01/31/2024 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB125 | |
| SB195 | |
| Sb198 | |
| Eo128: Separating the Board of Directors of Alaska Energy Authority from the Board of Directors of the Alaska Industrial Development and Export Authority | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 125 | TELECONFERENCED | |
| + | SB 190 | TELECONFERENCED | |
| *+ | SB 198 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
January 31, 2024
3:30 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Click Bishop, Co-Chair
Senator Matt Claman
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 125(RES)
"An Act relating to trapping cabins on state land; and relating
to trapping cabin permit fees."
- HEARD & HELD
SB 198 STATE LAND FOR REMOTE REC CABIN SITES
- HEARD & HELD
EO 128 SEPARATING THE BOARD OF DIRECTORS OF THE ALASKA ENERGY
AUTHORITY FROM THE BOARD OF DIRECTORS OF THE ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 125
SHORT TITLE: TRAPPING CABINS ON STATE LAND
SPONSOR(s): RESOURCES
03/20/23 (H) READ THE FIRST TIME - REFERRALS
03/20/23 (H) RES, FIN
03/27/23 (H) RES AT 1:00 PM BARNES 124
03/27/23 (H) Heard & Held
03/27/23 (H) MINUTE(RES)
03/29/23 (H) RES AT 1:00 PM BARNES 124
03/29/23 (H) Heard & Held
03/29/23 (H) MINUTE(RES)
04/03/23 (H) RES AT 1:00 PM BARNES 124
04/12/23 (H) RES AT 1:00 PM BARNES 124
04/12/23 (H) Moved CSHB 125(RES) Out of Committee
04/12/23 (H) MINUTE(RES)
04/14/23 (H) RES RPT CS(RES) 7DP 2NR
04/14/23 (H) DP: MEARS, ARMSTRONG, DIBERT, SADDLER,
WRIGHT, RAUSCHER, MCKAY
04/14/23 (H) NR: MCCABE, PATKOTAK
04/27/23 (H) FIN AT 1:30 PM ADAMS 519
04/27/23 (H) Heard & Held
04/27/23 (H) MINUTE(FIN)
05/04/23 (H) FIN AT 1:30 PM ADAMS 519
05/04/23 (H) Moved CSHB 125(RES) Out of Committee
05/04/23 (H) MINUTE(FIN)
05/08/23 (H) FIN RPT CS(RES) 8DP 1AM
05/08/23 (H) DP: TOMASZEWSKI, CRONK, ORTIZ, GALVIN,
STAPP, EDGMON, D.JOHNSON, FOSTER
05/08/23 (H) AM: JOSEPHSON
05/13/23 (H) TRANSMITTED TO (S)
05/13/23 (H) VERSION: CSHB 125(RES)
05/15/23 (S) READ THE FIRST TIME - REFERRALS
05/15/23 (S) RES, FIN
01/24/24 (S) RES AT 3:30 PM BUTROVICH 205
01/24/24 (S) Heard & Held
01/24/24 (S) MINUTE(RES)
01/31/24 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
PETER BUIST, Former President, Founding Member
Alaska Trappers Association (ATA)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 125.
AL BARRETTE, Member
Alaska Board of Game
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 125.
JOHN BOYLE, Commissioner
Alaska Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Introduced SB 198 on behalf of the
administration.
CHRISTY COLLES, Director
Division of Mining, Land and Water (DMLW)
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Provided an overview of the presentation on
SB 198.
CURTIS THAYER, Executive Director
Alaska Energy Authority
Anchorage, Alaska
POSITION STATEMENT: Presented EO 128 on behalf of the
administration.
PARKER PATTERSON, Senior Assistant Attorney General
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Answered questions on the constitutionality
of EO 128.
EMILY NAUMAN, Director
Legal Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Provided the objection to EO 128 on behalf
of Legal Services.
RANDY RUARO, Executive Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Commented on EO 128.
ACTION NARRATIVE
3:30:50 PM
CO-CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Wielechowski, Dunbar, Kaufman, Kawasaki, and
Co-Chair Giessel.
HB 125-TRAPPING CABINS ON STATE LAND
3:31:59 PM
CO-CHAIR GIESSEL announced the consideration of CS FOR HOUSE
BILL NO. 125(RES) "An Act relating to trapping cabins on state
land; and relating to trapping cabin permit fees."
3:32:21 PM
CO-CHAIR GIESSEL opened public testimony.
3:32:47 PM
PETER BUIST, Former President, Founding Member, Alaska Trappers
Association (ATA), Fairbanks, Alaska, testified in support of HB
125. Forty years ago as President of ATA, he worked with former
Alaska State Representative Red Swanson to introduce the
original legislation that addressed the critical need for
trappers to obtain critical winter shelter on state land trap
lines. Later, as a former Department of Natural Resources (DNR)
employee, he helped administer the first trapper construction
permit. It has been a popular permit, experiences scarce abuse,
and helps prevent trespassing cabin issues. It is supported by
both urban and rural trappers among ATA members. There is common
support around the need for effective and lifesaving winter
shelter for all long trap line trappers. Over the years, it has
become known to the trapping community and DNR that legislative
changes are necessary. ATA worked in concert with DNR to craft
legislation to address most administrative problems that have
recently impacted the program. Almost ten years ago, DNR
determined that statute would not allow the renewal of trapping
permits, creating a web of problems. The new legislation allows
renewals, increases the yearly permit fee, and recovers security
to the permitting system. Concerns about the unfairness of
recreational use during off-cabin season have been expressed.
