03/05/2013 08:00 AM House STATE AFFAIRS

          HCR  3-JOINT COMMITTEE ON FEDERAL OVERREACH                                                                       
                                                                                                                                
[Due to technical  difficulties, there is no  recording from 8:33                                                               
a.m. to 8:36  a.m.  The minutes from that  time are reconstructed                                                               
from the secretary's log notes.]                                                                                                
                                                                                                                                
CHAIR LYNN announced  that the final order of  business was HOUSE                                                               
CONCURRENT RESOLUTION NO. 3, Establishing  the Joint Committee on                                                               
Federal Overreach.                                                                                                              
                                                                                                                                
REPRESENTATIVE KELLER  indicated he  had asked  that the  bill be                                                               
held over in order to work on it with the bill sponsor.                                                                         
                                                                                                                                
8:36:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT, as sponsor, presented  HCR 3.  She talked                                                               
about  federal overreach  in Alaska  and said  the intent  of the                                                               
proposed  concurrent resolution  is  to make  up  a committee  of                                                               
legislators that  will focus on  "things that affect  our ability                                                               
as  Alaskans."   She opined  that policy  put forth  by President                                                               
Obama does  not "fit into  Alaska's lifestyle or heritage."   She                                                               
listed  other  problems  the  state  has  had  with  the  federal                                                               
government,  including:    the  Environmental  Protection  Agency                                                               
(EPA) not issuing  air permits; the problems the  state has faced                                                               
in  getting Shell  up to  the  outer continental  shelf (OCS)  to                                                               
drill; and problems getting permits  to build a bridge across the                                                               
Coldwell  (ph)  River.   She  expressed  feeling like  Alaska  is                                                               
constantly under  attack by  the federal  government.   She said,                                                               
"Where  we're  supposed to  be  a  cohesive  part of  the  United                                                               
States, I feel  like we're always on  the deep end."   The job of                                                               
the committee that  would be established under HCR 3  would be to                                                               
determine  what Alaska's  priorities  are and  where the  federal                                                               
government  has  [overreached].   Representative  Millett  stated                                                               
that  it  seems as  if  because  the  East  Coast has  been  over                                                               
developed,  the federal  government feels  like Alaska  should be                                                               
its  own national  park  and  playground.   She  said that  "goes                                                               
against everything we agreed to when we became a state."                                                                        
                                                                                                                                
8:39:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT stated  that federal  encroachment is  on                                                               
every level.   She said the discussion is not  about seceding; it                                                               
is about  creating a level  playing field and "having  our voices                                                               
heard."    The  proposed  committee would  not  only  inform  the                                                               
legislature as  to what  issues to  "stay on  top of,"  but would                                                               
also work with the Office of  the Attorney General.  She said she                                                               
thinks this  is where  she and  Representative Keller,  who works                                                               
with the  Citizens Advisory Commission on  Federal Areas (CACFA),                                                               
can  have a  symbiotic  relationship and  "make  sure that  we're                                                               
united when  we talk  to people in  the federal  government about                                                               
Alaska's issues."   She said the  bill would require a  report of                                                               
from   the  proposed   committee  by   January  15,   2014,  with                                                               
recommendations on how to curb federal overreach.                                                                               
                                                                                                                                
REPRESENTATIVE  MILLETT  mentioned  a group  called  the  [Energy                                                               
Producing  States Coalition  (EPSC)]  and  discussions among  the                                                               
western states  regarding the Endangered  Species Act,  land use,                                                               
and  land permitting.   She  said Senators  Murkowski and  Begich                                                               
have  addressed the  issue of  federal  overreach.   She used  No                                                               
Child Left Behind as an  example of federal overreach into Alaska                                                               
that  "did  not fit  Alaska."    She mentioned  "national  oceans                                                               
policy  coming down  the  pike,"  which she  said  is "not  going                                                               
through  Congress," but  is "actually  going  through a  backdoor                                                               
regulatory  process  through  the Appropriations  Committee"  and                                                               
will control where docks can be  built and where fishing can take                                                               
place.  She said there are  23 agencies involved with this policy                                                               
and Alaska does  not have a voice in the  design of that program.                                                               
She stated her belief that  getting the House and Senate together                                                               
to discuss  federal overreach and  create a united  front against                                                               
it is  very important.   She  said she would  like to  afford the                                                               
opportunity for  a group  to come  up with  solid recommendations                                                               
that the  legislature can  work on next  session.   She indicated                                                               
that   those   recommendations   could    be   how   to   improve                                                               
communications  with   the  federal  government  or   to  suggest                                                               
legislation that would [prevent federal overreach].                                                                             
                                                                                                                                
