Legislature(2023 - 2024)BUTROVICH 205

01/17/2024 03:30 PM Senate RESOURCES

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Audio Topic
03:32:20 PM Start
03:33:04 PM Introductions and Committee Discussion of Resource Topics
03:51:12 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Committee Discussion of Resource TELECONFERENCED
Topics
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                     ALASKA STATE LEGISLATURE                                                                                 
               SENATE RESOURCES STANDING COMMITTEE                                                                            
                         January 17, 2024                                                                                       
                            3:32 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                                                                                                            
                                                                                                                              
INTRODUCTIONS AND COMMITTEE DISCUSSION OF RESOURCE TOPICS                                                                       
                                                                                                                              
     -HEARD                                                                                                                   
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
JULIA O' CONNOR, Staff                                                                                                          
Co-Chair Giessel                                                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of bills in committee                                                                
and their status.                                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                            
                                                                                                                                
3:32:20 PM                                                                                                                    
CO-CHAIR  CATHY  GIESSEL  called the  Senate  Resources  Standing                                                             
Committee meeting  to order at 3:32  p.m. Present at the  call to                                                               
order   were   Senators   Kawasaki,  Claman,   Dunbar,   Kaufman,                                                               
Wielechowski, Co-Chair Bishop and Co-Chair Giessel.                                                                             
                                                                                                                                
^Introductions and Committee Discussion of Resource Topics                                                                    
         INTRODUCTIONS AND COMMITTEE DISCUSSION OF RESOURCE TOPICS                                                            
                                                                                                                                
3:33:04 PM                                                                                                                    
O-CHAIR  GIESSEL opened  with  an overview  of  current bills  in                                                               
committee  and other  suggested  interests. Some  of the  current                                                               
legislative focuses  include Senate  Bill 49, a  geothermal bill,                                                               
executive orders,  fish and game  issues, as well as  North Slope                                                               
activity, Santos, gas extraction  and production numbers, mining,                                                               
critical  minerals, energy  issues with  Alaska Energy  Authority                                                               
(AEA), and the state's zero emissions goal.                                                                                     
                                                                                                                                
3:34:24 PM                                                                                                                    
JULIA   O'  CONNOR,   Staff,  Co-Chair   Giessel,  Alaska   State                                                               
Legislature,   Juneau,  Alaska,   provided  an   overview  of   a                                                               
spreadsheet she  created to track  bills in committee,  with most                                                               
having  been  referred at  the  start  of  the new  session.  The                                                               
tracker  outlined  the  status,  bill number,  short  title,  and                                                               
highlighted other components. She  noted that there are currently                                                               
five executive  orders that  were referred  to the  committee and                                                               
one hearing request for HB 125.                                                                                                 
                                                                                                                                
3:35:44 PM                                                                                                                    
CO-CHAIR  GIESSEL   said  that  these  conversations   provide  a                                                               
refresher  on last  session's  hearings. A  request  for a  legal                                                               
analysis on each of the  five executive orders was submitted. She                                                               
confirmed with  Senator Wielechowski the 60-day  timeline to take                                                               
action on  these orders  or they  automatically take  effect. She                                                               
stated that  some senators have  bills in committee that  had not                                                               
yet been  submitted for hearing  requests and invited  members to                                                               
deliver  those.  Co-Chair  Giessel   indicated  her  interest  in                                                               
informational hearings  on topics  such as  the status  of Santos                                                               
Energy Solutions'  efforts and  its methods  for reaching  a zero                                                               
emissions goal.                                                                                                                 
                                                                                                                                
