announced the
consideration of SENATE BILL NO. 34 "An Act reestablishing the
Citizens' Advisory Commission on Federal Management Areas in
Alaska; and providing for an effective date."
3:57:44 PM
SENATOR JAMES KAUFMAN, District F, sponsor of SB 34, spoke to
the following sponsor statement to introduce the legislation:
[Original punctuation provided.]
SB 34 reestablishes the Citizens' Advisory Commission
on Federal Management Areas in Alaska (CACFA) which
sunset in 2021 and sets a new sunset date of June 30,
2031. The Commission is made up of 10 public members,
one Senator, and one Representative who represent "the
diversity of users and uses of federal land in the
state" and are appointed by the Governor and
Legislature.
CACFA was first established in 1981, shortly after
Congress passed the Alaska National Interest Lands
Conservation Act (ANILCA)comprehensive legislation
governing all federal public lands in the state. Under
the balanced compromise Congress crafted in ANILCA,
104+ million acres (nearly a quarter of the state)
were set-aside in permanent federal ownership as
conservation system units (e.g., parks, preserves,
wildlife refuges, wilderness areas) while at the same
time creating unique provisions enabling Alaskan's to
maintain their traditions, accommodate the social and
economic needs of the state, provide a range of land-
use and land access rights, safeguard opportunities
for responsible resource development, and facilitate
continued improvements in transportation and utility
infrastructure. Factoring in the provisions of the
Alaska Statehood Act and the Alaska Native Claims
Settlement Act, most Alaskans are regulated under a
unique and extremely complex regulatory web.
CACFA was an independent and impartial source of
information and center for advocacy on Statehood,
ANCSA, and ANILCA issues that impact all Alaskans.
When active, CACFA helps Alaskans navigate complex
regulations and to works with federal agencies to
ensure Congressional intent is implemented with
respect to Alaska's interests. Among many things, the
Commission holds hearings to collect public comment on
decisions that affect them; disseminates information
about historical and new regulation to the public, the
Executive branch, and the Legislature; regularly
submits written comment in response to federal
requests; and helps Alaskans navigate federal
permitting processes. While the State's ANILCA program
and CACFA both monitor federal actions, CACFA does so
on behalf of individual Alaskans, whereas the State
can only focus on issues with state-level impact.
As time passes, institutional memory and ANILCA
expertise is lost at both the federal and state level.
An active CACFA would ensure that this critical
knowledge is preserved and remains accessible to
Alaskans. Until CACFA is reestablished, individuals,
organizations, and the Legislature have no independent
source of ANILCA expertise. Furthermore, there is no
organized center through which individuals can channel
their concerns to higher levels of government making
decisions that impact them. CACFA is an essential tool
to ensure that Alaskans have a strong and powerful
voice in what happens across our state.
4:00:48 PM
EMMA TORKELSON, Staff, Senator James Kaufman, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 34.
Sec 1. Reestablishes the Citizens Advisory
Commission on Federal Management Areas in Alaska, with
a sunset date of June 30, 2031.
Sec 2. Repeals the language that originally
established the commission which sunset on June 30,
[2021].
Sec 3. Incorporates transition language to the
uncodified law of Alaska establishing the initial term
lengths of new appointments to the commission.
Thereafter, the term limits outlined in the
Commission's statute will take effect.
Sec 4. Sets an effective date of July 1, 2023.
CO-CHAIR BISHOP turned to invited testimony
4:02:10 PM
SENATOR WIELECHOWSKI joined the committee.
4:02:17 PM
TINA CUNNING, ANILCA Expert, Anchorage, Alaska, provided invited
testimony in support of SB 34. She paraphrased the following
prepared testimony:
I worked in the State's ANILCA program from its
beginning in 1981 for nearly 30 years in
implementation of ANILCA. Since retiring in 2010, I am
part of a team that conducts ANILCA training.
Recall the Alaska Native Claims Settlement Act of 1971
called for study of federal lands to set aside 80
million acres in special conservation status. For 9
years, there was considerable angst all across Alaska
about what would be in the final "D-2" bill as it was
called, e.g., how would the millions of acres in
conservation units affect remote villages; access for
hunting, fishing, and subsistence; development of
private and state inholdings; need for utilities, etc.