8:43:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER opined  that the bill sponsor  has hit upon                                                               
a critical need  for Alaska's state government to  have a central                                                               
focal  point on  federal issues.   He  offered his  understanding                                                               
that under  former Governor  Hickel's administration,  there used                                                               
to be  a division within the  Department of Law (DOL)  that dealt                                                               
with this  issue.  He  posited that  "we" must work  closely with                                                               
several  agencies, including  DOL and  the Department  of Natural                                                               
Resources  (DNR).   Representative  Keller  listed the  following                                                               
entities and  people currently  focused on  and/or in  support of                                                               
preventing  federal overreach:    a lawyer  within DOL  concerned                                                               
with  R.S. 2477  issues;  the current  attorney  general and  his                                                               
predecessor; the Alaska National  Interest Lands Conservation Act                                                               
(ANILCA) team, which keeps an  eye on "things related to ANILCA";                                                               
a unit working on the  navigability of waters; and CACFA, located                                                               
within DNR.                                                                                                                     
                                                                                                                                
8:46:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  said  there  is a  staggering  amount  of                                                               
material  related  to  federal  overreach,  and  he  opined  that                                                               
clarifying  the  focal point,  as  the  sponsor discussed,  would                                                               
increase efficiency.   He said one of the only  options the state                                                               
has  to  address federal  overreach  is  litigation; CACFA  makes                                                               
recommendations to  the Office of the  Attorney General regarding                                                               
law suits  and provides  information for briefs.   He  said CACFA                                                               
looks  for  opportunities for  public  comment,  but the  comment                                                               
period  is  often  too  short   and  the  public  comment  "isn't                                                               
recruited  from  a broad  spectrum  of  the  state" and  may  not                                                               
reflect the varied views of all Alaskans.                                                                                       
                                                                                                                                
8:48:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  mentioned  a  handout  in  the  committee                                                               
packet [dated  January 16,  2013], which provides  a link  to all                                                               
the compendiums for  the National Park Service.   He talked about                                                               
superintendents   of    national   parks   making    rules   that                                                               
unintentionally  limit   Alaska's  access  to  its   own  natural                                                               
resources.   He suggested viewing  CACFA's annual reports  on the                                                               
Internet in order  to get an idea of "the  scope of the problem."                                                               
He mentioned an open summary  brief on "the Sturgeon case," which                                                               
"really  gives a  good description  of ANILCA  and the  challenge                                                               
that we have in that area."   He said [CACFA] has been working to                                                               
determine  what the  best central  focal point  is, and  "at this                                                               
point that's unclear."                                                                                                          
                                                                                                                                
8:51:06 AM                                                                                                                    
                                                                                                                                
JOHN LEWIS,  Individual Member, Alaska Support  Industry Alliance                                                               
(ASIA), relayed that  he is a project  management consultant with                                                               
approximately 39  years of experience  in the industry.   He said                                                               
he is  testifying in  support of HCR  3, "monitoring  the federal                                                               
government to  stop or slow  down their overreach into  the state                                                               
of Alaska."   He said  [federal overreach] has become  a critical                                                               
component  of resource  development in  Alaska.   He opined  that                                                               
federal overreach  has numerous  impacts.   For those  working in                                                               
the  natural  resource  industry,   federal  overreach  can  mean                                                               
project delay  or denial, which  has significant impact  on jobs.                                                               
He said a  recent statewide study indicates that  the majority of                                                               
Alaskans see  jobs and the  economy as the most  important issues                                                               
facing  Alaska  today.    When  the  federal  government  imposes                                                               
critical  habitat  designations,  either through  the  Endangered                                                               
Species Act or by imposing  Arctic drilling moratoriums, it hurts                                                               
Alaska's  economy and  reduces the  number of  jobs available  to                                                               
Alaskans.   He  gave further  examples.   Mr. Lewis  continued as                                                               
follows:                                                                                                                        
                                                                                                                                
