Legislature(2023 - 2024)BUTROVICH 205
03/15/2023 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB68 | |
| SB34 | |
| SB87 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 68 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
| *+ | SB 87 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 87-LUMBER GRADING PROGRAM
4:14:46 PM late
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
87, "An Act relating to a lumber grading training program and
lumber grading certificates; relating to use of lumber graded
and certified by a person holding a lumber grading training
program certificate; and providing for an effective date."
4:15:33 PM
SENATOR JESSE BJORKMAN, District D, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 87, introduced the legislation by
reading the following prepared statement:
[Original punctuation provided.]
I am pleased to introduce Senate Bill 87, "An Act
relating to a lumber grading training program and
lumber grading certificates; relating to use of lumber
graded and certified by a person holding a lumber
grading training program certificate; and providing
for an effective date."
I had several constituents approach me about the
excellent qualities of our high strength local lumber
and the need for a local lumber grading program. When
I met with Department of Natural Resources, I learned
that an effort was underway to develop such a program.
Stakeholders including sawmill owners, home builders,
housing authorities, economic development
associations, vocational educators, and the Department
of Natural Resources and the US Forest Service have
all had a role in promoting and developing this
concept.
There are several things that have contributed to the
need for this bill:
• Lumber used in residential construction must be
graded and stamped to meet building code and
financing requirements. However, small Alaska
sawmills do not produce enough dimensional lumber
to justify the cost of hiring a grading agency to
grade and stamp their lumber;
• The cost of lumber and other construction
materials has risen dramatically over the last
several years, making it harder for Alaskans to
address the housing shortages affecting most of
our state; and
• Regions off the road system experience even
higher costs of construction as materials have to
be flown or barged into areas that may already
have abundant timber growing nearby.
A local lumber grading program would allow sawmill
operators to become certified to grade and sell the
dimensional lumber they mill for residential
construction to a homeowner or the homeowner's
contractor. This will provide Alaskans the option to
purchase a local product for use in the construction
of their homes. And it will create economic
opportunities that will result in permanent, stable,
family-wage jobs in rural communities and villages,
and with strengthen and diversify local economies.
4:20:12 PM
SENATOR BJORKMAN continued the introduction of SB 87.
In some parts of the state, there will be a
substantial cost savings from locally produced
dimensional lumber. According to information we have
from 2022:
• The average price of an 8' 2X4 in Fairbanks was
$9.44;
• The average total price of barging an 8' 2X4 to
interior communities was $12.00; and
• The average total price of air shipping an 8' 2x4
to interior communities was $21.00. The actual
price could go as high as $30.44.
The Kuskokwim Corporation has been working with the
Alaska Cold Climate Research Center on a heat-
efficient kit house that uses timber harvested in
their region. Using locally produced and graded
dimensional lumber would be significantly cheaper than
shipping in dimensional lumber, and would help the
Corporation meet more of the housing needs in this
part of rural Alaska. Many of the villages in the
Tanana Chiefs Conference also have small sawmills and
may be able to take advantage of the local lumber
grading program in the future to help build housing in
their communities.
In Southeast Alaska, a coalition of tribal, public
sector, and private sector partners is interested in
transitioning away from old growth timber to a
sustainable industry manufacturing young growth wood
products. This would provide economic opportunity and
a local supply of wood products for consumers, but the
limited opportunities for sales if sawmill operators
are not able to grade their lumber is one of the
hurdles for its implementation.
A local lumber grading program would also lower the
barrier for entry to create new sawmills. These
sawmills can serve as a catalyst to increase
investment in forest management and help build the
timber sector statewide. A larger timber sector in
turn can provide the additionality needed for creating
and selling forest carbon offset projects, adding
further investment and revenues to the timber sector.
The Department of Natural Resources Division of
Forestry and Fire Protection would administer the
program and ensure that the training necessary for
certification is offered at least annually.
Jeremy Douse, Northern Region Forester of the
Department of Natural Resources Division of Forestry
and Fire Protection is here to provide the Committee
with a discussion of lumber grading, a deeper dive
into the need for a local lumber grading program, and
an overview of the program DNR would administer under
this bill.
4:22:12 PM
SENATOR BJORKMAN read the sectional analysis for SB 87:
[Original punctuation provided.]
Section 1: Adds new statutes to AS 41.17 directing the
Department of Natural Resources Division of Forestry
and Fire Protection to establish a local lumber
grading training program for conservative grading
standards established by DNR. It specifies the
frequency of the courses and directs the division to
identify the content of courses, qualifications for
instructors, and requirements for completion. The
section also provides guidance for issuing
certificates, specifies the duration of the
certificate, defines exceptions for certification
without taking a training course, and specifies how a
certificate may be revoked.
