02/07/2011 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB24 | |
| SB44 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 24 | TELECONFERENCED | |
| *+ | SB 44 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 7, 2011
3:32 p.m.
MEMBERS PRESENT
Senator Joe Paskvan, Co-Chair
Senator Thomas Wagoner, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Bert Stedman
Senator Lesil McGuire
Senator Hollis French
Senator Gary Stevens
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Cathy Giessel
COMMITTEE CALENDAR
SENATE BILL NO. 24
"An Act establishing the Sport Fishing Guide Services Board and
licensing requirements for sport fishing guide-outfitters, sport
fishing outfitters, sport fishing assistant guides, and sport
fishing transporters; making conforming amendments; allowing the
Department of Fish and Game to collect information on guiding
services; and providing for an effective date."
- HEARD AND HELD
SENATE BILL NO. 44
"An Act relating to the Southeast State Forest; and providing
for an effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 24
SHORT TITLE: SPORT FISHING GUIDES: BOARD; LICENSES
SPONSOR(s): SENATOR(s) MCGUIRE
01/19/11 (S) PREFILE RELEASED 1/7/11
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) RES, FIN
02/07/11 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 44
SHORT TITLE: SOUTHEAST STATE FOREST
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) RES, FIN
02/07/11 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
MICHAEL PAWLOWSKI, Staff to Senator McGuire
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Introduced SB 24 on behalf of the sponsor.
CHRIS MAISCH, State Forester and Director
Division of Forestry
Department of Natural Resources
Juneau, AK
POSITION STATEMENT: Supported SB 44.
ACTION NARRATIVE
3:32:41 PM
CO-CHAIR THOMAS WAGONER called the Senate Resources Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators, Wielechowski, Stevens, McGuire, French, Co-
Chair Paskvan and Co-Chair Wagoner.
SB 24-SPORT FISHING GUIDES: BOARD; LICENSES
3:33:40 PM
CO-CHAIR WAGONER announced the consideration of SB 24.
SENATOR MCGUIRE, speaking as sponsor of SB 24, stated that she
gets involved in contentious fishing issues because she is a
lifelong Alaskan and strong supporter of the fishing industry
and is committed to preserving the resource for both commercial
and sport fishing purposes.
3:35:10 PM
SENATOR STEDMAN joined the committee.
SENATOR MCGUIRE explained that SB 24 builds on SB 294 that she
introduced last year to extend the licensing program for sport
fishing guides into perpetuity, but the bill was amended in the
House to sunset after just one year. Therefore, SB 24 aims to
continue the program after this year. It has two components: the
licensing component to ensure the competence of licensed guides,
and the logbook component to ensure the collection of accurate
data. It is the only data that is collected by the department.
3:38:59 PM
The bill also transfers the licensing requirement from the
Department of Fish and Game (ADF&G) to a newly established board
in the Department of Commerce, Community and Economic
Development (DCCED). This idea is patterned after the Board of
Game and intends to bring representation to the 3,600 guides in
the state and get them more involved in the industry. They would
be the fourth largest group as an industry if SB 24 passes.
She explained that logbook data is key to managing the state's
fisheries and control of it remains in ADF&G. She also explained
that because ADF&G doesn't collect enough fees to cover the cost
of the licensing program, it is subsidized by other department
funds. The funds should be used to manage fish, not the
industry. So, in the end, SB 24 is about putting the regulation
of guides as an industry in the hands of guides, so that ADF&G
can focus on managing the resource rather than the industry. She
said there are strong views on both sides of this bill.
CO-CHAIR WAGONER said he would hold the bill and take public
testimony on a Saturday to provide maximum opportunity for
people to testify. He asked for someone to bring the bill before
the committee.
SENATOR PASKVAN moved to bring SB 24, version A, before the
committee. There were no objections.