3:35:50 PM
MR. BUIST stated that trapper shelters contain firewood, food,
gear, and other life-saving materials during the winter trapping
season. Allowing recreational use could put the permitted
trapper in a bad situation and result in liability issues. The
use of cabins for trapping is already established in statute, so
allowing alternative uses would create an increase in demand and
a plethora of problems.
3:36:46 PM
AL BARRETTE, Member, Alaska Board of Game, Fairbanks, Alaska,
testified in support of HB 125. He noted that although he is a
member of the Alaska Board of Game, his testimony does not
represent the agency. Southcentral and Interior Alaska are
experiencing below-freezing temperatures, but a great number of
trappers depend on a warm and dry place to stay during trapping
activities. The expansion of urban populations has pushed
trappers to more remote areas.
3:38:13 PM
CO-CHAIR GIESSEL closed public testimony.
3:38:23 PM
CO-CHAIR GIESSEL held HB 125 in committee.
SB 198-STATE LAND FOR REMOTE REC CABIN SITES
3:38:29 PM
^sb198
SB 198-STATE LAND FOR REMOTE REC CABIN SITES
CO-CHAIR GIESSEL announced the consideration of SENATE BILL NO.
198 "An Act relating to the permitting, lease, and sale of state
land for remote recreational cabin sites; and providing for an
effective date."
3:38:39 PM
CO-CHAIR GIESSEL announced invited testimony.
3:39:04 PM
JOHN BOYLE, Commissioner, Alaska Department of Natural Resources
(DNR), Anchorage, Alaska, introduced SB 198 on behalf of the
administration.
He presented the briefing statement:
[Original punctuation provided.]
SB 198/HB 281 would repeal and reenact the existing
Remote Recreational Cabin Site (RRCS) staking program
statute in AS 38.05.600 to increase opportunities for
Alaska residents to permit, lease, and purchase state
land for a remote recreational cabin site. The bill
outlines a process to be followed when the
commissioner offers available land and the ability for
the public to nominate land to be permitted, leased,
or purchased and directs the commissioner to establish
regulations to implement the program.
The bill provides for the commissioner to annually
identify areas where land is properly classified,
publish and provide public notice for an annual
schedule of land offerings suitable for remote
recreational sites, and offer those lands for staking.
It also allows Alaskans to nominate 10 acres of
unencumbered land for remote recreational sites to be
staked by an eligible participant. The commissioner
could then approve the nomination without a written
best interest finding. If the nominated land is not
properly classified, the commissioner may classify or
reclassify it per existing statutes. Still, the
applicant is responsible for administrative costs
associated with the classification process. After
approval, the applicant who nominated the land would
have 90 days to stake the parcel or the land may be
included in the annual land offering.
The bill would establish a process for Alaskans to
stake and purchase a piece of state land for a remote
recreational site. This process requires the applicant
to pay the costs for appraisal, survey, and platting
the site and for the commissioner to set the sale
price at fair market value.
The bill would establish a process for leasing a
remote recreational site with an initial 10-year term
and two additional 10-year lease renewal periods.
Leases may not be assigned, allowing for the
termination of leases for non-compliance. The lessee
may purchase the site at any time during the lease.
The bill would provide for a permit to be issued for a
remote recreational site for a 5-year term with four
additional 5-year renewal periods. The permits may not
be assigned and would be revocable at the discretion
of the commissioner and may be terminated for any
reason, including failure to use the permitted land as
required by the terms of the permit. The permittee
would be eligible to lease or purchase the site, and
if the land subject to the permit is offered for sale
or lease, the commissioner shall first offer the site
to the permittee.
The bill would provide that if a permit or lease is
terminated, improvements or personal property
remaining on the land would be handled as provided in
AS 38.05.090.
This bill will increase the availability of land for
recreational use and help make land available to
Alaskans.
3:42:36 PM
MR. BOYLE said SB 198 establishes the process for leasing a
remote recreational site with an initial ten-year term and two
additional ten-year term lease renewal periods. The bill would
grant residents who lack the financial means the ability to
purchase costly lands or survey an opportunity to experience a
cabin lifestyle. However, SB 198 maintains a lease termination
provision for non-compliance. The bill would provide for permit
issuing for a remote recreational with a five-year term with
four additional five-year periods, but a permit may be
terminated by the commissioner for any reason including failure
to use the permitting land as required by the terms. If land
subject to the permit is offered for leasing sale, the
commissioner shall first offer the land site to the permittee.
If a permit or lease is terminated, improvements or personal
property remaining on the land would be managed by the state as
provided under AS 38.05.090. In summary, the bill is designed to
increase availability of recreational land for Alaskans.
3:44:53 PM
CHRISTY COLLES, Director, Division of Mining, Land and Water
(DMLW), Alaska Department of Natural Resources (DNR), Anchorage,
Alaska, provided an overview of the presentation on SB 198. She
spoke to slide 2:
[Original punctuation provided.]
