Legislature(1995 - 1996)
02/01/1996 01:40 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 212
"An Act relating to the management and sale of state
timber and relating to the administration of forest
land and classification of state land."
REPRESENTATIVE JEANNETTE JAMES spoke in support of HB 212 as
currently revised. She noted that the House State Affairs
Committee introduced HB 212 at the request of Fairbanks
constituents in the timber industry. She indicated that
these were people operating small lumber businesses in the
local communities. Their livelihoods have been impacted by
the complicated procedures they endure in order to secure
timber from the State. The complication has resulted from
the Department's inability to allow harvesting. The current
statutes as required by Title 38 in the five year plan, have
made the continuation of an ongoing industry difficult.
Representative James advised that well-managed timber
harvesting not only helps create and support jobs and a
healthy economy, it also creates and supports healthy
forests. The Fairbanks community is being prohibited from
developing the basic timber industries necessary for
maintaining strong forest ecology and a strong economic
environment.
Representative James pointed out that HB 212 addresses the
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minimum changes necessary to ensure the survival of the
timber industry in Alaska. She stated that Representative
Williams had worked intensively on the legislation during
the interim to create a more "diluted" bill; one which could
be bipartisanly supported.
Representative James indicated her support of Representative
Navarre's Amendment #1. This amendment would change Section
2 of the bill. [Attachment #1]. Representative James
commented that the bill would apply to timber areas
throughout the State.
In response to Representative Mulder's question,
Representative James explained that the focus of the
legislation was not to make more timber available, but to
make timber available when needed. The market drives the
system, and at certain times, people in the industry were
not able to react because of the unavailability of timber.
The legislation would make small sales of less than 160
acres available without being on the five year schedule.
She pointed out that the Division of Forestry has given a
commitment to try to put all small sales on the five year
plan. The legislation would provide that the Department of
Natural Resources (DNR) adjust to each situation as it
arises.
Representative Navarre voiced support of the legislation,
which he thought on a smaller scale should be sustainable.
Representative Navarre questioned if Representative James
had strong inclinations regarding Section #11 - management
of the Tanana Valley State Forest. Representative James
advised that portion was necessary to provide clarification
of information already existing in Title 41.
Representative Therriault pointed out that the Department of
Fish and Game - Habitat Division fiscal note indicated
increased cutting. Representative James replied that there
should not be a large impact on that Department, although
agreed there would be increased activity. Representative
Therriault inquired if the Department of Fish and Game had
provided a previous fiscal note which had been reduced to
the amount requested at this time.
GERON BRUCE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND
GAME, stated the fiscal note would address the acceleration
and that ability to quickly respond placing timber on the
market. The Division of Habitat has suffered large cuts and
will need the extra revenue in order to respond in a timely
manner.
Representative Navarre countered that the fiscal amount
requested was too small to provide an adequate job.
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Representative Navarre MOVED to adopt Amendment #1. There
being NO OBJECTION, it was adopted. [Attachment #1].
MARTY RUTHERFORD, (TESTIFIED VIA TELECONFERENCE), DEPUTY
COMMISSIONER, ANCHORAGE OFFICE, DEPARTMENT OF NATURAL
RESOURCES, ANCHORAGE, provided Committee members with the
Knowles Administration's position on HB 212. She noted that
with the inclusion of Amendment #1, the bill was well
balanced. Ms. Rutherford advised that there has been a lot
of controversy on Section #4 which would allow sales of 160
acres or less excluded from the five year timber sales. The
Board of Forestry recommended to the House Resources
Committee, that sales of 160 acres or less be included in
not less than one of the five year timber sale plans. She
pointed out that the Administration relies heavily on the
Board of Forestry to provide a form for all the stock
holders on forestry issues.
Based upon these concerns, the Administration recommends
that the Department should require that the Division of
Forestry place as many of the 160 acre sales on the one year
scheduled timber sale.
Ms. Rutherford concluded and praised the assimilation
process in passage of HB 212.
