05/03/2024 01:30 PM House FINANCE

CS FOR SENATE BILL NO. 118(FIN)                                                                                               
                                                                                                                                
     "An Act relating to critical and essential minerals."                                                                      
                                                                                                                                
7:54:28 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  welcomed Senator  Merrick and asked  her to                                                                    
introduce the bill.                                                                                                             
                                                                                                                                
SENATOR  KELLY  MERRICK,  SPONSOR,  introduced  herself  and                                                                    
thanked the  committee for hearing the  bill. She introduced                                                                    
the legislation with prepared remarks:                                                                                          
                                                                                                                                
     Senate Bill  118 was  crafted alongside  the Department                                                                    
     of  Natural  Resources,  the  Department  of  Commerce,                                                                    
     Community  and  Economic   Development,  industry,  and                                                                    
     stakeholders.  It  directs  the  state  to  assess  our                                                                    
     critical mineral  potential and identify  strategies to                                                                    
     attract  investment.  The  capital budget  contains  $2                                                                    
     million plus  a $7  million federal match  for critical                                                                    
     mineral  mapping, so  Alaska  needs  a strategic  plan.                                                                    
     Critical  minerals  are  things like  lithium,  copper,                                                                    
     cobalt,  zinc, and  more. These  critical minerals  are                                                                    
     key  components  of  modern technology  like  the  cell                                                                    
     phones and  microwaves that we  use every day.  We need                                                                    
     to  ensure  the  world  can continue  to  access  these                                                                    
     resources and  Alaska can be  the most  valuable source                                                                    
     for   critical  minerals.   Demand  will   continue  to                                                                    
     increase as  renewable energy development  grows. These                                                                    
     minerals  are  needed  in  emerging  technologies  like                                                                    
     electric vehicles and  solar panels, as well  as in our                                                                    
     national defense  systems. Communist  China is  home to                                                                    
     the world  market for the extraction  and processing of                                                                    
     critical minerals. Currently,  they dominate 60 percent                                                                    
     of supply and 85 percent of refining.                                                                                      
                                                                                                                                
     Mr. Co-Chair,  this is unacceptable.  It is  crucial to                                                                    
     reduce our reliance on  adversarial nations and produce                                                                    
     these  minerals here  at home.  Senate Bill  118 passed                                                                    
     the other  body with  unanimous bipartisan  support. It                                                                    
     has the potential to increase  investment in Alaska and                                                                    
     provide the framework for us  to lead the United States                                                                    
     to critical mineral independence.                                                                                          
                                                                                                                                
Senator Merrick relayed that her staff was available to                                                                         
provide a sectional analysis or answer questions.                                                                               
                                                                                                                                
Co-Chair Foster requested to hear the sectional analysis.                                                                       
                                                                                                                                
7:56:48 PM                                                                                                                    
                                                                                                                                
KERRY CROCKER, STAFF, SENATOR KELLY MERRICK, went through                                                                       
the sectional analysis (copy on file):                                                                                          
                                                                                                                                
     Section  1: Adds  a new  section to  uncodified law  to                                                                    
     produce two reports:                                                                                                       
                                                                                                                                
          1.  Gives   legislative  intent  that   the  State                                                                    
          develops a strategy to encourage                                                                                      
          exploration,  development,   production  refining,                                                                    
          and   Value  -added   manufacturing  of   critical                                                                    
          minerals in the state.                                                                                                
          2.  The  Department  of  Natural  Resources  shall                                                                    
          compare  Alaska's current  and potential  critical                                                                    
          mineral production  to national  and international                                                                    
          production, including  regulation, permitting, and                                                                    
          incentives. The report  should identify strategies                                                                    
          to increase  exploration and development  over the                                                                    
          next three, five, and ten years.                                                                                      
          3.  The  Department  of Commerce,  Community,  and                                                                    
          Economic  Development shall  identify the  state's                                                                    
          role    in    innovation,    manufacturing,    and                                                                    
          transportation to support  the global green energy                                                                    
          transition  and  allows  for  this  report  to  be                                                                    
          contracted out.                                                                                                       
                                                                                                                                
7:58:35 PM                                                                                                                    
                                                                                                                                
Senator  Merrick thanked  the  committee for  its time.  She                                                                    
relayed that  SB 118  was an  effort to  attract investment,                                                                    
create  jobs, boost  the state's  economy, and  keep America                                                                    
safe.                                                                                                                           
                                                                                                                                
Co-Chair Foster  thanked the sponsor  and her staff.  He set                                                                    
                               th                                                                                               
an amendment deadline for May 8 at 5:00 p.m.                                                                                    
                                                                                                                                
SB  118  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
7:59:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:03:01 PM                                                                                                                    
RECONVENED