03/27/2009 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB54 | |
| SJR16 | |
| HCR2|| HCR3|| HCR4|| HCR5 | |
| SB71 | |
| SB108 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 108 | TELECONFERENCED | |
| *+ | SJR 13 | TELECONFERENCED | |
| += | HCR 2 | TELECONFERENCED | |
| += | HCR 3 | TELECONFERENCED | |
| += | HCR 4 | TELECONFERENCED | |
| += | HCR 5 | TELECONFERENCED | |
| + | SB 71 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 54 | ||
| = | SJR 16 | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
March 27, 2009
3:42 p.m.
MEMBERS PRESENT
Senator Lesil McGuire, Co-Chair
Senator Bill Wielechowski, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Hollis French
Senator Gary Stevens
MEMBERS ABSENT
Senator Bert Stedman
Senator Thomas Wagoner
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 13
Urging the United States Senate to ratify the United Nations
Convention on the Law of the Sea (the Law of the Sea Treaty).
SCHEDULED BUT NOT HEARD
SENATE BILL NO. 54
"An Act making sales of and offers to sell certain energy
resources by a refiner at prices that are exorbitant or
excessive an unlawful act or practice under the Alaska Unfair
Trade Practices and Consumer Protection Act."
MOVED CSSB 54(RES) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 16
Expressing support for environmentally sound and culturally
sensitive development of the oil and gas resources in federal
waters offshore of Alaska's coast as a means to ensure energy
independence, security for the nation, and jobs for Alaskans;
and urging the United States Congress to provide a means for
consistently sharing with all coastal energy-producing states,
on an ongoing basis, revenue generated from oil and gas
development on the outer continental shelf, to ensure that those
states develop, support, and maintain necessary infrastructure
and preserve environmental integrity.
MOVED CSSJR 16(RES) OUT OF COMMITTEE
CS FOR HOUSE CONCURRENT RESOLUTION NO. 2(RES) am
Requesting the governor to provide energy security for all
Alaskans first by pursuing development of a natural gas bullet
pipeline from the North Slope to the Cook Inlet region; and
requesting the governor to identify and negotiate where
appropriate with one or more persons capable of producing
natural gas from the Gubik area, and other areas on the North
Slope if necessary, in sufficient quantities to support the
energy needs of Alaskans and a bullet pipeline project.
MOVED SCS CSHCR 2(RES) OUT OF COMMITTEE
HOUSE CONCURRENT RESOLUTION NO. 3 am
Requesting the governor to provide energy security for all
Alaskans by taking and encouraging all action that would support
a natural gas bullet pipeline from the North Slope to the Cook
Inlet region, including initiating any necessary negotiations to
reopen the Agrium plant in Kenai.
HEARD AND HELD
HOUSE CONCURRENT RESOLUTION NO. 4 am
Requesting the governor to provide energy security for Alaskans
by taking and encouraging all appropriate action to support
development of a natural gas bullet pipeline from the North
Slope to the Cook Inlet region including advocating an increase
in the amount of natural gas that may be exported under
authority granted by the United States Department of Energy.
HEARD AND HELD
HOUSE JOINT RESOLUTION NO. 5
Proposing amendments to the Constitution of the State of Alaska
relating to the budget reserve fund, and to appropriations to
and transfers from the fund; and dedicating a portion of the
petroleum production tax to the fund.
HEARD AND HELD
SENATE BILL NO. 71
"An Act relating to alternative energy systems for public
works."
MOVED CSSB 71(RES) OUT OF COMMITTEE
SENATE BILL NO. 108
"An Act creating the Stampede State Recreation Area."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 54