3:36:53 PM                                                                                                                    
SENATOR  WIELECHOWSKI  thanked  Co-Chair Giessel  and  said  that                                                               
there is a  gas crisis in Alaska resulting in  gas running out by                                                               
March of  this year, but  possibly next year. Gas  contracts will                                                               
begin  to end  in 2028  and ENDSTAR  Natural Gas'  contracts will                                                               
terminate in  2033. There is a  long lag time to  bring other gas                                                               
sources to the Cook Inlet region,  so this is a critical issue to                                                               
focus on.  He mentioned that  it seems like GEO  political forces                                                               
are  aligned  in  a  way  that make  a  natural  gas  pipeline  a                                                               
plausible  project,  and  suggested   hearing  ideas  from  other                                                               
organizations  such  as  the  Alaska Industrial  Development  and                                                               
Export  Authority (AIDEA).  Developing  a permanent  fund is  one                                                               
possible approach  to addressing this  issue. He also  noted that                                                               
fishing issues are a concern  as king and chum salmon populations                                                               
are declining  in Alaska  and mandate attention,  so there  is an                                                               
opportunity to work toward resolutions.                                                                                         
                                                                                                                                
3:38:37 PM                                                                                                                    
CO-CHAIR  GIESSEL  referred back  to  the  Cook Inlet  issue  and                                                               
acknowledged  utility  organizations    presentations  from  last                                                               
year.  ENSTAR  Natural Gas  is  another  organization that  could                                                               
provide an update  on pipeline ideas. She  invited Senator Claman                                                               
to share his thoughts on this issue.                                                                                            
                                                                                                                                
3:39:04 PM                                                                                                                    
SENATOR CLAMAN  said that he met  with Hilcorp on the  Cook Inlet                                                               
gas  issue and  was  advised that  the results  of  one well  had                                                               
improved, therefore, the Homer Electric  contract was extended by                                                               
a year.  It would be helpful  to hear from not  only large buyers                                                               
but  also  smaller  or  potential   producers  of  gas,  such  as                                                               
BlueCrest  Energy,  Inc.  and  Fury,  to  better  understand  the                                                               
landscape of this issue.                                                                                                        
                                                                                                                                
3:40:05 PM                                                                                                                    
SENATOR  KAWASAKI said  that in  addition to  the previous  items                                                               
discussed, agriculture,  which only receives a  miniscule portion                                                               
of   the   Department   of  Natural   Resources   (DNR)   budget,                                                               
necessitates  attention.  It is  important  to  look toward  this                                                               
topic as members  continue to discuss ways to  meet food security                                                               
goals  and  obtain an  update  on  the Nenana-Totchaket  (NenTot)                                                               
Agricultural Project.  He relayed  that discussions were  held in                                                               
Fairbanks on  the restoration  of wood bison  in the  Yukon Flats                                                               
region.  In  line with  the  salmon  crisis, including  the  pink                                                               
salmon fishery problem  in the Cook Inlet  region, recent studies                                                               
on hatchery  fisheries have surfaced.  He spoke to  the potential                                                               
impact  of hatchery  fisheries  in China  and  overseas that  may                                                               
affect  fisheries   in  Alaskan  regions.  Mining   and  critical                                                               
minerals also remain a priority for the country and state.                                                                      
                                                                                                                                
3:41:37 PM                                                                                                                    
CO-CHAIR  GIESSEL   acknowledged  a   recent  Cook   Inlet  study                                                               
conducted on the impact of hatchery fish.                                                                                       
                                                                                                                                
3:41:48 PM                                                                                                                    
SENATOR DUNBAR shifted back to the  gas issue and stated that the                                                               
Governor will introduce a measure  on royalty relief. 200 million                                                               
dollars of grip  funding along with transmission  issues open the                                                               
door for discussions. He said  he welcomes informational hearings                                                               
and   legislative   vehicles   that  touch   on   what   Senators                                                               
Wielechowski  and  Claman said  about  the  gas and  transmission                                                               
issues.  He stated  that  he anticipates  a  discussion with  the                                                               
Division of  Parks and Outdoor  Recreation on state  parks, which                                                               
are  under the  purview of  the committee,  but have  rarely been                                                               
discussed.                                                                                                                      
                                                                                                                                