Purpose
Article VIII, Section 1 of the Alaska
Constitution states:
It is the policy of the State to encourage the
settlement of its land and the development of its
resources by making them available for maximum
use consistent with the public interest.
• HB 281 will provide Alaskans a variety of
opportunities to utilize and own state land for
recreational purposes
• The bill aligns with the Governor's priority to
put Alaska land into Alaskan hands
3:45:20 PM
MS. COLLES moved to slide 3 and highlighted an overview of the
leasing process:
[Original punctuation provided.]
Overview
• The Department of Natural Resources (DNR) will
annually publish a list of lands available to
stake for a Remote Recreational Cabin Site (RRCS)
• Individuals can nominate 10 acres of unencumbered
state land not included in the annual state
offering for RRCS
• Lands may be classified or reclassified
• Multiple ways to procure a site:
square4 Permit
square4 Lease
square4 Purchase
MS. COLLES added that SB 198 would direct the commissioner to
manage the leasing operation. If nominated land is not properly
classified, the commissioner may classify or reclassify land per
existing statutes. The applicant would be responsible for
administrative costs associated with the reclassification
process. After approval, the applicant who nominated the land
would have 90 days to stake the parcel or the state may include
the land in its annual land offering.
3:46:40 PM
MS. COLLES moved to slide 4 and listed specific authorization
types:
[Original punctuation provided.]
SB 198 - Permits
• Establishes a process for permitting
square4 Up to 10 acres for nominated lands,
department sets acreage for offered lands
square4 5-year term; four renewals for 5-year terms
square4 Revocable at will and may not be assigned
square4 Fees established under AS 38.05.073(m)
square4 May be terminated for any reason
• Permit holder may apply to lease or purchase
3:47:21 PM
MS. COLLES moved to slide 5 and listed leasing options:
[Original punctuation provided.]
SB 198 - Leasing
• Process for leasing a remote recreational site
square4 10 acres for nominated lands
square4 10-year leasing period; two renewals for 10-
year terms
square4 Restricts assignment of a lease
square4 Fees established under AS 38.05.073(m)
square4 Termination of lease for non-compliance
square4 May purchase the site during the term of the
lease
3:47:47 PM
SENATOR WIELECHOWSKI asked for an explanation of the current
leasing process and how SB 198 would change it.
3:47:58 PM
MS. COLLES replied that DMLW puts out a stake land offering
every other year. If more than twenty people apply, a drawing is
conducted to determine who can proceed. Price per acre could
differ depending on whether land is on a lake. Once the survey
and appraisal are completed, an applicant can either make
payments over 20 years or purchase the property in full. Once
the property is paid for, a land patent is ensued.
3:49:12 PM
SENATOR WIELECHOWSKI asked whether there is a maximum number of
acres allowed for a lease purchase. He also asked how the bill
would fundamentally change this process.
3:49:29 PM
MS. COLLES said the maximum acreage limit is determined based on
location and comprises 5-20 acres for any current sales. There
are currently no permitting or leasing programs, so there's an
inability to renew a lease. SB 198 seeks to change this
provision to allow renewals and exempt the best interest finding
requirement, while maintaining the decision component and public
notice requirement per statute.
3:50:46 PM
SENATOR DUNBAR questioned why the best interest finding would be
removed under SB 198. Several members would like more public use
cabins made available, especially for families who may not have
the financial means under the standard program. He wondered how
the privatization of state lands would impact terms of a public
use cabin and whether the state could recover the property at a
future date.
3:52:04 PM
MS. COLLES replied that there are other exempt authorizations
under statute AS.30.05.035(e) with regard to the best interest
finding. DNR would still write a decision that is less
prescriptive than what is in current statute and would
streamline the ability for Alaskans to obtain land. Public use
cabins are primarily managed by the Division of Parks and
Outdoor Recreation (DPOR), as DMLW does not have enough manpower
to monitor cabins for safety protocols. Typically, available
cabins are requested by a non-profit organization to establish a
reservation system for public use. Division of Land, Mining and
Water could potentially review public purpose in the future.
Under statute, if someone abandons a structure on state land it
becomes state property. Profit from the cabin is refunded and
sold by the department if it is over a certain dollar amount.
3:54:09 PM
MR. BOYLE added that DNR is supportive of expanding its network
of public use cabins. As DNR looks at park units to expand, the
focus is generally on locations adjacent to urban centers and
roads that allow relatively easy access.
3:55:15 PM
SENATOR DUNBAR opined that some of the available lands
pinpointed on the map on slide 8 are in desirable locations. He
wondered if a mechanism exists to allow DPOR to consider some of
these lands for public use.
3:56:15 PM
MS. COLLES replied that the map on slide 8 shows classified
settlement lands which include some lands on the road system.
She said this classification is used for both the remote
recreational program and the subdivision program, which is
primarily used for auction sales. DMLW works with DCOR on non-
LDA (Limited Development Area) areas that are managed for public
use.
3:57:22 PM
SENATOR KAWASAKI wondered how much time is required to complete
the steps before a decision is made.
