Legislature(2013 - 2014)SENATE FINANCE 532
04/01/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB28 | |
| SB66 | |
| SB178 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 28 | TELECONFERENCED | |
| + | SB 66 | TELECONFERENCED | |
| + | SB 178 | TELECONFERENCED | |
| + | HB 305 | TELECONFERENCED | |
| + | HB 297 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 28
"An Act relating to the sale of timber on state land;
establishing the Susitna State Forest; and providing
for an effective date."
9:09:47 AM
JOE BALASH, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,
explained the legislation. He stressed that the governor
was interested in a positive investment, and he felt that
the legislation was in line with the governor's intention.
The bill would create a state forest in the Susitna Valley
and expand the Department of Natural Resources (DNR)
authority to offer negotiated timber sales statewide. He
stated that DNR currently managed 9.5 million acres of
state land in the Mat-Su valley under the area plans. This
bill would establish the Susitna State Forest from land
that the plans classify for forestry and DNR manages for
timber harvest and multiple use. Remaining state land in
the area was designated for land sales, agriculture,
recreation, water resources, and fish and wildlife habitat,
including over 3. 1 million acres of legislatively
designated state parks, refuges, and public use areas. The
proposal excludes lands that were priorities for the
state's land disposal program. It was consistent with the
area plans, and was recommended by the Alaska Timber Jobs
Task Force. The proposed state forest included
approximately 686,800 acres of land in 20 parcels. The
state forest would help meet the growing regional demand
for state timber sales and personal use firewood
harvesting. Local mills depend heavily on state timber for
their raw materials. Interest in logs, chips, and wood
pellets for commercial, public school, and residential
space heating also continues to expand. Active forest
management provided forest stand with a variety of ages to
support diverse and healthy wildlife habitat. It also
helped reduce wild land fire risk by breaking up large
expanses of hazardous fuel types and encouraging
regeneration by less-flammable hardwood species. The state
forest would be managed as part of the State Forest System,
and would continue to be open for public use and access,
including wildlife habitat management, harvest, and
recreational activities. He announced that DNR had
conducted extensive outreach on the proposal. In additions
to meetings on the area plans, DNR held community meetings,
and made a presentation at a legislative town meeting in
Wasilla.
Co-Chair Meyer understood that the legislation would not
make the land unavailable for property development for the
private sector to add to the borough's property tax base.
Commissioner Balash replied that there were various
conversations with the borough and in the region. He stated
that DNR had a received an endorsement from the Mat-Su
Borough assembly, and referred to a resolution in the
member's packets. He stated that there were some concerns
that were addressed in order to alleviate some impacts to
municipal and residential developments.
Co-Chair Meyer wondered if the land could return to the
private sector after it was designated as forest land.
Commissioner Balash responded that state forests were
public lands that were still managed for multiple use, but
not considered for settlement or residential development.
He stressed that there was still economic activity on the
land. He stated that moving the land back to the general
use category would require legislative action.
9:16:16 AM
Co-Chair Meyer wondered if there would be anything that
would prevent timber harvest in the state forest.
Commissioner Balash replied that all of the activities in
the forest would be governed by the Forest Resources
Practices Act, and other regulatory authorities. He stated
that the forest would be sustainably managed with a long-
term management plan.
Senator Olson wondered how the designation would result in
the prohibition of exploiting the resources within the
designation. Commissioner Balash replied that the
designation of the forest did not preclude other uses of
the land, particularly the mineral rights associated with
the land. He stressed that DNR would still have the ability
to issue mining leases and provide for exploration of the
other minerals on the land. He agreed that the land would
not be available for residential development.
Senator Olson queried the effect of the legislation on the
traditional campsites that were used to harvest fish and
game seasonally. Commissioner Balash replied that DNR must
continue to maintain the other uses in the area. He
deferred to Mr. Maisch.
Senator Olson queried the effects of the established camps.
Commissioner Balash responded that the designations that
were already public lands would remain in public lands. He
stressed that the inholdings would remain outside of the
designated forest.
Senator Olson stressed that an individual with a camp might
have their claim overrun. Commissioner Balash replied that
he had worked hard to ensure that it would not be an issue.
9:22:55 AM
Senator Dunleavy asked for a brief history of the proposed
concept. Commissioner Balash deferred to Mr. Maisch.
JOHN "CHRIS" MAISCH, DIRECTOR, DIVISION OF FORESTRY,
DEPARTMENT OF NATURAL RESOURCES, explained the history of
the proposed concept. He stated that there were two area
plans that were updated in 2009, and public meetings were
held in seven communities. He stated that the idea of state
forest classified lands was discussed as part of an area
planning process, and the concept that a state forest
proposal would be drafted at the conclusion of the process.