     An  economic profile  of  this  support industry  shows                                                                    
     that our  companies pay $2  billion in annual  wages in                                                                    
     the state of Alaska and  employ more than 10 percent of                                                                    
     Alaska's total workforce.   When the federal government                                                                    
     uses executive  orders to  take action  against Alaska,                                                                    
     without any  congressional or  public review,  they are                                                                    
     limiting our  ability to  employ Alaskans  and continue                                                                    
     to put  billions of dollars  into Alaska's  economy via                                                                    
     the wages.                                                                                                                 
                                                                                                                                
MR. LEWIS posited  that HCR 3 is a good  first step in addressing                                                               
this issue.  He said he  looks forward to assisting the committee                                                               
that would be established under the proposed legislation.                                                                       
                                                                                                                                
8:53:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON  said he  supports HCR  3, but  asked Mr.                                                               
Lewis how effective he thinks  the proposed committee would be in                                                               
achieving "the aims" of [ASIA] and the intent of HCR 3.                                                                         
                                                                                                                                
MR. LEWIS indicated that the  effectiveness of the committee will                                                               
depend on  the committee.  He  said the alternative is  to not do                                                               
anything  and "just  sit  back  and let  this  happen," which  he                                                               
opined would not  be a wise choice.   He said he  thinks the bill                                                               
sponsor and  Representative Keller  are on the  right track.   He                                                               
said he and  ASIA support the proposed legislation.   In response                                                               
to  Representative  Isaacson,  he   confirmed  the  role  of  the                                                               
alliance is  to assist the  legislature in "helping  the industry                                                               
and helping ourselves to keep the business going."                                                                              
                                                                                                                                
8:56:03 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN remarked  that the  legislature, with  only a  90-day                                                               
session in which  to address all issues, can use  all the help it                                                               
can get.                                                                                                                        
                                                                                                                                
8:56:27 AM                                                                                                                    
                                                                                                                                
JOE MATHIS, Founding President,  Alaska Support Industry Alliance                                                               
(ASIA); Board  Member, Ameritide  (ph); Vice  President, External                                                               
Affairs,  NANA  Development   Corporation,  explained  that  NANA                                                               
Development  Corporation is  the  business arm  of NANA  Regional                                                               
Corporation, owned  by 12,500 Inupiat  people that  originated in                                                               
Northwest Alaska.  He continued as follows:                                                                                     
                                                                                                                                
     NANA  exists to  improve the  quality of  life for  our                                                                    
     people,  in part  by  maximizing  economic growth,  and                                                                    
     protecting   and   enhancing   our  land.      Resource                                                                    
     development   ...  is   the   underpinning  of   NANA's                                                                    
     operations  in Alaska,  from our  ownership of  the Red                                                                    
     Dog Mine to our  subsidiaries that provide engineering,                                                                    
     construction, and  a wide range of  support services to                                                                    
     the oil  and gas industry.   Like many  businesses that                                                                    
     operate  in Alaska,  we have  struggled to  develop our                                                                    
     resources  economically, given  the  outside impact  of                                                                    
     the  federal government.   ...  The sheer  size of  the                                                                    
     federal  government's land  holdings in  Alaska give[s]                                                                    
     us  fewer   opportunities  to  create   economic  value                                                                    
     through resource development, real  estate, or by other                                                                    
     means.    Our region  is  hemmed  in  on all  sides  by                                                                    
     federal parks, preserves,  and monuments, which hampers                                                                    
     access  to  our  lands  and resources.    The  National                                                                    
     Environmental  Constituency that  feels  that they  own                                                                    
     these  set  aside   lands  brings  frivolous  lawsuits,                                                                    
     negative   publicity,  and   misplaced  activism   that                                                                    
     hinders  development.    The   layers  upon  layers  of                                                                    
     required federal  permits and the slow  pace of federal                                                                    
     permitting can  delay economic  projects for  years and                                                                    
     in  many   cases  make  commercially   viable  projects                                                                    
     uneconomic.                                                                                                                
                                                                                                                                