The section also adds new statutes to AS 41.17 that
allow for the use of locally graded lumber in
residential construction of single homes, duplexes, or
triplexes. The new language allows an individual
holding a lumber grading certificate to grade and sell
lumber that they have produced directly to a person
constructing a residence or a contractor and specifies
the documentation the seller must provide. The
language also provides a building inspector the
authority to approve, conditionally approve, or reject
the lumber for use in a residence.
Section 2: Provides an immediate effective date
SENATOR CLAMAN mentioned the reference to selling the lumber
directly to the builder. He asked whether the lumber could also
be sold to a company like Spenard Builders Supply.
SENATOR BJORKMAN said no.
SENATOR CLAMAN asked why not.
SENATOR BJORKMAN explained that the lumber grades for this
program aren't the same as traditionally graded lumber and
conflating the two grading systems would cause confusion. He
deferred further explanation to Mr. Douse.
4:24:37 PM
SENATOR KAUFMAN noted that the fiscal note designates the fund
source as UGF. He asked if he'd considered having the program
funded with DFG through a certification or inspection fee.
SENATOR BJORKMAN said he'd support exploring that notion once
the program has enough participants to support self-funding.
4:25:23 PM
SENATOR KAWASAKI asked why this lumber wouldn't be certified for
commercial construction.
SENATOR BJORKMAN mentioned the intention to conform to the
International Building Code standards, and deferred to Mr. Douse
to speak to the question further.
4:26:10 PM
At ease
4:26:59 PM
CO-CHAIR BISHOP reconvened the meeting and invited Mr. Jeremy
Douse to provide his testimony.
4:27:08 PM
JEREMY DOUSE, Northern Region Forester, Division of Forestry and
Fire Protection, Department of Natural Resources, Anchorage,
Alaska, delivered a presentation on local lumber grading. He
turned to slide 2, Grade Stamped Lumber, and spoke to the
following:
• Grade Stamped lumber allows the purchaser to know
the wood meets a quality standard
• Grading agencies such as Western Wood Products
Association (WWPA) publishes the Western Lumber
Grading Rules for appearance grading
• Grading rules are accredited by the American Lumber
Standards Committee (ALSC)
• Members of WWPA receive mill training, quality
assurance (QA), market analysis, and professional
development
• Small mill operators find it economically
challenging to become a member of these types of
associations
4:29:44 PM
CO-CHAIR BISHOP asked if mechanical testing involves the use of
a hydraulic press that breaks a 2X4 at a certain number of
pounds per square inch.
MR. DOUSE explained that dimensional lumber, such as 2X4s that
are rated Number 2, are tested for tension, compression, and
sheer strength and assigned a statistical design value. Ninety
five percent of Number 2 2X4s of that species should equal that
design value. In 2005, the Ketchikan Wood Technology Center and
the Western Wood Products Association (WWPA) conducted that
testing on four Alaska species: white spruce, Sitka spruce,
western hemlock, and yellow cedar. The results of those tests
were published and accepted by the American Lumber Standards
Committee, which made the proposed grading program possible.
4:31:03 PM
MR. DOUSE turned to slide 3 and discussed the average cost in
Alaska to be a member of the grading agency. He spoke to the
following:
• Membership Dues + Monthly Site Inspections +
Inspector Travel Costs ˜ $2200/month
• Membership options for small mill operators: - Only
pay for membership fees during active periods -
Stockpile milled material and bring in an inspector
when there is enough to justify the travel costs
• Difficult for small mills to produce enough volume
to justify these costs and remain profitable
CO-CHAIR BISHOP commented on the difficulties associated with
producing sufficient volumes to make membership economically
feasible.
4:33:01 PM
SENATOR CLAMAN asked, other than the Viking Lumber Company, how
many small Alaska mills are operating under a grading program.
MR. DOUSE responded that he was aware of three mills that are
operating under a grading agency; Northland and Viking operate
under WWPA and one mill operates under the Pacific Lumber
Inspection Bureau, which is a transient grading agency. Those
three mills produce sufficient volume to justify the cost, but
multiple small mills don't have the volume.
SENATOR CLAMAN asked if a number of mills were cutting and
selling ungraded lumber.
MR. DOUSE said yes; building with ungraded lumber is okay in
areas that don't have building codes and if it's done out-of-
pocket. Unstamped lumber can also be used in an area with
building codes if it's for a small structure such as a shed or
sauna.
