Legislature(2025 - 2026)BARNES 124
02/21/2025 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB72 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 72 | TELECONFERENCED | |
HB 72-TIMBER MANAGEMENT LEASES
1:03:34 PM
CO-CHAIR BURKE announced that the only order of business would
be HOUSE BILL NO. 72, "An Act relating to timber on state lands;
relating to timber management leases; and providing for an
effective date."
1:03:58 PM
JOHN BOYLE, Commissioner, Alaska Department of Natural Resources
(DNR), on behalf of the sponsor, House Rules by request of the
governor, introduced the PowerPoint, titled "House Bill 72
Timber Management Leases" [hard copy included in the committee
packet]. He discussed DNR's interest in revitalizing the lumber
industry in the state, expressing the opinion that using Alaskan
lumber to build homes would lower housing costs in the state.
He discussed that HB 72 would help forest management in
combination with past legislation. He discussed DNR's role in
growing the state's economy and addressed the timber industry's
role in creating jobs in the past, especially in Southeast
Alaska. He opined that federal land management regulations have
restricted opportunities, making companies more reluctant to
invest in the state. He shared a personal anecdote concerning a
visit to a logging camp and the job opportunities there.
1:12:33 PM
COMMISSIONER BOYLE stated that HB 72 would provide a mechanism
for incentivizing the use of timber from forested lands in
Alaska. He discussed the large areas of forested land in the
state that DNR manages, pointing out that limited funding and
resources constrain its ability. He explained that HB 72 would
create an opportunity for entities or individuals to lease
sections of land for investment and management, including
facilitating reforestation efforts. He discussed some examples
which could result in a quicker harvest of useable timber for
products in the state. He reminded the committee that the
proposed legislation would not abdicate the state's
responsibility in assuring that forestry management aligns with
the state's statutes and constitution. He concluded that the
proposed legislation would be an opportunity to review the
state's management of its forest and lead to more opportunities
in the state.
1:19:09 PM
JEREMY DOUSE, Deputy Director, Division of Forestry and Fire
Protection, Alaska Department of Natural Resources, on behalf of
the sponsor, House Rules by request of the governor, co-
presented a PowerPoint, titled "House Bill 72 Timber Management
Leases." He showed slide 2, titled "Alaska's forested state
land," which displayed a map of forested lands in the state, and
which read as follows [original punctuation provided]:
• 52.5 million acres of state-owned forested land
• 3.7 million acres of forest inventory complete
• 2.1 million acres of designated state forest
MR. DOUSE moved to slide 3, titled "Vision for Alaska's forest
assets," which read as follows [original punctuation provided]:
• Maximum use of Alaska's land and resources
consistent with Alaska Constitution
• Increase forest management activity on state lands
• Create economic opportunities
• Grow the in-state manufacture of forest products
1:22:42 PM
MR. DOUSE moved to slide 4, titled "How to get there?" which
read as follows [original punctuation provided]:
• Partner with private sector to increase management
activity while protecting public lands principles
provided for in Alaska Constitution
• Recreation and public access
• Hunting/fishing
• Subsistence
• Benefits of public land while addressing challenges
regarding lack of private land
1:23:47 PM
MR. DOUSE showed slide 5, titled "Defining 'active forest
management'" which read as follows [original punctuation
provided]:
• The intentional, planned and science-based actions
foresters engage in to meet society's needs of
forested ecosystems
• Diversifies habitat conditions
• Provides for essential wood products and
economic opportunity
• Creates resiliency for disturbance and the
effects of a changing climate
• Sets a successional trajectory for a desired
condition
• Passive management perpetuates a forest condition
until a natural disturbance introduces successional
change
• Depending on disturbance severity, can lead to
undesired conditions or a lack of forest cover
1:25:05 PM
MR. DOUSE moved to Slide 6, titled "Why active management?"
which displayed examples of unmanaged forests that were
devastated by stem rot, spruce beetle outbreak, or fire. He
showed slide 7, titled "Active forest management benefits,"
which compared photos of timber stands which had not been
thinned next to thinned forests. He suggested that thinning
projects create healthier forests and habitat.