SHORT TITLE: PRICE GOUGING INVOLVING ENERGY RESOURCES
SPONSOR(s): SENATOR(s) WIELECHOWSKI, ELLIS, FRENCH
01/21/09 (S) PREFILE RELEASED 1/16/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) ENE, RES, JUD
02/12/09 (S) ENE AT 11:00 AM BUTROVICH 205
02/12/09 (S) Heard & Held
02/12/09 (S) MINUTE(ENE)
03/13/09 (S) ENE AT 11:00 AM BUTROVICH 205
03/13/09 (S) Moved CSSB 54(ENE) Out of Committee
03/13/09 (S) MINUTE(ENE)
03/16/09 (S) ENE RPT CS 1DP 3NR SAME TITLE
03/16/09 (S) DP: WIELECHOWSKI
03/16/09 (S) NR: MCGUIRE, KOOKESH, STEDMAN
03/16/09 (S) FIN REFERRAL ADDED
03/18/09 (S) RES AT 3:30 PM BUTROVICH 205
03/18/09 (S) Heard & Held
03/18/09 (S) MINUTE(RES)
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SJR 16
SHORT TITLE: OFFSHORE OIL & GAS REVENUE
SPONSOR(s): SENATOR(s) WIELECHOWSKI
03/20/09 (S) READ THE FIRST TIME - REFERRALS
03/20/09 (S) RES
03/25/09 (S) RES AT 3:30 PM BUTROVICH 205
03/25/09 (S) Heard & Held
03/25/09 (S) MINUTE(RES)
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: HCR 2
SHORT TITLE: IN-STATE GAS PIPELINE
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/21/09 (H) READ THE FIRST TIME - REFERRALS
01/21/09 (H) ENE, RES
02/03/09 (H) ENE AT 3:00 PM BARNES 124
02/03/09 (H) Moved Out of Committee
02/03/09 (H) MINUTE(ENE)
02/04/09 (H) DP: RAMRAS, PETERSEN, DAHLSTROM, TUCK,
EDGMON, MILLETT
02/04/09 (H) NR: JOHANSEN
02/04/09 (H) ENE RPT 6DP 1NR
02/04/09 (H) RES AT 1:00 PM BARNES 124
02/04/09 (H) Moved CSHCR 2(RES) Out of Committee
02/04/09 (H) MINUTE(RES)
02/06/09 (H) RES RPT CS(RES) NT 4DP 1NR 2AM
02/06/09 (H) AM: TUCK, KAWASAKI
02/06/09 (H) DP: OLSON, GUTTENBERG, JOHNSON, NEUMAN
02/06/09 (H) NR: WILSON
02/09/09 (H) VERSION: CSHCR 2(RES) AM
02/09/09 (H) TRANSMITTED TO (S)
02/11/09 (S) READ THE FIRST TIME - REFERRALS
02/11/09 (S) ENE, RES
02/19/09 (S) FIN REFERRAL ADDED AFTER RES
02/27/09 (S) ENE AT 11:00 AM BELTZ 211
02/27/09 (S) Moved CSHCR 2(RES) am Out of Committee
02/27/09 (S) MINUTE(ENE)
03/02/09 (S) ENE RPT 1DP 2NR
03/02/09 (S) DP: MCGUIRE
03/02/09 (S) NR: WIELECHOWSKI, STEDMAN
03/20/09 (S) RES AT 3:30 PM BUTROVICH 205
03/20/09 (S) IN-STATE GAS PIPELINE
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: HCR 3
SHORT TITLE: IN-STATE GAS PIPELINE
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/21/09 (H) READ THE FIRST TIME - REFERRALS
01/21/09 (H) ENE, RES
02/03/09 (H) ENE AT 3:00 PM BARNES 124
02/03/09 (H) Moved Out of Committee
02/03/09 (H) MINUTE(ENE)
02/04/09 (H) DP: PETERSEN, DAHLSTROM, RAMRAS, TUCK,
EDGMON, MILLETT
02/04/09 (H) NR: JOHANSEN
02/04/09 (H) ENE RPT 6DP 1NR
02/04/09 (H) RES AT 1:00 PM BARNES 124
02/04/09 (H) Moved Out of Committee
02/04/09 (H) MINUTE(RES)
02/06/09 (H) RES RPT 4DP 1NR 1AM
02/06/09 (H) AM: KAWASAKI
02/06/09 (H) DP: OLSON, TUCK, JOHNSON, NEUMAN
02/06/09 (H) NR: WILSON
02/09/09 (H) VERSION: HCR 3 AM
02/09/09 (H) TRANSMITTED TO (S)
02/11/09 (S) READ THE FIRST TIME - REFERRALS
02/11/09 (S) ENE, RES
02/19/09 (S) FIN REFERRAL ADDED
02/27/09 (S) ENE AT 11:00 AM BELTZ 211
02/27/09 (S) Moved HCR 3 am Out of Committee
02/27/09 (S) MINUTE(ENE)
03/02/09 (S) ENE RPT 1DP 2NR
03/02/09 (S) DP: MCGUIRE
03/02/09 (S) NR: WIELECHOWSKI, STEDMAN
03/20/09 (S) RES AT 3:30 PM BUTROVICH 205
03/20/09 (S) IN-STATE GAS PIPELINE
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: HCR 4
SHORT TITLE: IN-STATE GAS PIPELINE
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/21/09 (H) READ THE FIRST TIME - REFERRALS
01/21/09 (H) ENE, RES
02/03/09 (H) ENE AT 3:00 PM BARNES 124
02/03/09 (H) Moved Out of Committee
02/03/09 (H) MINUTE(ENE)
02/04/09 (H) NR: JOHANSEN
02/04/09 (H) ENE RPT 6DP 1NR
02/04/09 (H) DP: TUCK, DAHLSTROM, PETERSEN, RAMRAS,
MILLETT, EDGMON
02/04/09 (H) RES AT 1:00 PM BARNES 124
02/04/09 (H) Moved Out of Committee
02/04/09 (H) MINUTE(RES)