3:58:06 PM
MS. COLLES responded that in a two-step decision, a draft
outlining information needed for a final decision is required
before going to the public, which is time-consuming and requires
a lot of research. The process is complex, so hiring and
training new personnel mandates additional time. Public comments
are also made before a final decision is written. In a one-step
decision, DNR informs the public of actions considered by the
department and the public could in turn make comments. The
public maintains the right to appeal, but the new process
streamlines the two-step decision.
3:59:39 PM
SENATOR KAWASAKI asked if the potential replacement of AS
38.05.035(e) with the record decision would allow sufficient
time for DNR to review information about the area and whether
the public would have the opportunity to make public comment
twice.
4:00:31 PM
MS. COLLES explained that the first step is DNR investigates and
then offers public comment on what it has considered. After
public comments are made and additional information is gathered,
the department develops a draft, sends it to the applicant, then
the applicant process can occur.
4:01:43 PM
MS. COLLES continued to slide 6 and highlighted the purchasing
process:
[Original punctuation provided.]
SB 198 - Purchase
• Process for purchase of state land for RRCS
square4 10 acres for nominated lands
square4 Purchase price set at fair market value
o Purchase of permitted and leased sites
appraisal will be set at time of entry
square4 Applicant must pay for appraisal, survey, and
platting
4:02:02 PM
MS. COLLES moved to slide 7 showcasing a map of state-owned
land. She noted that the blue category represents state-owned
land that is classified through the planning process and
undergoes agency and public engagement. Classification of state
land assists the DNR in making decisions on development and
disposal. The department is required to classify lands prior to
disposal. The settlement classification is lands identified for
disposal that will move to private ownership. If land is not
designated as settlement, reclassification could be considered
under current law. If new information surfaces, a process is
undertaken for other authorizations.
4:03:24 PM
MS. COLLES moved to slide 8 showing statewide settlement lands.
She noted that there are approximately three-and-a-half million
acres classified as settlement lands in Alaska.
4:03:49 PM
SENATOR KAWASAKI asked why certain lands were identified as
settlement lands.
4:04:09 PM
MS. COLLES replied that DNR works with local communities and the
public in the planning process, so there may have been specific
reasons for identifying certain locations as settlement lands.
Some of the area plans are over 20 years old, but updates may
take two-to-five years to occur.
4:05:11 PM
SENATOR DUNBAR asked if there's a limit on the number of days
per year a person is allowed at a cabin before it becomes
classified as a permanent residence. He sought clarification on
the definition of recreational sites.
4:05:52 PM
MS. COLLES replied that there's no statutory definition for
recreational sites. The DNR would not prevent an individual from
living in one of the cabins. The difference between a remote
recreational area and a subdivision area is the type of access
available. Recreational sales include limited vehicle access
whereas subdivision sales are right off the road. The department
is considering a recreation opportunity for the route, which
would be further from the road and generally less costly due to
limited access.
4:07:11 PM
SENATOR DUNBAR opined that the "recreational" definition is
arbitrary, since these are simply remote cabins.
4:07:33 PM
MS. COLLES responded that is correct, but one caveat with remote
recreational sites is that they cannot be used for commercial
purposes. Once a cabin is sold, there is no covenant on it, so
the ability to monitor activities is difficult.
4:08:14 PM
SENATOR WIELECHOWSKI asked if the definition of available state
land is indicated by the blue dots on the map on slide 8.
4:08:43 PM
MS. COLLES replied yes, but the definition must not be
encumbered.
4:09:12 PM
SENATOR WIELECHOWSKI asked for a definition of available state
land.
4:09:21 PM
MS. COLLES said there are currently no existing rights to the
land.
4:09:35 PM
SENATOR WIELECHOWSKI asked Ms. Colles to confirm there are three
million acres of available state land.
4:09:50 PM
MS. COLLES confirmed that is correct.
4:10:02 PM
MS. COLLES continued to slide 9 showing a Northern Region
settlement land map, which includes over 1.3 million acres but
is a small portion of state lands.
4:10:28 PM
MS. COLLES moved to slide 10 demonstrating Southcentral region
settlement lands, which includes over 2.1 million acres.
4:10:34 PM
MS. COLLES moved to slide 11 demonstrating Southeast region
settlement land, which includes over 66 thousand acres.
4:10:58 PM
MS. COLLES moved to the sectional analysis on slide 12:
[Original punctuation provided.]
Sectional Analysis
• Section 1: Amends uncodified law to add a statement of
purpose.
• Section 2: Amends AS 38.05.035(e) to add a new
(e)(6)(I) exempting remote recreational cabin site
permits, leases, or sales from requiring a written
best interest finding before approval.
• Section 3: Amends AS 38.05.045 to add that this
statute does not prevent the disposition of land as
provided in AS 38.05.600.
4:11:56 PM
MS. COLLES moved to slide 13 and continued the sectional
analysis through slide 15.
[Original punctuation provided.]
Sectional Analysis, con't
• Section 4: Amends AS 38.05.065(b) to state that a
contract for land sold under AS 38.05.600 adds a
requirement for installment payments of no more than
20 years on a level-payment basis at interest rates
set by AS 38.05.065(i).