1:27:39 PM
MR. DOUSE presented slide 8, titled "House Bill 72: Timber
Management Leases," which read as follows [original punctuation
provided]:
• New framework to enable leases of state timber
resource with agreement to manage forest for state
values
• Provides timber operators greater certainty that
drives additional investment
• Includes built-for-purpose terms covering
competition, public input
• Flexible to accommodate range of project/lease
concepts
• Leases possible on state forested land and state
forests
1:28:25 PM
MR. DOUSE moved to slide 9, titled "Management activities under
leases," which read as follows [original punctuation provided]:
• Road construction and maintenance
• Bridge construction
• Timber harvest
• Reforestation and site preparation
• Intermediate treatments
• Planning
• Fire mitigation
He explained that industries would be able to plan for the long
term if they had access to large parcels of land. Slide 10
showed photos of healthy trees and activities taking place in a
well-managed forest.
1:30:17 PM
RENA MILLER, Special Assistant, Office of the Commissioner,
Department of Natural Resources, on behalf of the sponsor, House
Rules by request of the governor, co-presented the PowerPoint,
titled, "House Bill 72 Timber Management Leases." She moved to
slide 11, titled "Process under HB 72," which showed a flow
chart of the leasing process under the proposed legislation.
Initially a nomination would be made on a piece of timbered
land. The commissioner would then consider the suitability of
the area for a timber management lease. If the area was deemed
suitable, the next step would be a request for proposals by DNR.
She added that in the case of multiple proposals, DNR would use
the criteria listed in the proposed legislation to determine the
best acceptable proposals. If DNR decided to issue a lease,
there would be a public notice of intent to issue the lease.
1:31:51 PM
MS. MILLER, in response to a series of questions from
Representative Mears, explained that there was no process at the
time specifically for the purpose of leasing the right to manage
timber. There are timber sales, but there has not been a way to
contract with the state for timber management. There has been
expressed interest for this type of lease. Under the current
system, some areas with potential for resource development have
not been under management due to funding constraints. She
pointed out that companies have been willing to invest in timber
management if that would include the right to harvest the timber
in the future. The benefits to the state would not only include
active management but would also mitigate the dangers of fires
and beetle infestations. She reiterated that this is consistent
with state values.
1:34:50 PM
MS. MILLER responded to a question from Representative Rauscher
concerning carbon management of state forests by describing
several types of carbon capture programs. She expressed the
belief that carbon offset projects could coexist as part of
timber management lease plans. She discussed the possibility of
a company engaging with the state on a carbon management project
on the leased area.
1:36:24 PM
MS. MILLER responded to questions posed by Representative
Saddler, explaining that the proposed bill would not replace
anything but rather would be additive. Although timber sales
had been ongoing, there was not a mechanism which would grant
the right to concurrently manage and harvest timber. The state
would continue to implement timber sales but would also provide
a method for operators who want to put more effort into timber
they might eventually harvest. This is in line with the
statutory mandate for state forests, but the leases would also
include state forested land that is not in a state forest. She
emphasized that the state would retain its responsibility under
the Alaska Constitution which includes making timber available
for development and use within a sustained yield framework. The
department would continue to calculate annual allowable cuts to
make sure harvests are meeting the constitutional responsibility
for sustained yield. They would maintain significant control
including defining the lease terms, defining the goals of the
lease, setting management targets, and requiring development
plans with dates for phases of development.
1:41:03 PM
MS. MILLER, in response to a request for clarification from
Representative Saddler, called attention to specific sections of
the bill. She explained that the bill would add timber leases
to a list of exemptions. In addition, the bill would create
consistency with other state leasing practices while still
maintaining the best interest of the state.
1:44:30 PM
MR. DOUSE agreed with Representative Mears observation that time
frames in forestry are longer than those of other industries.
He explained that the state forest management plan includes a
five-year plan of timber sales; a best interest finding on
current sales; and a forest land use plan which details
specifics of the timber sale including boundaries, access, and
resources. The contract itself includes authorizations,
competitive sales, negotiated sales, contract locations, and the
length of contracts.
