Legislature(2023 - 2024)BARNES 124

03/24/2023 01:00 PM House RESOURCES

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01:04:26 PM Start
01:05:37 PM Alaska Oil and Gas Conservation Commission
01:26:15 PM HB104
01:55:35 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor’s Appointees: Alaska TELECONFERENCED
Oil and Gas Conservation Commission - Greg Wilson
+= HB 104 EXPEDITED TIMBER SALES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 HB 104-EXPEDITED TIMBER SALES                                                                              
                                                                                                                                
1:26:15 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY announced  that the final order of  business would be                                                               
HOUSE BILL NO. 104, "An Act relating to expedited timber sales."                                                                
                                                                                                                                
CHAIR  MCKAY noted  that his  goal for  today is  to take  public                                                               
testimony,  get additional  information from  the administration,                                                               
and set  the bill aside  while working on a  committee substitute                                                               
that will properly  balance the management of  the state's timber                                                               
resources  for   sustainable  development,  public   safety,  and                                                               
appropriate conservation.                                                                                                       
                                                                                                                                
CHAIR MCKAY opened public testimony on HB 104.                                                                                  
                                                                                                                                
1:27:51 PM                                                                                                                    
                                                                                                                                
TESSA  AXELSON,  Executive  Director, Alaska  Forest  Association                                                               
(AFA), testified in  general support of HB 104.   She stated that                                                               
AFA is a  trade organization with members across  Alaska who have                                                               
an  interest in  the  forest  products industry.    She said  the                                                               
forest industry  relies significantly on sales  that are provided                                                               
by  the  Department  of  Natural  Resources  (DNR),  Division  of                                                               
Forestry  (DOF).   The supply  of  sales, she  noted, allows  the                                                               
industry  to provide  millions of  dollars in  communities across                                                               
Southeast  Alaska through  secondary and  tertiary components  of                                                               
the economy  like transportation,  freight costs,  local grocers,                                                               
equipment  suppliers, barge  and tug  operators, and  stevedores.                                                               
Additionally,  she continued,  the  industry provides  year-round                                                               
jobs that  provide direct  benefit to  communities.   Ms. Axelson                                                               
further  stated  that  the  industry  takes  very  seriously  the                                                               
management  of  Alaska's forests  to  address  fire concerns  and                                                               
infestations,  thereby   managing  for   a  healthy   forest  and                                                               
utilizing of dead and dying trees.                                                                                              
                                                                                                                                
1:30:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER requested  Ms.  Axelson's perspective  on                                                               
bill's provisions,  as related  to the kind  of sales  that would                                                               
first be applied, should the bill become law.                                                                                   
                                                                                                                                
MS. AXELSON  replied that the  AFA board  has not taken  a formal                                                               
position on HB  104 regarding that component.  She  said AFA will                                                               
be developing specific  responses to the bill in  the coming week                                                               
and will get back to the committee.                                                                                             
                                                                                                                                
REPRESENTATIVE  SADDLER  inquired  about  the  forest  industry's                                                               
general attitude  towards beetle  killed timber, such  as whether                                                               
it is a resource that should be exploited quickly.                                                                              
                                                                                                                                
MS. AXELSON responded that beetle  kill is being seen in specific                                                               
locations in  Alaska, such  as the  Kenai Peninsula  where micro-                                                               
mill operators are utilizing some of  that wood.  She stated that                                                               
from the industry's perspective there  is a need to address those                                                               
types of trees with those  infestations because they do pose fire                                                               
risk in certain parts of the state.                                                                                             
                                                                                                                                
REPRESENTATIVE SADDLER inquired about  the Division of Forestry's                                                               
current speed,  in general, in  offering timber for  sale without                                                               
HB 104.                                                                                                                         
                                                                                                                                