02/06/09 (H) DP: TUCK, JOHNSON, NEUMAN
02/06/09 (H) AM: KAWASAKI
02/06/09 (H) RES RPT 3DP 2NR 1AM
02/06/09 (H) NR: OLSON, WILSON
02/09/09 (H) TRANSMITTED TO (S)
02/09/09 (H) VERSION: HCR 4 AM
02/11/09 (S) ENE, RES
02/11/09 (S) READ THE FIRST TIME - REFERRALS
02/19/09 (S) FIN REFERRAL ADDED
02/27/09 (S) ENE AT 11:00 AM BELTZ 211
02/27/09 (S) Moved HCR 4 am Out of Committee
02/27/09 (S) MINUTE(ENE)
03/02/09 (S) ENE RPT 1DP 2NR
03/02/09 (S) DP: MCGUIRE
03/02/09 (S) NR: WIELECHOWSKI, STEDMAN
03/20/09 (S) RES AT 3:30 PM BUTROVICH 205
03/20/09 (S) IN-STATE GAS PIPELINE
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: HCR 5
SHORT TITLE: IN-STATE GAS PIPELINE
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/21/09 (H) READ THE FIRST TIME - REFERRALS
01/21/09 (H) ENE, RES
02/03/09 (H) ENE AT 3:00 PM BARNES 124
02/03/09 (H) Moved Out of Committee
02/03/09 (H) MINUTE(ENE)
02/04/09 (H) DP: TUCK, PETERSEN, DAHLSTROM, RAMRAS,
MILLETT, EDGMON
02/04/09 (H) NR: JOHANSEN
02/04/09 (H) ENE RPT 6DP 1NR
02/04/09 (H) RES AT 1:00 PM BARNES 124
02/04/09 (H) Moved Out of Committee
02/04/09 (H) MINUTE(RES)
02/06/09 (H) RES RPT 4DP 1NR 1AM
02/06/09 (H) AM: KAWASAKI
02/06/09 (H) DP: OLSON, TUCK, JOHNSON, NEUMAN
02/06/09 (H) NR: WILSON
02/09/09 (H) VERSION: HCR 5 AM
02/09/09 (H) TRANSMITTED TO (S)
02/11/09 (S) READ THE FIRST TIME - REFERRALS
02/11/09 (S) ENE, RES
02/19/09 (S) FIN REFERRAL ADDED
02/27/09 (S) ENE AT 11:00 AM BELTZ 211
02/27/09 (S) Moved HCR 5 am Out of Committee
02/27/09 (S) MINUTE(ENE)
03/02/09 (S) ENE RPT 1DP 2NR
03/02/09 (S) DP: MCGUIRE
03/02/09 (S) NR: WIELECHOWSKI, STEDMAN
03/20/09 (S) RES AT 3:30 PM BUTROVICH 205
03/20/09 (S) IN-STATE GAS PIPELINE
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 71
SHORT TITLE: ALTERNATIVE ENERGY FOR PUBLIC WORKS
SPONSOR(s): SENATOR(s) THERRIAULT
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) ENE, RES, FIN
03/13/09 (S) ENE AT 11:00 AM BUTROVICH 205
03/13/09 (S) Moved SB 71 Out of Committee
03/13/09 (S) MINUTE(ENE)
03/16/09 (S) ENE RPT 2DP 1AM
03/16/09 (S) DP: MCGUIRE, KOOKESH
03/16/09 (S) AM: WIELECHOWSKI
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 108
SHORT TITLE: STAMPEDE STATE RECREATION AREA
SPONSOR(s): SENATOR(s) THOMAS
02/17/09 (S) READ THE FIRST TIME - REFERRALS
02/17/09 (S) RES, FIN
03/20/09 (S) RES AT 3:30 PM BUTROVICH 205
03/20/09 (S) IN-STATE GAS PIPELINE
03/27/09 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
MICHELLE SYDEMAN, Staff
to Senator Wielechowski
Alaska Capitol Building
Juneau, AK
POSITION STATEMENT: Explained changes made to SJR 16.
REPRESENTATIVE JAY RAMRAS
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of HCR 2, HCR 3, HCR 4, and HCR 5.
PAUL KENDALL, representing himself
POSITION STATEMENT: Commented on HCR 2 and SB 71.
DAVID STANCLIFF, Staff
to Senator Therriault
Alaska Capitol Building
Juneau, AK
POSITION STATEMENT: Introduced SB 71 on behalf of the sponsor.
JOEL St AUBIN, Engineer/Architect
Department of Transportation and Public Facilities (DOTPF) said
POSITION STATEMENT: Was available to answer questions on SB 71.
SENATOR JOE THOMAS
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 108.
JOE HARDENBROOK, Staff
to Senator Joe Thomas
Alaska Capitol Building
POSITION STATEMENT: Provided information related to SB 108.
DAVE TALIRICO, Mayor
Denali Borough
Healy, AK
POSITION STATEMENT: Testified in support of SB 108.
SUSAN BRAWN, representing herself
Denali Borough
POSITION STATEMENT: Testified in support of SB 108.
BROOKS LUDWIG, Superintendent
Northern Area
Division of Parks & Outdoor Recreation
Department of Natural Resources (DNR)
Fairbanks, AK
POSITION STATEMENT: Testified in support of SB 108.
STEWART CUBLEY, representing himself
Denali Borough
POSITION STATEMENT: Testified in support of SB 108.