3:42:28 PM
MICHAEL PAWLOWSKI, staff to Senator McGuire, noted that SB 24
came about as a result of a 2006-ADF&G task force that started
looking at the concept of limited entry. In the intervening
period, the existing guide licensing program was created by HB
452 in 2005 has been sunsetted and then extended on a one-year
bases for two times. The upcoming lapse in the program in the
existing guide requirements provides an opportunity to take a
look at the licensing and regulation of the industry.
As Senator McGuire pointed out and as the fiscal notes
demonstrate, he said, currently ADF&G is subsidizing the running
of this logbook and licensing program by over $200,000 annually,
because not enough fees are collected through the licensing
program to cover the cost of running and administering it.
3:44:01 PM
MR. POWLAWSKI said t has become clear in working with the
department that the logbook data is critical in managing the
state's fisheries. SB 24 keeps the logbook program in ADF&G, but
the licensing program would move to the Department of Commerce,
Community and Economic Development (DCCED) where analogous
boards use fee-supported services to support the structure. He
said the bill has errors related to the collection of fees, but
he looked forward to cleaning that up so the fiscal notes more
accurately reflect the intent. He walked the committee through
the following sectional analysis:
Section 1 states a purpose for the bill, which is to provide
stability for the sportfish industry by regulating the
activities of the sport fish guide, outfitters and
transportation services. He noted that when the guide license
was created, several business models popped up in the state that
while they provided sport fishing services to clients, might not
qualify as a guide. Under the current system those businesses
aren't required to submit logbook data. The reason the bill has
the different classifications of licenses - be it sport fishing,
guide outfitter, or transporter - those are intended to meet the
different business models that exist and get the logbook data
into ADF&G's hands so it can be used for management.
Section 2 creates the Sport Fishing Guides Services Board. This
is where the rest of the boards are listed.
Section 3 is the meat of the bill, which he said he would
address in articles.
3:46:13 PM
Article 1 on page 2, line 10, is the creation and membership of
the board. It consists of 9 members appointed by the governor
(as is the condition for most commercial services boards) with 5
members who are currently licensed sport fishing guides, a
transporter, 2 public members, and 1 member from the Board of
Fisheries. Language on page 2, lines 25-26, is fairly standard
for commercial services boards where terms are staggered and the
members do not receive compensation but are entitled to per-diem
and traveling expenses (page 2, lines 26-27).
Board Assistance is the next section and it is important to
providing the technical assistance needed to fulfill its
regulatory responsibility that the bill charges it with.
Sec.08.57.030 on page 3 addresses duties and powers of the
board. Lines 3-18 are the examination statutes creating
examinations that demonstrate first:
(A) a qualifying exam for guides and a certification exam; and
(B) relates to the unit in which one is fishing or providing
guide services for.
MR. PAWLOWSKI said paragraph (3) on page 3, lines 22-23, is a
departure from the existing statutes. Under the existing program
the ADF&G does not really have the power to impose disciplinary
actions on a guide through the licensing process. This is an
important difference in the commercial services board concept -
in that rather than having to complain to ADF&G enforcement or
the Better Business Bureau, now the public and the guides
themselves would have a disciplinary body made up of guides that
they can go to complain about actions out in the industry. Then
those complaints could either be dealt with through the
licensing provisions or forwarded on to the Department of Law
for prosecution.
On page 4, lines 6-8, the board adopts regulations that include
establishing a code of ethics for professions regulated by it.
This is another departure from the existing licensing statutes,
and it would enable the board to come up with good business
practices guidelines.
MR. PAWLOWSKI said language on page 4, lines 13-18, is
significantly controversial and will enable the Commercial
Services Board to start looking at the process of establishing,
for resource conservation purposes, the maximum number of
licensees who might operate within an existing sport fish guide
unit or in a concessionaire program to achieve the maximum
number. There is a lot of public concern over this provision,
and it is different than existing statute under ADF&G the
licensing program.
