Legislature(2021 - 2022)BUTROVICH 205
04/04/2022 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB85 | |
| SB223 | |
| HB148 | |
| HB209 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 85 | TELECONFERENCED | |
| += | SB 223 | TELECONFERENCED | |
| += | HB 148 | TELECONFERENCED | |
| += | HB 209 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 85-FOREST LAND USE PLANS; TIMBER SALES
4:01:28 PM
VICE CHAIR MICCICHE announced the consideration of 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."
He stated that this was the second hearing this session and the
intent was to hear a refresher from the department, answer any
questions, consider amendments, and look to the will of the
committee.
4:01:57 PM
HELGE ENG, Director, Division of Forestry, Department of Natural
Resources (DNR), Anchorage, Alaska, stated that the motivation
for SB 85 is to support a viable timber industry in the state by
increasing the availability of timber from state lands and
making the timber sale process more flexible.
MR. ENG stated that SB 85 has two major elements. The first,
which is in Section 4, is to provide contractual certainty to
timber operators by prohibiting administrative appeals once a
forest land use plan (FLUP) has been approved. An appeal at that
point in the process can be disastrous to a small logging
company. The four opportunities for appeal during the process
remain and the public and agencies could still provide input
after the plan is approved. It's just that the appeal option
would be eliminated after the FLUP is approved.
4:05:40 PM
MR. ENG stated that the second element of SB 85 is to allow
export of timber harvested in a negotiated sale. The export of
timber harvested in a competitive sale is already allowed. He
reminded the committee that the two types of timber sales are
competitive and negotiated. In a competitive sale the timber is
sold in either an open or sealed bid process to the highest
bidder. In a negotiated sale, the division chooses the purchaser
based on the highest bid and the number of local jobs the sale
provides. He said the fact that Southeast Alaska timber
operators typically are unable to outbid out-of-state operators
in a competitive sale emphasizes the importance of providing a
consistent negotiated timber sale process.
MR. ENG stated that SB 85 will amend the negotiated timber sale
statutes to allow the local industry to sell the timber it
harvests as export, as needed. The current supply of timber is
constantly changing and there is more young growth, which is
less marketable in Alaska. Furthermore, the demand for species
such as hemlock is primarily overseas or the Pacific Northwest.
MR. ENG summarized that SB 85 changes the timber sale statutes
by eliminating administrative appeals once the forest land use
plan (FLUP) has been approved and the timber sold, and it allows
exports of timber harvested in a negotiated sale.
4:08:48 PM
SENATOR STEVENS asked how the division makes the decision about
whether a timber sale will be competitive or negotiated.
MR. ENG answered the division considers the number of bidders,
the type of timber sale, and the need for timber sales by
various timber operators to remain in business. Section 2
outlines the six criteria the commissioner will consider in
addition to the considerations of local economic stability and
the best interest of the Alaska timber industry.
VICE CHAIR MICCICHE noted that there were amendments for the
committee to consider.
4:11:00 PM
SENATOR KIEHL moved Amendment 1, work order 32-GS1607\A.1, on
behalf of Senator Kawasaki.
32-GS1607\A.1
Bullard
2/2/22
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR KAWASAKI
TO: SB 85
Page 1, line 2, following "sales;":
Insert "relating to disposal procedures for
selling timber;"
Page 7, following line 13:
Insert a new bill section to read:
"*Sec. 6. AS 38.05.115 is amended by adding a new
subsection to read:
(d) In making the best interest
finding required by AS 38.05.035(e) for a
disposal of timber under AS 38.05.110 -
38.05.123, the commissioner shall consider, in
addition to other factors, whether the bidder
or buyer, to the maximum extent permitted by
law, commits to
(1) hire qualified residents
from throughout the state;
(2) contract with businesses
located in the state;
(3) establish hiring
facilities or use existing hiring facilities in
the state; and
(4) use, as far as is
practicable, the job centers and associated
services operated by the Department of Labor
and Workforce Development and an Internet-based
labor exchange system operated by the state."
Renumber the following bill sections accordingly.
SENATOR MICCICHE objected for purposes of discussion.