• Section 5: Amends AS 38.05.125(a) to add AS 38.05.600
to the list of statutes subject to the reservations
laid out in AS 38.05.125(a).
• Section 6: Amends AS 38.05.600 by repealing the existing
remote recreational site statute and re-enacting it as
follows:
a) States that the commissioner shall provide for the
permitting, lease, and sale of state land for remote
recreational sites to eligible applicants, as
described in (b) and (c).
b) States that the commissioner shall publish an
annual schedule of land offerings that lists areas
available for staking of remote recreational cabin
sites. The department will provide public notice of
the annual schedule and applicants may apply for
sites.
c) States that eligible applicants may nominate
unencumbered land and apply for a permit, lease, or
sale of up to 10 acres of state land that is not
included in the commissioner's schedule in (b).
d) States that the commissioner may classify or
reclassify nominated land. The applicant would be
responsible for all administrative costs for
reclassification; the department shall provide public
notice of the nomination; and if the applicant fails
to stake land within 90 days of approval, the
commissioner may include the land in the annual
schedule of offerings.
4:14:11 PM
SENATOR WIELECHOWSKI asked if nomination is part of a new
process.
4:14:16 PM
MS. COLLES said that is correct. There is no nomination for the
public to identify and stake a specific area.
4:14:35 PM
SENATOR WIELECHOWSKI asked if the provision noted on slide 15
limits an applicant to one parcel in the state:
c) States that eligible applicants may nominate
unencumbered land and apply for a permit, lease, or
sale of up to 10 acres of state land that is not
included in the commissioner's schedule in (b).
4:15:01 PM
MS. COLLES replied that an eligible applicant can only
participate once every ten years.
4:15:21 PM
SENATOR WIELECHOWSKI asked why the commissioner would need to
classify or reclassify nominated lands.
4:15:30 PM
MS. COLLES replied that if land is not already classified
settlement, DNR would need to consider whether reclassification
is necessary to allow for disposal.
4:15:50 PM
SENATOR WIELECHOWSKI inquired whether statewide settlement lands
indicated on slide 8 could be reclassified.
4:16:18 PM
MS. COLLES replied yes. Slide 8 showcases lands available for
staking without the need to move through the reclassification
process, but are not guaranteed.
4:16:57 PM
SENATOR WIELECHOWSKI referred to slide 9 and asked if locations
not shown could be nominated for reclassification.
4:17:29 PM
MS. COLLES said it is possible.
4:17:35 PM
SENATOR WIELECHOWSKI asked if the nomination process makes it
easy for an applicant to reclassify and acquire land.
4:17:54 PM
MS. COLLES replied yes, but DNR needs to go through the decision
process to determine whether reclassification is appropriate.
4:18:03 PM
SENATOR WIELECHOWSKI sought confirmation of his understanding
that the reclassification process entails a best interest
finding.
4:18:08 PM
MS. COLLES replied that the reclassification process includes a
decision process involving public notice and has strict
classification requirements.
4:18:32 PM
SENATOR WIELECHOWSKI asked if there is a best interest finding
for that process.
4:18:38 PM
MS. COLLES replied that she was uncertain whether a best
interest finding is included.
4:18:46 PM
SENATOR WIELECHOWSKI provided a hypothetical scenario involving
an applicant nominating land that might block fishing or hunting
access. He asked whether that land would go out for public sale
or if it would be sold at market value upon approved by the
commissioner.
4:19:32 PM
MS. COLLES replied that an applicant would obtain the land if
staked within 90 days.
4:19:50 PM
SENATOR WIELECHOWSKI stated he finds the process concerning.
4:20:18 PM
MS. COLLES continued reading the sectional analysis on slide 15
through 18:
[Original punctuation provided.]
Sectional Analysis, con't
c) States that eligible applicants may nominate
unencumbered land and apply for a permit, lease, or
sale of up to 10 acres of state land that is not
included in the commissioner's schedule in (b).
d) States that the commissioner may classify or
reclassify nominated land. The applicant would be
responsible for all administrative costs for
reclassification; the department shall provide public
notice of the nomination; and if the applicant fails
to stake land within 90 days of approval, the
commissioner may include the land in the annual
schedule of offerings.
e) Sets a permit term and renewals. Permits are
revocable and may be terminated. The permittee is
eligible to lease or purchase the site, and if land
subject to the permit is offered for sale or lease,
the commissioner shall first offer the site to the
permittee.
f) Sets a lease term and renewals. Provides the
ability to terminate if a lessee fails to use the land
according to the terms of the lease. Allows a purchase
right during the lease.
g) Annual fees for permits and leases shall be set in
accordance with AS 38.05.073(m). After the termination
of a permit or lease, improvements or personal
property remaining on the land shall be handled as
provided in AS 38.05.090. A lease or permit may not be
assigned.
h) Sales must be at fair market value at the time of
entry, and the purchaser must pay the costs of
appraisal, survey, and platting.
i) Allows for adoption of regulations to implement
this section.
j) Provides definitions for "eligible applicant" and
"resident".