3:50:16 PM
Article 2 on page 4, line 19, through page 10, line 5, is the
licensing statutes. The first on line 27 is the sport fishing
guide-outfitter license. The requirements are fairly similar to
what exist in current statute in terms of CPR training or first
aid, residency, and holding a current fishing license. New
additions are on page 5, lines 9-12, which are the qualifying
and the certifying examinations.
MR. PAWLOWSKI said paragraph (8) relates to being licensed to
perform the services of a sport fishing assistant guide in the
state for at least 20 days within the last three years and
having received a favorable recommendation from at least one
licensed sport fishing guide outfitter. Part of the bill's
provisions is to create a new assistant guide license to
supplement the existing guide license much like the Big Game
Commercial Services Board uses Big Game Hunting Guides and Big
Game Assistant Guides who work their way up to become Master
Guides.
Page 6, line 30, through page 8, line 1, relates to the sport
fishing outfitter license. This is a little bit different than
the guide-outfitter. It is a person that may not be directly
involved on the boat helping with fishing itself, but rather
providing services helping people get out into the field and do
fishing. In that that is still a commercial endeavor, this is a
new type of license which would be required most importantly to
provide logbook data on the catch rates of people using the
service to get out and fish.
Language on page 8, line 2, is about the sport fishing assistant
guide license. This is the position that could advance to guide
with the recommendation of a master guide. These are intended
for the people who are the assistants to the outfitter who is
taking people out. They are working under language in section
(c) [page 8, lines 24-26]. This section is controversial, and
time is needed to work with industry on it, Mr. Pawlowski said.
3:54:09 PM
MR. PAWLOWSKI continued: page 9, line 9, through page 10, line
5, is the sport fishing transporter license section. This goes
beyond the outfitter and to someone who is transporting to a
permanent lodge or cabin or to a boat with permanent living
quarters, but still being a commercial relationship between a
client and the person providing the services. This would bring a
different class of guide and guide-related services into the
logbook and enforcement programs to give ADF&G data to use in
managing fisheries.
3:54:49 PM
Section 08.57.150 on page 10, lines 6-22, provides the renewal
process. Lines 23-31 [on page 10] require financial
responsibility and insurance to be carried by the licensee for
sport fishing guide-outfitters, sport fishing outfitters, and
sport fishing transporters. The assistant guides are not
included in the proof of responsibility section; the presumption
being that since they are under the employ and direct
supervision of the guide outfitter, the guide outfitter would
carry the appropriate level of insurance. This level of
insurance is what is required of guides in current statute.
3:56:02 PM
Page 11, line 6, Article 3, relates to enforcement, and that is
a new power. The board has authority to impose certain
disciplinary sanctions for:
-violations of state or federal statute or regulation relating
to sport fishing or to provisions of sport fishing guide-
outfitter, sport fishing outfitter, sport fishing assistant
guide, sport fishing assistant guide, or sport fishing
transportation services;
-failing to file records or reports required by law;
-negligently misrepresenting or omitting a material fact on an
application,
-breaching an agreement with a client;
-failing to comply with limitations or conditions of the
professional practice of the licensee;
-as well as the ability to:
-impose certain disciplinary sanctions, singly or in
combination
-permanently revoke a license or suspend a license
-censure or reprimand
-impose limitations or conditions
-impose requirements for remedial professional education
-impose probation
MR. PAWLOWSKI said a lot of these were taken from the Big Game
Commercial Services Board. Again it creates the ability to have
a separate line of enforcement in the community when people are
bad operators and to have a place for the public to complain to.
On page 12, line 2, the civil fine that can be levied under this
section cannot exceed $5,000, which is standard for a lot of
commercial service-type boards.
3:57:25 PM
SENATOR STEVENS asked if the fine cap is for a single fine or a
maximum.
MR. PAWLOWSKI said he would provide an answer after he checks
with Legislative Legal.
