Legislature(1995 - 1996)

02/03/1995 08:15 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                        February 3, 1995                                       
                           8:15 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Bill Williams, Co-Chairman                                     
 Representative Scott Ogan, Vice Chairman                                      
 Representative Ramona Barnes                                                  
 Representative John Davies                                                    
 Representative Irene Nicholia                                                 
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Joe Green, Co-Chairman                                         
 Representative Alan Austerman                                                 
 Representative Pete Kott                                                      
 Representative Eileen MacLean                                                 
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HB 121"An Act relating to the timber resources within the                   
 state."                                                                       
                                                                               
 HEARD AND HELD                                                              
 HB 113"An Act relating to reports by fishing vessels that are                
 not registered under the laws of the state."                                  
                                                                               
 SCHEDULED BUT NOT HEARD                                                     
 (* First Public Hearing)                                                      
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 JACK PHELPS, Aide                                                             
 Representative Bill Williams                                                  
 State Capitol, Room 128                                                       
 Juneau, AK   99801                                                            
 Phone:  465-3424                                                              
 POSITION STATEMENT:  Prime Sponsor of HB 121                                  
                                                                               
 ERNESTA BALLARD                                                               
 705 Main Street                                                               
 Ketchikan, AK   99901                                                         
 Phone:  247-0846                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 SANDRA MESKE, President                                                       
 Alaska Women in Timber                                                        
 111 Stedman Street                                                            
 Ketchikan, AK   99901                                                         
 Phone:  225-1060                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 BOB LOISELLE, President                                                       
 Klukwan Forest Products                                                       
 P.O. Box 34659                                                                
 Juneau, AK   99803                                                            
 Phone:  789-7361                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 RIKI OTT, Representative                                                      
 Habitat Committee                                                             
 United Fishermen of Alaska                                                    
 P.O. Box 1430                                                                 
 Cordova, AK   99574                                                           
 Phone:  424-3915                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 TERRY HERMACH, Representative                                                 
 Prince William Sound Conservation Alliance                                    
 P.O. Box 2493                                                                 
 Valdez, AK   99686                                                            
 Phone:  835-5673                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 BILL COPELAND, Representative                                                 
 Alaska Wilderness Recreation and Tourism Association                          
 P.O. Box 2581                                                                 
 Valdez, AK   99686                                                            
 Phone:  835-5863                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 LOUIE BENCARDINO, Representative                                              
 Kenai Economic Development Board                                              
 P.O. Box 99664                                                                
 Seward, AK   99664                                                            
 Phone:  224-5798                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 AL SHAFER                                                                     
 P.O. Box 610                                                                  
 Seward, AK   99664                                                            
 Phone:  224-3138                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 STEVE GIBSON                                                                  
 1622 Highland Drive                                                           
 Homer, AK   99603                                                             
 Phone:  235-6487                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
                                                                               
 DUANE ANDERSON                                                                
 37685 Conner Road                                                             
 Soldotna, AK   99669                                                          
 Phone:  262-7233                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 STAN STEDMAN, Economic Development Director                                   
 Kenai Peninsula                                                               
 110 S. Willow                                                                 
 Kenai, AK   99611                                                             
 Phone:  262-7233                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 KEN FREEMAN, Projects Coordinator                                             
 Resource Development Council                                                  
 121 W. Firewood #258                                                          
 Anchorage, AK   99507                                                         
 Phone:  276-0788                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 TABITHA GREGORY, Representative                                               
 Alaska Center For The Environment                                             
 P.O. Box 100686                                                               
 Anchorage, AK   99510                                                         
 Phone:  274-3621                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 SEAN MCGUIRE                                                                  
 351 Cloudberry                                                                
 Fairbanks, AK   99789                                                         
 Phone:  479-7154                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 DAN RITZMAN, Representative                                                   
 Northern Alaska Environmental Center                                          
 324 Yana                                                                      
 Fairbanks, AK   99789                                                         
 Phone:  455-7868                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 JOE YOUNG, President                                                          
 Young's Timber                                                                
 P.O. Box 42                                                                   
 Tok, AK   99780                                                               
 Phone:  883-5060                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 K.A. Swiger, Executive Director                                               
 Stand Up!                                                                     
 P.O. Box 23645                                                                
 Ketchikan, AK   99901                                                         
 Phone:  225-8627                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 CHRIS MOSS                                                                    
 P.O. Box 1115                                                                 
 Homer, AK   99607                                                             
 Phone:  235-8053                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 WILLY DUNNE, Representative                                                   
 Alaska Environmental Lobby                                                    
 P.O. Box 22151                                                                
 Juneau, AK   99802                                                            
 Phone:  463-3366                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 TYLER JONES, City Manager                                                     
 City of Seward                                                                
 P.O. Box 167                                                                  
 Seward, AK   99664                                                            
 Phone:  224-4047                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 RON LONG                                                                      
 P.O. Box 2464                                                                 
 Seward, AK   99664                                                            
 Phone:  224-7068                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 G.R. BROOKMAN                                                                 
 715 Mui Avenue                                                                
 Kenai, AK   99611                                                             
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 RED SMITH, Representative                                                     
 Alaska Husky Wood                                                             
 P.O. Box 770                                                                  
 Cooper Landing, AK   99572                                                    
 Phone:  595-1281                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 CLIFF EAMES, Representative                                                   
 Alaska Center For The Environment                                             
 519 W. 8th, #201                                                              
 Anchorage, AK   99501                                                         
 Phone:  274-3621                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 ROBERT LACOCK                                                                 
 4511 Laurel Street, #31                                                       
 Anchorage, AK    99501                                                        
 Phone:  561-1238                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
                                                                               