SENATOR KIEHL explained that Amendment 1 would require
additional factors to be considered in a best interest finding
(BIF) in sales that are subject to a BIF. In addition to the
existing requirements, the department would also consider
whether the bidder or buyer, to the maximum extent permitted by
law, commits to hire qualified residents throughout the state;
to contract with Alaska businesses; to establish hiring
facilities or use existing hiring facilities in the state; and
to use, to the extent possible, job centers and other services
the Department of Labor offers to promote Alaska hire.
4:12:19 PM
SENATOR MICCICHE asked Mr. Eng how Amendment 1 would impact the
timber sale process.
MR. ENG answered that the process could accommodate Amendment 1,
but arguably it's not needed because the existing statute allows
the commissioner to consider those elements. He also pointed out
that the best interest finding is made to determine the type of
sale to offer. No decision about the buyer has been made at that
the BIF stage of the process, so it would be difficult to
determine whether buyers in a competitive sale would meet that
additional criteria.
4:14:10 PM
SENATOR MICCICHE noted that the language in the amendment says
the commissioner shall consider" which does not constrain the
department. He offered his reading that the amendment suggests
that it is important to the extent possible to put Alaskans
first in the best interest findings considerations. He asked
Senator Kiehl if that was his understanding.
4:14:38 PM
SENATOR KIEHL responded that was well said. The amendment does
not change the constitution to require Alaska hire for every
contract for every sale. It simply urges a hard look at whether
Alaska hire and the other Alaska-centered elements can be
included in the sales to come.
4:15:08 PM
SENATOR MICCICHE withdrew his objection to Amendment 1 to SB 85.
Finding no further objection, Amendment 1 was adopted.
4:15:30 PM
SENATOR STEVENS moved Amendment 2, work order 32-GS1607\A.2, on
behalf of the committee.
32-GS1607\A.2
Bullard
2/4/22
AMENDMENT 2
OFFERED IN THE SENATE
TO: SB 85
Page 5, line 31, through page 6, line 10:
Delete all material.
Renumber the following bill sections accordingly.
VICE CHAIR MICCICHE objected for purposes of discussion.
4:15:52 PM
INTIMAYO HARBISON, Staff, Senator Josh Revak, Juneau, Alaska,
explained that Amendment 2 removes Section 2 of the bill. He
relayed his understanding that Section 2 was moot because DNR
had amended the section of regulation that bill Section 2
addresses.
SENATOR VON IMHOF asked why Section 2 was being deleted when Mr.
Eng just said it was that section that helped the division
determine whether to hold a competitive or negotiated sale.
MR. HARBISON said that's correct, but his understanding was that
the department changed the regulations so bill Section 2 was
redundant and unnecessary.
VICE CHAIR MICCICHE asked Mr. Eng to comment on Mr. Harbison's
statement.
MR. ENG explained that [AS 38.05.110] already allows the
commissioner to consider any and all factors considered relevant
in determining which type of sale to offer. The logic deleting
Section 2 is that it is preferable to allow flexibility in the
considerations, because prescriptive requirements may in fact
serve as springboard for challenges to a timber sale.
4:18:32 PM
SENATOR MICCICHE withdrew his objection; finding no further
objection, Amendment 2 was adopted.
SENATOR KIEHL said he understands that the bill is moving from
committee today and he believes that some parts of the bill are
good. However, he wanted the record to reflect that he had
significant concerns about delaying when a forest land use plan
(FLUP) has to be in place relative to a sale and prohibiting an
appeal once the FLUP is adopted and/or there is a sale. He
acknowledged that hypothetically there were four opportunities
to comment, but the land use plans for his area of the state
haven't changed for 20 years, so the analysis isn't exactly
sale-by-sale and that limits the public's ability to provide
meaningful comments.
VICE CHAIR MICCICHE solicited a motion.
4:20:31 PM
SENATOR STEVENS moved to report SB 85, work order 32-GS1607\A,
as amended, from committee with individual recommendations and
attached fiscal notes.
VICE CHAIR MICCICHE found no objection, and CSSB 85(RES) was
reported from the Senate Resources Standing Committee.