JULIA POTTER, representing herself
Denali Borough
POSITION STATEMENT: Testified in support of SB 108.
HANNAH RAGLAND, representing herself
Denali Borough
POSITION STATEMENT: Testified in support of SB 108.
CHARLIE LOEB, representing himself
POSITION STATEMENT: Testified in support of SB 108.
MARY SIROKI, Legislative Liaison
Department of Transportation and Public Facilities (DOTPF),
Juneau, AK
POSITION STATEMENT: Testified that DOTPF has amending language
to SB 108 to provide a transportation and utility corridor
through the proposed recreation area.
JAMES KING, Director
Division of Parks and Outdoor Recreation
Department of Natural Resources (DNR)
Anchorage, AK
POSITION STATEMENT: Testified that SB 108 does not preclude a
road in the proposed state recreation area in the future.
ACTION NARRATIVE
3:42:18 PM
CO-CHAIR BILL WIELECHOWSKI called the Senate Resources Standing
Committee meeting to order at 3:42 p.m. Senators French,
Stevens, Huggins, McGuire, and Wielechowski were present at the
call to order.
SB 54-PRICE GOUGING INVOLVING ENERGY RESOURCES
3:42:54 PM
CO-CHAIR WIELECHOWSKI announced the consideration of SB 54. He
noted that the bill was heard previously and has two more
committees of referral.
SENATOR FRENCH moved to adopt the work draft committee
substitute (CS) to SB 54, labeled 26-LS0209\T, as the working
document. There being no objection, version T was before the
committee.
SENATOR HUGGINS observed that there have been multiple
modifications to the bill and a subsequent committee might make
more. For example, on page 2, line 25, it might be appropriate
to address amortization of exorbitant and excessive prices. The
other topic to look at is whether to place a cap on the civil
penalty on page 2, line 9, instead of the current "10 times the
economic benefit" penalty. He is concerned that refineries might
decide that the best choice is to shut down.
3:44:52 PM
CHAIR WIELECHOWSKI said the sole intent of the bill is to get
some relief for Alaska consumers. He agrees with the suggestion
about amortization; there is no intent to penalize a refiner who
charges a higher price for a period of time to make up for
previous lower prices. In future committees he would be willing
to entertain suggestions about a cap.
3:45:59 PM
SENATOR FRENCH moved to report CS to SB 54 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, CSSB 54(RES) moved from the Senate Resources
Standing Committee.
SJR 16-OFFSHORE OIL & GAS REVENUE
3:46:51 PM
CHAIR WIELECHOWSKI announced the consideration of SJR 16. He
asked Ms. Sydeman to explain the changes in the proposed
committee substitute.
MICHELLE SYDEMAN, Staff, to Senator Wielechowski, Alaska State
Legislature explained that the first change is to delete the
phrase "environmentally sound and culturally sensitive" and
insert the word "responsible" in three places: page 1, line 1;
page 1, line 14; and page 2, line 30. The second change is to
delete the word "production" and insert the phrase "lease sales"
on page 2, line 26, to clarify that lease sales have generated
millions of dollars in revenue.
3:48:37 PM
SENATOR HUGGINS moved to adopt CS to SJR 16, labeled 26-
LS0753\S, as the working document. There being no objection,
version S was before the committee.
CO-CHAIR MCGUIRE moved to report CS to SJR 16 from committee
with individual recommendations and attached fiscal note(s).
There being no objection, CSSJR 16(RES) moved from the Senate
Resources Standing Committee.
HCR 2-IN-STATE GAS PIPELINE
HCR 3-IN-STATE GAS PIPELINE
HCR 4-IN-STATE GAS PIPELINE
HCR 5-IN-STATE GAS PIPELINE
3:49:39 PM
CHAIR WIELECHOWSKI announced the consideration of HCR 2, HCR 3,
HCR 4, and HCR 5. He thanked the sponsor for working with his
office and Senator McGuire's office on the language and to
consolidate the four resolutions into one.
REPRESENTATIVE JAY RAMRAS, Alaska State Legislature, said the
Senate committee substitute (CS) [to HCR 2] contains language
that articulates how to go about building an instate gas
pipeline.
SENATOR HUGGINS asked if the CS represents the original intent
of the four concurrent resolutions.
REPRESENTATIVE RAMRAS replied the Senate CS has a little more
economy of language than he might care for, but he is reasonably
satisfied.
3:52:36 PM
CHAIR WIELECHOWSKI said there wasn't any intention to change any
intent. Consolidating the resolutions made logistical sense in
the interest of moving the concept forward.
REPRESENTATIVE RAMRAS said he doesn't want to dilute the
expression to the executive branch to make every effort to move
this along as expediently as possible. He applauds hiring Harry
Noah as coordinator of an instate gas pipeline and appreciates
that the first thing he will do is to determine if an instate
line is superior to further exploration of Cook Inlet. To that
end, a notable change is on page 4, line 17, where the date is
changed from November 2010 to June 2011. This is the date by
which Mr. Noah wants this finished. The Senate CS dilutes the
explicit instructions to the executive branch, but he is
satisfied with the compromise. This will create an attainable
legacy for the governor.