When it became evident that Congress was going to pass
a bill setting aside many more millions of acres in
special conservation designations than originally
envisioned in ANCSA, the Alaska Legislature and
Governor worked with a broad representation of rural
residents, businesses, communities, AFN, and industry
to adopt a bottom line, a list of seven consensus
points for Alaska. Negotiations in Congress led to
bipartisan adoption of ANILCA in 1980 that included
unique protections for the traditional way of life and
uses of federal lands in that consensus list.
In 1981, the Alaska legislature established CACFA so
that Alaskans could be kept informed as ANILCA was
being implemented and to protect public uses of
federal lands as Congress directed in ANILCA. CACFA
was invaluable in helping individual Alaskans work
through federal requirements such as commercial
permits for air taxis, sled dog tours, and hunting
guides; access to inholdings; and for cabins needed
for subsistence and trapping.
4:03:51 PM
MS. CUNNING continued her testimony.
In the 40+ years since passage of ANILCA, most
Alaskans and government employees have forgotten the
special provisions for public uses that the Governor,
legislature, ANCSA corporations, rural residents, and
Senator Stevens and Congressman Young fought so hard
for. Most Alaskans do not read the Federal Register
every morning with their coffee, but that is exactly
what the CACFA Executive Director did in order to
watch for actions that impacted ANILCA's
implementation. Without CACFA there is no one to help
Alaskan's navigate red tape or appeal decisions if a
federal manager simply says no.
In contrast, the State's ANILCA program cannot help
individual Alaskans. It coordinates with federal
agencies on behalf of ANILCA provisions of concern for
the state agencies in federal management plans,
regulations, and other actions. As an independent
Commission, administration politics do not interfere
with CACFA's defense of individual Alaskans' rights or
other provisions adopted by Congress in ANILCA.
The Alaska legislature was wise in establishing this
citizen forum to help Alaskans meet their social and
economic needs promised in the final deal Congress
adopted. Every passing year without CACFA results in
lost opportunities for Alaskans, and conflicts over
uses go unresolved. I strongly support reauthorization
of this independent Commission for the benefit of all
Alaskans in implementing ANILCA as Congress intended.
4:05:25 PM
MEAD TREADWELL, former Lieutenant Governor, Anchorage, Alaska,
stated that his experience with CACFA dates to when he served in
Governor Hickel's cabinet. He helped draft the curriculum Tina
Cunning uses to conduct ANILCA training. He cited the Willow
project and the decision yesterday on the land trade for the
King Cove Road as examples of why CAFCA is important to
Alaskans. CAFCA also worked on smaller issues such as whether a
four-wheel vehicle can be used in a BLM land management plan in
the Interior; whether Zodiac boats can be used from a small
cruise ship in Glacier Bay National Park; and whether a land
management plan for the Forest Service in Prince William Sound
allows leasing for a small lodge. The point is that without
CAFCA, there is nobody to track the hundreds of federal
decisions that are made daily about public lands in Alaska.
CAFCA also worked to maintain Alaska's rights under the
Statehood Compact.
LIEUTENANT GOVERNOR LIEMAN spoke of the broken promises under
the Statehood Compact and articulated his belief that when
Alaska loses it's because the federal government doesn't
recognize how committed Alaskans are to ensuring that things are
done correctly in the state. CAFCA can help get that message
out. He said he supports sunset legislation, but CAFCA is
necessary as long as the federal government owns 60 percent of
the land in the state. CAFCA represents the voice of Alaska.
4:10:12 PM
TED SPRAKER, President, Kenai Chapter, Safari Club
International, Soldotna, Alaska, stated support for SB 34 on
behalf of the 150 members of the Kenai Chapter of the Safari
Club International. He relayed that he spent his career with the
Alaska Department of Fish and Game (ADF&G) and then served six
consecutive terms on the Board of Game. As a board member he
heard from trappers who asked for help to get a special use
permit to use or build a line cabin for their trap lines. The
board didn't have the authority to help, but CAFCA was able to
help the trappers through the process. It was the same situation
with snow machine access. The board had no authority, but CAFCA
was able to help. He also cited the proposed new national park
service rule regarding predators as an example of the need to
have CAFCA to help guide businesses and trappers. He said he
feels strongly that institutional knowledge, and thus the intent
of the protections provided by ANILCA, will be lost if the
citizen's advisory commission isn't reauthorized. In particular,
CAFCA helps the "little guy."
4:14:32 PM
CO-CHAIR BISHOP held SB 34 in committee.
SB 87-LUMBER GRADING PROGRAM
4:14:46 PM late
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
87, "An Act relating to a lumber grading training program and
lumber grading certificates; relating to use of lumber graded
and certified by a person holding a lumber grading training
program certificate; and providing for an effective date."