He continued that language on page 12, line 24, relates to
unlawful acts that have been defined. When the working group was
developing the draft, this kind of language related to things
that people were concerned about happening. For example, on page
12, lines 25-27 - to intentionally obstruct or hinder, or
attempt to obstruct the lawful sport fishing engaged by a person
who is not a client of the person (on a crowded river someone
comes in and pushes someone else out of the way) - this is the
type of bad behavior the board would have the ability to deal
with. Knowingly guiding or assisting the guiding outside the
unit where the person is licensed is another type of bad
behavior on page 13, lines 9-11. He said drafting related these
provisions back to specific requirements of licenses.
SENATOR WAGONER said Charlie Swanton, Director of the Division
of Sport Fish, Alaska Department of Fish and Game (ADF&G), was
on line to answer questions.
MR. PAWLOWSKI said he neglected to mention that on page 13,
lines 26-27, a person presenting themselves as a master sport
fishing guide outfitter without being one is an unlawful act. He
explained within the guide outfitter provision on page 6, lines
14-29, a special subset of the guide outfitter license is
created called a master sport fishing guide license. The
important requirements there (on page 6, lines 21-25) are having
been a sport fishing guide for 12 of the last 15 years and then
getting letters from 10 clients that would allow somebody to
advertise themselves as a master guide. This license carries no
additional powers and no additional responsibilities; it seems
to be more of an advertising concept that was put into the bill
as it came out of the task force working group. He added that
you cannot represent yourself as a master guide unless you have
actually received the master guide's license.
4:01:19 PM
Page 14 is the responsibility section. It spreads the
responsibility for violations of one of the responsibilities of
those licenses equally across the difference license classes.
Page 15, lines 26-31, addresses license examinations and fees
under the current program in the ADF&G that are fixed. This is
what has led to the revenue problem that the fiscal note
identifies and this language is a significant departure from
existing statute. It would give the Department of Commerce,
Community and Economic Development (DCCED) and the board the
responsibility for adjusting the fees based on the amount of
revenue needed for the program, so that the program itself can
become self sustaining, and so that the industry being regulated
will be paying the state for the cost of the program.
4:02:26 PM
SENATOR WIELECHOWSKI asked if this would apply to regular sport
fish licenses.
MR. PAWLOWSKI answered no; this is particularly for guide, guide
outfitter, transporter, and assistant guide licenses - people
involved in the commercial use of fish.
SENATOR WIELECHOWSKI referenced the annual $1.1 million fiscal
note and asked if they assumed a gap would occur that would need
an appropriation.
MR. PAWLOWSKI answered under the DCCED enough fees have to be
collected to pay for the cost of the programs. So, on page 1 of
the fiscal note, under "revenues and funds sources," it's all
"fund code 1156 receipts supported services." There are no
general funds in this program, he stated.
SENATOR PASKVAN asked how many licenses will be issued for
calculating the amount of the fee.
MR. PAWLOWSKI replied about 3,500 licenses within the state or
about $300 per license (back of the envelope calculation).
SENATOR PASKVAN asked if there is an intent to limit the number
of licenses and would that bar some people from becoming
assistant guides.
MR. PAWLOWSKI replied that there is no intent for limited entry;
and in order to get there, a finding would have to be made by
the Commercial Services Board. But they are concerned if there
were to be a limited area, then there might be a problem with
assistant guides moving up. They are trying to work on language.
SENATOR WIELECHOWSKI asked how many people who are currently
performing this type of work will not go ahead and get the
license.
MR. PAWLOWSKI replied that he didn't have that figure, but he
would be happy to get some analysis of whether there has been a
change in the number of guides on an annual basis from the
moment the guide licensing program was initially created in
2004.
4:06:10 PM
CO-CHAIR WAGONER suggested he check the drop in sport halibut
licensees.
SENATOR STEDMAN remarked that it appears that there is no tie-in
in this bill for situations where one or more sport fish guides
are egregious in their violations while being directed by lodge
owners. How was that going to be handled?
