02/28/2024 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Annual Mining Update | |
| HB282 | |
| HB296 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 282 | TELECONFERENCED | |
| += | SB 92 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 296 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 28, 2024
1:29 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Stanley Wright
Representative Jennie Armstrong
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): ANNUAL MINING UPDATE
- HEARD
HOUSE BILL NO. 282
"An Act relating to access roads; relating to state land;
relating to contracts for the sale of state land; relating to
the authority of the Department of Education and Early
Development to dispose of state land; relating to the authority
of the Department of Transportation and Public Facilities to
dispose of state land; relating to the authority of the
Department of Natural Resources over certain state land;
relating to the state land disposal income fund; relating to the
sale and lease of state land; relating to covenants and
restrictions on agricultural land; and providing for an
effective date."
- MOVED CSHB 282(RES) OUT OF COMMITTEE
HOUSE BILL NO. 296
"An Act relating to the powers of the board of agriculture and
conservation; relating to loans and limitations under the Alaska
Agricultural Loan Act; relating to federal crop insurance
contributions; relating to municipal and state procurement
preferences for agricultural products harvested in the state and
fisheries products harvested or processed in the state; and
providing for an effective date."
- MOVED CSHB 296(RES) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 92(2D RES)
"An Act relating to state ownership of submerged land underlying
navigable water within the boundaries of federal areas; and
providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 282
SHORT TITLE: STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/24 (H) READ THE FIRST TIME - REFERRALS
01/22/24 (H) TRA, RES, FIN
02/06/24 (H) TRA AT 1:00 PM BARNES 124
02/06/24 (H) Heard & Held
02/06/24 (H) MINUTE(TRA)
02/13/24 (H) TRA AT 1:30 PM BARNES 124
02/13/24 (H) Moved HB 282 Out of Committee
02/13/24 (H) MINUTE(TRA)
02/14/24 (H) TRA RPT 6DP 1NR
02/14/24 (H) DP: MINA, MCKAY, VANCE, SUMNER,
C.JOHNSON, MCCABE
02/14/24 (H) NR: STUTES
02/19/24 (H) RES AT 1:00 PM BARNES 124
02/19/24 (H) -- MEETING CANCELED --
02/21/24 (H) RES AT 1:00 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) RES AT 1:00 PM BARNES 124
02/23/24 (H) Heard & Held
02/23/24 (H) MINUTE(RES)
02/28/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 296
SHORT TITLE: AGRICULTURAL PRODUCTS/LOANS/SALES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/26/24 (H) READ THE FIRST TIME - REFERRALS
01/26/24 (H) RES
02/12/24 (H) RES AT 1:00 PM BARNES 124
02/12/24 (H) Heard & Held
02/12/24 (H) MINUTE(RES)
02/14/24 (H) RES AT 1:00 PM BARNES 124
02/14/24 (H) Heard & Held
02/14/24 (H) MINUTE(RES)
02/23/24 (H) RES AT 1:00 PM BARNES 124
02/23/24 (H) Heard & Held
02/23/24 (H) MINUTE(RES)
02/28/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
DEANTHA SKIBINSKI, Executive Director
Alaska Miners Association
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Annual Mining Update.
KAREN MATHIAS, Executive Director
Alaska Metal Mines
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Annual Mining Update.
KATIE SWEENEY, Executive Vice President & COO
National Mining Association
Washington, D.C.
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Unearthing Potential," during the Annual Mining Update.
RACHEL LONGACRE, Chief of Operations
Division of Mining, Land and Water
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Was available for commentary during the
hearing on HB 282.
CRAIG VALDEZ, Staff
Representative George Rauscher
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained amendments to HB 296.
BRENT GOODRUM, Deputy Commissioner
Alaska Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
296.
ACTION NARRATIVE
1:29:18 PM
CHAIR MCKAY called the House Resources Standing Committee
meeting to order at 1:29 p.m. Representatives Baker, McCabe,
Armstrong, Mears, Dibert, and McKay were present at the call to
order. Representatives Wright, Saddler, and Rauscher arrived as
the meeting was in progress.