3:55:28 PM
SENATOR FRENCH referenced the whereas clause on page 3, line 16,
and asked who is asserting that "the collective demand for
natural gas in the Interior and Southcentral is anticipated to
expand from 200,000,000 cubic feet a day to approximately
700,000,000 cubic feet a day during the period 2010 to 2025."
REPRESENTATIVE RAMRAS replied that came from an Enstar
presentation to the House Resources Committee.
SENATOR FRENCH referenced the further resolved clause on page 4,
line 5, which talks about volume in terms of cubic feet per year
and asked what that roughly translates to per day.
3:56:41 PM
REPRESENTATIVE RAMRAS replied a 500 mcf per day line translates
to about 180 bcf per year. The residential and light commercial
use in the Railbelt would be about 60 bcf per year, Agrium is
anticipated to be about 60 bcf per year if it comes back on
line, and potential expansion from the USDS would be another 60
bcf per year. That would fill the line and provide the lowest
tariff for the users.
SENATOR FRENCH asked if that was the impetus for selecting 500
mcf per day usage from an instate bullet line.
REPRESENTATIVE RAMRAS said yes.
SENATOR FRENCH observed that the new June 1, 2011 date for
taking action bridges from one administration to the next. He
asked the thought process for that selection.
3:58:08 PM
REPRESENTATIVE RAMRAS said he struggled with that policy issue.
The House maintained that a November 2010 date was critical
because of the election cycle and the open season for Denali and
TransCanada, but June 1 2011 is the date Harry Noah spoke of.
The change was an accommodation to Mr. Noah, but November 1,
2010 is probably more relevant. I would be open to an amendment
changing the date back to November 1, 2010, he said.
SENATOR FRENCH said he'd leave that suggestion in the hands of
the chair. He asked if the administration has provided further
input regarding how it will respond to this request.
REPRESENTATIVE RAMRAS replied he appreciates that it is easier
to move one consolidated resolution through the Legislature, but
a benefit of the four distinct resolutions is that they offered
an incremental and explicit point of view to the executive
branch for building an instate gas pipeline.
4:01:11 PM
CO-CHAIR MCGUIRE observed that to up the timeline by nine months
might set the administration up for failure. This is the most
important thing we can do for Alaskans and these instructions
provide direction and continuity if there is a new governor, she
said. Should the committee desire, there could be an
accompanying letter to echo the Senate support and the
incremental and instructive methodology that Representative
Ramras envisioned, she added.
CO-CHAIR WIELECHOWSKI said he'd be happy to work with her on
that.
SENATOR HUGGINS said the topic of instate gas generates lots of
interest, but it's tricky. The fact that Harry Noah is working
on this is good because people think he can make it happen. The
essence of the discussion today is that the economics of the
bullet line project have to work. What is more, we'll get a good
look at Cook Inlet.
4:05:17 PM
SENATOR HUGGINS said he heard .5 bcf mentioned, but he's certain
that Alaskans will say to move as much gas as it takes to make
the pipeline work because all they want is gas that's
economical. For that reason he doesn't feel constrained by that
number, regardless of what AGIA says. Another thing to keep in
mind is that Mr. Noah is also working on statewide distribution,
not just gas for those who live in the Railbelt. Then there are
the wild cards including gas to liquids and a place for the
petrochemical industry along the railbelt. Finally, he agrees
that it is important that this vision extends beyond the current
governor. This is meaningful to all Alaskans, he said.
REPRESENTATIVE RAMRAS said what is not included in this
resolution is any mention of the tremendous capability for small
ships to move large quantities of LNG to small communities in
Southeast, Kodiak and Dillingham. Doug Ward [of Alaska Ship and
Dry Dock in Ketchikan] will be making a presentation here next
week about the potential for using small ships to deliver LNG to
gasify clusters of industrial users in these small communities,
he said.
PAUL KENDALL, representing himself, said he and the people who
think like he does don't want to be subjugated to natural gas
and they don't want to pay for it. They want equal funding to
develop Cook Inlet, Knik Arm and Turnigan into a world-renowned
research site for renewable energy.
4:14:53 PM
CO-CHAIR MCGUIRE moved to adopt the Senate committee substitute
(CS) for HCR 2. There being no objection, version T was before
the committee.
CO-CHAIR MCGUIRE moved to report the Senate CS for CSHCR 2 from
committee with individual recommendations and attached fiscal
note(s). There being no objection, SCS CSHCR 2(RES) moved from
the Senate Resources Standing Committee.
SB 71-ALTERNATIVE ENERGY FOR PUBLIC WORKS
4:15:52 PM
CHAIR WIELECHOWSKI announced the consideration of SB 71.
DAVID STANCLIFF, Staff, to Senator Therriault, Alaska State
Legislature, said SB 71 is an attempt to prepare for alternative
energy systems in public facilities. For example, the school in
Tok is about to become the first school to derive its heat from
wood biomass. The bill does not bind designers to any particular
course of action, but it recommends that they consider
alternative resources and incorporate them in the design if they
are available.