 DOUG YATES, Representative                                                    
 Alaska Boreal Forest Council                                                  
 P.O. Box 221                                                                  
 Ester, AK   99725                                                             
 Phone:  479-8388                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 MARK LUTTRELL, President                                                      
 Eastern Kenai Environmental Action Association                                
 P.O. Box 511                                                                  
 Seward, AK   99664                                                            
 Phone:  224-5372                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 LARRY SMITH                                                                   
 Fritz Creek, AK   99603                                                       
 Phone:  235-3855                                                              
 POSITION STATEMENT:  Opposed HB 121                                           
                                                                               
 CHUCK ACHBERGER, Executive Director                                           
 Juneau Chamber of Commerce                                                    
 124 W. 5th                                                                    
 Juneau, AK   99801                                                            
 Phone:  586-6420                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 CHRIS GATES, Executive Director                                               
 Alaska Forest Association                                                     
 111 Stedman Street                                                            
 Ketchikan, AK   99901                                                         
 Phone:  225-6114                                                              
 POSITION STATEMENT:  Supported HB 121                                         
                                                                               
 TOM BOUTIN, Director                                                          
 Division of Forestry                                                          
 Department of Natural Resources                                               
 400 Willoughby Avenue                                                         
 Juneau, AK   99801                                                            
 Phone:  465-2491                                                              
 POSITION STATEMENT:  Provided information and answered questions              
                                                                               
                                                                               
 PREVIOUS ACTION                                                               
                                                                              
 BILL:  HB 121                                                                
 SHORT TITLE: SALVAGE TIMBER SALES                                             
 SPONSOR(S): REPRESENTATIVE(S) WILLIAMS, Therriault, Ogan,                     
 Grussendorf, Toohey, Mulder, Rokeberg, Kelly, Kott, Green,                    
 G.Davis,Foster                                                                
                                                                               
 JRN-DATE    JRN-PG                ACTION                                      
 01/25/95       132    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/25/95       132    (H)   RES                                               
 01/26/95       148    (H)   COSPONSOR(S): KELLY, KOTT                         
 01/30/95       180    (H)   COSPONSOR(S): GREEN, G.DAVIS, FOSTER              
 02/03/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                              
 BILL:  HB 113                                                                
 SHORT TITLE: REPORTS BY OUT OF STATE FISHING VESSELS                          
 SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,Grussendorf,Kubina,Mackie              
                                                                               
 JRN-DATE    JRN-PG                ACTION                                      
 01/23/95       116    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/23/95       117    (H)   FSH, RES                                          
 01/25/95       136    (H)   COSPONSOR(S): KUBINA                              
 01/26/95       148    (H)   COSPONSOR(S): MACKIE                              
 01/30/95       179    (H)   FSH WAIVED PUBLIC HEARING NOTICE,                 
                             RULE 23                                           
 02/01/95              (H)   FSH AT 05:00 PM CAPITOL 124                       
 02/03/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-8, SIDE A                                                             
 Number 000                                                                    
                                                                               
 The House Resources Committee was called to order by Co-Chairman              
 Williams at 8:15 a.m.  Members present at the call to order were              
 Representatives Williams, Davies and Ogan.  Members absent were               
 Representatives Green, Austerman, Barnes, Kott, MacLean and                   
 Nicholia.                                                                     
 HRES - 02/03/95                                                               
 HB 121 - SALVAGE TIMBER SALES                                               
                                                                               
 JACK PHELPS, AIDE, REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR,               
 said HB 121 addresses a significant problem facing Alaska's                   
 forests.  He stated HB 121 provides the Department of Natural                 
 Resources (DNR) with new management tools to help address forest              
 health problems.  He noted that while the spruce bark beetle                  
 problem is the most well-known problem, HB 121 provides the                   
 department with the tools to address a variety of other issues                
 and problems they are encountering in managing the state's timber             
 lands for multiple use, sustained yield and general forest                    
 health.                                                                       
                                                                               
