00 SENATE BILL NO. 310 01 "An Act relating to the management and sale of state timber; relating to the 02 classification of state land that would preclude harvesting of timber or would 03 designate harvesting of timber as an incompatible use; relating to the 04 administration of forest land, proposals for state forest, and the determination of 05 sustained yield; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 38.05.112 is repealed and reenacted to read: 08 Sec. 38.05.112. BEST INTERESTS DETERMINATION; IDENTIFICATION. 09 In determining whether the sale of timber will be in the best interests of the state under 10 AS 38.05.035(e), the department shall consider the standards set out in AS 41.17.060. 11 Before authorizing the sale of timber on state land, the department shall identify the 12 land involved and actions proposed in sufficient detail so as to inform the public of 13 the nature and location of the proposed sale and operations. 14 * Sec. 2. AS 38.05.113(c) is amended to read: 01 (c) Sales under 500,000 board feet [THE DEPARTMENT MAY ADOPT 02 REGULATIONS EXEMPTING SMALL] and emergency sales are exempt from the 03 requirements of this section. 04 * Sec. 3. AS 38.05 is amended by adding a new section to article 4 to read: 05 Sec. 38.05.122. FOREST MANAGEMENT AGREEMENTS. (a) 06 Notwithstanding the requirements of AS 38.05.110 - 38.05.120 or another provision 07 of this chapter, the commissioner, under the procedures set out in this section, may 08 enter into a forest management agreement with a person to authorize the person to 09 enter on the state forest land covered by the agreement for the purposes of selecting, 10 harvesting, and regenerating timber in a manner consistent with sustained yield. A 11 portion of a state forest that is covered by a final forest management agreement is 12 exempt from the requirements of an operational level forest inventory and management 13 plan under AS 41.17.230. 14 (b) At least once each calendar year, the commissioner shall solicit proposals 15 for forest management agreements on state forest land. The commissioner shall provide 16 notice of the solicitation to all persons who have requested notification and may 17 provide for any additional notice that the commissioner determines is appropriate. 18 Regardless of whether the commissioner has solicited proposals under this subsection, 19 a person may submit a proposal for a forest management agreement to the 20 commissioner at any time for consideration. 21 (c) The commissioner shall evaluate proposed agreements submitted under (b) 22 of this section. In evaluating a proposed agreement, the commissioner shall consider 23 the 24 (1) financial feasibility of the proposed agreement; 25 (2) technical and financial qualifications of the proposer; 26 (3) stumpage payments offered to be paid; 27 (4) economic benefits from the proposed agreement to the region in 28 which the land that is to be covered by the agreement is located; 29 (5) economic benefits to state forest land under the proposed 30 agreement; and 31 (6) other factors that the commissioner determines are relevant and 01 appropriate. 02 (d) After evaluating proposed agreements under (c) of this section, the 03 commissioner may designate a tentatively successful proposed agreement. If a 04 tentatively successful proposed agreement is designated, the commissioner shall make 05 a written finding that sets out facts and applicable law to support the commissioner's 06 conclusion that 07 (1) land or timber covered by the tentatively successful proposed 08 agreement is not reasonably necessary to provide sustained harvest for a sawmill or 09 wood processing facility using that land or timber at the time the proposed agreement 10 was evaluated, or that a final agreement can adequately address those needs; and 11 (2) the tentatively successful proposed agreement will best serve the 12 interests of the state. 13 (e) The commissioner shall provide notice under AS 38.05.945(b) and (c) of 14 a finding under (d) of this section and designation of a tentatively successful proposed 15 agreement. The commissioner shall solicit comments from the public concerning each 16 tentatively successful proposed agreement. The commissioner may solicit 17 recommendations from state and local government agencies on a tentatively successful 18 proposed agreement. 19 (f) If a tentatively successful proposed agreement is designated under (d) of 20 this section, the commissioner, after considering comments and recommendations 21 received under (e) of this section, may proceed to develop a proposed final agreement 22 between the proposer and the state. A proposed final agreement 23 (1) may provide for terms, conditions, and limitations determined by 24 the commissioner to be in the public interest; 25 (2) must contain 26 (A) the initial term of the agreement, which may not exceed 20 27 years; 28 (B) provisions regarding extension of the term of the agreement; 29 an extension may not exceed 20 years; 30 (C) the stumpage prices for the timber; 31 (D) provisions regarding compensation from the proposer for 01 scaling services required in order to account for timber sold; 02 (E) provisions regarding compensation, if required by the 03 department, for state services provided to administer the agreement; 04 (F) provisions regarding responsibilities for construction and 05 maintenance of access roads necessary to manage the land that is to be covered 06 by the agreement; 07 (G) provisions regarding consideration for the sale of material 08 obtained from state land for the construction of access roads on the land that 09 is to be covered by the agreement; 10 (H) provisions regarding responsibilities for reforestation and 11 silvicultural practices on land that is to be covered by the agreement; 12 (I) a statement that activities under the agreement are governed 13 by the provisions of AS 41.17 and regulations adopted under AS 41.17 14 applicable to operations on state land; 15 (J) provisions for the submission and approval of periodic 16 operational plans for activities authorized or required by the agreement; 17 (K) requirements for reports and submission of information to 18 the department regarding performance under the agreement; and 19 (L) procedures for enforcement and termination of the 20 agreement. 