CHAIR MCKAY, before commencing with items on the agenda, issued
an apology to ENSTAR Natural Gas Company regarding the manner in
which he had asked a question regarding liquified natural gas in
Canada during the 2/26/24 House Resources Standing Committee
meeting.
The committee took an at-ease from 1:31 p.m. to 1:33 p.m.
^PRESENTATION(S): ANNUAL MINING UPDATE
PRESENTATION(S): ANNUAL MINING UPDATE
1:33:02 PM
CHAIR MCKAY announced that the first order of business would be
the Annual Mining Update presentation.
1:33:58 PM
DEANTHA SKIBINSKI, Executive Director, Alaska Miners
Association, introduced herself and the two other presenters and
turned over the beginning of the presentation to Karen Mathias.
1:34:36 PM
KAREN MATHIAS, Executive Director, Alaska Metal Mines, co-
presented a PowerPoint presentation [hard copy included in the
committee packet], titled "Alaska Mining: Reaching Our
Potential." She described how the U.S. is dependent on
obtaining essential minerals from other countries to build its
military assets. She expressed her concern that China and
Russia dominate the processing and production of those minerals.
Each F-35 stealth fighter utilizes over 900 pounds of rare earth
elements.
MS. MATHIAS explained that global demand for greater energy
diversification and technology will require an increase in
minerals demand. She exemplified electric vehicles which
require many different minerals compared to conventional cars.
The global demand for these minerals is increasing as market
demand continues to favor electric vehicles. Of all the
potential minerals to be found in Alaska, currently only gold
and silver are being produced. Feasibility studies are needed
to determine the viability of the extraction for various
minerals including graphite. China recently added a list of
minerals that are subject to export controls and restrictions.
China currently dominates the supply chain, and "Alaska should
be part of the solution."
1:38:51 PM
REPRESENTATIVE MCCABE made note of antimony deposits found in
Alaska. China and Russia currently are the biggest producers
and will not sell to the U.S. He sought to highlight the
critical need of the military for rare minerals.
1:40:14 PM
MS. MATHIAS discussed strict environmental standards in Alaska,
which are monitored and enforced. She emphasized the revenue
that mining gives to local and state government: In 2022 that
was $55 million and approximately $131 million, respectively.
In 2022, the mining industry spent $1 billion on goods and
services with 450 Alaska businesses. She offered statistics
related to jobs and training for Alaskans: 11,400 total jobs;
$1 billion annual wages; 73 percent average Alaska residents
employed at the six large mines; 90-plus communities where
mining employees live; and $2.7 million invested in University
of Alaska (UA) and vocational programs. She spoke about royalty
payments from Red Dog Mine to Alaska Native corporations: $266
million in 2022; $1.8 billion in total since [1989]. She
reported that in 2022, $4.5 million were contributed to more
than 280 nonprofit organizations. She turned over the next part
of the presentation to Katie Sweeney.
1:45:27 PM
KATIE SWEENEY, Executive Vice President & COO, National Mining
Association, gave a PowerPoint [hard copy included in the
committee packet], titled "Unearthing Potential." She noted
there are national policies that impede mining nationwide and in
Alaska. She echoed Ms. Matthias' statement about Alaska's
wealth of minerals. She talked about the intense growth toward
electrification and associated need for mineral extraction. She
stated nearly 400 mines are needed by 2035 for electric vehicles
alone but both policy and political will are lacking. She gave
examples and noted the lengthy process of construction to
production, including possible litigation. She talked about
federal issues, leasing options, and taxes. Ms. Sweeney
mentioned an Interagency Working Group and said most of its
recommendations are "low-hanging improvements," and she offered
examples. She said Congress has tried to take matters into its
own hands. She mentioned the Fiscal Responsibility Act of 2023,
which contains the first major amendments to the National
Environmental Policy Act (NEPA) since it was enacted in 1970.
The 2023 Act limits the scope of environmental impact statements
and assessments, places time and page limits on the documents,
establishes a process for determining a lead agency, allows for
project proponents to do their own environmental analysis under
supervision of a lead agency, and narrows the definition of
major federal action.