Section 7 - Amends the uncodified law by adding a
new section relating to transition, stating that a
lease executed under AS 38.05.600 before the effective
date of this act and in effect on the effective date
of this act is eligible for renewal under AS 38.05.600
as repealed and reenacted in Section 6 of this bill.
Section 8 - Provides for an immediate effective date
under AS 01.10.070(c).
4:23:06 PM
SENATOR DUNBAR asked if there are any building restrictions
on eligible cabin sites.
4:23:25 PM
MS. COLLES replied there are no restrictions in statute.
4:23:32 PM
SENATOR DUNBAR opined that the definitions imply the sales
of land rather than remote or recreational cabins. He asked
how many acres per year will be sold under SB 198.
4:24:17 PM
MS. COLLES said she does not currently have the requested
information. However, 1,920 acres were offered in 2023;
1,159 acres were patented in 2007; 1,050 acres patented in
2001, so the totals have decreased over the years. Acre
sales vary depending on the area, interest, and
transportation access.
4:25:43 PM
MS. COLLES moved to slide 19 on the fiscal note.
[Original punctuation provided.]
Fiscal Note
• FY 2025 $731.8 (5 positions)
• One Permanent Full-Time Land Surveyor 1
• One Permanent Full-Time Natural Resource Manager
1
• Two Permanent Full-Time Natural Resource
Specialists 3
• One Permanent Full-Time Natural Resource
Specialist 2
These positions will support timely adjudication of
the expanded Remote Recreational Cabin Site program
applications
• FY 2026-2030 $706.8 annually
SENATOR DUNBAR asked for the number of positions the DNR
currently has for the Remote Recreational Cabin Site
program.
4:26:11 PM
MS. COLLES replied that there is currently one specialist
and one manager who oversees the entire program.
4:26:43 PM
SENATOR DUNBAR asked for confirmation of his understanding
that there are two full-time staff and the department is
requesting five more, therefore two-and-a-half times more
land sold would be per year.
4:27:10 PM
MS. COLLES replied that DNR is requesting title, surveying,
reclassifications, and adjudication staff who are
responsible for more than management of the recreation
program.
4:28:10 PM
SENATOR KAWASAKI referenced slide 19 and requested
information on each program.
4:29:31 PM
MS. COLLES replied she would provide the committee with a
chart that explains each program.
4:29:50 PM
SENATOR KAUFMAN asked whether program costs would be
covered by the unrestricted general fund (UGF) or if it
could be self-funded.
4:30:25 PM
MS. COLLES replied yes, it is something DNR could consider.
The Land Disposal Income Fund is currently used for land
sales programs, but additional staffing could not be
supported through current funding.
4:30:19 PM
MS. COLLES replied yes, DNR could consider that proposal.
The land disposal income fund is used for the land sales
program, but she does not believe additional staffing could
be supported with the current fund.
4:30:53 PM
CO-CHAIR GIESSEL held SB 198 in committee.
^EO128: Separating the Board of Directors of Alaska Energy
Authority from the Board of Directors of the Alaska
Industrial Development and Export Authority
EO 128 SEPARATING THE BOARD OF DIRECTORS OF
THE ALASKA ENERGY AUTHORITY FROM THE BOARD OF DIRECTORS OF
THE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY
4:31:04 PM
CO-CHAIR GIESSEL announced the consideration of EO 128 "An
Act Separating the Board of Directors of the Alaska Energy
Authority from the Board of Directors of the Alaska
Industrial Development and Export Authority."
4:31:24 PM
CO-CHAIR GIESSEL referred to the legal memo on EO 128 and
said the legal finding is that the court would likely find
it exceeds the Governor's executive order authority under
the Alaska Constitution. The authority of the Governor to
issue an executive order arises from the Alaska
Constitution art.III, sec.23.
4:31:58 PM
CO-CHAIR GIESSEL invited the administration to introduce EO
128.
4:32:23 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority,
Anchorage, Alaska, presented EO 128 on behalf of the
administration. He provided an overview of a presentation
titled, AEA EXECUTIVE ORDER 128 OVERVIEW.
MR. THAYER moved to slide 2 highlighting active programs
and services managed by AEA, including Railbelt Energy and
the Alaska Intertie. These programs are typically carried
out through state grants or state proceeds to benefit
communities in rural Alaska. Over the past three years,
$370 million was invested in the Renewable Energy Fund by
the state. There are currently 60 actively managed projects
in the early feasibility stage. A third-party reviewed the
program's progress over the past 15 years and determined
that it successfully displaced 85 million gallons of diesel
fuel. AEA also operates the following projects:
• Power Project Loan Fund, which comprises over $30
million in loans.
• The two largest solar projects in Alaska: the
Houston and Willow solar farm, using the power
project loan fund.
• The Governor's Energy Task Force.
• Energy Planning, which is a collaboration with
regional partners.
4:35:44 PM
MR. THAYER moved to slide 4 and provided an overview of EO
128 and its purpose:
[Original punctuation provided.]
Executive Order 128: The "Why"
"As governor, I find that it is in the best interests
of efficient administration to separate the membership
of the board of directors of the Alaska Energy
Authority from the membership of the board of
directors of the Alaska Industrial Development and
Export Authority." EO 128
• Historical: From 1976 until 1993, AEA was governed by
its own board of directors.