4:18:41 PM
MR. STANCLIFF said that the Department of Transportation and
Public Facilities (DOTPF) asked the sponsor to add two words. On
page one, line 15, after "fire system to" insert the words
"purchase, install,". Senator Therriault concurs with that
assessment.
MR. STANCLIFF noted that the bill makes it clear that an
alternative energy system is one that is non-fossil fuel fired
so it's not necessary to include the phrase "renewable energy"
in the bill.
CHAIR WIELECHOWSKI asked where that definition comes from.
MR. STANCLIFF replied it came from legislative legal.
JOEL St AUBIN, Engineer/Architect, Department of Transportation
and Public Facilities (DOTPF) said he is available to answer
questions.
4:20:34 PM
PAUL KENDALL, representing himself, said he is concerned about
the things that no one is addressing. Many of us feel that the
local economy may collapse and that the outside may have
unexpected unknowns, he said. Therefore, we think that we should
move our money into Cook Inlet to develop renewable electric
projects. He mentioned and offered suggestions regarding the
water body adjacent to Galena, channeling water, remote
communities becoming all electric, photo technology, generator
manufactures, and electric vehicles. There's no reason that
within six years we couldn't be world leaders in renewable
energy, he said.
4:24:52 PM
CO-CHAIR MCGUIRE moved to adopt the committee substitute (CS)
for SB 71, labeled 26-LS0343\E, as the working document. There
being no objection, version E was before the committee.
CO-CHAIR MCGUIRE moved to report CS for SB 71 from committee
with individual recommendations and attached fiscal note(s).
There being no objection, CSSB 71(RES) moved from the Senate
Resources Standing Committee.
SB 108-STAMPEDE STATE RECREATION AREA
CO-CHAIR WIELECHOWSKI announced the consideration of SB 108.
SENATOR JOE THOMAS, Alaska State Legislature, sponsor of SB 108
read the following:
SB 108 will preserve the traditional uses of this area
by creating the Stampede Recreation Area within the
stampede corridor. Several years ago former Governor
Murkowski proposed to build a road through this area.
The planned road was vehemently opposed by borough
residents as well as the recreational and traditional
user groups who had an interest in keeping things the
way they are.
In an effort to preserve the area for use by residents
and visitors, the Denali Borough Assembly passed a
resolution calling on the Alaska Legislature to
designate the corridor as the Stampede State
Recreation Area with a strong emphasis on self
determination by the residents and users of the area.
Current use of the area includes off road and all
terrain vehicle use, watercraft use, snow machining,
horseback riding, hiking, bicycling, dog sledding,
cross country skiing, ski journeying, camping,
hunting, fishing, wildlife viewing, and photography.
All these activities would be protected and preserved
under this proposed legislation. Recreational users of
the area come from the Denali Borough, Fairbanks,
MatSu, and Anchorage. Tourist and adventurers travel
to the area from across the globe. The area supports
several tourism related businesses including several
lodges and road touring companies that rent all
terrain vehicles for use on the more primitive
sections of the trail.
The bill is supported by the Denali Borough Assembly,
the Denali Chamber of Commerce, the…neighborhood
associated with homes located along the Stampede Road,
and the Denali Citizens Council. Additionally, my
staff and I have hosted several constituent meetings
on the proposed legislation in Fairbanks and the
Denali Borough. By and large, the proposed area is
supported by local residents and trail users. The main
impetus behind the legislation is to protect the area
for continued traditional use.
4:28:30 PM
SENATOR FRENCH noted that the area is quite large.
JOE HARDENBROOK, Staff, to Senator Joe Thomas, said the proposed
recreation area is roughly ten miles north to south and 35-40
miles east to west.
MR. HARDENBROOK noted that there is a draft committee substitute
(CS) that makes a technical correction. The original bill
incorrectly included reference to Sec. 41.21.407 and the draft
CS corrects the reference to Sec. 41.21.405.
DAVE TALIRICO, Mayor, Denali Borough, thanked Senator Thomas and
said that the borough assembly supports SB 108. The area is
heavily used by local and distant residents year round.
4:31:39 PM
SUSAN BRAWN, representing herself, said she owns land on the
Savage River in the proposed recreation area. She supports SB
108 because it will let people use the land as they have for the
past 30 years. The constituent meetings showed there is
tremendous support for this from the community. People want
traditional uses to be recognized as important. That is why they
live in Alaska.
4:33:05 PM
BROOKS LUDWIG, Superintendent, Northern Area, Division of Parks
& Outdoor Recreation, Department of Natural Resources (DNR),
Fairbanks, said he's been involved in a grassroots effort. There
is a lot of public support for the area and traditional uses. He
is committed to involving locals in the public process so that
the recreation area meets their demands.