JACK PHELPS, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA FOREST ASSOCIATION (AFA), ANCHORAGE,
advised Committee members that the Alaska Forest Association
supported immediate passage of HB 212. He mentioned that
the bill was important to the forest product industry in
Alaska, particularly for the segment of industry that
depends upon the State timber sale program for a significant
percentage of its wood supply. The bill would provide
important support for the State Division of Forestry in its
effort to make the State timber sale program effective in
meeting the needs of Alaska's smaller timber operators,
particularly in the Interior. [Copy of testimony on file].
MARY SHIELDS, (TESTIFIED VIA TELECONFERENCE), SELF,
FAIRBANKS, referenced Section #4 explaining that Interior
Alaskans want to be part of the decision making process.
She asked where the public would be able to find out about
the sales.
Representative James commented that previous testimony from
the Department indicated their intent to get as many small
sales on the five year plan as possible. The only time that
Section #4 would need to occur, would be when there was a
demand for immediate timber. Small emergency sales would be
exempt. [Copy of testimony on file].
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TOMAS H. BOUTIN, STATE FORESTER, DIVISION OF FORESTRY,
DEPARTMENT OF FISH AND GAME, noted that every sale except
for those listed in Section #1 of the legislation would
require a forest land use plan. Section #1 of the bill
would exempt sales of 10 acres or less from a forest land
use plan.
In response to Ms. Shields, Mr. Boutin stated that the
Department would publish a notice of "best interest
findings" in the daily newspaper in the legal section. Ms.
Shields interjected that would not be acceptable. She
recommended that all sales be on the five year schedule.
Representative James reminded Ms. Shields that the proposed
legislation was a "compromise" bill.
STU PECHEK, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
testified in support of HB 212.
MARK LUTTRELL, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
EASTERN KENAI PENINSULA ENVIRONMENTAL ACTION ASSOCIATION,
SEWARD, recommended Committee members to veto passage of HB
212. He concurred with Representative Navarre, that
currently a lot of clear-cutting has occurred on the Kenai
Peninsula. He disagreed with Section #2 and Section #3 -
the site specific plan. Mr. Luttrell also objected to
Section #4, noting that 160 acres would be too large a
parcel.
Mr. Boutin advised that beetle kill areas would be harvested
and then reforested which could enhance the fish habitat.
Absent reforestation, beetle kill timber would die and the
second growth would take a long time to mature.
Mr. Boutin added that the Division of Forestry concurs that
the five year forest schedule is very important and that
they will try to have all sales on every five year schedule.
He reassured listeners that the five year schedule should be
comprehensive so to be valuable to the timber industry and
the public.
Representative Navarre asked if sales of 160 acres or less
would be shown on the schedule in order to guarantee advance
notice. Mr. Boutin said absolutely.
ED DAVIS, (TESTIFIED VIA TELECONFERENCE), BOARD MEMBER,
ALASKA WILDERNESS RECREATION AND TOURISM ASSOCIATION,
VALDEZ, praised the House Resources Committee for well done
work on the proposed legislation, then indicating the
remaining problem areas. He thought that Section #2 would
weaken the need to address the long term cumulative effects
of timber harvest activities in a forest land plan. As
timber resources are developed, the long term effects of
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harvest activity would impact the tourism industry.
He added, Section #4 allows an unlimited number of timber
sales to be exempt from the five year schedule, provided
each sale is less than 160 acres. Mr. Davis thought that
could be a potential loophole leading to abuse of the
planning process. [Copy of testimony on file].
Co-Chair Hanley pointed out that Mr. Davis' concern had been
addressed with Amendment #1. Mr. Boutin replied that every
sale larger than 10 acres would require a forest land use
plan. He explained that the plan would be distributed to
the Department of Fish and Game, the Department of
Environmental Conservation (DEC) and sometimes to the
Department of Commerce and Economic Development (DCED).
Following the agency process, the bills are modified with
input from the Department of Fish and Game. At that time,
the forest land plan is used to support the notice.
(Tape Change, HFC 96-24, Side 2).
LARRY SMITH, (TESTIFIED VIA TELECONFERENCE), ALASKA FOREST
PRACTICES ACT REVIEW STEERING COMMITTEE, HOMER, spoke
against the passage of HB 212. He referenced the strong
positions taken by three resource agencies, emphasizing that
the present is not the time to create a greater unfunded
mandate to further subsidize the export of raw timber and
chips. He noted that those agencies suggested to the Board
of Forestry, the program for providing minimal protection
for our fish and wildlife, clean water, and wood resources,
is presently dysfunctional and would require a budgetary
implant in order to implement the existing Title 38 and
Title 41 provisions which comprise the forest practices act.