3:43:34 PM                                                                                                                    
SENATOR KAUFMAN added that the committee  now has a clear idea of                                                               
priorities, but with  the dynamic nature of  issues including the                                                               
Cook  Inlet Gas  and grid  updates,  he said  he supports  having                                                               
informational hearings  to refresh  the memory and  monitor these                                                               
issues.                                                                                                                         
                                                                                                                                
3:44:08 PM                                                                                                                    
CO-CHAIR GIESSEL indicated  that she hopes to  see a transmission                                                               
grid bill  introduced as the  Resources Committee  reviews energy                                                               
issues  in  lieu  of  a special  energy  committee.  She  invited                                                               
Senator Bishop to speak to upcoming agenda items.                                                                               
                                                                                                                                
3:44:35 PM                                                                                                                    
CO-CHAIR BISHOP  stated that  although the  committee has  a good                                                               
sense  of  direction  it  is   important  to  review  energy  and                                                               
transmission  issues.  He  noted  the  appeal  of  the  Iceland's                                                               
affordable energy  avenues and selectiveness on  adopting foreign                                                               
business  development.  He  suggested  the  consideration  of  an                                                               
Ambler mining district  update on critical minerals  and its road                                                               
development project. Discussions  are being held in  light of the                                                               
U.S.  Supreme  Court's  Sachet   decision.  With  that  decision,                                                               
Alaska's wetlands  will change,  so clear definitions  of federal                                                               
and  state   wetlands  territory  through   formal  informational                                                               
hearings  are  vital.  He  said  he  anticipates  fish  and  game                                                               
updates,  as  well  as  an  update on  how  area  M  restrictions                                                               
affected  Western Yukon  chum returns.  He  stated that  although                                                               
targets on  return were  not met  the increase is  a step  in the                                                               
right direction. He opined that  technology should be utilized by                                                               
the Department of  Fish and Game. He suggested that  the state of                                                               
Alaska could use  Unmanned Arial Vehicles (UAVs)  to conduct game                                                               
surveys and track moose, sheep,  and caribou population data. The                                                               
University  of Alaska  Fairbanks'  UAV  could potentially  remain                                                               
stationed round-the-clock.                                                                                                      
                                                                                                                                
3:48:31 PM                                                                                                                    
CO-CHAIR BISHOP said that permit  reform is needed on the federal                                                               
level.  There  are several  permit  reform  bills circulating  in                                                               
Washington D.C. that  target this issue. He  and Co-Chair Giessel                                                               
had a conversation at an  energy council meeting in Wyoming about                                                               
a large wind farm that  will export electricity to California. He                                                               
stated  that  in order  to  have  energy resources  Alaska  needs                                                               
permit  reform.  He stressed  the  17-year  lead time  needed  to                                                               
complete  the project  due to  obstacles  like the  Environmental                                                               
Protection  Agency's National  Environmental  Policy Act  (NEPA).                                                               
The  legislature  anticipates  two of  Governor  Dunleavy's  land                                                               
bills  coming forward  that would  shift more  land into  private                                                               
ownership.                                                                                                                      
                                                                                                                                
3:50:07 PM                                                                                                                    
CO-CHAIR   GIESSEL  acknowledged   the  agenda   items  as   good                                                               
discussion topics and said it  would be an interesting year. Some                                                               
of  these issues  were referred  to  the committee,  such as  the                                                               
trapping cabins and fishery bills.  She thanked committee members                                                               
for  their  ideas  on  interesting   topics,  which  help  inform                                                               
legislation.  Senator Giessel  acknowledged that  she appreciated                                                               
hearing other  members' input  and interests  to help  identify a                                                               
direction forward.                                                                                                              
                                                                                                                                
3:51:12 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Co-Chair  Giessel   adjourned  the  Senate   Resources  Committee                                                               
meeting at 3:51 p.m.                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
SRES Bill Referral as of 1.16.24.pdf SRES 1/17/2024 3:30:00 PM