4:15:33 PM
SENATOR JESSE BJORKMAN, District D, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 87, introduced the legislation by
reading the following prepared statement:
[Original punctuation provided.]
I am pleased to introduce Senate Bill 87, "An Act
relating to a lumber grading training program and
lumber grading certificates; relating to use of lumber
graded and certified by a person holding a lumber
grading training program certificate; and providing
for an effective date."
I had several constituents approach me about the
excellent qualities of our high strength local lumber
and the need for a local lumber grading program. When
I met with Department of Natural Resources, I learned
that an effort was underway to develop such a program.
Stakeholders including sawmill owners, home builders,
housing authorities, economic development
associations, vocational educators, and the Department
of Natural Resources and the US Forest Service have
all had a role in promoting and developing this
concept.
There are several things that have contributed to the
need for this bill:
• Lumber used in residential construction must be
graded and stamped to meet building code and
financing requirements. However, small Alaska
sawmills do not produce enough dimensional lumber
to justify the cost of hiring a grading agency to
grade and stamp their lumber;
• The cost of lumber and other construction
materials has risen dramatically over the last
several years, making it harder for Alaskans to
address the housing shortages affecting most of
our state; and
• Regions off the road system experience even
higher costs of construction as materials have to
be flown or barged into areas that may already
have abundant timber growing nearby.
A local lumber grading program would allow sawmill
operators to become certified to grade and sell the
dimensional lumber they mill for residential
construction to a homeowner or the homeowner's
contractor. This will provide Alaskans the option to
purchase a local product for use in the construction
of their homes. And it will create economic
opportunities that will result in permanent, stable,
family-wage jobs in rural communities and villages,
and with strengthen and diversify local economies.
4:20:12 PM
SENATOR BJORKMAN continued the introduction of SB 87.
In some parts of the state, there will be a
substantial cost savings from locally produced
dimensional lumber. According to information we have
from 2022:
• The average price of an 8' 2X4 in Fairbanks was
$9.44;
• The average total price of barging an 8' 2X4 to
interior communities was $12.00; and
• The average total price of air shipping an 8' 2x4
to interior communities was $21.00. The actual
price could go as high as $30.44.
The Kuskokwim Corporation has been working with the
Alaska Cold Climate Research Center on a heat-
efficient kit house that uses timber harvested in
their region. Using locally produced and graded
dimensional lumber would be significantly cheaper than
shipping in dimensional lumber, and would help the
Corporation meet more of the housing needs in this
part of rural Alaska. Many of the villages in the
Tanana Chiefs Conference also have small sawmills and
may be able to take advantage of the local lumber
grading program in the future to help build housing in
their communities.
In Southeast Alaska, a coalition of tribal, public
sector, and private sector partners is interested in
transitioning away from old growth timber to a
sustainable industry manufacturing young growth wood
products. This would provide economic opportunity and
a local supply of wood products for consumers, but the
limited opportunities for sales if sawmill operators
are not able to grade their lumber is one of the
hurdles for its implementation.
A local lumber grading program would also lower the
barrier for entry to create new sawmills. These
sawmills can serve as a catalyst to increase
investment in forest management and help build the
timber sector statewide. A larger timber sector in
turn can provide the additionality needed for creating
and selling forest carbon offset projects, adding
further investment and revenues to the timber sector.
The Department of Natural Resources Division of
Forestry and Fire Protection would administer the
program and ensure that the training necessary for
certification is offered at least annually.
Jeremy Douse, Northern Region Forester of the
Department of Natural Resources Division of Forestry
and Fire Protection is here to provide the Committee
with a discussion of lumber grading, a deeper dive
into the need for a local lumber grading program, and
an overview of the program DNR would administer under
this bill.
4:22:12 PM
SENATOR BJORKMAN read the sectional analysis for SB 87:
[Original punctuation provided.]
Section 1: Adds new statutes to AS 41.17 directing the
Department of Natural Resources Division of Forestry
and Fire Protection to establish a local lumber
grading training program for conservative grading
standards established by DNR. It specifies the
frequency of the courses and directs the division to
identify the content of courses, qualifications for
instructors, and requirements for completion. The
section also provides guidance for issuing
certificates, specifies the duration of the
certificate, defines exceptions for certification
without taking a training course, and specifies how a
certificate may be revoked.
