Legislature(2023 - 2024)BUTROVICH 205
02/17/2023 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SJR7 | |
| Update: Statehood Defense Litigation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 7 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
SJR 7-NAT'L PETROLEUM RESERVE IN ALASKA
3:30:59 PM
CO-CHAIR GIESSEL announced the consideration of SENATE JOINT
RESOLUTION NO. 7 Supporting oil and gas leasing and development
within the National Petroleum Reserve in Alaska; and urging
President Biden and the United States Department of the Interior
to approve the Willow Master Development Plan.
She directed attention to the sponsor statement in member's bill
packets and highlighted the fourth paragraph. It read:
Revenue from the Willow project will produce positive
results for the residents of the region for
generations. This will come from the subsequent
family-supporting jobs, expanded healthcare and
education opportunities and overall prosperity. As
happened over the past 40 years or more, this project
will result in positive health and well-being impacts
for Alaskans in every corner of our state.
CO-CHAIR GIESSEL relayed that the foregoing statement was based
on the substantive data from the Journal of American Medical
Association Retrospective Study on Life Expectancy in the state
of Alaska over the years when the Trans Alaska Pipeline System
(TAPS) came online, Red Dog Mine started production, and the
Magnuson Stevens Act passed.
3:32:12 PM
JULIA O'CONNOR, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, introduced SJR 7 on behalf of the
committee with the following statement:
• The National Petroleum Reserve in Alaska (NPR-A) was
established in 1923 by the federal government to
provide oil for the United States Navy.
• The 23.5 million acres of NPR-A falls entirely within
the North Slope Borough.
• The NPR-A has become a critical source of oil and gas
production in Alaska, with great potential for future
development.
• The Willow Project, located in the Bear Tooth Unit of
the NPR-A, is one of the largest oil development
prospects in Alaska. The project would tap into
reserves of an estimated 600 million barrels of oil
and produce 180,000 barrels per day at peak
production. If approved, the project could generate
billions of dollars in revenue and create thousands of
jobs.
• The Willow Project has support from communities on the
North Slope, Alaska Native leaders, labor unions, and
stakeholders. In addition, Alaska's entire United
States Congressional delegation stands together in
support of the project.
• The NPR-A's 2020 Integrated Activity Plan was
developed in partnership with local communities and
tribes. It included provisions to ensure responsible
development and mitigation of impacts on the
environment and cultural resources.
• The Department of the Interior's recent reversal to
the 2013 plan, which removes 7 million acres from
potential oil and gas development, ignores the needs
and input of local communities and violates Executive
Order 13175.
• Safe and responsible oil and gas development has been
demonstrated by over 50 years of activity on the North
Slope without adverse effects on the environment or
wildlife populations.
• Senate Joint Resolution 7 urges the Department of the
Interior to support the responsible development of
resources in the National Petroleum Reserve in Alaska
and issue a positive final record of decision for the
Willow Project.
3:34:22 PM
CO-CHAIR GIESSEL found no questions and moved to invited
testimony.
3:34:49 PM
REPRESENTATIVE JOSIAH PATKOTAK, District 40, Alaska State
Legislature, Juneau, Alaska, sponsor of the House companion
resolution for SJR 7, confirmed that oil development had
generational impact on the people living on the North Slope. He
conveyed that his grandfather was born in 1932 just outside of
Kaktovik, which is now known as ANWR, the Alaska National
Wildlife Refuge. His grandmother, who was born in 1920 on the
delta of the Prudhoe Bay area, told stories of getting crude oil
on her boots when she played in the mud. Her grandfather
migrated from Noatak to Colville to start whaling.
Representative Patkotak said his family's history in this area
is why he's compelled to speak to development in this region.
REPRESENTATIVE PATKOTAK reviewed the history of the NPRA
beginning in 1923 when it was established by President Warren
Harding as a source of oil for commercial development. In 2017,
US Geological Survey (USGS) research estimated the area had 8.7
billion barrels of recoverable oil. In 2020, the Bureau of Land
Management (BLM) issued a record of decision for the Willow
Project Master Plan and in 2021 the Ninth Circuit issued an
injunction. As of February 1, 2023, the final environmental
impact statement (EIS) with the preferred alternative E was
issued. This started the 30-day period for the record of
decision.
REPRESENTATIVE PATKOTAK conveyed that the companion resolution
for SJR 7 was amended to speak to the role that the Willow
Project could play in furthering renewable energy where
possible. He highlighted that the residents of Utqiagvik/Barrow
were able to access natural gas starting in the '60s and the
residents of Nuiqsut began using natural gas in 2008 from the
Alpine facility. This has saved money and reduced dependence on
diesel for these residents. He said his priority is to help more
people in the region reduce their reliance on diesel for home
heating and power generation.
CO-CHAIR GIESSEL asked him to illuminate the fiscal impact of
development in the NPRA for the North Slope Borough.
