Legislature(1995 - 1996)
03/29/1996 03:38 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 307 DUDE CREEK HABITAT AREA LAND EXCHANGE
TAPE 96-39, SIDE A
Number 001
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:38 p.m. The chairman brought up SB 307 as the first
order of business before the committee. Chairman Leman asked
Senator Frank if he wished to testify.
Number 014
SENATOR STEVE FRANK, Co-chairman of the Finance Committee, sponsor
of SB 307, stated the bill would provide for a land exchange. He
said it isn't asking for any subsidies and is totally within the
private sector. So he is eager to do what he can to encourage the
exchange and allow it to go forward. Senator Frank stated that
members have in their bill packets a copy of SJR 27, which was
passed last year supporting this project.
CHAIRMAN LEMAN recalled that there was no objection to SJR 27. He
called Mr. Levitt to testify.
Number 047
RICHARD LEVITT, President & General Manager, Gustavus Electric Co.,
stated the land exchange would occur between the Department of the
Interior and the State of Alaska to allow the construction of a
hydroelectric project to provide electricity for the community of
Gustavus and Glacier Bay National Park. The land exchange is
necessary because the site is within Glacier Bay National Park and
Preserve, a wilderness area. The removal of land from a wilderness
area must be authorized by congress. We are here today, because
approval of the Alaska State Legislature is required for state land
to be given up. SB 307 approves the land exchange. SB 307 is
contingent on the passing of legislation in Washington, D.C., which
is going forward. According to sources in Washington, D.C., the
Senate Energy & Natural Resources Committee will be hearing the
bill soon. We are asking for passage of SB 307 at this time,
because it appears that the federal legislation will not be
complete until after the adjournment of the Alaska State
Legislature.
CHAIRMAN LEMAN asked Mr. Levitt to remind the committee of the
level of local support.
MR. LEVITT responded that three public meetings have been held in
Gustavus, and a vote was taken at each one. In each case, the vote
was unanimously in support of the project. That is documented in
minutes of the meetings and by a letter from the Gustavus Community
Association, who sponsored all the meetings.
Number 135
KELLIS SOULE, Governmental Affairs Representative, Gustavus
Electric Co., stated he can answer any questions about the project.
SENATOR LEMAN asked Mr. Soule what the expected reduction in the
cost of power will be for Gustavus.
MR. SOULE responded that, under a 30-year program, they estimate
that the Power Cost Equalization Program will be reduced by close
to $200,000.00. He believes the administration came up with a
figure of $100,000.00. The discrepancy in the two figures is that
Gustavus took into consideration growth in the program and a
continuation of the funding of the program. There will be savings
to the federal government as well.
Nico Bus, Acting Director, Support Services Division, Department of
Natural Resources, supports SB 307, as long as the expense for the
exchange is covered. It will be about two-staff months to
accomplish this project.
Number 165
SENATOR TAYLOR asked if there will be any requirements of the State
of Alaska to maintain any land classification, status, or use on
the property, once the exchange has taken place.
ANDY PEKOVICH, Regional Manager, Juneau Office, Division of Land,
Department of Natural Resources, stated the process of exchange
could include classification of the lands. It is his understanding
that there is still chapter 50 to deal with, and the only thing SB
307 does is allow the state to do an equal acreage exchange without
coming back to the legislature. It does not bypass the other
elements of the exchange.
SENATOR TAYLOR stated he understands that aspect of the exchange.
His concern is that we are giving up state lands that right now we
have the ability to classify any way we see fit. He doesn't want
to go through the exchange and then find out that we've allowed the
federal government to forever restrict future use of the land.
Number 195
MR. PEKOVICH stated that the land is on the boundary of the
national park; it is fairly wet, and it is sandhill crane area. In
his opinion, it is very doubtful that the state would ever consider
developing that land.
SENATOR TAYLOR stated that doesn't answer his question. The
question is, should there be a reason that we need to - he's not
talking necessarily about development, he looked at the map and
didn't think there was much to be done there, either. But should
there be some need in the future, would we be precluded by the
federal enabling legislation from acting in that area.
Number 210
COMMISSIONER JOHN SHIVELY, Department of Natural Resources, stated
Senator Taylor's concerns may depend on what the federal
legislation says. We are receiving land that would come out of the
boundaries of the park. He thinks the land would have no
designation and that the State would be free to designate the land
as they saw fit. He cannot predict what congress might do, but it
would be the administration's intent to have it unrestricted.
CHAIRMAN LEMAN stated Commissioner Shively was referring to the
land the State would be receiving.
COMMISSIONER SHIVELY responded that is correct.
SENATOR FRANK stated, in other words, there would be no covenant
running with the land.
COMMISSIONER SHIVELY responded that is correct.
SENATOR TAYLOR stated he just wanted to make sure that was the
intent.
SENATOR HALFORD commented as far as he is concerned, that is a
condition, not an intent.
Number 230
SENATOR LINCOLN asked if the analysis of the PCE (Power Cost
Equalization) savings would be done in house. She also wondered
why that had to be a part of the fiscal note. At one point, PCE
was listed as having a 20-year guarantee. But that has been
whittled away now to the point of 3-4 years. So PCE really is not
long term. Will DCRA continue with that analysis?
MR. BUS responded the reason that was written into the fiscal note
was to figure out what the savings would be. He is not in a
position to speak for DCRA, but this clearly seems like a good
proposal.
SENATOR LINCOLN thinks that is a good idea.
Number 257
SENATOR TAYLOR asked if the exchange will allow for the
construction of a hydroelectric project.
SENATOR HALFORD stated that was the whole purpose behind SB 307.
CHAIRMAN LEMAN reminded members of the passage of SJR 27 last year,
supporting this land exchange.
SENATOR PEARCE asked why they needed money.
SENATOR FRANK thinks it was to hold public hearings.
Number 275
MR. BUS replied that once the federal government approves the land
exchange, part of the exchange process is that there will be public
hearings. People in the Anchorage office will probably have to
travel to Gustavus.
SENATOR FRANK made a motion to discharge SB 307, and accompanying
fiscal note, from the Senate Resources Committee with individual
recommendations.
Number 285
CHAIRMAN LEMAN, hearing no objection, stated SB 307 was discharged
from committee.
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