The section also adds new statutes to AS 41.17 that
allow for the use of locally graded lumber in
residential construction of single homes, duplexes, or
triplexes. The new language allows an individual
holding a lumber grading certificate to grade and sell
lumber that they have produced directly to a person
constructing a residence or a contractor and specifies
the documentation the seller must provide. The
language also provides a building inspector the
authority to approve, conditionally approve, or reject
the lumber for use in a residence.
Section 2: Provides an immediate effective date
SENATOR CLAMAN mentioned the reference to selling the lumber
directly to the builder. He asked whether the lumber could also
be sold to a company like Spenard Builders Supply.
SENATOR BJORKMAN said no.
SENATOR CLAMAN asked why not.
SENATOR BJORKMAN explained that the lumber grades for this
program aren't the same as traditionally graded lumber and
conflating the two grading systems would cause confusion. He
deferred further explanation to Mr. Douse.
4:24:37 PM
SENATOR KAUFMAN noted that the fiscal note designates the fund
source as UGF. He asked if he'd considered having the program
funded with DFG through a certification or inspection fee.
SENATOR BJORKMAN said he'd support exploring that notion once
the program has enough participants to support self-funding.
4:25:23 PM
SENATOR KAWASAKI asked why this lumber wouldn't be certified for
commercial construction.
SENATOR BJORKMAN mentioned the intention to conform to the
International Building Code standards, and deferred to Mr. Douse
to speak to the question further.
4:26:10 PM
At ease
4:26:59 PM
CO-CHAIR BISHOP reconvened the meeting and invited Mr. Jeremy
Douse to provide his testimony.
4:27:08 PM
JEREMY DOUSE, Northern Region Forester, Division of Forestry and
Fire Protection, Department of Natural Resources, Anchorage,
Alaska, delivered a presentation on local lumber grading. He
turned to slide 2, Grade Stamped Lumber, and spoke to the
following:
• Grade Stamped lumber allows the purchaser to know
the wood meets a quality standard
• Grading agencies such as Western Wood Products
Association (WWPA) publishes the Western Lumber
Grading Rules for appearance grading
• Grading rules are accredited by the American Lumber
Standards Committee (ALSC)
• Members of WWPA receive mill training, quality
assurance (QA), market analysis, and professional
development
• Small mill operators find it economically
challenging to become a member of these types of
associations
4:29:44 PM
CO-CHAIR BISHOP asked if mechanical testing involves the use of
a hydraulic press that breaks a 2X4 at a certain number of
pounds per square inch.
MR. DOUSE explained that dimensional lumber, such as 2X4s that
are rated Number 2, are tested for tension, compression, and
sheer strength and assigned a statistical design value. Ninety
five percent of Number 2 2X4s of that species should equal that
design value. In 2005, the Ketchikan Wood Technology Center and
the Western Wood Products Association (WWPA) conducted that
testing on four Alaska species: white spruce, Sitka spruce,
western hemlock, and yellow cedar. The results of those tests
were published and accepted by the American Lumber Standards
Committee, which made the proposed grading program possible.
4:31:03 PM
MR. DOUSE turned to slide 3 and discussed the average cost in
Alaska to be a member of the grading agency. He spoke to the
following:
• Membership Dues + Monthly Site Inspections +
Inspector Travel Costs ˜ $2200/month
• Membership options for small mill operators: - Only
pay for membership fees during active periods -
Stockpile milled material and bring in an inspector
when there is enough to justify the travel costs
• Difficult for small mills to produce enough volume
to justify these costs and remain profitable
CO-CHAIR BISHOP commented on the difficulties associated with
producing sufficient volumes to make membership economically
feasible.
4:33:01 PM
SENATOR CLAMAN asked, other than the Viking Lumber Company, how
many small Alaska mills are operating under a grading program.
MR. DOUSE responded that he was aware of three mills that are
operating under a grading agency; Northland and Viking operate
under WWPA and one mill operates under the Pacific Lumber
Inspection Bureau, which is a transient grading agency. Those
three mills produce sufficient volume to justify the cost, but
multiple small mills don't have the volume.
SENATOR CLAMAN asked if a number of mills were cutting and
selling ungraded lumber.
MR. DOUSE said yes; building with ungraded lumber is okay in
areas that don't have building codes and if it's done out-of-
pocket. Unstamped lumber can also be used in an area with
building codes if it's for a small structure such as a shed or
sauna.