4:07:32 PM
MR. PAWLOWSKI thanked him for that suggestion. They may have not
captured that concept; the concept being that the lodge owner
would perhaps be a sport guide outfitter, and that is in the
responsibility section that links the licenses back together so
the outfitter can be held responsible for what the assistant
guide is doing while under their employ.
He went on to explained that Article 4 on page 16 contains the
definitions. The most important definition is for "compensation"
on lines 21-29. Since licenses are linked to providing sport
fishing or sport fishing services for compensation, the
definition of this word is very important. He is currently
reviewing different suggestions for it.
Sections 4, 5, and 6 are conforming since such a substantive
change is being done to the licensing system. Section 8 on page
22, lines 4-8, addresses sunsets and repealers. Section 10 is
fairly standard language for transitional appointments when a
board (Sport Fishing Guide Board) is being created. You want to
stagger terms so that members aren't all coming up at once.
Section 11 is accepting applications; and he noted they need to
do a better job with the transition provisions to make it easier
for existing guides to transfer from the existing framework to
the proposed one in DCCED, if this were to pass. There is
concern that the transfer would provide a lot of opportunity to
deny a lot of people licenses, and that is not the sponsor's
intent.
Sections 12-14 are effective dates related to different
provisions in the bill, and are part of the transition framework
they are trying to do a better job of working on. Those dates
will change as they try to figure out how quickly the DCCED can
fulfill this mission.
4:11:47 PM
SENATOR STEVENS said he has serious reservations about the bill.
He has received many communications saying it is not needed or
wanted.
At ease from 4:12 p.m. to 4:14 p.m.
4:14:13 PM
CO-CHAIR WAGONER announced he would hold SB 24 in committee.
SB 44-SOUTHEAST STATE FOREST
4:14:28 PM
CO-CHAIR WAGONER announced the consideration of SB 44 and asked
for a motion to bring the bill before the committee.
SENATOR STEDMAN moved to bring SB 44 before the committee for
discussion purposes. There were no objections.
4:15:34 PM
CHRIS MAISCH, State Forester and Director, Division of Forestry,
Department of Natural Resources, supported SB 44. He stated that
SB 44 is an effort to ensure that local timber processing
continues to be part of the economy in Southeast Alaska. The
majority of timber in southern Southeast is on federal land, but
because federal timber sales have declined dramatically, local
mills now depend heavily on state timber for survival. Demand
for Southeast timber to supply wood energy is also increasing,
further raising the importance of securing a timber base in this
region. For example, Sealaska Corporation recently installed a
wood pellet boiler at their headquarters in Juneau.
He explained that last year the legislature passed SCSHB
162(RES) that established the 25,291-acre Southeast State Forest
that will be managed as an integrated unit and according to
state forest management plans. SB 44 would add an additional
23,181 acres of state lands to the Southeast State Forest from
state lands currently available for timber harvest. The Division
of Forestry would then be able to manage 48,472 acres of
Southeast State Forest lands for a long-term timber supply and
retain these lands in state ownership for multiple uses. The
2009 forest inventory supports this request.
MR. MAISCH said that the Department of Natural Resources (DNR)
manages over 159,000 acres of uplands in southern Southeast.
Timber management is allowed on about one-third of this land and
it is actively managed to supply wood to local processors. The
remaining land is designated primarily for other uses -
including land sales, recreation, water resources, and fish and
wildlife habitat. Over 25,000 acres is legislatively designated
as state parks, refuges, and public use areas.
Much of the state-owned timber in Southeast is second growth
timber that, if actively managed, can provide more volume per
acre on shorter rotations and can result in improved deer
browse. Thinning is a long-term investment and is only justified
if the land will continue to be available for forest management
activities.
The proposed 23-parcel addition to the State Forest includes
general use lands totaling approximately 23,100 acres on Prince
of Wales, Tuxekan, Gravina, Kosciusko, Revilla, Wrangell,
Suemez, Mitkof, Kuiu, Dall, and Zarembo Islands. Six of these
parcels are adjacent to or near existing state forest parcels.