1:47:36 PM
CO-CHAIR BURKE pointed out the lack of timber in parts of
Alaska.
1:48:02 PM
MS. MILLER acknowledged this is a new concept and a different
approach. She described the process as being less of a land
authorization and more of a management delegation to another
party.
1:48:46 PM
MS. MILLER responded to a question from Representative Saddler
by explaining that the commissioner would have the authority to
terminate a lease if appropriate. Short of termination, DNR
could work with the lessee to come into compliance.
1:51:07 PM
MS. MILLER responded to Representative Rauscher's observation
that the points outlined in the bill don't seem to be outside
the existing responsibilities of DNR. She noted that the
administrative requirements and responsibilities within the
statutes were carried out by DNR every day. However, the
concept of leasing the right to manage timber is new. She
explained that the division is comfortable writing the
regulations for the program. Companies would then nominate land
so they could partner with the state to manage certain timber
areas. Under those scenarios there should not be a cost to the
state, and it should increase revenue to the state.
1:52:55 PM
MR. DOUSE responded to Co-Chair Burke's request for
clarification, explaining that 3.7 million acres of inventory
had been completed. That included measuring trees, primarily
near road systems. As the road system is expanded, it would be
possible to complete more inventory. The bill would help DNR
get out into additional areas, enabling more management
activities. One of the benefits would be to reduce the amount
of timber being imported from the Lower 48 and Canada.
1:54:55 PM
MS. MILLER showed slide 12, which was a summary of the sectional
analysis. It was titled, "HB 72 Sectional," and read as follows
[original punctuation provided]:
Sec. Page Description
1 p. 1 Exempts timber management leases from the state
procurement code
2 p. 1 Conforms to timber management lease issuance
provisions in Sec. 4
3 p. 6 Conforms to timber management lease competitive
solicitation and award provisions in Sec. 4
4 p. 7 Allows DNR to issue and provides program
requirements for timber management leases
5 p. 9 Enables DNR to delegate timber management in
HSF through timber management leases
6 p. 9 Conforms management directive for HSF to
accommodate timber management leases
7 p. 9 Allows timber management leases within HSF
8 p. 9 Requires timber management leases consistency
with HSF plans
9 p. 10 Enables DNR to delegate timber management in
state forests through timber management leases
10 p. 10 Conforms management directive for HSF to
accommodate timber management leases
11 p. 10 Requires forest plans to consider timber
management leases
12 p. 11 Requires timber management leases consistency
with HSF plans
13 p. 11 Addresses applicability of Forest Resources
and Practices Act with timber management leases
14 p. 11 Sets an immediate effective date
(HSF: Haines State Forest Resource Management Area)
1:54:58 PM
MS. MILLER presented the sectional analysis, titled " House Bill
72 Sectional Analysis, Short Title: Timber Management Leases"
[hard copy included in the committee packets], which read as
follows [original punctuation provided]:
Section 1 adds a new paragraph to AS 36.30.850(b)
exempting timber management leases from state
procurement laws.
Section 2 amends AS 38.05.035(e)(6) to exempt timber
management leases from the typical best interest
finding requirement as Section 4 provides a process
specific to timber leases.
Section 3 amends AS 38.05.075(a) to exempt a timber
management lease (proposed AS 38.05.124) from typical
competitive bid requirements, as Section 4 proposes a
process specific to timber management leases.
Section 4 amends AS 38.05 by adding new section
38.05.124 governing timber management leases. The
proposed new section allows for timber management
leases for harvest and management of timber on state
forest land for the result of sustained yield of
merchantable timber, managed in accordance with the
Forest Resource Practices Act's regulatory and
administrative standards under AS 41.17.060, if the
Department of Natural Resources (DNR) commissioner
finds it is in the best interest of the state. The
section, among other things:
- Sets minimum lease requirements
- Establishes a competitive process and sets
award criteria
- Requires public notice before issuing a lease
- Limits leases to 55 years with a one-time
renewal option
- Enables DNR to terminate a lease if terms are
not met
- Requires a fair return to the state, and
- Defines "forest land."