     Authors  Meyers   and  Kent   have  coined   the  term,                                                                    
     "environmental"  or "conservation  refugees," and  that                                                                    
     definition  is:   ...  "persons who  no  longer gain  a                                                                    
     secure  livelihood   in  their   traditional  homelands                                                                    
     because of what are  primarily environmental factors of                                                                    
     unusual scope.   In the  context of that  definition, I                                                                    
     would propose  that the federal government  has created                                                                    
     environmental  factors  of  unusual scope  through  its                                                                    
     agencies.   In  short,  federal  overreach is  creating                                                                    
     environmental  refugees  in  rural  Alaska  and  Native                                                                    
     communities.                                                                                                               
                                                                                                                                
     People  in the  NANA  region  have become  conservation                                                                    
     refugees,  because access  to NANA  lands and  resource                                                                    
     development is  restrained by the federal  ownership of                                                                    
     the majority  of land that  surrounds NANA  land, which                                                                    
     has been designated as national parks and monuments.                                                                       
                                                                                                                                
     One would have  to seriously question that  if we built                                                                    
     the Red Dog Mine today,  whether or not it would happen                                                                    
     in  a   time  period   that  would  be   attractive  to                                                                    
     investors.                                                                                                                 
                                                                                                                                
9:00:03 AM                                                                                                                    
                                                                                                                                
MR. MATHIS  said a  recent example of  federal overreach  is when                                                               
Kent  Salazar,  U.S.  Secretary   of  the  Interior,  denied  the                                                               
residents of  King Cove,  Alaska, access  to federal  land, which                                                               
would have  allowed them to build  a road to access  a year-round                                                               
airport.    He opined  that  Alaskans  have  the right  to  voice                                                               
concerns over federal actions that  create "refugees in their own                                                               
land" and need to be vigilant in  doing so.  He urged the support                                                               
and passage of HCR 3.                                                                                                           
                                                                                                                                
CHAIR  LYNN commented  that  having  access to  an  airport is  a                                                               
matter of public  safety, because an airport can  be a connection                                                               
to medical care.                                                                                                                
                                                                                                                                
MR. MATHIS said that is correct.                                                                                                
                                                                                                                                
9:01:09 AM                                                                                                                    
                                                                                                                                
REED  CHRISTENSEN, Treasurer,  Alaska  Support Industry  Alliance                                                               
(ASIA), testified  on behalf  of ASIA  in support of  HCR 3.   He                                                               
related   that  he   has  worked   for   Dowland-Bach,  a   local                                                               
manufacturing company  specializing in oil  field instrumentation                                                               
systems,  for  18  years.   He  said  ASIA's  membership  crosses                                                               
multiple  sectors  of  Alaska's   economy,  beyond  the  resource                                                               
extraction industry.   He said  other industries in  which ASIA's                                                               
member   companies  employ   Alaskans  include:     construction,                                                               
transportation,  finance,  insurance,   real  estate,  education,                                                               
health  services,  and leisure  and  hospitality.   The  combined                                                               
wages of these member companies is over $1.99 billion annually.                                                                 
                                                                                                                                
MR. CHRISTENSEN stated that ASIA  supports "all six approaches to                                                               
help  address federal  overreach," as  outlined by  Dan Sullivan,                                                               
the commission of DNR, in  his testimony before "the state Senate                                                               
Affairs Committee"  in January 2013.   He related that  the first                                                               
item  on   Mr.  Sullivan's  list   was  to   monitor  activities,                                                               
decisions,  and litigation  strategies that  could infringe  upon                                                               
state sovereignty  and the  rights of  Alaska citizens  to create                                                               
their  own economic  future.   The third  item on  Mr. Sullivan's                                                               
list was  to build  alliances with  other government  entities to                                                               
advocate  for  shared  rights and  interests.    Mr.  Christensen                                                               
opined  that  establishing [the  Joint  Committee  on Access  and                                                               
Federal Overreach] could go far in supporting both approaches.                                                                  
                                                                                                                                