3:39:43 PM
REPRESENTATIVE PATKOTAK replied that the property tax assessment
over the 30-year estimated life of the Willow project is
estimated to have a local impact of $1.2 billion. Over that
timeframe the share of state and federal royalty that goes into
the NPRA grant mitigation fund is expected to be about $2.3
billion. The aggregated total is $3.5 billion. Importantly, this
allows affected municipalities, city governments, and tribal
entities east of the Colville River to access these grant funds
and better the lives of residents.
CO-CHAIR GIESSEL relayed that she worked for the North Slope
School District for nine years, so she knows first-hand the
positive impact the Willow Project will have on the communities
in the area.
3:43:45 PM
SENATOR CLAMAN asked if he was requesting this committee amend
SJR 7 to match the companion House resolution that was amended
in the Resource Committee.
CO-CHAIR GIESSEL said it was not necessary for the committee to
address an amendment at this time.
REPRESENTATIVE PATKOTAK agreed that action was not necessary at
this time.
3:44:53 PM
NAGREUK HARCHARIK, President, Voice of the Arctic Inupiaq,
Anchorage, Alaska, provided invited testimony in support of SJR
7. He described the nonprofit organization and relayed that the
board asked him to convey its unanimous support of the Willow
Project and SJR 7. He said it represents a positive model of
cultural, economic, and ecological interdependence. He
highlighted the benefits to communities from projects like
Willow, including food security through research and monitoring
of marine mammals by state and federal agencies as well as
direct and indirect jobs. Projects like Willow help the people
in the area use modern technology and equipment to continue
their customary and cultural traditions.
MR. HARCHARIK stated that the Voice of the Arctic Inupiaq is
asking the Biden administration to fulfil its promise and listen
to the indigenous voice. Throughout the North Slope, the people
value and believe in unity in the family and among and between
communities. Legislative support of SJR 7 will send a clear
message of unity to the Biden administration.
3:49:22 PM
CO-CHAIR GIESSEL opened public testimony on SJR 7.
3:49:49 PM
KARA MORIARTY, President and CEO, Alaska Oil and Gas Association
(AOGA), Anchorage, Alaska, stated that SJR 7 represents a
tremendous opportunity to meet the energy needs of Americans
while also benefitting the people of the North Slope. The Willow
Project will generate an estimated 2,500 union jobs and
significantly boost throughput in TAPS by about 180,000
barrels/day at peak production. She noted that permitting began
70 months ago for three well sites. On behalf of AOGA, she urged
the committee to support the resolution.
3:51:15 PM
DR. MICHAEL TOBIN, MD, Board Member, 350Juneau - Climate Action
for Alaska, Juneau, Alaska, stated that he was speaking in
opposition to SJR 7. He noted the International Energy Agency
statement that no new fossil fuel infrastructure can be
developed if there is to be a chance of having a stable climate.
Tremendous technological progress has been made in in the area
of renewable energy since the oil fields in Prudhoe Bay were
discovered and developed. He emphasized that Alaska must go in
that direction for the future. A 30-year commitment to fossil-
based energy is taking Alaska in the wrong direction. He urged
the committee to vote against SJR 7.
3:52:26 PM
ELAINE SCHROEDER, Co-Chair, 350Juneau Climate - Action for
Alaska, Juneau, Alaska, stated opposition to SJR 7. She said
climate scientists worldwide have called fossil fuel projects
like Willow climate bombs. This is because the Arctic is warming
at four times faster than the rest of the planet. This increases
the risk worldwide of sea level rise and catastrophic flooding.
She noted that UN Secretary Antonio Guterres sent a special
message to fossil fuel producers during his annual report to set
a credible course for net zero emissions. When asked, she
restated opposition to SJR 7.
3:53:55 PM
DOUG WOODBY, Co-Chair, 350Juneau - Climate Action for Alaska,
Juneau, Alaska, advised that he submitted written testimony. He
said he opposes SJR 7 even though another oil boom is tempting
because of the economic opportunities for communities and jobs.
He relayed his first-hand experience of paying for heating oil
when he lived in the areas around Norton Sound and Kotzebue
Sound. Nevertheless, he supports a sustainable energy plan that
is not dependent on fossil fuels. That's what the state needs
and it will take leadership to get there.
3:55:21 PM
CO-CHAIR GIESSEL closed public testimony on SJR 7.
She found no questions or comments and solicited a motion.
3:55:34 PM
SENATOR BISHOP moved to report SJR 7, work order 33-LS0454\A,
from committee with individual recommendations and no fiscal
note(s).
3:55:55 PM
CO-CHAIR GIESSEL stated that without objection SJR 7, is moved
from the Senate Resources Standing Committee.
[Subsequent to this bill action, SJR 7 was held in committee
awaiting a fiscal note per Sec. 24.08.035. Fiscal notes on
bills.]