[Copy of testimony on file].
Mr. Smith concluded that the legislation is untimely because
the State at present:
1. Has no mechanism for limiting exports;
2. No mechanism for making the cost-causer the cost-
payer;
3. Has an underfunded, misdirected and inept forest
practices program; and
4. Lacks a fiscal note describing additional agency
staff needed for the oversight.
SEAN MCGUIRE, (TESTIFIED VIA TELECONFERENCE), BED &
BREAKFAST OWNER, FAIRBANKS, noted the importance of the
State's support of tourism. Mr. McGuire stressed that most
tourists come to visit Alaska's vast wilderness which are
being harvested. He urged Committee members to vote against
HB 212 in a strong statement of support for Alaska's
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tourism.
Co-Chair Hanley pointed out that there will continue to be
public notice required. He countered Mr. McGuire's argument
regarding the timber harvested, pointing out that many
Alaskan's feel the same way about tourism, an industry which
imports many people from out of State and investing the
profits out of State. Co-Chair Hanley added that all the
resource and mineral industries in Alaska export most of the
product available. Co-Chair Hanley agreed with Mr. McGuire
that the State does need value added products. This
legislation is an attempt to provide some of the harvest to
the small business owners.
CARL PORTMAN, (TESTIFIED VIA TELECONFERENCE), COMMUNICATIONS
DIRECTOR, RESOURCE DEVELOPMENT COUNCIL, ANCHORAGE, voiced
support for effective forest management initiatives to
create a stable timber supply with increased access to
Alaska's vast forest. He stated that the legislation was
important and would help meet the needs of the smaller
timber operators. HB 212 would allow the Commissioner of
DNR to respond to short term timber supply needs.
Mr. Portman added that it was imperative that a timber base
be established in order to provide for a stable supply. HB
212 would help guarantee that stable supply, a necessary
element in attracting the investment capital needed to build
a healthy forest industry, diversifying the economy.
Mr. Portman noted that the bill was good public policy; it
would simplify the information of available timber sales
which would retain environmental protection and public
involvement. HB 212 would reestablish "true" multiple use
management of State forests, balancing projection
utilization and replenishment of timber resources with other
uses. That would promote the long standing objectives of
economic diversification while insuring the sustainable
harvest of timber in State forests, originally created for
the timber resources.
Mr. Portman reiterated that the Resource Development Council
strongly supported CS HB 212 (FIN) draft and urged the
Committee to pass the bill.
DAN RITZMAN, BOREAL FOREST COORDINATOR FOR THE NORTHERN
ALASKA ENVIRONMENTAL CENTER, ALASKA ENVIRONMENTAL LOBBY,
JUNEAU, stated that the proposed legislation was not
necessary. He pointed out that HB 212 would make
substantial changes to Titles #38 and #41, statutes which
cover the entire State, not just "small" sales in Interior
operators. He continued, the development of the Forest
Resources and Practices Act was a long process involving
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representatives from a variety of interests, timber
industry, fishing industry, and conservation organizations.
[Copy of testimony on file].
Mr. Ritzman addressed specific concerns:
1. Currently the Alaska Department of Fish and Game
and the Department of Environmental Conservation
(DEC) do not have the revenue to carry out their
existing statutory requirements. The legislation
will further stress these Departments and put
populations of fish and wildlife at further risk.
2. Section #2 appears to eliminate an important
requirement that the State use the best available
data to evaluate the cumulative and long-term
effects of forestry activity on both the trees and
non-timber resources. Mr. Ritzman recommended
reinserting the language "immediate and long term"
effects of "individual and collective" forest
activities. (Addressed by Amendment #1).
3. Section #4 would eliminate the five year schedule
requirements for sales of 160 acres or less, which
would mean that over 70% of the sales in the
Interior and a fair number of sales in the Kenai
would not appear on the schedule.