In addition, there were six open houses when the Division
of Forestry took over the project. There were twelve
additional public meetings, when the legislation was
initially proposed three years prior. He stated that there
had been recent meetings to outreach to local entities that
were not on the road system. There was a concern for the
need for community expansion lands in Houston, Willow, and
Wasilla, so 70,000 acres were removed from the proposal to
alleviate that concern. He shared that there was a blocking
nature in the way that the state forest was proposed,
because there was a forest inventory for the lands, which
showed a good commercial interest. The area planning
process determined that the proposed lands were the most
preferred lands for the forestry process, which was why the
location was spread across the valley with twenty parcels.
He stated that there was some concern regarding access, and
the need for access development, which was one of the key
features of state forests.
9:26:28 AM
Senator Dunleavy looked at the earmarked parcels, and noted
that there was a considerable amount of acreage that could
be logged. He wondered how the approach was different form
the forest designated parcels versus the state-owned
parcels that were already designated for logging.
Commissioner Balash replied that the area plan processes
for a particular primary use did not preclude other uses
including disposals of the land. While the blocks may be
designated for forestry purposes, in the area plan
implementation, it would not preclude someone from applying
for the land to be disposed in a different way.
Senator Dunleavy wondered if logging was the only activity
that could occur on the state forest. He wondered if, for
example, mining would occur on the land. Commissioner
Balash responded that logging was the primary development
interest, but mining could occur given the process time.
Co-Chair Meyer wondered if there would be a problem with
bringing a pipeline through the forest area. Mr. Maisch
responded that a pipeline in the forest would not be an
issue, as there were utilities across other state forests.
9:30:28 AM
Co-Chair Meyer queried the state royalty from the timber
sale. Mr. Maisch responded that the sales were sold through
a competitive process for the majority of timber. He stated
that there was no royalty, but rather by sealed bid or
outcry auction, so the best dollar took the sale which was
known as "stumpage return."
Vice-Chair Fairclough wondered if the pale yellow on the
map was current forestry. Commissioner Balash responded
that the pale yellow was considered general state lands.
Vice-Chair Fairclough restated her question Commissioner
Balash replied that the lands were designated as habitat
under the area plans. Mr. Maisch furthered that the yellow
lands were classified as forestry use, but were dropped
from the designation in the state forest. The hatched lands
were considered habitat classified lands under the area
plans.
Vice-Chair Fairclough wondered if there was a separate land
classification for habitat, which was not considered
forest. Commissioner Balash replied in the affirmative, and
stated that the habitat lands were currently not included
in the legislation as part of the forest.
Senator Hoffman queried the number of acres that were
considered for the proposal. Commissioner Balash replied
that there was an initial proposal which was around 760,000
acres, but had been adjusted and was currently 688,000
acres.
Senator Hoffman queried the classifications within the
proposed lands. Commissioner Balash replied that the land
was currently designated forestry lands.
9:36:07 AM
Senator Hoffman asked if there was a plan for the private
selection. Commissioner Balash responded that there was a
planning cycle for the disposals, but was not certain that
the map included any in the cycle.
Senator Hoffman requested those plans and how many acres
were considered for the program in the region. Commissioner
Balash agreed to provide that information.
Senator Dunleavy noted a testimony in the packet from the
Grouse Society, and there were some issues raised. He
wondered if those concerns were considered. Commissioner
Balash stated that the Grouse Society would like to see
that the forest be larger, and include some of the habitat
lands to ensure that those lands were not disposed of for
some other purpose.
9:39:26 AM
JOHN STURGEON, CEO, OUZINKI NATIVE CORPORATION, ANCHORAGE
(via teleconference), testified in support of the
legislation. He shared that he had been in the timber
industry in Alaska for 43 years. He stated that his
operation logged approximately 50 million board feet each
year. He shared that there had been many conversations
regarding losing the oil resource in Alaska. He felt that
it was time to examine alternatives to bring additional
revenue into Alaska, and he felt that the timber industry
could provide some of that revenue.
9:42:32 AM
GLEN HOLT, SELF, FAIRBANKS (via teleconference), spoke in
support of the legislation. He stated that he was in
further favor of further land designations of habitat lands
currently designated, because of the opportunity to enhance
those lands through forest management programs.
9:45:54 AM
MARK STAHL, SELF, TALKEETNA (via teleconference), testified
in favor of the legislation. He stated that he owned and
operated a small saw mill in Talkeetna. He stated that many
of his customers and neighbors expressed appreciation for
access to local resources. His ability to grow the business
was hampered by the lack of a predictable and reliable
timber base. There was too little private land in the
Susitna valley to provide a steady raw materials supply, so
establishing a state forest would resolve the issue.