• Distinct Purpose: The underlying purposes of AIDEA and
AEA are fundamentally different.
• Unique Mission: Reduce the cost of energy in Alaska,
diversify Alaska's energy portfolio, and increase
resiliency, reliability, and redundancy and our
mission is growing (owned assets, energy data
department).
• Exponential Growth: AEA's capital budget has increased
over 1,000 percent in the last four years.
• Distinct Expertise: A distinctive set of skills and
expertise is required for optimal governance. It is
common and appropriate for a single-purpose entity to
have a governing board made up of experts in the topic
area.
• Staffing: AEA has 68 PCNs; AIDEA has 31 PCNs; and
Shared Services 15 PCNs.
MR. THAYER said it would be appropriate to have a single
governing board to manage energy activities. He said AEA
has doubled the personnel. AIDEA shares some services with
AEA such as accounting, information technology, and human
resources functions.
4:38:19 PM
MR. THAYER moved to slide 5 and spoke to the proposal for a
new AEA Board makeup:
[Original punctuation provided.]
New AEA Board Makeup
As proposed in the Governor's EO 128, AEA's board
membership makeup would include:
(1) the commissioner of commerce, community, and
economic development
(2) six public members appointed by the governor as
follows:
(A) one member with expertise or experience in
managing or operating an electric utility that is
not connected to an interconnected electric
energy transmission network, as that term is
defined in AS 42.05.790;
(B) one member with expertise or experience in
developing energy projects in rural communities;
(C) one member with expertise or experience in
managing or operating an electric utility
connected to an interconnected electric energy
transmission network, as that term is defined in
AS 42.05.790;
(D) one member with financial expertise in large-
scale energy project development; and
(E) two members with expertise or experience in
finance, energy policy, energy technology,
engineering, law, or economics.
MR. THAYER said AEA bonded $166 million last December. Prior,
$17 million was bonded to secure the Substation and Quartz Creek
(SSQ Line).
4:39:58 PM
SENATOR DUNBAR asked for details on the different member
qualifications between Section 2(A) and (B) of the AEA Board
make-up proposal.
4:40:10 PM
MR. THAYER replied that AEA would have one member operating and
managing an electrical utility that is not connected to a grid
that could be anywhere in SE Alaska, while the other would
oversee rural Alaska.
4:40:39 PM
SENATOR DUNBAR asked for confirmation of his understanding that
Kodiak and Ketchikan are not considered rural.
4:40:44 PM
MR. THAYER confirmed that is correct.
4:40:56 PM
SENATOR KAUFMAN asked for confirmation of his understanding that
there's different expertise in managing operations than
executing and developing projects under Section 2(A) and (B) of
the AEA Board make-up proposal.
MR. THAYER replied that is correct.
4:41:21 PM
MR. THAYER moved to slide 6 and listed AEA's funding growth:
[Original punctuation provided.]
AEA's Exponential Growth
• AEA has received and anticipates a substantial
increase in federal funding from the Infrastructure
Investment and Jobs Act (IIJA) and others, over the
next several years.
• Pipeline of federal funding:
$84 million awarded (Energy Efficiency
Conservation Block Grant, Department of Defense
Grant, State Energy Planning Grant, National
Electric Vehicle Infrastructure grant, and Grid
Resilience 40101(d) Grant)
$573.5 million conditionally awarded (Grid
Resilience and Innovation Partnerships, Energy
Efficiency Reconciliation Loan Capitalization
Program, and Home Efficiency and Appliance
Rebates)
$104 million competitive applications pending
decision (solar for all, wood innovations
grant, and energy future grant, and high-energy
cost grant)
• Availability of tax incentives for clean energy
projects and direct pay reimbursement available for
tax exempt entities for the first time.
• In addition to AEA's netbook value of $1.3 billion,
several large projects are underway:
$413 million to build an undersea High Voltage
Direct Current from the Kenai Peninsula to
Anchorage
$342 million for the Dixon Diversion project
(Estimated to offset 1.5 billion cubic feet of
natural gas per year in Railbelt power
generation)
$90 million for Railbelt transmission upgrades
4:45:03 PM
MR. THAYER moved to slide 7 and spoke to each point:
[Original punctuation provided.]
AEA's Statutory Programs
• Alaska Energy Security Task Force: AEA participated
in the development of the Governor's Alaska Energy
Security Task Force Report submitted in December
2023.
• New federal funding diversifies AEA's existing
statutory programs and projects portfolio including:
Rural Power System Upgrades and Bulk Fuel
Upgrades: AEA continues to manage legacy
funding for critical rural energy projects and
training programs in partnership with the
Denali Commission. -
Renewable Energy Fund: AEA also manages this
competitive grant program, and has received
legislative funding for the last three
consecutive fiscal years (over $37 million). -
Alaska Intertie: AEA-owned transmission asset
that saves Fairbanks ratepayers $37 million
annually. -
Bradley Lake Hydroelectric Project: AEA-owned
generation asset that provides 10% of
Railbelt's energy.
o Required Project Work is anticipated to
utilize the bond proceeds from the $166
million bond issuance, which are being
planned, and will progress in the next
several years (transmission and BESS).
o New federal funds for transmission, grid
resiliency, and other power projects may be
leveraged by the bond funds to advance
energy projects and reduce the cost of
energy in the state.
