Legislature(2021 - 2022)SENATE FINANCE 532
05/03/2022 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB54 | |
| SB230 | |
| SB85 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 85 | TELECONFERENCED | |
| + | SB 230 | TELECONFERENCED | |
| + | HB 54 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 85
"An Act relating to forest land use plans; relating to
forest land use plan appeals; relating to negotiated
timber sales; and providing for an effective date."
10:33:10 AM
HELGE ENG, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF
NATURAL RESOURCES, discussed the presentation, "SB 85:
Forest Land Use Plans, Negotiated Timber Sales: Senate
Finance Committee" (copy on file). He began with slide 1:
Overview of Presentation
I. SE Alaska timber industry is struggling to survive
II. How to protect timber jobs?
1. Change negotiated timber sale statutes to
allow local industry to sell all the timber it
harvests, as export if needed.
2. Provide contractual certainty: stable and
predictable supply of timber once a timber sale
has been purchased.
III. Sectional Analysis
Mr. Eng pointed to slide 2, "The timber industry in
Southeast Alaska is struggling to survive":
A dwindling supply of timber from the US Forest
Service has gutted the timber industry in Southeast
Alaska.
SE Alaska supports only 325 timber industry jobs
today, compared to 4,000 jobs in the 1990s. Now, even
those jobs are in danger.
Mr. Eng looked at slide 3, "Negotiated & competitive timber
sales":
? Negotiated sales: DOF may choose a timber purchaser
not only based on the price, but also on the number of
local jobs the sale provides. Negotiated sales
currently may not be exported as round logs.
? Competive sales: the highest auction bidder wins.
Timber from competitive sales may be exported.
Mr. Eng pointed to slide 5, "How can we provide and protect
jobs?"
Step 1. Change negotiated timber sale statutes to
allow local industry to sell all the timber it
harvests, as export if needed.
Currently, negotiated timber sales must be sold for
local manufacture, not export.
? A changing timber supply (more young growth) means
that some sizes of timber are not marketable in
Alaska.
? Demand for certain species (e.g., hemlock) is only
overseas or in the Pacific Northwest.
Mr. Eng addressed slide 6, "How can we provide and protect
jobs?"
Step 2. Once a timber sale has been purchased, provide
a stable and predictable supply of timber to the
operator by providing contractual certainty
Mr. Eng highlighted slide 7, "Stable Timber Supply":
An appeal can halt harvesting, which can be disastrous
to a logging company.
SB 85 ensures that once the decision has been made to
sell the timber, no further administrative appeals can
occur.
Input would still be gathered from public and
agencies.
Mr. Eng looked at slide 8, "Steps in a Timber Sale":
Public and agency comment gathered at each step.
1. Area Plans* & State Forest Plans*
2. Five-Year Schedule of Timber Sales
3. Best Interest Finding*
4. Forest Land Use Plans*
*Subject to appeal
Mr. Eng addressed slide 9, "Safeguards on timber harvests":
Timber harvests must adhere to the Alaska Forest
Resources and Practices Act (FRPA, AS 41.17), which:
? protects fish habitat and water quality, and
? ensures prompt reforestation.
Mr. Eng pointed to slide 10, "SB 85 has a zero fiscal
note."
10:37:24 AM
Mr. Eng addressed slide 12, "Section 1":
Amends AS 38.05.035(e)(6)(A) to maintain the exemption
of sales of 500,000 board feet of timber or less from
a written Best Interest Finding
requirement.
Mr. Eng discussed slide 13, "Section 2":
? Expands from 10 acres to 20 acres the size of timber
harvests exempt from needing a Forest Land Use Plan.
? Requires a Forest Land Use Plan to be adopted before
harvest.
? Allows a single Forest Land Use Plan to authorize
timber harvest for multiple harvest units in a timber
sale contract.
? Allows DNR to award a timber sale contract before
adopting a Forest Land Use Plan.
Mr. Eng highlighted slide 14, "Sections 3 & 4":
Section 3 Forest Land Use Plans may not be appealed.
Section 4 Removes negotiated timber sales from AS
38.05.115; moved to AS 38.05.118 (see Section 7 and
8).
Mr. Eng pointed to slide 15, "Section 5":
Adds new subsection to AS 38.05.115(d) requiring best
interest findings to consider whether the timber sale
buyer will:
? hire Alaska residents, ? contract with Alaskan
businesses,
? use or establish Alaskan hiring facilities, job
centers, or internet job systems.
10:39:11 AM
Co-Chair Bishop asked where the language in Section 5
originated.
10:39:14 AM
Mr. Eng replied that the language was added in an amendment
from the other body.
10:39:24 AM
Co-Chair Bishop appreciated the language.
10:39:43 AM
Mr. Eng noted that the commissioner already had the
opportunity to consider criteria.
10:39:51 AM
Mr. Eng addressed slide 16, "Section 6":
Local manufacture of wood is not required for
negotiated timber sales.
Mr. Eng pointed to slide 17, "Sections 7-8":
Section 7 AS 38.05.115 negotiated timber sales are
now consolidated in AS 38.05.118.
Section 8 Consolidates another provision from AS
38.05.115 into AS 38.05.118.
Mr. Eng discussed slide 18, "Sections 9-10":
Section 9 Allows timber sales to be negotiated for
local manufacture of both high-value-added and other
value-added wood products.
Section 10 Deletes requirement that negotiated
timber sales must include contract terms limiting the
sale to the amount of timber the commissioner
determines to be the maximum amount that could be
commercially practical to harvest.
Mr. Eng highlighted slide 19, "Sections 11-13":
Section 11 A conforming amendment due to the
consolidation of negotiated timber sales in AS
38.05.118.
Section 12 Because of the consolidation of the
negotiated sales provisions in AS 38.05.118, both AS
38.05.115(b) and (c) are unnecessary. AS 38.05.123(e)
is repealed due to the amendments in Section 2 and
thus to avoid redundancy. AS 38.05.123(g) is repealed
because DOF has not used it for .123 timber sales.
Section 13 Establishes an immediate effective date.
10:41:14 AM
Co-Chair Bishop OPENED public testimony.
10:41:35 AM
JESSICA PLACHTA, EXECUTIVE DIRECTOR, LYNN CANAL
CONSERVATION, HAINES (via teleconference), spoke in
opposition to the legislation. She believed that the
states forest laws should be strengthened and not
weakened. She expressed concern that the public comment
opportunity was being removed from the process, thereby
putting communities at risk. She lamented that loggers
would suffer as their livelihoods were sold and exported.
local communities would lose their say over the landscapes
they depended on for their economies, recreation, and
subsistence.
10:43:45 AM
ESTHER GONZALEZ, SELF, CALIFORNIA (via teleconference),
testified against the legislation.
10:45:15 AM
MATT JACKSON, SELF, SITKA (via teleconference), spoke in
opposition to the bill. He thought that the bill would harm
the states ability to develop local value-added markets.
He thought that the bill made to many exemptions as to when
best interest finding should be considered. He thought that
the criteria for local value-adding and local economic
impact and the best interest findings should be applied to
timber sales of any size. He opposed any exemptions to the
best interest findings. He disagreed with the removal of
the public comment period after the land use plan was
issued, which he qualified as contrary to the public
process. He strongly encouraged a no vote from the
committee.
10:47:39 AM
Co-Chair Bishop CLOSED public testimony.
SB 85 was HEARD and HELD in committee for further
consideration.
Co-Chair Bishop discussed housekeeping.