21 (g) The form of the proposed final agreement developed under (f) of this 22 section must be approved by the attorney general before the agreement is signed by 23 the commissioner. After approval by the attorney general under this subsection, the 24 commissioner and the proposer may sign the proposed final agreement. 25 (h) Proposed agreements submitted under this section are confidential and are 26 not open to public inspection or disclosure under AS 09.25.120. However, if the 27 commissioner selects a tentatively successful proposed agreement under (d) of this 28 section, all documents regarding that proposed agreement and all other competing 29 proposed agreements, as well as a subsequent final agreement and all documents 30 leading up to that agreement, are public records and are open for inspection under 31 AS 09.25.120. 01 (i) All right, title, and interest in or to timber or material in or on land covered 02 by a final forest management agreement remains with the state until the timber or 03 material has been cut or severed, determined as to volume, removed from the site, and 04 paid for in compliance with the agreement. Timber or material that is not removed 05 from land covered by a final forest management agreement within the period specified 06 by the agreement or by an extension of the agreement remains the property of the 07 state. 08 (j) An interest in a final forest management agreement may not be assigned 09 without the prior written consent of the commissioner. An assignment without the 10 prior written consent of the commissioner is void. The commissioner may not consent 11 under this subsection unless the assignment is of the entire interest in the final forest 12 management agreement. 13 (k) The activities conducted under a final forest management agreement are 14 governed by AS 41.17 and regulations adopted under AS 41.17 applicable to 15 operations on state land. 16 (l) In this section, 17 (1) "agreement" means a forest management agreement; 18 (2) "proposer" means the person who submitted a proposed forest 19 management agreement under (b) of this section; 20 (3) "sustained yield" has the meaning given in AS 41.17.950. 21 * Sec. 4. AS 38.05.300(a) is amended to read: 22 (a) The commissioner shall classify for surface use land in areas considered 23 necessary and proper. This section does not prevent reclassification of land where the 24 public interest warrants reclassification, nor does it preclude multiple purpose use of 25 land whenever different uses are compatible. If the area involved contains more than 26 640 contiguous acres, state land, water, or land and water area may not, except by act 27 of the state legislature, (1) be closed to multiple purpose use, or (2) be otherwise 28 classified by the commissioner so that (A) mining, mineral entry or location, mineral 29 prospecting, or mineral leasing, or (B) harvesting of timber, is precluded or is 30 designated an incompatible use, except when the classification is necessary for a land 31 disposal or exchange or is for the development of utility or transportation corridors or 01 projects or similar projects or infrastructure, or except as allowed under (c) of this 02 section. 03 * Sec. 5. AS 38.05.300(c) is amended to read: 04 (c) Notwithstanding (a)(2) of this section, if the commissioner considers it 05 necessary and proper, the commissioner may provide by order for an interim 06 classification that precludes, or designates as an incompatible use, mining, mineral 07 entry or location, mineral prospecting, [OR] mineral leasing, or harvesting of timber. 08 Within 10 days after the convening of each regular legislative session, the 09 commissioner shall transmit to the legislature for consideration all the interim 10 classification orders issued under this subsection during the preceding calendar year. 11 Unless the legislature approves by law an interim classification contained in an order 12 transmitted under this subsection, that order expires on the 90th day of that legislative 13 session or upon adjournment of that session, whichever occurs first. Approval by the 14 legislature of an interim classification satisfies the requirement of (a) of this section 15 for an act of the state legislature. 16 * Sec. 6. AS 41.17.060(b) is amended to read: 17 (b) With respect to state, municipal, and private forest land, the following 18 standards apply: 19 (1) to the maximum extent possible, all applicable data and information 20 of applicable disciplines shall be updated and used in making decisions relative to the 21 management of forest resources; 22 (2) environmentally sensitive areas shall be recognized in the 23 development of regulations and best management practices that are designed to 24 implement nonpoint source pollution control measures authorized under this chapter; 25 (3) administration of forest land shall consider marketing conditions and 26 other economic constraints affecting the forest landowner, timber owner, or the 27 operator; 28 (4) to the fullest extent practicable, harvested forest land shall be 29 reforested, naturally or artificially, with trees of a type expected to grow into [SO 30 AS TO RESULT IN A SUSTAINED YIELD OF] merchantable timber [FROM THAT 31 LAND]; if artificial planting is required, silviculturally acceptable seedlings must first 01 be available for planting at an economically fair price in the state; and 02 (5) significant adverse effects of soil erosion and mass wasting on 03 water quality and fish habitat shall be prevented or minimized. 