4:34:58 PM
MR. DOUSE advanced to slides 4-6 to discuss what constitutes a
local-use/native lumber program. He spoke to the following:
• It is state law/regulation in seven states allowing
non graded/stamped locally produced dimensional
lumber in some construction applications
• It is often an exemption to a building code that
requires grade stamped lumber
• It is focused on small mill operators providing
opportunities for them to enter home construction
markets
4:36:10 PM
SENATOR WIELECHOWSKI asked, in those seven states that allow the
use of ungraded lumber, whether there had been any problems
associated with the quality of the wood.
MR. DOUSE said he hadn't heard of any problems. People he spoke
with in Wisconsin said that as a general rule, this lumber is
high quality; the mill owners are proud of their product and
want to see the program continue.
MR. DOUSE continued to discuss what constitutes a local
use/native lumber program:
• It includes a training program for small mill
operators on grading their own lumber and includes a
recertification schedule
• Because of the code exemption, it allows for
traditional home construction financing
• Gives building inspectors an opportunity to inspect
and reject the wood if necessary
4:38:31 PM
SENATOR WIELECHOWSKI asked if there were reports of increases in
the cost of insurance or mortgage financing when unstamped
lumber is used.
MR. DOUSE said he hadn't heard of any such increases in the
seven states that have local-use lumber programs.
CO-CHAIR GIESSEL commented that the last point about building
inspectors having the ability to inspect and reject the wood
assumes that the building is in a coded area.
MR. DOUSE said that's correct.
4:39:40 PM
He advanced to slide 6 and continued to discuss what constitutes
a local use/native lumber program:
• Local use lumber must be sold to the end user or the
contractor building the home
• Most states only allow residential (1 3 family
home) construction as well as outbuildings
• Mill operator must take and pass a grading course
• Certification only lasts for 5 years
• Mill operator provides a certificate with the local
lumber
• Only applies to softwood
SENATOR CLAMAN asked why the lumber could only be sold to the
end user and not a company like Spenard Builders Supply.
MR. DOUSE answered that the lumber grades in the local use
lumber program are simplified, whereas the lumber sold through a
box store is a very specific product. He said he'd talk about
this more later in the presentation.
4:42:23 PM
MR. DOUSE advanced to slide 7 to discuss why the local use
lumber program is needed in Alaska. He spoke to the following:
• Wood prices have increased dramatically for home
construction National Association of Home Builders
notes wood prices add $36k to new single family home
construction Alaska Housing Finance Corporation
cites high cost of construction as a reason new
building permits fell 15%
• Canadian import tariffs on softwood were raised to
17.99% in early 2022 Alaska imports ~$20 million
annually in wood products from Canada (Canadian
Trade Commission)
• Forest Management Salvage harvest of beetle-
killed trees less than 4 years past mortality
Increase forest management opportunities for private
landowners
• Increase economic activity in rural communities
• Increase milling capacity
4:44:56 PM
MR. DOUSE directed attention to the graph on slide 8 that
reflects US Forest Service mill surveys of capacity and
production. These surveys are done every five years on mills
located throughout the Tongass National Forest. It shows that
both sawmill capacity and production has reduced significantly
since 2000 when the estimated production was 87 million board
feet. In 2020, production was only 15.5 million board feet. He
opined that there was a lot of capacity for smaller mills.
4:45:51 PM
MR. DOUSE said the chart on slide 7 addresses Senator Claman's
question about why this lumber can't be sold to a retail outlet
like Spenard Builders Supply. It shows the grading categories
that somebody who is certified under the Western Wood Products
Association would be trained to use. It illustrates that timber
grading is complex and requires a lot of training to be a
certified professional. The program that SB 87 proposes is an
equivalent to the following use categories for dimensional
lumber:
Light Framing: Construction, Standard, Utility, Economy
Stud: Stud, Economy Stud
Structural Light Framing: Select Structural, No. 1, No. 2, No.
3, Economy
Joists and Planks: Select Structural, No. 1, No. 2, No. 3,
Economy
The lumber in the proposed local use program would not be grade
stamped, but the certification and a form that describes the
wood would be handed to the end user. If this lumber were sold
through a company like Spenard Builders Supply, it could be sold
anywhere and for any application, which is not the intention of
the program. The idea is that this lumber would go directly from
the sawmill to the end user.
4:48:11 PM
SENATOR BJORKMAN added that keeping the close connection between
the buyer and the seller provides accountability for the lumber.
If there is a building inspector, that person has the ability to
inspect the lumber and reject it if there's a quality issue.