The Division of Forestry worked with the Division of Mining,
Land, and Water (DML&W) to identify and exclude lands that are
priorities for the state land disposal program.
Consultation was also initiated with the University of Alaska
Office of Statewide Land Management and senior University
officials. A key difference between a state forest designation
and a transfer of lands as proposed by previous legislation is
the continued long-term public ownership of these lands as
opposed to other development uses.
MR. MAISCH said the division also consulted with the Alaska
Department of Fish and Game (ADF&G) to ensure there was internal
alignment on the list of proposed parcels - and there is.
Fish habitat and water quality are key components of the Forest
Resources and Practices Act (FRPA), he said, which have a suite
of regulations that would apply to managements of these parcels.
There is a no-cut 100-foot minimum width on both anadromous and
high-value resident fish streams. The next 100-300 foot zone
allows timber harvest if it maintains important fish and
wildlife habitat. In addition, area plans also provide for 300-
500 foot coastal buffers with additional recommendations for
specific parcels.
When the Forest Management Plan was developed, Mr. Maisch
explained, a key consideration for the Neets Bay parcel was to
maintain water quality and quantity for the fish hatchery at the
head of the bay. Dialog with the Southern Southeast Regional
Aquaculture Association (SSRAA) is ongoing concerning this bill.
The Southeast State Forest would be managed as part of the State
Forest System set forth in AS 41.17.200-.230. Subsection
41.17.200(a) reads in part:
The primary purpose in the establishment of state
forests is timber management that provides for the
production, utilization, and replenishment of timber
resources while allowing for other beneficial uses of
public land and resources.
MR. MAISCH said in addition to timber management, State Forests
are open to multiple uses including wildlife habitat and
harvest, mining, transportation, recreation, and tourism. State
Forest lands would be managed consistent with the management
intent under the current Prince of Wales Island and Central
Southeast area plans, which have both been recently updated.
Changes in management intent would require public and
interagency review through adoption of a state forest management
plan under AS 41.17.230.
He said one of the other demands on state land in southern
Southeast is to fulfill land entitlements for new
municipalities. To avoid conflict with the Wrangell Borough
entitlement, the bill specifies that the new Wrangell Borough
may select state forest land from within the borough boundary.
This boundary encompasses three parcels in the existing state
forest - Crittenden Creek, Bradfield Canal East and West, and
four parcels in the proposed additions - the Eastern Passage,
Pat Creek, Pat Creek Uplands and Earl West Cove.
If additional municipalities are incorporated before June 30,
2019, land that was vacant, unappropriated, or unreserved before
the state forest was established would be included in the
calculation of the municipal entitlement acreage, but may not be
selected. So, there is one key difference between the Wrangell
exception and others: Wrangell can select from lands within the
State Forest and others cannot, but it wouldn't affect their
total calculation for entitlement.
MR. MAISCH said DNR has briefed many statewide groups including
the Board of Forestry, Southeast Conference, local governments
and the diverse groups participating in the Tongass Futures
Round Table process, and these discussions will continue. To
date the City of Coffman Cove, the Resource Development Council,
the Alaska Forest Association, and the Alaska Chapter of the
Society of American Foresters have sent letters of support, and
the Southeast Conference passed a supporting resolution.
4:25:06 PM
SENATOR WIELECHOWSKI asked if he foresees additional requests.
MR. MAISCH replied that he believes this 23,000 acres will be
the last increment, mainly because this would add-in the lands
that have been identified through the area planning process as
"GUNs" and have forest management intent as their key purpose.
SENATOR WIELECHOWSKI noted that AS 41.17.210 says the governor
"must include a report and recommendations that include, among
other things, an estimate of the full cost of implementation of
an operational forest inventory and management plan." He said
none of this was in the legislation creating the State Forest
last year. The Governor's transmittal letter said that this will
enable management to "increase long-term timber supply...to
provide near-term jobs and pre-commercial thinning." So it
sounds like there will be some need for money and the fiscal
note doesn't say that.