 MR. PHELPS pointed out an item in committee member folders                    
 entitled "Alaska Forest Health 3/94" (may be found in the House               
 Resources Committee Room, Capitol #124, and after adjournment of              
 the second session of the 19th Alaska State Legislature, in the               
 Legislative Reference Library).  He noted the handout states that             
 extensive loss of old-growth habitat, increased fragmentation,                
 and lack of natural regeneration constitutes the largest                      
 ecological crisis facing Alaska's forests today.  The potential               
 for catastrophic fires from increased fuel loadings poses a                   
 growing social problem.  The loss of economic forest values                   
 (tourism, wildlife/fish, and timber) will hinder Alaska's ability             
 to diversify its economy and reduce the state's economic                      
 dependency on oil.  He stressed those are important issues which              
 HB 121 addresses.                                                             
                                                                               
 MR. PHELPS felt it is exceptionally important that the problem be             
 addressed and pursued with vigor, management practices which will             
 help restore the state's forests to health.  He said section 1 of             
 HB 121 allows the department to open the public comment period                
 and begin to process timber sales in salvage situations without               
 having to list those sales on two successive five-year plans.  He             
 stressed it was important to not only recognize what HB 121 does              
 but also to understand what the bill does not do.  He stated this             
 proposed section does not exempt salvage sales from AS 38.05.112              
 which requires that a site specific forest plan be developed for              
 timber sales.  He emphasized this section only allows the                     
 department to begin sooner in difficult and crisis situations and             
 does not by-pass any of the site specific responsibilities or the             
 public comment period.                                                        
                                                                               
 MR. PHELPS stated subsection (b) in HB 121 exempts the                        
 department, if a salvage sale is being handled as a negotiated                
 sale, from limitations imposed in AS 38.05.115, which include a               
 one year limitation on the sale and a one-half million board foot             
 limitation on the sale.  He said the second section of HB 121                 
 simply amends existing negotiated sale provisions to include                  
 crisis situations.  He told committee members to note that all                
 three conditions listed on lines 2-4, page 2, are required in                 
 order for the sale to take place.                                             
                                                                               
 MR. PHELPS said it is important for the committee to note that                
 provisions of HB 121 are in harmony with current state                        
 regulations, which were built off of the Forest Practices Act                 
 (FPA).  He read a brief excerpt from a handout in member's                    
 folders, 11 AAC 95.180 Insect and Disease Prevention and Control              
 (may be found in the House Resources Committee Room, Capitol                  
 Room 124, and after adjournment of the second session of the 19th             
 Alaska State Legislature, in the Legislative Reference Library).              
 "When trees on state and municipally owned forest land contain                
 insects or disease which pose a significant threat to surrounding             
 healthy trees, they must be salvaged as rapidly as is                         
 practicable, dependent upon access and marketability, to prevent              
 spread of the forest pests or disease.  Trees must also be                    
 salvaged where environmental catastrophes such as wind or                     
 flooding cause them to be highly susceptible to bark-beetle                   
 infestation.  Where salvage of trees killed by insects or disease             
 is conducted for the sole purpose of using wood fiber and is                  
 consistent with the management objectives for state and municipal             
 forest land, salvage should occur before wood deterioration                   
 results, if a significant loss of merchantability is to be                    
 avoided."                                                                     
                                                                               
                                                                               
 Number 099                                                                    
                                                                               
 CO-CHAIRMAN WILLIAMS noted for the record that Representative                 
 NICHOLIA had joined the committee at 8:17 a.m.                                
                                                                               
 REPRESENTATIVE JOHN DAVIES noted he intends to offer amendments               
 on HB 121.  One amendment regards reforestation and another                   
 amendment regards the prospective nature of the commissioner                  
 determining that something might happen two years from now.                   
                                                                               
 ERNESTA BALLARD, KETCHIKAN, testified via teleconference and                  
 expressed support for HB 121.  She noted her pleasure in seeing               
 the legislature continuing to take initiatives to increase                    
 opportunities for commercial access to state timber.  She said                
 HB 121 represents the kind of common sense and practicality that              
 are the hallmark of economic development.  The provisions of HB
 121 are good for the state and the timber industry.                           
                                                                               
 MS. BALLARD stressed HB 121 is good for the state because it                  
 allows the DNR to respond to disease, insect infestation and fire             
 in state forests within the short window of economic opportunity              
 before all commercial value is lost.  She said the normal five                
 year planning cycle prescribed by Title 38 does not work when                 
 such natural disasters occur.  She believed that the public                   
 interest is adequately protected in the new language of HB 121                
 which provides for a best interest determination by the DNR                   
 commissioner.  She felt this process accommodates the need for                
 public comment and interagency coordination.                                  
                                                                               