4:34:58 PM
MR. DOUSE advanced to slides 4-6 to discuss what constitutes a
local-use/native lumber program. He spoke to the following:
• It is state law/regulation in seven states allowing
non graded/stamped locally produced dimensional
lumber in some construction applications
• It is often an exemption to a building code that
requires grade stamped lumber
• It is focused on small mill operators providing
opportunities for them to enter home construction
markets
4:36:10 PM
SENATOR WIELECHOWSKI asked, in those seven states that allow the
use of ungraded lumber, whether there had been any problems
associated with the quality of the wood.
MR. DOUSE said he hadn't heard of any problems. People he spoke
with in Wisconsin said that as a general rule, this lumber is
high quality; the mill owners are proud of their product and
want to see the program continue.
MR. DOUSE continued to discuss what constitutes a local
use/native lumber program:
• It includes a training program for small mill
operators on grading their own lumber and includes a
recertification schedule
• Because of the code exemption, it allows for
traditional home construction financing
• Gives building inspectors an opportunity to inspect
and reject the wood if necessary
4:38:31 PM
SENATOR WIELECHOWSKI asked if there were reports of increases in
the cost of insurance or mortgage financing when unstamped
lumber is used.
MR. DOUSE said he hadn't heard of any such increases in the
seven states that have local-use lumber programs.
CO-CHAIR GIESSEL commented that the last point about building
inspectors having the ability to inspect and reject the wood
assumes that the building is in a coded area.
MR. DOUSE said that's correct.
4:39:40 PM
He advanced to slide 6 and continued to discuss what constitutes
a local use/native lumber program:
• Local use lumber must be sold to the end user or the
contractor building the home
• Most states only allow residential (1 3 family
home) construction as well as outbuildings
• Mill operator must take and pass a grading course
• Certification only lasts for 5 years
• Mill operator provides a certificate with the local
lumber
• Only applies to softwood
SENATOR CLAMAN asked why the lumber could only be sold to the
end user and not a company like Spenard Builders Supply.
MR. DOUSE answered that the lumber grades in the local use
lumber program are simplified, whereas the lumber sold through a
box store is a very specific product. He said he'd talk about
this more later in the presentation.
4:42:23 PM
MR. DOUSE advanced to slide 7 to discuss why the local use
lumber program is needed in Alaska. He spoke to the following:
• Wood prices have increased dramatically for home
construction National Association of Home Builders
notes wood prices add $36k to new single family home
construction Alaska Housing Finance Corporation
cites high cost of construction as a reason new
building permits fell 15%
• Canadian import tariffs on softwood were raised to
17.99% in early 2022 Alaska imports ~$20 million
annually in wood products from Canada (Canadian
Trade Commission)
• Forest Management Salvage harvest of beetle-
killed trees less than 4 years past mortality
Increase forest management opportunities for private
landowners
• Increase economic activity in rural communities
• Increase milling capacity
4:44:56 PM
MR. DOUSE directed attention to the graph on slide 8 that
reflects US Forest Service mill surveys of capacity and
production. These surveys are done every five years on mills
located throughout the Tongass National Forest. It shows that
both sawmill capacity and production has reduced significantly
since 2000 when the estimated production was 87 million board
feet. In 2020, production was only 15.5 million board feet. He
opined that there was a lot of capacity for smaller mills.
4:45:51 PM
MR. DOUSE said the chart on slide 7 addresses Senator Claman's
question about why this lumber can't be sold to a retail outlet
like Spenard Builders Supply. It shows the grading categories
that somebody who is certified under the Western Wood Products
Association would be trained to use. It illustrates that timber
grading is complex and requires a lot of training to be a
certified professional. The program that SB 87 proposes is an
equivalent to the following use categories for dimensional
lumber:
Light Framing: Construction, Standard, Utility, Economy
Stud: Stud, Economy Stud
Structural Light Framing: Select Structural, No. 1, No. 2, No.
3, Economy
Joists and Planks: Select Structural, No. 1, No. 2, No. 3,
Economy
The lumber in the proposed local use program would not be grade
stamped, but the certification and a form that describes the
wood would be handed to the end user. If this lumber were sold
through a company like Spenard Builders Supply, it could be sold
anywhere and for any application, which is not the intention of
the program. The idea is that this lumber would go directly from
the sawmill to the end user.
4:48:11 PM
SENATOR BJORKMAN added that keeping the close connection between
the buyer and the seller provides accountability for the lumber.