1:52:24 PM
MS. SWEENEY stated that the Council on Environmental Quality
recently proposed phase 2 changes to NEPA to supplement the 2022
rollback of the favorable 2020 NEPA reforms, which would not
respect the bipartisan spirit that drove the Fiscal
Responsibility Act NEPA amendment and fail to improve and reform
the permitting process. She offered an example. She talked
about Congress' focus on the process rather than substantive
outcomes. Ms. Sweeney talked about land access. She said
nearly 4.5 million acres are off limits to mining, 3.5 million
of those from presidential action via the Antiquities Act;
withdrawal of nearly 850,000 acres by the U.S. Department of the
Interior; a conservation and landscape rule by the U.S. Bureau
of Land Management (BLM); and other rule- and policy-making that
affects land access. She listed another impediment is the U.S.
Environmental Protection Agency's (EPA) comprehensive power
plant strategy, regarding coal power and involving air, water,
and waste, and ozone emissions and the potential retirement of
over 48 gigawatts of capacity in just a few years. She said EPA
has failed to conduct any kind of cumulative impact analysis of
these coordinated activities. She noted that coal is vital to
supplying electricity; it remains a workforce fuel for power
generation: 20 percent in 2022 and 17 percent in 2023. Ms.
Sweeney spoke about the importance of clean water but said there
are conflicting regulations with every administration, which
have led to increased uncertainty in the mining industry. She
offered examples, and she brought attention to the cost of
regulatory onslaught, as compiled by the American Action Forum.
2:02:25 PM
MS. SKIBINSKI presented a PowerPoint presentation, titled
"Alaska Mining: Reaching Our Potential," she began on slide 11,
titled "Bringing it Home to Alaska." She discussed statehood
defense including the coordinated agency efforts to oppose
federal overreach and encroachment on states' rights. She noted
the legislature's efforts in establishing the Citizens Advisory
Commission on Federal Areas (CACFA). She discussed the efforts
to promote Alaska to investors as a smart and environmentally
and ethically responsible place for resource development.
2:04:03 PM
MS. SKIBINSKI explained how Alaska is investing in education and
training to grow Alaska's workforce and labor pool through
education tax credits, K-12 Alaska Resource Education program,
and vocational training across the state. She emphasized the
importance of partnerships with communities and how mines have
become anchors of Alaska communities. She exemplified Red Dog
Mine, which has transformed Northwest Alaska. She stated that
the mines around Juneau are the largest taxpayers and private
sector employers. She discussed the Alaska Mental Health Trust,
which creates resource revenues for beneficiaries and the Office
of Project Management and Permitting, which coordinates the
reimbursable service agreements. She emphasized the importance
of partnerships with Alaska Native Corporations. The
legislature has been an important partner in ensuring the health
of the mining industry.
2:08:16 PM
MS. SKIBINSKI explained that the two largest cost drivers for
the mining industry are the lack of infrastructure and energy
costs. Limited access to roads, ports, power, and broadband
makes it difficult to bring mines online. She explained how
statewide issues are also challenges to the mining industry such
as affordable housing availability, childcare, and skilled
worker shortages.
2:10:28 PM
MS. SKIBINSKI explained that the lack of a long-term and stable
fiscal policy plan creates uncertainty for investors. She
emphasized the importance of ensuring that permitting agencies
are adequately funded so that skilled personnel are permitting
and overseeing mining projects and carrying out Alaska's
stringent environmental regime. The implementation of
reasonable policies will attract investment and ensure public
trust in the process. She said that mining is in the spotlight
like never before, and she urged that now is the time for Alaska
to leverage its mineral endowment.
2:12:15 PM
CHAIR MCKAY thanked the presenters.
HB 282-STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT
2:13:26 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 282, "An Act relating to access roads; relating
to state land; relating to contracts for the sale of state land;
relating to the authority of the Department of Education and
Early Development to dispose of state land; relating to the
authority of the Department of Transportation and Public
Facilities to dispose of state land; relating to the authority
of the Department of Natural Resources over certain state land;
relating to the state land disposal income fund; relating to the
sale and lease of state land; relating to covenants and
restrictions on agricultural land; and providing for an
effective date."
2:14:17 PM
CHAIR MCKAY opened public testimony on HB 282. After
ascertaining no one wished to testify, he closed public
testimony.