Sections 5-7 amend statutes governing the Haines State
Forest Resource Management Area, which is located
separately in statute from laws governing other state
forests.
Section 5 amends AS 41.15.300(b) to allow DNR to
delegate the management of timber located in the
Haines State Forest Resource Management Area (HSF) in
a timber management lease.
Section 6 amends AS 41.15.315(a) to exempt timber
management leases within HSF from the general
provisions of the Forest Resources and Practices Act
(AS 41.17), except as required under the new leasing
provisions in proposed AS 05.124 in bill Section 4, as
the lease will include management guidelines specific
to that lease.
Section 7 amends AS 41.15.315(d) which governs the
sale and disposal of lands within HSF. Allows the
commissioner to issue a timber management lease in
HSF.
Section 8 amends AS 41.15.315(e) regarding timber
management plans in HSF. Requires that a timber
management lease issued in HSF be consistent with the
applicable management plan, which must identify land
appropriate for timber management leases, and allows
for the management plan to be amended to allow for
timber management leases.
Sections 9-12 amend the Forest Resources and Practices
Act, AS 41.17.
Section 9 amends AS 41.17.200(b) to allow the DNR
commissioner to delegate the management of timber
located in a state forest through a timber management
lease.
Section 10 amends AS 41.17.220, management of state
forests, to exempt timber management leases from
Forest Resources and Practices Act management
principles for land within a state forest, except as
required under the new leasing provisions in proposed
AS 05.124 in bill Section 4, as the lease will include
management guidelines specific to that lease.
Section 11 amends AS 41.17.230(a) to include
consideration and permit uses of forest land for
timber management leasing under AS 38.05.124 in forest
management plans.
Section 12 amends AS 41.17.230(g) to require a timber
management lease within a state forest to be
consistent with the applicable forest management plan,
requires the management plan to identify the land
appropriate for a timber management lease, and allows
the department to amend the management plan for this
purpose.
Section 13 amends AS 41.17.900(a) regarding the
applicability of the Forest Resources and Practices
Act to all forested land under state, municipal, and
private ownership by exempting timber management
leases under AS 38.05.124, except as required under
the new leasing provisions in proposed AS 05.124 in
bill Section 4.
Section 14 provides for an immediate effective date.
2:03:12 PM
REPRESENTATIVE SADDLER referred to section 11, regarding
potentially competing leases. He questioned whether this would
open DNR to possible nuisance claims, for example, if the timber
management lease use was incompatible with activities such as
mining, mineral leasing, tourism, and recreation.
MR. DOUSE explained that existing management plans would need to
be amended to include the timber management leases.
2:04:50 PM
MS. MILLER pointed out that the management plan doesn't
authorize specific uses. Rather, it provides management
guidance which identifies small areas that would not be
compatible with the overall statutory guidelines. She provided
the example of the Tanana Valley state forest management plan
which included a small area committed to a research project.
The research project would be incompatible with a carbon offset
project, so the research project area would be excluded from
that management plan.
2:06:02 PM
REPRESENTATIVE HALL referred to section 11 and asked what
"public notice" would involve. She also inquired whether the
process is for written feedback only or would there be an
opportunity for public testimony.
MS. MILLER, in response to questions from Representative Hall,
described the public notice process, including use of an online
system. She pointed out the importance of making the notice
understandable to the general public, so individuals could
provide comments and feedback. Most administrative decisions
such as timber sales and lease issues do not call for public
meetings.
2:08:02 PM
[HB 72 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB72 DNR presentation to HRES Timber Management Leases.pdf |
HRES 2/21/2025 1:00:00 PM |
HB 72 |
| HB 72 Sectional Analysis Timber Management Leases 1.28.2025.pdf |
HRES 2/21/2025 1:00:00 PM |
HB 72 |
| HB 72 Support Letter Alaska Forest Association.pdf |
HRES 2/21/2025 1:00:00 PM |
HB 72 |
| HB72 Transmittal Letter.pdf |
HRES 2/21/2025 1:00:00 PM |
HB 72 |
| HB 72 written testimony received 3.4.25_Redacted.pdf |
HRES 2/21/2025 1:00:00 PM |
HB 72 |