04/13/2009 08:30 AM House FINANCE

HOUSE BILL NO. 162                                                                                                            
                                                                                                                                
     "An Act establishing the Southeast State Forest and                                                                        
     relating to the Southeast State Forest; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
MELANIE  LESH,  LEGISLATIVE LIAISON,  DEPARTMENT  OF  NATURAL                                                                   
RESOURCES (DNR),  introduced HB 162, which would  establish a                                                                   
new Southeast State  Forest (SESF).  The bill  is the state's                                                                   
effort to ensure that timber processing  continues to be part                                                                   
of the economy in Southeast Alaska.   She noted a zero fiscal                                                                   
note by DNR.   There was a very thorough hearing  of the bill                                                                   
previously  in  the  House Resources  Committee  and  in  the                                                                   
Senate Community and Regional Affairs Committee.                                                                                
                                                                                                                                
Ms. Lesh  reported that  the majority  of timber in  southern                                                                   
Southeast is on  federal land, but federal timber  sales have                                                                   
been in  decline.   Local mills now  depend heavily  on state                                                                   
timber for  survival.  Demand  for Southeast timber  for wood                                                                   
energy  is also  increasing,  further  raising  the need  for                                                                   
securing a timber base for this region.                                                                                         
                                                                                                                                
Ms.  Lesh explained  that the  proposed bill  consists of  20                                                                   
parcels that  are currently classified  as general  use state                                                                   
land.   She referred  to maps of  those parcels contained  in                                                                   
the  members'  packets.   Regarding  this proposal,  DNR  has                                                                   
briefed many statewide  groups.  Letters of  support are also                                                                   
included in the packet.                                                                                                         
                                                                                                                                
9:01:55 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze inquired  about  the major  harvesting  and                                                                   
processing  forestry  projects.   Ms.  Lesh  deferred to  Mr.                                                                   
Maisch.                                                                                                                         
                                                                                                                                
CHRIS MAISCH,  DIRECTOR, DIVISION OF FORESTRY,  DEPARTMENT OF                                                                   
NATURAL   RESOURCES,   testified  via   teleconference,   and                                                                   
reported  that  about  50,000   acres  of  forestry  land  in                                                                   
Southeast are currently managed  by the state.  This proposal                                                                   
would designate  about 25,000 acres  as state forest.   There                                                                   
are three  midsize or larger mills  in Southeast, as  well as                                                                   
numerous small mills.                                                                                                           
                                                                                                                                
Mr. Maisch  shared that the legislation  is part of  a multi-                                                                   
faceted strategy.   He  related the  process used to  discuss                                                                   
the  proposal.   He  explained  communities'  concerns  about                                                                   
municipal  entitlement.   The  bill will  grandfather in  any                                                                   
communities for municipal entitlement  selection.  He pointed                                                                   
out that Wrangell  was currently going through  the selection                                                                   
process.  He noted a zero fiscal  note accompanying the bill.                                                                   
                                                                                                                                
Mr.  Maisch emphasized  the importance  of transferring  from                                                                   
old  growth to  second growth  management in  Southeast.   He                                                                   
discussed pre-commercial thinning.                                                                                              
                                                                                                                                
9:07:33 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas  asked why  all  the  state land  was  not                                                                   
included in the proposed state  forest.  Mr. Maisch discussed                                                                   
how the land was assigned to become state forest.                                                                               
                                                                                                                                
Vice-Chair Thomas pointed out  that recently a bill giving up                                                                   
41,000  acres of  state land  was  passed.   He wondered  why                                                                   
university lands were  not included.   Mr.  Maisch thought it                                                                   
was due  to a recent Supreme  Court ruling and lack  of time.                                                                   
He suggested that lands could be added in the future.                                                                           
                                                                                                                                
Vice-Chair Thomas  asked what  the sustained yield  would be.                                                                   
Mr. Maisch thought  there would be 13 million  board feet per                                                                   
year.                                                                                                                           
                                                                                                                                
Mr.  Maisch added  that all  50,000 acres  would be  managed,                                                                   
including the 25,000 not within the state forest.                                                                               
                                                                                                                                
9:10:17 AM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas  pointed out  that a lot  of land  was left                                                                   
out.  He suggested that all lands  should be included now, in                                                                   
order to prevent future battles.                                                                                                
                                                                                                                                
Representative  Kelly asked  if  the land  is  still open  to                                                                   
mining  once it goes  into the  state forest  category.   Mr.                                                                   
Maisch said it was.                                                                                                             
                                                                                                                                
Representative  Kelly asked  what would  happen if this  bill                                                                   
does not  pass.  Mr.  Maisch explained  that the  bill allows                                                                   
for  the start  of  commercial  thinning.   A  percentage  of                                                                   
timber receipts  are prioritized for reforestation  work.  It                                                                   
would  allow DNR  to  be able  to harvest  the  trees in  the                                                                   
future.                                                                                                                         
                                                                                                                                
Representative  Kelly asked what  happens if the  state wants                                                                   
to do a remote cabin release.   He wondered if the bill would                                                                   
prevent that.   Mr. Maisch believed it would.   It would take                                                                   
legislative  change.  He  pointed out  that many other  lands                                                                   
are  set  aside  for  that  purpose.    Representative  Kelly                                                                   
commented on problems with access to those areas.                                                                               
                                                                                                                                
9:15:26 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze echoed those sentiments.                                                                                       
                                                                                                                                
Representative  Gara asked  about a parcel  near Thorne  Bay.                                                                   
He wondered  if it  was in  the Thorne  River drainage.   Mr.                                                                   
Maisch said  it does not appear  to be.  Representative  Gara                                                                   
pointed out that  the Thorne River is a Steelhead  and Salmon                                                                   
drainage.   He wondered if  the 70-foot clear-cut  buffer was                                                                   
in place.   Mr.  Maisch reported  that all regulations  would                                                                   
apply.                                                                                                                          
                                                                                                                                
9:17:43 AM                                                                                                                    
                                                                                                                                
Representative Gara asked about  rules that say other options                                                                   
have to  be looked  at before  cutting the  old growth.   Mr.                                                                   
Maisch  reported  on  regulations relating  to  managing  old                                                                   
growth.    The Alaska Department  of Fish and Game  looked at                                                                   
water quality issues and supports this legislation.                                                                             
                                                                                                                                
Representative  Gara  asked  about  replanting  requirements.                                                                   
Mr. Maisch shared the restoration  regulations.  He commented                                                                   
that in Southeast, forests reforest well on their own.                                                                          
                                                                                                                                
Representative  Gara  voiced  concern about  care  needed  in                                                                   
dealing with drainage.                                                                                                          
                                                                                                                                
Co-Chair Stoltze noted  who was in support of the  bill.  Mr.                                                                   
Maisch listed others who have endorsed the bill.                                                                                
                                                                                                                                
9:21:00 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  noted a zero fiscal note  by the Department                                                                   
of  Natural Resources.    He  requested assurance  that  more                                                                   
money  would not  be requested  in  the future.   Mr.  Maisch                                                                   
reviewed  the funding  sources, which  require no  additional                                                                   
funding.                                                                                                                        
                                                                                                                                
9:21:53 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas MOVED to  report HB  162 out of  Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note.  There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB 162 was REPORTED out of Committee with "no                                                                                   
recommendation" and with zero fiscal note #1 by the                                                                             
Department of Natural Resources.                                                                                                
                                                                                                                                
HB 212 was scheduled but not heard.