Power Cost Equalization: AEA manages this annual
about $45 million program vital for rural
Alaskans.
Renewable Energy and Energy Efficiency Programs:
To promote Alaska's clean energy sector, AEA
manages biomass, hydro, solar, and wind programs
and projects across the state.
4:46:43 PM
MR. THAYER moved to slide 8, Total Capital Appropriations FY2021
to FY2024 (in thousands). He said this slide references what the
AEA budget has done.
4:46:56 PM
SENATOR DUNBAR said Mr. Thayer did a good job explaining the
differences between AEA and AIDEA, and why there should be a
separate board. He said the contrast is with the legal opinion
provided to the committee that declared provisions under the EO
128 as unconstitutional. He wondered if the Governor or a
different attorney have a differing legal opinion that could be
shared with the committee.
4:47:48 PM
PARKER PATTERSON, Senior Assistant Attorney General, Department
of Law, Anchorage, Alaska, answered questions on the
constitutionality of EO 128. He said the constitutional
provision includes two components: the governor may make changes
in the organization of the executive branch and the assignment
of functions among units; when doing so requires the force of
the law, it shall be done through an executive order. He said it
is a unique provision, with Michigan being the only other state
that includes this provision. In conclusion, it is a grant of
legislative power to the governor and reflects the checks and
balances system. It is a narrow but deep allocation that
involves making changes in an organization and assignment of
functions among the unit.
MR. PATTERSON explained his understanding of the objection Legal
Services of the Legislative Affairs Agency made to EO 128 is
that creating new law would offend the separation of powers. The
Department of Law office agrees that assignment of functions can
only be moved as opposed to removed, however, new law is
necessary to make changes to the organization. The newly formed
Alaska Department of Family and Community Services and its new
department head position were created under EO 121. The Attorney
General's office perceives these provisions as appropriate and
believes the Alaska Court System would agree.
4:52:49 PM
SENATOR DUNBAR asked if requirements were placed on the new
position under EO 121. He said he maintains skepticism since EO
128 specifically lays out requirements for each board member and
wondered if any previous executive orders made these changes
without any bounds.
4:54:06 PM
MR. PATTERSON replied that Executive Order 27 is a good example,
which established the State of Alaska Reconstruction and
Development Planning Commission. He expressed that it is within
the power of the Governor to establish a new entity and its
member makeup.
4:55:15 PM
EMILY NAUMAN, Director, Legal Services, Legislative Affairs
Agency, Juneau, Alaska, answered questions on EO 128. She said
the disagreement is on whether added qualifications, term
limits, and the number of board members under EO 128 would go
beyond the legal power of the Governor. The Assistant Attorney
General stated that this is a sliver of legislative power given
to the Governor under the Constitution. However, the judicial
branch interprets it narrowly, so the Alaska Court System would
likely interpret it narrowly. It is important to realize that
just because the Governor has undertaken similar measures in the
past, it does not guarantee legality.
4:56:47 PM
CO-CHAIR GIESSEL clarified that the committee is not making a
decision today on EO 128, but simply in the review process. She
invited the Executive Director of AIDEA to comment on the order.
4:57:09 PM
RANDY RUARO, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA), Anchorage, Alaska, testified on EO
128. He said EO 128 would not affect AIDEA's statutory mission
of job creation and economic development, nor would it affect
its board membership. The order would not affect the ability to
coordinate with AEA on state energy efforts.
4:58:06 PM
MR. THAYER concluded that AEA has grown over 30 years, but it
would be helpful to have a specialized board for strategic
development.
4:58:17 PM
CO-CHAIR GIESSEL replied that Mr. Thayer made the case well.
4:58:23 PM
SENATOR DUNBAR asked what vehicles might exist to support
statute changes if the Legislature disapproves EO 128.
4:58:44 PM
MR. THAYER responded that the merits are there, but it
necessitates a conversation between policymakers.
4:59:35 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Committee meeting
at 4:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 198 Transmittal Letter 01.18.24.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| SB 198 Sectional Analysis 01.25.2024.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| SB 198 Fiscal Note DNR 01.31.24.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| SB 198 Support Document DNR Remote Recreational Cabin Sites Briefing Paper.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| SB 198 Presentation 01.31.24.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| EO 128.pdf |
SRES 1/31/2024 3:30:00 PM |
|
| EO 128 Legal Memo 1.26.24.pdf |
SRES 1/31/2024 3:30:00 PM |
|
| EO 128 Leg Research Report 1.30.24.pdf |
SRES 1/31/2024 3:30:00 PM |
|
| EO 128 AEA Overview Presentation 01.31.24.pdf |
SRES 1/31/2024 3:30:00 PM |
|
| SB 198 Support Document DNR RRCS Program Process Outline.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |
| SB 198 DNR Response to SRES Committee Questions 01.31.24.pdf |
SRES 1/31/2024 3:30:00 PM |
SB 198 |