MS. AXELSON  answered that from  the industry's  perspective, the                                                               
division  is working  actively to  move  out sales  based on  the                                                               
division's current process.  She  said industry would like to see                                                               
longer-term sales provided  so that it can meet the  needs of its                                                               
customers.   She  further  stated that  industry  would like  for                                                               
there to  be enough sales  that are cleared through  the internal                                                               
processes so that there are sales  ready to move forward over the                                                               
long term  and industry knows what  those sales will be  into the                                                               
future.    The supply  component  is  a  critical issue  for  the                                                               
industry, she stressed, as the industry  needs 18 to 32 months of                                                               
supply in  advance to meet  its needs.  Ensuring  speedy movement                                                               
by the  division to follow  its processes  that get sales  out in                                                               
the different regions is also important, she added.                                                                             
                                                                                                                                
1:33:57 PM                                                                                                                    
                                                                                                                                
MARANDA HAMME,  Tongass Forest Program Manager,  Southeast Alaska                                                               
Conservation Council  (SEACC), testified that  SEACC's opposition                                                               
to HB 104 is based on three  reasons.  First, she related, HB 104                                                               
would allow  state timber  sales to be  offered quickly  in areas                                                               
deemed threatened or  affected by fire, insects,  or disease, yet                                                               
the bill doesn't specify or  define the information or scientific                                                               
methods  that are  to  be used  to deem  an  area as  threatened.                                                               
Second, she  said, HB  104 would bypass  public comment  and give                                                               
the DNR commissioner ultimate discretion  in deciding to expedite                                                               
timber  sales in  any area  deemed threatened  or affected,  plus                                                               
there  is no  sales size  limitation.   Third,  she pointed  out,                                                               
Alaska already  has a  salvage sale law  that provides  for these                                                               
types of  timber sales  in a  two-year window.   Last  year House                                                               
Bill 98  would have also  eliminated important  public processes,                                                               
she added, and HB 104 is  just another bill that will bypass that                                                               
public comment process.                                                                                                         
                                                                                                                                
1:36:04 PM                                                                                                                    
                                                                                                                                
JOE YOUNG,  Owner, Young's Timber  Inc., testified in  support of                                                               
HB 104.   He said Young's Timber has been  in business since 1993                                                               
and  has four  types of  sawmills with  12 employees  producing a                                                               
wide  range  of value-added  products.    Three-year timber  sale                                                               
contracts  don't  work  for  value-added  producers,  he  stated,                                                               
because  business planning  and  financing  is almost  impossible                                                               
unless producers can show they  have a reliable, long-term timber                                                               
supply for  replacing existing machines or  financing expansions.                                                               
Each of  Alaska's three forest  regions, he maintained,  are over                                                               
mature,  dying, and  dense, creating  stressed  out forests  that                                                               
attract  insects  which  kill  the  trees,  causing  fire  danger                                                               
situations with  associated fire suppression costs  to the state.                                                               
Having HB  104 in the  DNR commissioner's toolbox,  he continued,                                                               
would  expedite  timber  harvesting for  forest  health,  protect                                                               
citizens  from  fire,  reduce   wildlife  protection  costs,  and                                                               
provide  a long-term  reliable timber  supply to  Alaska's value-                                                               
added producers.                                                                                                                
                                                                                                                                
MR. YOUNG  addressed Representative Saddler's  earlier questions.                                                               
He related that  currently when a timber sale is  requested to be                                                               
put into the five-year plan, it  takes almost four years before a                                                               
sale comes up.   He further noted that a  timber sale hasn't been                                                               
put up in the Tok area since 2019.                                                                                              
                                                                                                                                
1:39:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  requested Mr. Young's view  on the amount                                                               
of  public  input on  timber  sales  now  and whether  Mr.  Young                                                               
believes that under  HB 104 there would be too  much, not enough,                                                               
or just  the right  amount of opportunity  for public  comment on                                                               
expedited timber sales.                                                                                                         
                                                                                                                                