If there is a building inspector, that person has the ability to
inspect the lumber and reject it if there's a quality issue.
4:48:57 PM
MR. DOUSE directed attention to the chart on slide 10 that shows
the substitute equivalent Alaska grades and the descriptions of
that lumber.
Number 2 and Better: Substitute equivalent to Number 2 Grade of
Structural Light Framing, Joists and Planks and Standard Grade
of the Light Framing use categories
Stud: Substitute equivalent to Stud Grade used in residential
construction
Number 3: Substitute equivalent to Number 3 Grade of Structural
Light Framing, Joists and Planks and Utility Grade of the Light
Framing use categories
4:49:35 PM
MR. DOUSE described the training and certification proposed for
the Alaska Local Use Lumber Program. He spoke to the following:
• One day free class focusing on visually grading
lumber to the three Alaska grades.
o Issuance of Alaska Local Use Lumber handbook
o Issuance of Air-Drying Best Practices document
• Offered at least annually in Southeast, Southcentral
and Interior
• Recertification required every five years
• Certification issued to the person, not the mill
SENATOR DUNBAR asked him to speak to the difference between air
dried and kiln dried wood. He opined that it goes to Senator
Bjorkman's point about the need for the seller to have a close
relationship with the end user to ensure they know the
appropriate use for the lumber.
MR. DOUSE explained that air drying is used quite a bit in
Alaska and there are best practices for stacking and testing the
moisture content. If the lumber has a moisture content of more
than 19 percent, it is considered green or partially air dried;
when the moisture content is below 19 percent, the lumber is
considered dry. Kiln dried means the lumber has been put into a
controlled environment where heat is applied to draw moisture
out of the wood.
SENATOR DUNBAR offered his understanding that there was a
difference in strength and quality depending on how the wood is
dried, so the buyer needs to know what they're doing.
MR. DOUSE agreed that an important part of the program was that
the seller could look the buyer in the eye and say that the wood
was green, partially air dried, or air dried to below 19 percent
moisture content so the end user knows what they're buying.
4:53:15 PM
SENATOR KAUFMAN spoke to the reasons to have dimensional lumber,
and asked if there was any thought given to making the lumber in
the home use program equivalent.
MR. DOUSE answered that the surface condition is one of the five
required designations in the form that's given to the end user.
If the lumber is rough cut, planed, or planed on one side, that
will be communicated on that form.
SENATOR KAUFMAN mentioned hybrid solar drying and asked him to
speak to additional methods of improving the quality of the wood
by drying in a semi-controlled environment.
CO-CHAIR BISHOP mentioned forests in the Interior that had
burned more than four years ago and didn't have any beetle
infestation. He asked if that lumber was kiln dried or air
dried.
MR. DOUSE replied that timber would be considered air dried
because it was not in a controlled environment.
4:56:14 PM
MR. DOUSE turned to slide 12 to discuss the special conditions
for selling lumber in the proposed program. He spoke to the
following:
• Mill owner/operator sells the lumber directly to the
end user or to the contractor building the home
• Lumber sale must include documentation that
describes the 5 designations (grade, species,
moisture content, surface condition, size)
• Lumber sale must include a copy of the mill owner's
certification with the Alaska Local Use Lumber
program
• Building inspector may refuse the lumber
4:58:05 PM
CO-CHAIR BISHOP held SB 87 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 68 Version B.PDF |
HSTA 4/11/2024 3:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Sponsor Statement ver. B 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
|
| SB 68 Sectional Analysis ver. B 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Doc DNR January 2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Doc Pew Research Center 02.20.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Support Letters through 3.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 68 Presentation DNR DMLW 03.14.2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 68 |
| SB 34 Version B.PDF |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Sponsor Statement ver. B 02.15.23.pdf |
SFIN 4/17/2023 1:30:00 PM SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Doc CACFA Audit Report 04.08.2020.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Doc CACFA Audit Summary 03.13.23.pdf |
SFIN 4/17/2023 1:30:00 PM SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 34 Support Letters rec'd by 03.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |
| SB 87 Version A.PDF |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Sponsor Statement ver. A 03.15.23.pdf |
SFIN 4/12/2023 1:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Sectional Analysis ver. A 03.15.23.pdf |
SFIN 4/12/2023 1:00:00 PM SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Fiscal Note DNR 03.10.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 Support Letters rec'd by 03.14.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 87 DOF Lumber Grading Presentation 03.15.2023.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 87 |
| SB 34 Sectional Analysis ver. B 02.15.23.pdf |
SRES 3/15/2023 3:30:00 PM |
SB 34 |