9:48:27 AM
ERIN MCLARNON, SELF, WILLOW (via teleconference), testified
in support of the legislation. She stated that she was a
business owner and six year Board of Forestry member. She
stated that the Mat-Su valley was a wonderful place to
live. She felt that a state forest would help to grow the
local economy, and guarantees all users place to recreate.
She frequently utilized state forest lands for her
training, because of the access to trails.
ROD ARNO, EXECUTIVE DIRECTOR, ALASKA OUTDOOR COUNCIL,
JUNEAU, testified in support of the concept of a state
forest in the Mat-Su valley, multiple use in the state
forest such as resource development and recreational
pursuit. He stressed that the location should be kept
intact. He felt that there were a number of Alaskans that
were interested in food harvest. He stated that the tax
burden on the Mat-Su valley could be counteracted by the
resource development.
9:56:28 AM
NICK STEEN, MEMBER, RUFFED GROUSE SOCIETY, WASILLA (via
teleconference), testified in support of the legislation.
He believed that the establishment of a state forest would
help solidify and expand the forest product industry. It
would be an economic boost to the Mat-Su borough and all
Southcentral Alaska residents. Through proper forest
management, the forest should be either revenue enhancing
or revenue neutral. In addition to the timber resource, the
wildlife would greatly benefit.
9:58:38 AM
BARBARA J. MILLER, SELF, WASILLA (via teleconference),
urged the committee to develop the west side of the Susitna
River. She encouraged the private development of the land
on the east side of the Susitna River. She felt that the
land on the east side would provide a boundary, because it
was difficult determine where one was located.
10:00:10 AM
GARY STEVENS, SELF, CHUGIAK (via teleconference), felt that
the forest aspect of the legislation was too disconnected,
and would be difficult to manage.
10:01:51 AM
CARL PORTMAN, DEPUTY DIRECTOR, RESOURCE DEVELOPMENT
COUNCIL, ANCHORAGE (via teleconference), spoke in strong
support of the legislation. He felt that the new state
forest would enhance access and encourage a broad range of
multiple uses. The new state forest would allow the
Division of Forestry to more actively manage lands and
vegetation to promote a variety of forest ages, which in
turn would maximize the sustainable supply of timber to
provide a more diverse and healthy habitat for wildlife. He
added that active forest management would reduce the risk
of wildfires. The Division of Forestry would manage the
forest to help meet growing regional demand for state
timber sales.
10:04:37 AM
THOMAS MALONE, CHAIR, TANANA VALLEY STATE FOREST CITIZENS
ADVISORY COMMITTEE, FAIRBANKS (via teleconference), spoke
in favor of the legislation. He felt that dedicated lands
would provide the multiple use aspects of the land, in
addition to specific forestry uses.
10:07:51 AM
AL BARRETTE, SELF, FAIRBANKS (via teleconference), spoke in
support of aspects of the proposal, but remarked that there
should be a focus on maintaining traditional uses.
Co-Chair Meyer CLOSED public testimony.
10:10:41 AM
Co-Chair Meyer wondered if this was the same bill that was
proposed two years prior, and asked why that particular
bill did not pass through the legislature. Commissioner
Balash replied that the legislation that was proposed two
years prior included more parcels than the current
legislation. There was local opposition, and the local
assembly did not support the bill.
Mr. Maisch added that there was a difference in the
definition from timber to fiber in the current legislation,
and there was also a recommendation of three clauses for
the 118 timber authority in order to apply authority
statewide.
Co-Chair Meyer noted that the Alaska Outdoor Council (AOC)
did not previously support it, and still expressed some
concerns that the legislation was not robust enough. He
wondered if the current legislation was considered a
compromise. Commissioner Balash replied that there were
some suggestions, and remarked that he would be willing to
work with the committee to establish a more workable
outline for the proposal.
Co-Chair Meyer noted that the fiscal note was currently
zero, but wondered if the proposal may have a positive
fiscal impact to the state. Commissioner Balash replied
that the state forests were, at worst, revenue neutral. The
funds that were raised from the sale of the timber
resources supported the expenses of managing them and
building infrastructure.
Co-Chair Meyer wondered if the Mat-Su borough was in favor
of the bill. Senator Dunleavy indicated that there was
support from the borough.
10:15:49 AM
Vice-Chair Fairclough noted three concerns that were worth
addressing: 1) the establishment of language of the
patchwork; 2) the natural boundary issue, and posting
trespassing warnings; and 3) the issue of public access.
Commissioner Bishop stated that Vice-Chair Fairclough had
pointed out his concerns.
Senator Dunleavy queried a timeline for the proposal. He
wondered what was expected of the individuals who had
contracts. Mr. Maisch replied that there was a published
five year timber sale program.
SB 28 was HEARD and HELD in committee for further
consideration.
10:19:57 AM
AT EASE
10:23:18 AM
RECONVENED