MR. YOUNG offered  his belief that the public  comment would stay                                                               
the same.   He  specified that the  five-year schedule  of timber                                                               
sale must first  be put together, which takes time,  then it goes                                                               
to the  Tanana Valley State  Forest Citizens'  Advisory Committee                                                               
for  approval, then  it goes  out for  approval after  the Tanana                                                               
Valley State Forest reviews it  and asks for public comments, and                                                               
then it is out  for another 30 days of public  comment.  Once the                                                               
best  interest finding  (BIF) is  put together  and put  into the                                                               
Forest Land  Use Plan (FLUP),  he stated,  it again goes  out for                                                               
public  comment.   He said  he  therefore thinks  the public  has                                                               
plenty of time to review  the schedule of five-year timber sales,                                                               
a  process that  must  be  done by  law.    His understanding  of                                                               
expedited timber  sales, he continued,  is that it just  jabs the                                                               
Division of Forestry to move a little bit faster.                                                                               
                                                                                                                                
REPRESENTATIVE SADDLER  requested Mr. Young's opinion  on whether                                                               
there is risk of allowing too much timber to be cut in Alaska.                                                                  
                                                                                                                                
MR. YOUNG answered he doesn't  think so because the Tanana Valley                                                               
State Forest is  not even at 10 percent of  the allowable cut, so                                                               
a  lot more  harvesting could  be done  while staying  within the                                                               
yearly allowable cut.                                                                                                           
                                                                                                                                
1:41:58 PM                                                                                                                    
                                                                                                                                
PARKER  RITTGERS,  Wood-Mizer   Alaska,  testified  that  several                                                               
things in  HB 104  are worthy of  consideration, such  as keeping                                                               
forest habitat  healthy and reducing  fire which  translates into                                                               
property and personal  safety.  He said his  business is directly                                                               
affected by  the availability  of timber  for his  customers that                                                               
are  primarily private  users, although  in the  past he  has had                                                               
professional users.  He noted that  he is testifying from a tract                                                               
of  land  on  Anchorage's  Hillside  that  is  being  cleared  to                                                               
mitigate  fire  danger  and  the  timber used  for  lumber.    He                                                               
maintained  that  a   forest  is  kept  healthy   by  ridding  or                                                               
mitigating beetle  damage so  that habitat  for beetles  is moved                                                               
away.   He related  that a  recent customer  from a  village near                                                               
Marshall, Alaska, told  him that the cost for a  sheet of plywood                                                               
for the new  village is $130 and the cost  for an eight-foot-long                                                               
two-by-four is $65.   That area is rich in  timber, he continued,                                                               
and in  his opinion that timber  should be made available  to the                                                               
corporation and to  residents for personal use.   He concluded by                                                               
saying that  excellent testimony  has already  been heard  on the                                                               
other good parts of HB 104.                                                                                                     
                                                                                                                                
1:45:05 PM                                                                                                                    
                                                                                                                                
CHERYL FECKO,  representing self,  testified in opposition  to HB
104.   She  expressed her  worry that  if HB  104 becomes  law as                                                               
written,  the  public  will  have little  or  no  opportunity  to                                                               
comment  on  expedited   state  timber  sales.     She  said  she                                                               
understands the need to protect  property from forest fires or to                                                               
prevent the  spread of  serious disease  epidemics but  feels the                                                               
bill's intent  is to bypass  the public process to  access timber                                                               
outside of  other state  harvest programs  and to  shortcut other                                                               
agency input and review.  She  stated she would like to know what                                                               
consultation and  coordination there  would be agencies  like the                                                               
Alaska Department of Fish and  Game (ADF&G) and the Department of                                                               
Environmental Conservation  (DEC) to ensure that  critical salmon                                                               
and wildlife habitat will be left  intact.  Ms. Fecko pointed out                                                               
that  Prince of  Wales Island  is already  a fractured  landscape                                                               
from decades of intensive timber  harvest and from a patchwork of                                                               
land ownership.   She submitted that HB 104 may  not be needed to                                                               
accomplish what  the state has  in mind since Alaska  has salvage                                                               
laws that  should apply to  these conditions  without sacrificing                                                               
public input,  habitat degradation, and  the time that  is needed                                                               
to do things for the right reason.                                                                                              
                                                                                                                                
1:47:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER said  his  reading of  the  bill is  that                                                               
[expedited  timber sales]  do not  obviate or  bypass any  of the                                                               
existing  protections for  forest  management, streams,  wildlife                                                               
habitat, or public comment.  He  requested Ms. Fecko to point out                                                               
where in the bill it does that.                                                                                                 
                                                                                                                                