04 * Sec. 7. AS 41.17.060(c) is amended to read: 05 (c) With respect to state and municipal forest land only, the following 06 standards also apply: 07 (1) forest land shall be administered for the multiple use of the 08 renewable and nonrenewable resources and for the sustained yield of the renewable 09 resources of the land in the manner that best provides for the present needs and 10 preserves the future options of the people of the state; 11 (2) a system of allocating predominant uses or values to particular units 12 within a contiguous area of land shall reflect in reasonable proportion the various 13 resources and values present in that area; 14 (3) to the extent its capacity permits, forest land shall be administered 15 so as to provide for the continuation and expansion of businesses [, ACTIVITIES, 16 AND LIFESTYLES] that are dependent upon or derived from forest resources; 17 (4) timber harvesting is limited to areas where data and information 18 demonstrate that natural or artificial reforestation techniques will result in the 19 production of a sustained yield of merchantable timber from that area; 20 (5) there may not be significant impairment of the productivity of the 21 land and water with respect to renewable resources; 22 (6) allowance shall be made for scenic quality in or adjacent to areas 23 of substantial importance to the tourism and recreation industry; and 24 (7) allowance shall be made for important fish and wildlife habitat. 25 * Sec. 8. AS 41.17.090(a) is amended to read: 26 (a) Operations on municipal or private forest land shall be reviewed under 27 this section for consistency with the policies and provisions of this chapter and 28 regulations adopted under this chapter. 29 * Sec. 9. AS 41.17.090(c) is amended to read: 30 (c) Before beginning operations on municipal or private forest land, the 31 operator shall provide the state forester with a detailed plan of operations. The detailed 01 plan of operations must include 02 (1) a description of the proposed operations, identifying the land 03 involved and the action proposed in sufficient detail to inform the public of the nature 04 and location of the proposed operations; the description must include a map and must 05 be in a form suitable for duplication; 06 (2) the name, address, and approving signature of the forest landowner, 07 timber owner, and operator; and 08 (3) other information required in the regulations adopted under this 09 chapter. 10 * Sec. 10. AS 41.17.118(b) is amended to read: 11 (b) The commissioner may impose additional riparian protection standards for 12 timber harvest operations through the adoption of land use plans under AS 38.04.065 13 and under forest management plans and reports under [AS 38.05.112 AND] 14 AS 41.17.230. 15 * Sec. 11. AS 41.17.200 is amended to read: 16 Sec. 41.17.200. STATE FOREST PURPOSES. The purpose of AS 41.17.200 17 - 41.17.230 is to permit the establishment of designated state-owned or acquired land 18 and water areas as state forests. The primary purpose in the establishment of state 19 forests is the development of commercial forest land under the principles of 20 sustained yield and multiple use while perpetuating [PERPETUATION OF] 21 personal, commercial, and other beneficial uses of resources through multiple-use 22 management. 23 * Sec. 12. AS 41.17.200 is amended by adding a new subsection to read: 24 (b) In managing a state forest the commissioner shall 25 (1) allow for the fullest possible access to, and use of, the natural 26 resources, including timber, game, and minerals; 27 (2) maintain forest growth at a high level of productivity; and 28 (3) restrict the public use of the land and its resources only when 29 necessary to carry out the purposes of this chapter. 30 * Sec. 13. AS 41.17.210(a) is amended to read: 31 (a) The governor may propose to the legislature the establishment of state 01 forests consisting primarily of commercially valuable forest land determined by the 02 governor to be necessary for retention in state ownership for management under the 03 principles of multiple use and sustained yield [AND CONSISTENT WITH 04 AS 38.04.005]. The proposal of the governor must include a report and 05 recommendations of the commissioner including 06 (1) a preliminary forest inventory; 07 (2) a summary of the testimony offered at public hearings held on the 08 management of the proposed state forest in communities proximately located to a 09 proposed state forest; 10 (3) [THE FINDINGS OF THE COMMISSIONER ON ANTICIPATED 11 INCOMPATIBILITIES OF USES DESCRIBED IN AS 38.05.112(c) UNDER 12 AS 38.05.112(d); 13 (4) WRITTEN COMMENTS FROM APPROPRIATE STATE 14 AGENCIES ON THE COMPATIBILITY OF THE USES DESCRIBED IN 15 AS 38.05.112(c) WITHIN THE PROPOSED STATE FOREST; 16 (5)] an estimate of the cost of a full implementation of an operational 17 level forest inventory and the management plan. 18 * Sec. 14. AS 41.17.400(c) is amended to read: 19 (c) The [IN ADDITION TO THE USES DESCRIBED IN AS 38.05.112(c), 20 THE] commissioner may establish transportation corridors within the Tanana Valley 21 State Forest. 22 * Sec. 15. AS 41.17 is amended by adding a new section to read: 23 Sec. 41.17.920. DETERMINATION OF SUSTAINED YIELD. In determining 24 sustained yield for forestry purposes, the department shall consider all relevant factors 25 that a prudent forester would use based on techniques known at the time of the 26 determination. The department shall consider the use of variable periodic output for 27 appropriate situations, including salvage cuts of killed or damaged trees, when the 28 particular timber unit is too small to be harvested economically in annual or frequent 29 entries over a rotation period, or to increase health, productivity, or timber yields. 30 * Sec. 16. AS 38.05.113(b) is repealed. 31 * Sec. 17. This Act takes effect immediately under AS 01.10.070(c).