4:48:57 PM
MR. DOUSE directed attention to the chart on slide 10 that shows
the substitute equivalent Alaska grades and the descriptions of
that lumber.
Number 2 and Better: Substitute equivalent to Number 2 Grade of
Structural Light Framing, Joists and Planks and Standard Grade
of the Light Framing use categories
Stud: Substitute equivalent to Stud Grade used in residential
construction
Number 3: Substitute equivalent to Number 3 Grade of Structural
Light Framing, Joists and Planks and Utility Grade of the Light
Framing use categories
4:49:35 PM
MR. DOUSE described the training and certification proposed for
the Alaska Local Use Lumber Program. He spoke to the following:
• One day free class focusing on visually grading
lumber to the three Alaska grades.
o Issuance of Alaska Local Use Lumber handbook
o Issuance of Air-Drying Best Practices document
• Offered at least annually in Southeast, Southcentral
and Interior
• Recertification required every five years
• Certification issued to the person, not the mill
SENATOR DUNBAR asked him to speak to the difference between air
dried and kiln dried wood. He opined that it goes to Senator
Bjorkman's point about the need for the seller to have a close
relationship with the end user to ensure they know the
appropriate use for the lumber.
MR. DOUSE explained that air drying is used quite a bit in
Alaska and there are best practices for stacking and testing the
moisture content. If the lumber has a moisture content of more
than 19 percent, it is considered green or partially air dried;
when the moisture content is below 19 percent, the lumber is
considered dry. Kiln dried means the lumber has been put into a
controlled environment where heat is applied to draw moisture
out of the wood.
SENATOR DUNBAR offered his understanding that there was a
difference in strength and quality depending on how the wood is
dried, so the buyer needs to know what they're doing.
MR. DOUSE agreed that an important part of the program was that
the seller could look the buyer in the eye and say that the wood
was green, partially air dried, or air dried to below 19 percent
moisture content so the end user knows what they're buying.
4:53:15 PM
SENATOR KAUFMAN spoke to the reasons to have dimensional lumber,
and asked if there was any thought given to making the lumber in
the home use program equivalent.
MR. DOUSE answered that the surface condition is one of the five
required designations in the form that's given to the end user.
If the lumber is rough cut, planed, or planed on one side, that
will be communicated on that form.
SENATOR KAUFMAN mentioned hybrid solar drying and asked him to
speak to additional methods of improving the quality of the wood
by drying in a semi-controlled environment.
CO-CHAIR BISHOP mentioned forests in the Interior that had
burned more than four years ago and didn't have any beetle
infestation. He asked if that lumber was kiln dried or air
dried.
MR. DOUSE replied that timber would be considered air dried
because it was not in a controlled environment.
4:56:14 PM
MR. DOUSE turned to slide 12 to discuss the special conditions
for selling lumber in the proposed program. He spoke to the
following:
• Mill owner/operator sells the lumber directly to the
end user or to the contractor building the home
• Lumber sale must include documentation that
describes the 5 designations (grade, species,
moisture content, surface condition, size)
• Lumber sale must include a copy of the mill owner's
certification with the Alaska Local Use Lumber
program
• Building inspector may refuse the lumber
4:58:05 PM
CO-CHAIR BISHOP held SB 87 in committee.
4:58:38 PM
There being no further business to come before the committee,
Co-Chair Bishop adjourned the Senate Resources Standing
Committee meeting at 4:58 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 68 Version B.PDF |
HSTA 4/11/2024 3:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Sponsor Statement ver. B 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
|
| SB 68 Sectional Analysis ver. B 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Doc DNR January 2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Doc Pew Research Center 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Letters through 3.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Presentation DNR DMLW 03.14.2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 34 Version B.PDF |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Sponsor Statement ver. B 02.15.23.pdf |
SFIN 4/17/2023 1:30:00 PM SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Doc CACFA Audit Report 04.08.2020.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Doc CACFA Audit Summary 03.13.23.pdf |
SFIN 4/17/2023 1:30:00 PM SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Letters rec'd by 03.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 87 Version A.PDF |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Sponsor Statement ver. A 03.15.23.pdf |
SFIN 4/12/2023 1:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Sectional Analysis ver. A 03.15.23.pdf |
SFIN 4/12/2023 1:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Support Letters rec'd by 03.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 DOF Lumber Grading Presentation 03.15.2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 34 Sectional Analysis ver. B 02.15.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |