Legislature(2025 - 2026)BUTROVICH 205
02/07/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB67 | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 75 | TELECONFERENCED | |
| *+ | SB 67 | TELECONFERENCED | |
SB 75-TIMBER MANAGEMENT LEASES
4:12:56 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 75
"An Act relating to timber on state lands; relating to timber
management leases; and providing for an effective date."
4:13:18 PM
JOHN BOYLE, Commissioner, Alaska Department of Natural Resources
(DNR), Anchorage, Alaska, introduced a presentation on SB 75 by
first introducing himself and Jeremy Douse, the new state
forester.
COMMISSIONER BOYLE said SB 75 aimed to revitalize the timber
industry in Alaska in line with the broader theme for Department
of Natural Resources (DNR) which is to think about how the state
monetizes and considers these neglected sectors [agriculture and
timber] of the economy.
COMMISSIONER BOYLE reminisced about the robust timber industry
in Alaska with multiple pulp mills and logging camps and noted
notes that Alaska's timber played a significant role in building
towns and supplying timber worldwide. He said the industry's
decline began in the 1990s with changes in federal forest
management, particularly on the Tongass National Forest and that
the economic challenges and the lack of a market for various
timber products led to the industry's steady decline.
4:17:42 PM
COMMISSIONER BOYLE said the state had over 50 million acres of
forested land, a relatively small amount of which was classified
as state forest and most of the land was not actively managed
for timber. He noted loss of timber due to bark beetle
infestations and wildfire and suggested those losses were due to
lack of management. He said those losses impacted the commercial
activities of businesses that were creating cabin kits, cabinets
and other types of furniture.
COMMISSIONER BOYLE said SB 75 aimed to create a structure to
incentivize private investment in state forested lands to
manage, replant trees, apply commercial thinning techniques and
other forest management practices to maximize timber production.
He said SB 75 was based on successful practices in Canada and
other countries with robust timber industries. He highlighted
Sweden's successful silviculture program and its multi-billion-
dollar timber industry and suggested that Alaska could adopt
similar management philosophies to create new opportunities in
the timber sector.
COMMISSIONER BOYLE said the state would continue to exercise its
regulatory and constitutional responsibilities to protect the
natural environment and ensure sustained yield while allowing
private investment to create new jobs and economic growth. He
said SB 75 would revitalize Alaska's timber industry and make it
a more significant contributor to the state's economic growth.
4:22:37 PM
JEREMY DOUSE, State Forester and Director, Division of Forestry
and Fire Protection, Department of Natural Resources, Fairbanks,
Alaska, moved to slide 2 and began a presentation on SB 75.
Slide 2 is a map of Alaska, illustrating the Forested Lands in
State Ownership. He said the presentation aimed to provide some
background and a snapshot of forestry in Alaska now and describe
a plan. He emphasized the challenge of inaccessibility and
timber quality variations of these forests. He said Alaska owned
52.5 million acres of forested land, with the Division having
inventoried 3.7 million acres, primarily focusing on state
forests and accessible lands suitable for management.
[Original punctuation provided.]
Forested Lands in State Ownership
52.5 million acres of state-owned forested land
3.7 million acres of forest inventory complete.
2.1 million acres of designated state forest
Forested Lands by Area
Area Acres
Chugach 136,314
Copper River 3,730,988
Delta 1,658,487
Fairbanks 5,910,490
Galena 2,989,325
Haines 175,367
Kenai 551,237
Military 8,214
MatSu 4,245,016
SouthWest 18,454,307
Tanana 7,525,903
Tok 281,656
Tongass 281,656
Upper Yukon 3,488,127
4:23:57 PM
MR. DOUSE noted the lack of [state] ownership in Southeast
[Alaska] and on the Kenai Peninsula and in South Central
[Alaska], where some of our most productive forests are. He
explained these were federal forests, the Tongass and Chugach
National Forests.
4:24:17 PM
MR. DOUSE moved to slide 3 and said the administration's vision
for the state's forest assets focused on increasing stewardship
and use of state forested lands to improve forest health and
community protection. Increased management activities include
building more infrastructure, roads and bridges, to gain access
and conducting more silvicultural activities to manipulate
forest stands and meet desired future conditions. He said these
activities would boost the forest products industry and its
impact on the state's economy, particularly in rural areas, and
utilize local resources more effectively. He noted that Alaska
consumes approximately 100 to 120 million board feet of forest
products annually and a significant portion was imported from
Canada and the lower 48 states. The desire was to use more of
the local resource to meet the local need.
[Original punctuation provided.]
[Photo of milled lumber.]
Vision for Alaska's forest assets
• Maximum use of Alaska's land and resources
consistent with Alaska Constitution
• Increase forest management activity on state
lands
• Create economic opportunities
• Increase the in-state manufacture of forest
products
4:26:07 PM
MR. DOUSE moved to slide 4 and said SB 75 aimed to enhance
forest management by partnering with the private sector to
increase on-the-ground activities. He expressed gratitude for
the legislature's support in passing the lumber grading bill in
2024 and the expedited timber sale bill, which benefit the
industry. He emphasized that SB 75 was the next step toward
allowing the industry to build and grow capacity by focusing on
actively managing forest resources.
[Original punctuation provided.]
[Photo of a log yard.]
How to get there?
• Partner with private sector to increase
management activity while protecting public lands
principles provided for in Alaska Constitution
• Recreation and public access
• Hunting/fishing
• Subsistence
• Benefits of public land while addressing
challenges regarding lack of private land
4:27:04 PM
MR. DOUSE moved to and narrated slide 5. He said current forest
conditions in Alaska are typically mature or old forests with
difficult access. He contrasted that with actively managed
forests and explained that active management results in a
variety of age classes and forest cover types, increasing the
system's resilience to disturbances and benefiting the forest
products sector by providing more raw materials for value-added
products. He said forest succession trajectories are altered by
active management, diversifying forest stands on the ground,
increasing resilience and aiding in community protection by
mitigating risks from wildfires and beetle outbreaks.
[Original punctuation provided.]
[Autumn photo of diverse species forest.]
Defining 'active forest management'
• The intentional, planned and science-based
actions foresters engage in to meet society's
needs of forested ecosystems
• Diversifies habitat conditions
• Provides for essential wood products and
economic opportunity
• Creates resiliency for disturbance and the
effects of a changing climate
• Sets a successional trajectory for a desired
condition
• Passive management perpetuates a forest condition
until a natural disturbance introduces
successional change
• Depending on disturbance severity, can lead
to undesired conditions or a lack of forest
cover
4:28:39 PM
MR. DOUSE moved to slide 6, illustrating examples of disturbance
events in mature forests.
[Original punctuation provided.]
Benefits of active forest management
[Photo of a forest impacted by windfall.]
[Photo of a bark beetle.]
[Photo of a forest following a recent fire.]
4:29:05 PM
MR. DOUSE explained that the first photo on slide 6 was from a
significant wind event that occurred in the upper Tanana region
in 2014, highlighting the lack of management due to
inaccessibility. He said old forests in these areas often suffer
from root rot and various stem rots, which are exacerbated by
wind events leading to blow downs. Big blow down areas often
result in outbreaks of insects like IPS beetles or spruce
beetles. He compared that with examples of management activities
in specific areas like Willard Creek Road in the Susitna Valley
and Wise Owl Road near Soldotna, where vigorous spruce seedlings
are observed, explaining that young trees are more resistant to
insect infestation.
4:30:29 PM
MR. DOUSE said fire was another common disturbance, especially
in the boreal forest, where black spruce requires it for
regeneration. Management strategies include creating fuel breaks
and thinning to prevent fires near communities and to utilize
the material for market purposes, enhancing forest health and
resilience.
4:31:08 PM
MR. DOUSE moved to slide 7 and highlighted the benefits of
active forest management, using an example from the southeast
state forest comparing two areas of a forest, one of which was
thinned, and the other was not. He emphasized the necessity of
increasing thinning projects in Southeast Alaska to enhance
forest health and habitat suitability for wildlife.
[Original punctuation provided.]
Benefits of active forest management
[Photo of a forest with space between trees and
diverse undergrowth.]
Thinned 30-year-old stand, Southeast State Forest
[Photo of a forest with dense tree population and
little undergrowth.]
Un-thinned 30-year-old stand, Southeast State Forest
4:31:59 PM
MR. DOUSE moved to and narrated slide 8.
[Original punctuation provided.]
Senate Bill 75: Timber Management Leases
• New framework to enable leases of state timber
resource with agreement to manage forest for state
values
• Provides timber operators greater certainty that
drives additional investment
• Includes built-for-purpose terms covering competition,
public input
• Flexible to accommodate range of project/lease
concepts
• Leases possible on state forested land and state
forests
4:32:53 PM
MR. DOUSE moved to slide 9 and discussed the potential for
leases to include management activities to forestry operations.
These activities could include road construction and
maintenance, bridge construction, timber harvest, and
silvicultural practices like reforestation and site preparation.
He suggested suggested that the industry could take on
responsibilities usually managed by the state, including
intermediate treatments such as pre-commercial thinning and fire
mitigation. He said this approach could increase efficiency in
meeting reforestation requirements and forest management
overall.
[Original punctuation provided.]
Management activities under leases
• Road construction and maintenance
• Bridge construction
• Timber harvest
• Reforestation and site preparation
• Intermediate treatments
• Planning
• Fire mitigation
4:33:45 PM
RENA MILLER, Special Assistant, Commissioner's Office,
Department of Natural Resources, Anchorage, Alaska, provided the
Sectional Analysis for SB 75. Slide 10 provided an outline of
the sectional analysis.
[Original punctuation provided.]
Senate Bill 75 Sectional Analysis
Short Title: Timber Management Leases
Section 1 adds a new paragraph to AS 36.30.850(b)
exempting timber management leases from state
procurement laws.
Section 2 amends AS 38.05.035(e)(6) to exempt timber
management leases from the typical best interest
finding requirement as Section 4 provides a process
specific to timber leases.
Section 3 amends AS 38.05.075(a) to exempt a timber
management lease (proposed AS 38.05.124) from typical
competitive bid requirements, as Section 4 proposes a
process specific to timber management leases.
4:35:14 PM
MS. MILLER continued to explain the sectional analysis for SB 75
and said Section 4 was the heart of the new timber management
leasing program.
Section 4 amends AS 38.05 by adding new section
38.05.124 governing timber management leases. The
proposed new section allows for timber management
leases for harvest and management of timber on state
forest land for the result of sustained yield of
merchantable timber, managed in accordance with the
Forest Resource Practices Act's regulatory and
administrative standards under AS 41.17.060, if the
Department of Natural Resources (DNR) commissioner
finds it is in the best interest of the state. The
section, among other things:
• Sets minimum lease requirements
• Establishes a competitive process and sets
award criteria
• Requires public notice before issuing a lease
• Limits leases to 55 years with a one-time
renewal option
• Enables DNR to terminate a lease if terms are
not met
• Requires a fair return to the state, and
• Defines "forest land."
4:36:42 PM
MS. MILLER continued to explain the sectional analysis for SB
75.
Sections 5-7 amend statutes governing the Haines State
Forest Resource Management Area, which is located
separately in statute from laws governing other state
forests.
Section 5 amends AS 41.15.300(b) to allow DNR to
delegate the management of timber located in the
Haines State Forest Resource Management Area (HSF) in
a timber management lease.
Section 6 amends AS 41.15.315(a) to exempt timber
management leases within HSF from the general
provisions of the Forest Resources and Practices Act
(AS 41.17), except as required under the new leasing
provisions in proposed AS 05.124 in bill Section 4, as
the lease will include management guidelines specific
to that lease.
Section 7 amends AS 41.15.315(d) which governs the
sale and disposal of lands within HSF. Allows the
commissioner to issue a timber management lease in
HSF. Page 2 of 2 34-GS1450\A.
Section 8 amends AS 41.15.315(e) regarding timber
management plans in HSF. Requires that a timber
management lease issued in HSF be consistent with the
applicable management plan, which must identify land
appropriate for timber management leases, and allows
for the management plan to be amended to allow for
timber management leases.
4:37:15 PM
MS. MILLER continued to explain the sectional analysis for SB
75.
Sections 9-12 amend the Forest Resources and Practices
Act, AS 41.17.
Section 9 amends AS 41.17.200(b) to allow the DNR
commissioner to delegate the management of timber
located in a state forest through a timber management
lease.
Section 10 amends AS 41.17.220, management of state
forests, to exempt timber management leases from
Forest Resources and Practices Act management
principles for land within a state forest, except as
required under the new leasing provisions in proposed
AS 05.124 in bill Section 4, as the lease will include
management guidelines specific to that lease.
Section 11 amends AS 41.17.230(a) to include
consideration and permit uses of forest land for
timber management leasing under AS 38.05.124 in forest
management plans.
Section 12 amends AS 41.17.230(g) to require a timber
management lease within a state forest to be
consistent with the applicable forest management plan,
requires the management plan to identify the land
appropriate for a timber management lease, and allows
the department to amend the management plan for this
purpose.
4:37:46 PM
MS. MILLER continued to explain the sectional analysis for SB
75.
Section 13 amends AS 41.17.900(a) regarding the
applicability of the Forest Resources and Practices
Act to all forested land under state, municipal, and
private ownership by exempting timber management
leases under AS 38.05.124, except as required under
the new leasing provisions in proposed AS 05.124 in
bill Section 4.
Section 14 provides for an immediate effective date.
4:38:47 PM
SENATOR MYERS questioned the nomination process for leasing
state forest land, expressing concern about potential
outbidding.
4:39:44 PM
MS. MILLER explained that the process allowed interested parties
to express interest in using specific land, which is then
assessed by the Commissioner for suitability. If suitable, a
public solicitation for competing proposals ensues. This
approach ensures that the state explores the best options,
maximizing benefits and aligning with constitutional
requirements, by considering public input and alternative
proposals.
4:41:01 PM
SENATOR MYERS suggested a scenario where only a few proposals
out of many were deemed acceptable. He proposed introducing a
right of first refusal for those who nominate land, allowing
them to have the first opportunity to purchase it if they
believe they can utilize it effectively. He cautioned against
granting an absolute right of first refusal to prevent
underbidding. He sought to balance the interest in nominating
land with the need for fair and competitive bidding.
4:42:02 PM
MS. MILLER asked for the opportunity to consider Senator Myers'
suggestion with the Department of Natural Resources
(DNR)Commissioner's office and the Department of Law (DOL) and
respond in writing or at a future hearing.
4:42:15 PM
CHAIR GIESSEL concurred.
4:42:19 PM
SENATOR DUNBAR inquired about the scale of forest leases. He
referenced systems in Canada and Sweden and sought clarification
on the typical size of these leases, questioning whether it is
1,000 acres or 100,000 acres, acknowledging that the size can
vary depending on the forest.
4:42:57 PM
MS. MILLER said SB 75 does not set a maximum acreage on one of
these leases for Alaska. She deferred to Mr. Douse to answer
about Canada and Sweden.
4:43:08 PM
MR. DOUSE said he had some awareness of Canada's system, though
not of Sweden's. He described Canada's system of forest tenures
managed at the province level. He said forested Crown lands were
leased out for management and the scale of the leases depended
on the [expected] profitability. He said Sb 75 would be similar.
4:44:01 PM
SENATOR DUNBAR asked for a better sense for the size of
management areas.
4:44:31 PM
SENATOR DUNBAR inquired about the operation of land leasing in
Canada, specifically questioning the size of leased areas and
the feasibility of small parcels.
SENATOR DUNBAR expressed concern about the historical practice
in the U.S. where some users of Bureau of Land Management lands
benefited from low prices, leading to wealth and political
influence, potentially at the expense of fair market value to
the state. He questioned the lack of a competitive bid process
for leasing land, suggesting that the highest bidder could
ensure objective value, unlike the proposed system. He asked how
minimum value would be determined and why not lease to the
highest bidder.
4:45:54 PM
MS. MILLER clarified that a lessee may bring non-monetary
factors to the partnership. She highlighted the importance of
managing state forest lands for multiple state values, including
revenue and healthier forests, and for recreation, hunting,
fishing, and subsistence, which are valued by Alaskans. She
acknowledged the importance of a fair return to the state and
said that included revenue and public benefits, such as
employment in remote areas. She said the qualifications of
lessees would include their experience and willingness to manage
activities. She said those would be crucial factors considered
by the commissioner.
4:47:57 PM
SENATOR WIELECHOWSKI expressed concern that SB 75 fails to
uphold constitutional obligations to manage timber and wildlands
responsibly. He noted the absence of key protections for public
interest, such as procurement processes, best interest findings,
and competitive bidding, which he argued are crucial for
transparency and fairness. The speaker also notes the lack of
public opportunity to comment and the potential for long-term
(110 years) leases. He said he would need time for a thorough
review of the bill.
4:48:57 PM
MS. MILLER explained that Department of Natural Resources (DNR)
incorporated new ways to get to the same constitutional
responsibilities and obligations in SB 75, noting that the
Constitution doesn't explicitly require [specific protections,
such as] a best interest finding. She described SB 75 as a new
framework that is more of a partnership, contracting with
another party to execute the state's management
responsibilities, while the state retains its constitutional
responsibilities for sustained yield and setting annual
allowable cut.
4:49:44 PM
SENATOR CLAMAN noted that SB 75 proposes a whole new sale
procedure which will lead to new regulations. He asked whether
Department of Natural Resources (DNR) was selling or leasing
other things under procedures comparable [to SB 75].
4:50:17 PM
MS. MILLER asked to get back to the committee after consultation
with DNR.
4:50:34 PM
SENATOR CLAMAN referred to SB 75, page eight [line 18] and asked
how DNR arrived at the lease period of 55 years.
4:50:53 PM
MS. MILLER said 55 years was the standard lease duration used in
statutes. She explained that it was considered a reasonable
timeframe for partnerships, equating to an adult lifetime. She
noted that SB 75 also provided for reassessment at the 55 year
point to ensure both parties were still willing to continue the
partnership. She suggested that this approach was particularly
relevant to forestry and deferred to Mr. Douse for further
insights.
4:51:52 PM
MR. DOUSE explained that a new stand of timber would be
established after 55 years, but not likely to be ready for
harvest until another full 55 year rotation [ 110 years total].
4:52:33 PM
SENATOR CLAMAN asked what the typical seedling to merchantable
timber size timeline would be for Alaskan forests. He said 55
years seemed short.
4:53:01 PM
MR. DOUSE concurred. He said some of the hardwoods [in Alaska]
like birch or aspen might be ready [for harvest after 55 years]
if there was a market for it. Conifers would not be ready after
55 years.
4:53:21 PM
SENATOR CLAMAN called attention to the allocation of
merchantable timber in Alaska, particularly the Tongass, noting
that the federal government and native corporations had priority
over state-owned forests. He questioned whether there was good
merchantable timber on state lands and asked where those forests
were that could produce 110 to 120 million board feet a year.
4:54:26 PM
MR. DOUSE affirmed that the state did get "third pick", however
he emphasized that there are forests that can be managed for
valuable timber resources, particularly in the interior. He said
timber was being managed where there was access, and there was
saw timber in stands without access, that therefore can't be
managed. He reiterated that there was demand for 120 million
board feet a year, and there was market opportunity. He offered
to show members of the committee [the applicable forests].
4:55:30 PM
SENATOR MYERS noted the mention of the Haines State Forest and
asked why there no mention of the Tanana Valley State Forest.
4:55:47 PM
MR. DOUSE noted that the HSF was created under a different
statute and pointed out that the Haines State Forest designation
included multiple use designations that distinguished it [from
other state forests].
4:56:24 PM
MS. MILLER clarified that the Haines State Forest was the only
named state forest in statute; the other state forests were
referred to [in statute] as state forests generally and so were
not called out specifically in SB 75.
4:56:44 PM
CHAIR GIESSEL invited closing remarks by the commissioner of
DNR.
4:56:58 PM
COMMISSIONER BOYLE emphasized the need for a paradigm shift in
Alaska's forest management. He suggested that incentivizing new
investments could yield merchantable timber more quickly,
benefiting future generations. He highlighted the importance of
investing in Alaska's forestry sector now for long-term economic
gains, noting that while current public servants may not see
direct benefits, future Alaskans will reap the rewards. He
expressed gratitude for the committee's hearing and looked
forward to further discussions on revitalizing Alaska's forestry
industry.
5:00:21 PM
CHAIR GIESSEL held SB 75 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2.7.25 SB 67 Transmittal Letter.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 67 |
| 2.7.25 SB 67 Fiscal Note DCCED-DCRA.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 67 |
| 2.7.25 SB67 PowerPoint Presentation to SRES.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 67 |
| 2.7.25 SB 67 Sectional Analysis version A.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 67 |
| 2.7.25 SB 75 Sectional Analysis Timber Management Leases 1.28.2025.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 75 |
| 2.7.25 SB75 Timber Mgmt. Leases Transmittal Letter.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 75 |
| 2.7.25 SB75 DNR presentation to SRES Timber Management Leases.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 75 |
| 2.7.25 SB 75 Fiscal Note DNR.pdf |
SRES 2/7/2025 3:30:00 PM |
SB 75 |