MR. MAISCH replied because of the area planning process, these
lands have been identified for forest management for many years,
so the division has already been managing these lands for that
purpose. They updated the forest inventory in 2009 that
establishes the allowable cut for these lands and actually had
to reduce it based on better inventory information. That
particular inventory was funded with a CIP to the Division of
Forestry. The fiscal note is zero, he said, because their
ongoing work is already funded to do forest management planning
activities; the division already has a forest planner and staff
that would do the work. They already have funding for some pre-
commercial thinning activity and for running the timber
management programs they already have in place in Southeast. The
key difference is this bill allows them to do aggressive pre-
commercial thinning on young growth stands so that production
will be doubled on the same acreage of land in the future. Right
now the allowable cut is 8.5 million board feet.
4:28:35 PM
SENATOR WIELECHOWSKI asked if the plan is to work on the young
growth, why are 52 percent of the selected acres old growth
forest. Will you harvest that?
MR. MAISCH answered yes; the old growth will be harvested over
time as part of the allowable calculation.
SENATOR WIELECHOWSKI asked how much of the old growth is planned
to be harvested.
MR. MAISCH answered that some will depend on the location of the
stands and economic conditions. Their current 8.5-million foot
allowable cut is managed on a "decadal" basis. In any given year
they can be below or above that 10-year average, but over the 10
year period they have to be at the same level of harvest. For
example, when USFS sales were cut drastically a few years ago,
he started a "bridge timber program" consisting of trees that
hadn't been cut to the maximum each year. Klawock's Viking Saw
Mill continued to operate on this basis. Over time, a good
percentage of the old growth timber will be harvested on the
State Forest land.
4:30:48 PM
SENATOR WIELECHOWSKI said Hook Arm is 595 acres, 590 of which
are old growth; and Rowan Bay has 402 acres, 390 of which are
old growth and 12 are muskeg. It looks like that is all old
growth that will be harvested.
MR. MAISCH replied yes; but they won't know what the final
harvest acreage will be until a site-specific plan is done.
Their planning process requires having sales on a five-year
schedule, which is reviewed by both the industry and the public.
Then they have to write a forest land use plan that is a site
specific plan for the timber sale. That is when they look at
economics, roading, and access in a much more detailed manner.
So, he didn't know for sure if the full acreage would be
harvested of those two, but more than likely a full percentage
will be.
SENATOR WIELECHOWSKI asked if he knew what mill this old growth
timber on Hook Arm and Rowan Bay would be going to. Does DNR
anticipate selling this old growth only as a negotiated sale for
local manufacture or could it be sold to the highest bidder and
exported in the round?
MR. MAISCH replied that more than likely it would go to an
exporter because of the location of the sales. He explained that
the southern Southeast timber industry has two components; one
is local manufacture with mills both mid-size and very small,
and the other is round-log export. He explained that the two
work together. The export log is two to three times the value of
a domestic log.
He said it has long been the policy of the State of Alaska to
try and support domestic manufacture. The state cannot actually
restrict round log export or have a primary-manufacture rule on
the books (which was tried in the late 70s and went all the way
to the Supreme Court resulting in a decision that the state
cannot regulate interstate trade). Instead, policies were put in
place that encourage high value-added manufacturing whenever
possible. But when the purchaser purchases these logs for these
small businesses, it helps their cash flow to be able to market
the log to its highest and best use. So, sometimes some of the
logs they purchase will be sold as round logs and go to the
marketplace which could be the US West Coast, China or Japan.
They get charged for an export price if they do that, but the
domestic price is much lower. He said another Southeast company
primarily does round log export, but they trade some of their
logs to domestic manufacturers, so "there's very much a give and
take going on in the log market."
4:34:55 PM
CO-CHAIR PASKVAN noted the letter from the Southeast Alaska
Conservation Council (SEACC) expressing concern with the bill
and offering what they think is a more balanced approach.