2:14:57 PM
REPRESENTATIVE MEARS moved to adopt Amendment 1 to HB 282,
labeled 33-GH2634\A.1, Bullard, 2/26/24, which read as follows:
Page 4, line 9:
Delete "may"
Insert "shall offer the land to the Department of
Natural Resources. If the Department of Natural
Resources accepts the offer within 45 days after
receiving the offer, the department shall transfer the
land to the Department of Natural Resources. If the
Department of Natural Resources rejects the offer or
fails to accept the offer within 45 days after
receiving the offer, the offer is terminated and the
department may sell, contract to sell, lease, or
exchange the land according to terms, standards, and
conditions established by the commissioner."
Page 4, lines 10 - 13:
Delete all material.
2:15:02 PM
CHAIR MCKAY objected for purposes of discussion.
2:15:06 PM
REPRESENTATIVE MEARS synopsized that Amendment 1 would provide
more opportunities for discussions on workload and balance this
disposition.
2:16:02 PM
RACHEL LONGACRE, Chief of Operations, Division of Mining, Land
and Water, Department of Natural Resources, stated that the
administration was neutral to the amendment.
2:16:25 PM
CHAIR MCKAY removed his objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
2:16:59 PM
REPRESENTATIVE RAUSCHER moved to report HB 282, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHB
282(RES) was reported out of the House Resources Standing
Committee.
2:17:44 PM
The committee took a brief at-ease at 2:17 p.m.
HB 296-AGRICULTURAL PRODUCTS/LOANS/SALES
2:17:58 PM
CHAIR MCKAY announced that the final order of business would be
HOUSE BILL NO. 296, "An Act relating to the powers of the board
of agriculture and conservation; relating to loans and
limitations under the Alaska Agricultural Loan Act; relating to
federal crop insurance contributions; relating to municipal and
state procurement preferences for agricultural products
harvested in the state and fisheries products harvested or
processed in the state; and providing for an effective date."
[Before the committee, adopted as a working document on 2/23/24
and amended, was CS for HB 296, Version 33-GH2386\B, Bullard,
2/12/24 ("Version B").]
CHAIR MCKAY entertained [further] amendments.
2:18:29 PM
REPRESENTATIVE RAUSCHER moved to adopt Amendment [7] to HB 296,
labeled 33-GH2386\B.14, Bullard, 2/24/24, which read as follows:
Page 10, following line 25:
Insert a new bill section to read:
"* Sec. 25. The uncodified law of the State of
Alaska is amended by adding a new section to read:
INSTITUTIONAL PURCHASING PROCESS REVIEW AND
REPORT TO THE LEGISLATURE. (a) The director of the
division of the Department of Natural Resources with
responsibility for agriculture, in collaboration with
the chief procurement officer appointed under
AS 36.30.010, shall prepare a report containing
recommendations as to how state procurement processes
may be amended to purchase greater quantities of
agricultural products harvested in the state. In
preparing the report, the director shall consult with,
and solicit recommendations from, state agricultural
producers, distributors, and agency buyers. The report
must include
(1) a review of state agency contracting
and procurement processes to identify opportunities
for the agencies to procure greater quantities of
agricultural products harvested in the state and
related findings;
(2) recommendations as to how existing
state agency procurement practices, policies,
regulations, or state statutes could be amended to
facilitate state agencies purchase of agricultural
products harvested in the state; and
(3) a description of the result of
collaboration with state agricultural producers,
distributors, and agency buyers.
(b) The director of the division of the
Department of Natural Resources with responsibility
for agriculture, in collaboration with the chief
procurement officer appointed under AS 36.30.010,
shall submit the report to the senate secretary and
chief clerk of the house of representatives on or
before the first day of the First Regular Session of
the Thirty-Fourth Alaska State Legislature, and notify
the legislature that the report is available."
Renumber the following bill sections accordingly.
Page 11, line 17:
Delete "Sections 1 and 26"
Insert "Sections 1 and 27"
CHAIR MCKAY objected for the purpose of discussion.
2:19:01 PM
CRAIG VALDEZ, Staff, Representative George Rauscher, Alaska
State Legislature, explained that the amendment was in regard to
procurement and other factors made to the legislature regarding
the Crop Act.