STEWART CUBLEY, landowner, said he is a potential inholder
within the proposed recreation area. He supports SB 108 as an
important step in preserving traditional uses. In his 30-year
residency he has traveled the area by dog team, skis, snow
machine, and helicopter. It is best for the land and the
inhabitants to pass this bill.
4:35:05 PM
JULIA POTTER, representing herself, said she is a resident of
the Denali Borough. She volunteers in the community and is
employed by the Denali Citizens Council. As a resident, she
wants her way of life protected. Part of that is having access
the Stampede area for recreation. She uses the area for a wide
variety of recreational activities and she knows that SB 108
will support those traditional uses. She noted that the Denali
Chamber of Commerce also supports the legislation. Several
members own tourism services and it's well known that the Denali
Borough depends on tourism. Creating the Stampede State
Recreation Area will allow visitors to experience the Alaska way
of life while supporting the economy of the borough. The Parks
Highway Community Partnership recognizes the importance of
creating the proposed recreation area. It will stimulate the
local economy. The Denali Citizens Council initiated an online
petition asking members and local citizens to show support for
SB 108. To date they have received 110 signatures.
4:38:09 PM
HANNAH RAGLAND, representing herself, said she supports SB 108.
She owns 13 dogs and regularly uses the proposed recreation area
both with her dogs and without on a year round basis. The
overwhelming sentiment in the neighborhood is to see the area
unchanged, which means that the land needs to be managed
responsibly. She asked that the state consider including Eight
Mile Lake in future legislation. It is a main access point and
would make management easier for the state. She would like to
see the state manage use in the area and she would also like the
community to be involved in the process.
4:41:11 PM
CHARLIE LOEB, representing himself, said he owns property
adjacent to the proposed recreation area and he uses the area
for a wide variety of activities. He is extremely supportive of
the legislation because it will protect existing uses. Interest
in the area is growing and management is needed. A recreational
area designation will provide the opportunity to develop a
management plan that will accommodate this increased use. The
area has the potential to be a real asset to the state because
of its proximity to Denali National Park and the scenic byway,
but it will only be realized with good management. He encouraged
the committee to amend the bill to including the Eight Mile Lake
area because it is the gateway to the recreation area. He
reiterated his support for SB 108.
4:45:20 PM
MARY SIROKI, Legislative Liaison, Department of Transportation
and Public Facilities (DOTPF), Juneau, said the administration
believes it is in the best interest of the state to reserve a
transportation and utility corridor through the proposed
recreation area. In 1998 the Legislature passed legislation
relating to rights-of-way for RS 2477 trails reserving, among
other areas, the Stampede Trail. Although there are no specific
plans for a road or utility now or in the near future, it makes
sense to reserve the option for future generations. Doing so
should not impact how the recreation area is managed.
DOTPF issues permits for activities and rights-of-way as
standard practice and will work with DNR to find the best
locations for facilities that may be constructed including:
outhouses, campgrounds, benches, and pullouts. DOTPF would do
the same for a private entity upon request from DNR. If in the
future a road is constructed, DOTPF will avoid those
improvements or it will move them.
MS. SIROKY said it's good to remember that reservation of a
transportation and utility right-of-way does not eliminate
DOTPF's responsibility to work with a community to determine
what is in the best interest of that community and neighboring
communities. DOTPF respects that some in the Denali Borough do
not want a Stampede Road, and wants it understood that this is
not a backdoor attempt to build a road.
4:48:10 PM
SENATOR FRENCH asked if SB 108 reserves a right-of-way through
the proposed recreation area.
MS. SIROKI said no.
CO-CHAIR MCGUIRE asked if she has an amendment to accomplish
that goal.
MS. SIROKI said she has some language requesting 500 feet on
either side of the center line of the RS 2477 trail. That will
provide room to put a road where it makes most sense. "So we can
straighten out the trail where it makes sense to straighten out
the trail or we can avoid wetlands or historic areas." It
doesn't mean 1,000 feet are needed once a road is constructed,
or should it be constructed.
4:49:23 PM
SENATOR FRENCH said the last time the road idea came up he
challenged the commissioner of DOTPF to look at it, "and we
did." That experience showed him the deep opposition to that
idea from the community and the extraordinary costs the state
would incur if it decided to build a road. He said he doesn't
know how serious the committee is in granting the department a
1,000-foot wide easement. He observed that it's not quite a
quarter of a mile, but it's close.
CO-CHAIR WIELECHOWSKI said it is probably enough for an 8-lane
highway.
SENATOR HUGGINS said with traditional trails and rights-of-way,
it exists whether it is designated or not.
4:50:47 PM
MS. SIROKI said there is what's called the 4-F section in
federal legislation that requires DOTPF to achieve a very high
bar should federal dollars be used for any road. Without the
reservation of a right-of-way it would be very difficult to put
in a road. It is important to realize that DOTPF is asking for a
reservation for planning purposes down the line. "We recognize
that currently there is no desire to put a road in, but we're
reserving it for the future and for utilities…. We don't know
that 30 or 40 years from now it won't make sense to make a loop
come through Denali Park." That is certainly not part of
anyone's plan now, but DOTPF doesn't want to preclude it.