MR.  CHRISTENSEN  stated  that  federal  overreach  harms  ASIA's                                                               
membership in  two ways:   delays and preemptive  cancellation of                                                               
potential   projects.     He  said   President   Obama  and   his                                                               
administration state  they are  for an "all  of the  above energy                                                               
policy," but their  actions do not support such claims.   He said                                                               
he has  a difficult time  believing that the  administration does                                                               
not realize  the economic  impact of delays  such as  the permits                                                               
for  ConocoPhillips Alaska,  Inc., and  the CD-5  development, or                                                               
the  drilling  moratorium  "that  supposedly  did  not  apply  to                                                               
Alaska."  He said the  critical habitat designation for the polar                                                               
bear and the  preemptive mining impact study by the  EPA before a                                                               
development plan has even been  submitted create serious concerns                                                               
for possible  future projects.   He said  both strategies  are in                                                               
direct  opposition  to  the Alaska  Statehood  Act,  under  which                                                               
Alaska was promised  to be able to develop  its natural resources                                                               
for its own economic benefit.  He  said he finds it ironic that a                                                               
federal  government  that  continues  to  overspend  and  produce                                                               
regulations  it cannot  keep up  with  would also  meddle in  the                                                               
affairs of Alaska.   He ventured there may be  some truth to U.S.                                                               
Representative Don  Young's remark  that Washington,  D.C., would                                                               
like  Alaska to  become  "a national  park for  the  rest of  the                                                               
country to come  visit while they're on vacation."   He said ASIA                                                               
does not  share this  view, and  it considers  the creation  of a                                                               
joint  committee  a small  step  in  the right  direction  toward                                                               
curbing federal overreach.   He requested that  the committee let                                                               
the alliance know how it can be of help.                                                                                        
                                                                                                                                
9:04:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  asked Mr. Christensen if,  from an                                                               
industry  perspective,  it  would  be  helpful  to  appoint  non-                                                               
legislative members to the proposed joint committee.                                                                            
                                                                                                                                
MR. CHRISTENSEN suggested one advantage  might be that someone in                                                               
the  industry could  bring to  the attention  of the  legislature                                                               
projects that  the industry  is concerned  are being  derailed or                                                               
delayed by the federal government.                                                                                              
                                                                                                                                
9:06:40 AM                                                                                                                    
                                                                                                                                
VASILIOS  GIALOPSOS,  Staff,   Representative  Charisse  Millett,                                                               
Alaska State  Legislature, on  behalf of  Representative Millett,                                                               
sponsor, referred to  Representative Isaacson's previously stated                                                               
concern and  said because  session is only  90 days,  and because                                                               
committees  have many  other issues  to address,  time is  of the                                                               
essence.   He  emphasized the  importance of  having a  committee                                                               
that can  focus on one issue  and "triage these priorities."   He                                                               
questioned how  the outcome for  King Cove would have  changed if                                                               
the proposed committee had already existed.                                                                                     
                                                                                                                                
CHAIR  LYNN  remarked   upon  the  variety  of   issue  heard  by                                                               
legislative committees, and he said  he thinks having a committee                                                               
focused  solely  on  federal  overreach may  be  helpful  to  the                                                               
process.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER questioned  the proposed  sunset of  2015,                                                               
because he  said he does  not see  "our problems going  away that                                                               
quickly."                                                                                                                       
                                                                                                                                
MR. GIALOPSOS said the reason  the bill sponsor included a sunset                                                               
clause was to give future  legislatures the ability to modify the                                                               
legislation.                                                                                                                    
                                                                                                                                
CHAIR LYNN  emphasized that  Alaska is a  sovereign state,  not a                                                               
colony to be controlled by the federal government.                                                                              
                                                                                                                                
9:11:37 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN,  after ascertaining  that there was  no one  else who                                                               
wished to  testify, closed  public testimony.   He stated  he may                                                               
reopen public testimony at the next bill hearing.                                                                               
                                                                                                                                
CHAIR LYNN announced that HCR 3 was held over.