MR. MAISCH responded that he had seen the letter and is aware of
most of the issues it raises. He tried to address some of those
in his testimony. He explained that the state is a very small
land owner in Southeast Alaska; it's 98 percent federal
ownership. The federal government has set aside large amounts of
land in wilderness areas, parks and other reserves that allow
very little other types of multiple uses for resource
development. The state is trying to keep the timber industry
alive in Southeast with a limited amount of resources.
CO-CHAIR WAGONER asked how many acres the US government holds
title to in Southeast Alaska that is harvestable forest lands.
MR. MAISCH replied the 2009 Tongass Land Management Plan allows
commercial development to take place on under 1-million acres.
The Tongass is 98 percent of southern Southeast and the
allowable cut is 260 million feet. The plan has three phases;
the state is in phase 1 now, and that should allow up to 100
million feet to be harvested annually. The feds sold under 12
million feet in their worst year. He remarked that the state
sold more than they did off of less than 2 percent of the land
base.
SENATOR WAGONER asked how old most of the second growth timber
is.
MR. MAISCH replied it varies, 25-30 years, which is still a ways
from being mature enough to harvest. Pre-commercial activity can
be done by the time timber reaches 15-20 years old. The rotation
ages for the timber right now are 100 years and that can be
shortened to 60 years on very good sites, but 80 years is
probably a more accurate number to use for second growth in the
future.
CO-CHAIR WAGONER asked if anyone is putting in a pellet mill in
Southeast.
MR. MAISCH answered no; some people have discussed the concept,
but the biggest issue is a stable timber supply and until that
changes, it's unlikely anyone would make the investment that
would need to be made to build a new wood production facility in
Southeast.
4:39:27 PM
SENATOR STEDMAN stated that in Southeast it's also a demand
issue, and the transportation corridor is rather difficult
because of the water and mountains. He asked Mr. Maisch to
explain the allowable cut going into perpetuity.
MR. MAISCH replied that currently the allowable cut is about 8.5
million feet. Prior to the inventory update, it was about 13
million feet. As they convert over to a young growth management
on these lands, the volume will approximately double or triple
depending on the site. At some point in the future the allowable
cut will be 60 million feet off the same acreage. That timeframe
is 30-40 years out, and will depend on how fast the old growth
is converted to young growth.
SENATOR STEDMAN recalled that Viking is about 35 million board
feet a year.
MR. MAISCH replied that Viking Lumber runs about 20 million
board feet a ship, so they can run up to a 3-ship basis. They
haven't done that for many years because of supply. Viking is
the mill they helped supply bridge timber to.
4:41:04 PM
SENATOR STEDMAN said that's the only mill left in Southeast.
MR. MAISCH agreed.
SENATOR STEDMAN stated in the scheme of things, this is a very
small land expansion and the amount of fiber that can be
produced off it is miniscule. And in particular, if the federal
forest continues to be shut down, this amount of volume off the
State Forest will keep extremely small mills running, but that's
all.
4:42:26 PM
MR. MAISCH agreed; it would be difficult to support a mill like
Viking just off of state land.
SENATOR STEDMAN asked him to expand on the impact to really
small mills if they decide to enlarge the state forest.
4:43:26 PM
MR. MAISCH answered that right now small mills can be supplied
volumes in various places in southern and northern Southeast
Alaska. Some of the small mills don't need a lot, maybe a couple
dozen trees. The US Forest Service actually has a good small log
program where they can actually provide small amounts of volume
to small saw mills, too. Some of these are very specially
oriented mills that use high-grade spruce or cedar for other
value-added products like sound boards for pianos and guitar
stock. Small mills produce locally-used products that are
typically not exported. The best example is Icy Straits that
produces very high-quality log cabins out of cedar. The cost of
transportation is the largest impediment.
4:46:29 PM
CO-CHAIR WAGONER announced that SB 44 would be held in
committee. There being no further business to come before the
committee, Co-Chair Wagoner adjourned the meeting at 4:46 p.m.