SENATOR FRENCH said the suggestion that someday there may be a
loop is not outlandish. However, this has been a most remarkable
hearing given the one-sided nature of the testimony. There are
many tourism people who focus on this part of the world, and he
expected to see diverse views with people asking not to lock up
more of Alaska. "I didn't hear a single person ask for that."
That speaks volumes about what the community wants.
4:52:54 PM
MS. SIROKI said she believes that communities did speak about
access, and DOTPF's proposal doesn't prohibit citizens from
having the traditional access they want.
CO-CHAIR WIELECHOWSKI asked the sponsor to comment on the
administration's proposal.
SENATOR THOMAS said it is a rather wide right-of-way, and it has
been opposed. Over time there may be some need for the right-of-
way, but this bill doesn't preclude that. He is willing to talk
to the administration about its needs, but the public is not in
favor of what DOTPF is proposing.
SENATOR FRENCH suggested the sponsor ask legislative legal if
this bill will preclude a road forever more.
MR. HARDENBROOK directed attention to a map showing the Stampede
Road and Trail and Eight Mile Lake, which is the extent of a
passable road by standard car. The Department of Natural
Resources (DNR) said the purpose of an established recreation
area is to maintain recreational access and use, as determined
by the commissioner. After the creation of the recreation area,
the commissioner of DNR would determine whether a road would fit
with the stated purpose of the designated area.
4:56:50 PM
JAMES KING, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources (DNR) said Mr. Hardenbrook
explained it correctly. A state recreation area designation
doesn't preclude a road; the important thing is that there would
be a planning process to come up with a management plan. If the
community and Alaskans and the park all said it would make sense
to build a loop road through the national park that comes out
through the Stampede Recreation Area it would be an allowable
use. If the road is for a recreational or a transportation
purpose, it can be allowed. SB 108 will not preclude that. Joe
HARDENBROOK was right in saying it is a decision that a
commissioner can make. The Division of Parks and Outdoor
Recreation doesn't see a road as a necessarily bad thing, and it
could be a legitimate use if the public wants it.
4:58:28 PM
CHAIR WIELECHOWSKI asked if he is saying that the state doesn't
need to reserve a right-of-way at this point.
MR. KING said, "Creating the recreation area does not preclude a
road in the future."
SENATOR HUGGINS asked the difference between the proposed
Stampede area and Nancy Lake.
MR. KING said it would be similar, but the important thing is
that the management would be dictated by the management plan,
which would be developed with a public process. Through that it
is very likely that motorized and nonmotorized use will be very
legitimate and can coexist in the area.
5:00:18 PM
SENATOR HUGGINS said that at Nancy Lake there has been debate
about accessibility and now the state is re-examining the width
of the corridor. It appears to be a lot more complicated than
what Mr. King indicated, he said.
MR. KING said the issues are more complicated for Nancy Lake.
That management plan was created almost 20 years ago, and most
of the lakes were accessed by people who had floatplanes. A new
generation of users has moved into those cabins, and there's
been more demand to access them by snowmobiles and four-
wheelers. "We're trying to find that balance." Right now about
half of the users still want plane access only, and the other
half want to see that changed. That is why the state is re-
opening the management plan, "and we're going out to the public"
and asking what they want for management in the area. Whenever a
lot of people have a lot of ownership in an area, management
decisions takes a fair amount of work to find a balance between
user groups.
SENATOR HUGGINS asked if it would strike a balance to adopt the
corridor for the Stampede with a "qualifier" that it would take
legislative approval to develop it.
5:02:44 PM
MR. KING said he doesn't see his division having a lot of
opposition to a road if that's what everybody wants. "If you
feel that's important to make it so that the Legislature has to
approve that in the future, then that would make sense. I guess
my opinion would be, at this point, the DNR and the DOTPF should
be given that authority to go through that planning process and
figure out what the public wants and what the demands are." It's
a road to nowhere unless the National Park Service agrees to a
road through the national park. There is a lot of public
planning that would have to happen before any road would be
built, unless the management plan shows the public wants the
existing road to be pushed into the recreation area further for
recreational access. That's a very doable thing that probably
wouldn't take as big a process because it doesn't involve the
surrounding national park.
CO-CHAIR WIELECHOWSKI announced he would hold SB 108 in
committee.
5:04:16 PM
There being nothing further to come before the committee, Co-
Chair Wielechowski adjourned the Senate Resources Standing
Committee at 5:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HCR 2 - Bill Packet.pdf |
SRES 3/27/2009 3:30:00 PM |
|
| SB 108 - Bill Packet.pdf |
SRES 3/27/2009 3:30:00 PM |
SB 108 |
| SB 54 - Bill Packet.pdf |
SRES 3/27/2009 3:30:00 PM |
SB 54 |
| SB 71 - Bill Packet.pdf |
SRES 3/27/2009 3:30:00 PM |
SB 71 |
| SJR 16 - Bill Packet.pdf |
SRES 3/27/2009 3:30:00 PM |