05/09/2024 01:30 PM House FINANCE

CS FOR SENATE BILL NO. 118(FIN)                                                                                               
                                                                                                                                
     "An Act relating to critical and essential minerals."                                                                      
                                                                                                                                
2:17:10 PM                                                                                                                    
                                                                                                                                
SENATOR  KELLY  MERRICK,  SPONSOR, reviewed  the  bill  with                                                                    
prepared remarks:                                                                                                               
                                                                                                                                
     Senate  Bill  118 lays  the  groundwork  for Alaska  to                                                                    
     maximize  its   potential  in  the   critical  minerals                                                                    
     sector, while safeguarding  environmental integrity and                                                                    
     fostering economic growth. Passing this bill will not                                                                      
     only benefit Alaska but our nation's security.                                                                             
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal notes.                                                                         
                                                                                                                                
2:17:54 PM                                                                                                                    
                                                                                                                                
SANDRA MOLLER, DIRECTOR, DIVISION  OF COMMUNITY AND REGIONAL                                                                    
AFFAIRS,  DEPARTMENT OF  COMMERCE,  COMMUNITY, AND  ECONOMIC                                                                    
DEVELOPMENT  (via teleconference),  relayed that  the fiscal                                                                    
note  had changed  and included  $40,000 [annual  cost]. She                                                                    
highlighted  the  bill's  requirement for  the  division  to                                                                    
create a  report to  the legislature.  The division  did not                                                                    
have staff  to complete  the report  and would  contract the                                                                    
report requirements out.                                                                                                        
                                                                                                                                
Co-Chair  Foster  stated  that   the  fiscal  note  was  OMB                                                                    
component 2879.  He asked  if Ms.  Moller's fiscal  note was                                                                    
dated April 16, 2024.                                                                                                           
                                                                                                                                
Ms. Moller responded affirmatively.                                                                                             
                                                                                                                                
Representative  Galvin   thought  the  report   seemed  very                                                                    
important to  Alaska and the  nation. She was  surprised the                                                                    
report was not  already done by the state in  some form. She                                                                    
asked for detail.                                                                                                               
                                                                                                                                
KERRY CROCKER, STAFF, SENATOR  KELLY MERRICK, responded that                                                                    
30 other  states had the  report in  addition to all  of the                                                                    
Canadian  provinces. He  believed  there was  $2 million  in                                                                    
general funding  in the state's capital  budget for mapping.                                                                    
He agreed there should be a report for critical minerals.                                                                       
                                                                                                                                
Representative Hannan  asked why  the sponsor had  chosen to                                                                    
have  the  report generated  through  DCCED  instead of  the                                                                    
Department  of  Natural  Resources (DNR).  She  assumed  the                                                                    
minerals and geologists were under DNR.                                                                                         
                                                                                                                                
Mr. Crocker responded  that the state had them  in DCCED and                                                                    
DNR.  He  explained  that  DCCED  had  more  of  a  role  in                                                                    
innovation, marketing, and  transportation. He detailed that                                                                    
one  of the  major factors  pertaining to  critical minerals                                                                    
was supply chain. He elaborated  that when the United States                                                                    
Geological Survey (USGS) created  the critical mineral list,                                                                    
supply chain was a major factor.                                                                                                
                                                                                                                                
Representative Stapp  thanked the  sponsor for  bringing the                                                                    
bill forward.  He thought  it was one  of the  more critical                                                                    
things  the   state  could  do   to  help   fight  communism                                                                    
worldwide.                                                                                                                      
                                                                                                                                
2:21:23 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster asked  for a  review of  the second  fiscal                                                                    
note. He did not see DNR  online. He thought the note looked                                                                    
fairly basic and asked Mr. Crocker for a review.                                                                                
                                                                                                                                
Mr. Crocker noted that he did  not have a copy of the fiscal                                                                    
note on  hand. He  believed the DNR  fiscal note  showed the                                                                    
cost  for  personal  services  to   create  the  report.  He                                                                    
believed the cost was $35,000.                                                                                                  
                                                                                                                                
Co-Chair  Foster   remarked  that   the  fiscal   note,  OMB                                                                    
component  1031 showed  a  cost of  $45,000.  He believed  a                                                                    
representative from DNR was calling in.                                                                                         
                                                                                                                                
JENNIFER  ATHEY,  ACTING  OPERATIONS  MANAGER,  DIVISION  OF                                                                    
GEOLOGICAL  AND GEOPHYSICAL  SURVEYS, DEPARTMENT  OF NATURAL                                                                    
RESOURCES  (via  teleconference),  reviewed the  DNR  fiscal                                                                    
note for $45,000  in unrestricted general funds  (UGF) in FY                                                                    
25. The fiscal  note reflected the cost to  prepare a report                                                                    
to  the  legislature  regarding   the  state's  current  and                                                                    
potential production of critical  and essential minerals and                                                                    
related  information  such  as  permitting  and  exploration                                                                    
incentives. The  staff position with  appropriate scientific                                                                    
expertise  selected  to  complete  the  work  was  federally                                                                    
funded. The note included a  one-time UGF increment to allow                                                                    
the department  to utilize the  position for  the short-term                                                                    
project and report to the legislature.                                                                                          
                                                                                                                                
2:24:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Johnson  MOVED  to REPORT  CSSB  118(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, CSSB  118(FIN) was REPORTED out of                                                                    
committee with  nine "do pass" recommendations  and with two                                                                    
previously published fiscal impact  notes: FN1 (DNR) and FN3                                                                    
(CED).                                                                                                                          
                                                                                                                                
2:25:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:22 PM                                                                                                                    
RECONVENED