2:20:34 PM
REPRESENTATIVE ARMSTRONG asked whether the department
anticipated any costs.
2:20:42 PM
BRENT GOODRUM, Deputy Commissioner, Department of Natural
Resources, said the amendment was an additional reporting
requirement led by the director of the Division of Agriculture,
and the department noted it would increase the fiscal impact of
the bill.
REPRESENTATIVE ARMSTRONG asked Mr. Goodrum whether he supported
the amendment.
MR. GOODRUM answered that it is an area that needed more work
and better suited to other arenas.
2:22:19 PM
REPRESENTATIVE MEARS noted that her office recognized that
procurement was a powerful tool in Alaska and there must be more
understanding towards meaningful changes to policy.
2:23:06 PM
REPRESENTATIVE RAUSCHER [moved to] withdraw Amendment [7].
2:23:22 PM
REPRESENTATIVE SADDLER asked Deputy Commissioner Goodrum to
expand on the resources and qualifications needed.
2:23:40 PM
MR. GOODRUM said procurement statewide is a big issue and a
topic that has "many different tentacles," and far beyond the
scope of what his director needed to be focused on in the
upcoming growing season.
2:24:49 PM
CHAIR MCKAY removed his objection and announced that [there
being no objection], Amendment [7] had been withdrawn.
2:25:03 PM
REPRESENTATIVE MEARS moved to adopt Amendment [8] to HB 296,
labeled 33-GH2386\B.15, Bullard, 2/26/24, which read as follows:
Page 2, line 5:
Delete "or"
Insert "[OR]"
Page 2, line 6, following "machinery;":
Insert "or
(v) in-state manufacturing of food or
production of animal feed;"
Page 2, line 16:
Delete "or"
Page 2, line 17, following "state;":
Insert "or
(vi) in-state manufacturing of food or production of
animal feed;"
CHAIR MCKAY objected for the purpose of discussion.
REPRESENTATIVE MEARS said the amendment focused on manufacturing
not just food for people but feed for animals.
2:26:45 PM
REPRESENTATIVE SADDLER asked about the size or value of food
production for humans and production for animal feed.
REPRESENTATIVE MEARS answered that she didn't have that scope in
front of her.
2:27:20 PM
REPRESENTATIVE RAUSCHER questioned what DNR would have to say
about the amendment.
2:27:28 PM
MR. GOODRUM confirmed that DNR was supportive of Amendment [8].
2:28:08 PM
REPRESENTATIVE SADDLER restated his earlier question regarding
the authorization for loans.
MR. GOODRUM mirrored Representative Mears and stated it is not
understood at this moment.
REPRESENTATIVE SADDLER noted his concern over providing too much
money or not enough.
MR. GOODRUM confirmed that DNR was looking to add value to the
market.
2:29:44 PM
REPRESENTATIVE MEARS recalled the revolving loan fund being
underutilized; therefore, having opportunity for larger amounts
and much needed manufacturing included would be beneficial to
the state.
2:30:13 PM
CHAIR MCKAY removed his objection. [There being no further
objection, Amendment 8 was adopted.]
2:30:20 PM
The committee took a brief at-ease at 2:30 p.m.
2:30:37 PM
REPRESENTATIVE RAUSCHER moved to report CSHB 296, Version 33-
GH2386\B, Bullard, 2/12/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes and
to give Legislative Legal Services the authority to make
technical and conforming changes. There being no objection,
CSHB 296(RES) was reported out of the House Resources Standing
Committee.
2:31:40 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:32 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 296 amendment B.15.pdf |
HRES 2/28/2024 1:00:00 PM |
HB 296 |
| HB 296 amendment B.14.pdf |
HRES 2/28/2024 1:00:00 PM |
HB 296 |
| HB 282 amendment A.1.pdf |
HRES 2/28/2024 1:00:00 PM |
HB 282 |
| HRES Mining Update NMA slides 2024-02-28.pdf |
HRES 2/28/2024 1:00:00 PM |
|
| HRES Mining Update 2024-02-28 .pdf |
HRES 2/28/2024 1:00:00 PM |