MS. FECKO  replied that HB 104  leaves so much discretion  to the                                                               
commissioner once a timber sale  is thought to be not necessarily                                                               
impacted by fire,  disease, or infestation, but  the "threat of."                                                               
With that  being determined by  just the commissioner  alone, she                                                               
continued, she fears that "threat" is not clearly defined.                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER  said he doesn't  see any language  in the                                                               
bill that  would obviate continuing  any existing  protections of                                                               
habitat, public comment, or other concerns raised by Ms. Fecko.                                                                 
                                                                                                                                
1:49:55 PM                                                                                                                    
                                                                                                                                
ANDREW TRAXLER,  Owner, Papoose Milling, testified  in support of                                                               
HB 104. He  stated he has never  met Mr. Young but  would like to                                                               
shake his  hand for  his testimony.   Mr.  Traxler said  he would                                                               
like  to  add  to  Mr.  Young's  testimony  by  saying  that  the                                                               
[legislature's] protection is needed  since many sawmill business                                                               
owners in  Alaska are small,  mom-and-pop businesses.   He argued                                                               
that everybody wants  more and more of the  public comment period                                                               
and small  businesses cannot compete  in the timber  sale process                                                               
where  lobbyists  and  highly  funded   groups  "spread  so  much                                                               
disinformation about our  forest to bring out  the public against                                                               
us."  This expedited process,  he continued, may make it feasible                                                               
for small  businesses.  He  added that he  would like to  see the                                                               
timber  sales   extended  to  a   longer  timeframe   to  provide                                                               
businesses with  stability in  knowing that  they will  have logs                                                               
for another year.                                                                                                               
                                                                                                                                
MR. TRAXLER, in response to  Chair McKay, stated his appreciation                                                               
for  legislators trying  to  make it  so  [small businesses]  can                                                               
produce for  the industry.   He related  that due to  the present                                                               
lack of  log supply, he produces  about 30 percent of  what he is                                                               
asked to do.                                                                                                                    
                                                                                                                                
1:52:21 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY,  after ascertaining that  there was no one  else who                                                               
wished to testify, closed public testimony on HB 104.                                                                           
                                                                                                                                
CHAIR MCKAY  opined that Alaska's  forests are  natural resources                                                               
and  there is  a constitutional  obligation to  utilize, develop,                                                               
and conserve those resources for  the maximum benefit of Alaska's                                                               
people.  He said the  challenge is balancing the responsibilities                                                               
to develop and conserve, which  are opposite goals and why timber                                                               
harvest  is done  according to  the sustainable  yield principle.                                                               
He maintained  that HB 104  is not a  timber grab, but  rather an                                                               
attempt  to strike  balance  between  over-development and  over-                                                               
conservation. He said he fears the state is currently in over-                                                                  
conservation  because  the  state  isn't  providing  an  adequate                                                               
amount of supply  to sustain and actively manage the  forest.  He                                                               
assured the public  that the legislative intent of HB  104 is for                                                               
the state's resources to be  managed appropriately.  He announced                                                               
that  HB 104  is being  held  over until  a [proposed]  committee                                                               
substitute is ready to discuss.                                                                                                 
                                                                                                                                
1:54:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS commented  that  "the rub"  is that  public                                                               
testimony has  come prior to  the expected  substantial committee                                                               
substitute.  She asked the chair  whether she is correct that the                                                               
public can still provide written testimony via e-mail.                                                                          
                                                                                                                                
CHAIR MCKAY  answered that he  believes this is correct  and that                                                               
e-mails can be sent to [email protected].                                                                               
                                                                                                                                
[HB 104 was held over.]                                                                                                         

Document Name Date/Time Subjects
3.1.23 Greg Wilson AOGCC Resume_Redacted.pdf HRES 3/24/2023 1:00:00 PM
WilsonHouseesources.docx HRES 3/24/2023 1:00:00 PM
HB 104 Letters of Opposition.pdf HRES 3/24/2023 1:00:00 PM
HB 104