Mr. Ritzman pointed out that the five year schedule was the
only consistent tool to notify the public and other
commercial users of the forest harvest. He recommended that
the Committee adopt the language suggested by the Board of
Forestry, that sales of less than 160 acres appear in at
least one five year plan.
WILLIAM WOLFE, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
testified in opposition of clear-cutting. He pointed out
that it takes a long time for forests to recover from clear-
cutting and the environmental damages it causes.
BOB ZACHEL, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
stated that he was the operator of a small saw mill. He has
had a difficult time acquiring quality logs during the past
few years, a need to insure continual operation of a
consistent business. Mr. Zachel commented that he was
disappointed in some of the compromises made within the
legislation, although supported the concept of the bill. He
urged members to pass the bill from Committee.
CARL OLMSTEAD, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
commented that he had been involved in the timber harvest
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issue for many years, and thought that the legislation was
not necessary to represent those concerns. He suggested
that regulations could be made at the discretion of the
Commissioner of DNR and then worked through the Division of
Forestry.
Mr. Olmstead voiced concern specifically with the exemption
of the 160 acres from listings. The five year plan is the
instrument where the public is involved. Mr. Olmstead
pointed out that those who use the forest for a number of
purposes, know that logging is the most destructive purpose
and has the most long range impact.
Mr. Olmstead strongly supported the amendments written by
Representative Navarre. [Attachment #1].
DAVE LACEY, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS, urged
the Committee to vote against the proposed legislation. He
spoke against the 160 acre sales, indicating that they would
be too large. He also requested that the public be involved
with the one year notice, voicing support of further
expanded funding for the Division of Habitat.
(Tape Change, HFC 96-25, Side 1).
Mr. Lacey addressed the issues of economic development which
he felt should be driven by the quality of life and
education concerns. He stressed that the legislation was
not needed and that those concerns could be addressed
through regulations from the Department.
LARRY LANDRY, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
echoed the concerns of Mr. Lacey. He supported the
objectives of the legislation although voiced concern that
the public process would be eliminated, pointing out that
most of the sales in the Fairbanks area are under 160 acres.
He strongly supported Amendment #2 as prepared by
Representative Navarre [Attachment #1] and voiced opposition
to Section #11.
SYLVIA WARD, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, NORTHERN ALASKA ENVIRONMENTAL CENTER, FAIRBANKS,
questioned the merit of Section #7. She stated that local
use provides that all users have equal footing, although the
wording of that Section leaves the concept of "multiple use"
muddled. She requested that the Committee keep the concept
"simple".
Ms. Ward addressed her concerns with using the language
"emergency sale", and the loop holes which that concept
would provide. She summarized that to address concerns
raised by small loggers, the community would need to endorse
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a proposal requiring a change of behavior on the part of
DNR. Ms. Ward requested that Committee members look closer
at the operations before passing the legislation.
ERIK HOLLAND, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS,
provided Committee members with an illustrated copy of a
poll which he conducted at various locations in Fairbanks.
[Copy of testimony on file]. He stated that the graphics
illustrated five stages of clear-cutting. The results
astounded him; they indicated the people of Fairbanks did
not want clear-cutting or logging in the Tanana Valley.
Representative Navarre commented that on the Kenai
Peninsula, some small operators were having a difficult time
obtaining logs because of the amount harvested being
exported. Representative Martin pointed out that the Homer
area was filled with diseased trees and that they should be
harvested. Representative Grussendorf reminded Committee
members that dead trees are important to wildlife habitat
and the bird world. Representative Grussendorf reiterated
that it was important that the agencies involved were
adequately funded to handle the additional load.
In response to Representative Martin's statement,
Representative Navarre explained that the legislation is not
restricted to dead trees. He requested that Amendment #2 be
considered in the next Committee of referral, advising that
he would not offer Amendment #2 or #3. [Attachment #1].
Representative Mulder MOVED to report CS HB 212 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTIONS, it
was so ordered.
CS HB 212 (FIN) was reported out of Committee with a "do
pass" recommendation and with fiscal notes by the Department
of Fish and Game and zero fiscal notes by the Department of
Environmental Conservation and the Department of Natural
Resources dated 1/24/96.
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