 MS. BALLARD stated HB 121 is also good for the state because it               
 provides the commissioner the opportunity to negotiate a timber               
 sale when the stand is diseased, infested or damaged by fire.                 
 The negotiation procedures of AS 38.05.118 provide real                       
 advantages to the state in the volatile timber market.  She                   
 pointed out that a negotiated sale can proceed far more quickly               
 than a sale conducted with a competitive bid.  She stressed the               
 state also benefits from the exemption offered in HB 121 from the             
 sales restrictions listed in AS 38.05.115.  Diseased and damaged              
 timber must be moved quickly.  She said the state has challenge               
 enough in securing a willing and qualified buyer for this special             
 timber.                                                                       
                                                                               
 Number 154                                                                    
                                                                               
 MS. BALLARD told committee members HB 121 is good for the people              
 of the state.  Sale of damaged timber provides revenue to support             
 other state programs.  She noted that the excellent record of the             
 DNR in sale management, reforestation, and multiple use of                    
 forested lands attests to their qualifications to manage these                
 sales.  She said it was important to note these sales of damaged              
 timber will be categorized as salvage sales.  Despite the fact                
 the commissioner has discretion under state law in managing                   
 salvage sales, DNR has a long-standing policy to require                      
 reforestation.                                                                
                                                                               
 MS. BALLARD stated HB 121 is good for the timber industry.  She               
 stressed HB 121 potentially offers thousands of board feet of                 
 timber for harvest and production.  Alaska is home to a large and             
 skilled work force with expertise and experience in every aspect              
 of this industry including timber cruisers, engineers, heavy                  
 equipment operators, cutters, tug boat operators, and sales                   
 representatives.  She said these people have made their homes                 
 here, invested in their businesses, and are raising their                     
 families in Alaska.  She urged committee members to support                   
 passage of HB 121 into law.                                                   
                                                                               
 SANDRA MESKE, PRESIDENT, ALASKA WOMEN IN TIMBER, testified via                
 teleconference and expressed support for HB 121.  She said HB 121             
 is a healthy forest enabling bill.  She stressed HB 121 allows                
 the DNR to expedite its timber sale program for insect damaged                
 trees on state lands, which will in turn assist in proper forest              
 management on state lands.  She urged committee members to assist             
 Representative Williams in passage of HB 121.                                 
                                                                               
 Number 177                                                                    
                                                                               
 BOB LOISELLE, PRESIDENT, KLUKWAN FOREST PRODUCTS, INC., stated                
 the committee will receive much thoughtful and well-considered                
 testimony on HB 121, both for and against.  He said some will be              
 based on philosophical beliefs.  He noted his testimony is based              
 on his philosophy that the state should make wise use of its                  
 resources, but is also based on his personal experience as a                  
 purchaser of state timber sales in recent years.  Based on this               
 experience, there is no doubt in his mind that HB 121 is needed.              
                                                                               
 MR. LOISELLE stressed the recent Kalgin Island sale is a good                 
 case in point.  He said his company's cruise of this timber                   
 indicated that 57 percent of the trees were dead and 90 percent               
 were infected by the spruce bark beetle.  Despite DNR's                       
 successful defense of a motion to stay this sale, when bid day                
 arrived, no one came.  He stated the timber was of such poor                  
 quality that most would have had to been chipped for pulp and                 
 there was not enough revenue to cover operating costs.  He noted              
 the key point is that DNR is behind the curve in the forest pests             
 problem and if the state continues to offer these sales after                 
 most of the trees are dead or infected, many of them will not                 
 sell because of the difficult economics involved.  He felt forest             
 management in the state will be set back severely.  He also felt              
 there is still adequate public process and review of these sales.             
                                                                               
 Number 212                                                                    
                                                                               
 RIKI OTT, REPRESENTATIVE, HABITAT COMMITTEE, UNITED FISHERMEN OF              
 ALASKA (UFA), said the habitat committee opposes HB 121.  She                 
 stated Speaker Gail Phillips came the day before to speak to UFA              
 and a general packet of bills disposing large amounts of public               
 lands into private hands with restricted public comment was                   
 discussed.  She stated Speaker Phillips assured UFA that it is                
 not the House's intent to limit public hearings and Speaker                   
 Phillips noted that a Special Committee on Fisheries was set up               
 specifically to addresses fisheries issues.                                   
                                                                               
 MS. OTT felt HB 121 should be referred to the Special Committee               
 on Fisheries.  She stated HB 121 is unnecessary because DNR can               
 already complete the timber sale process in less than two years.              
 DNR also has the authority to carry out emergency timber sales in             
 response to forest health problems.  She stressed HB 121 exempts              
 forest logging from the sustained yield principle.  Section 1 (b)             
 of HB 121 provides for exemption from AS 38.05.115.  She pointed              
 out that specific statute includes the sustained yield principle.             
                                                                               
 MS. OTT stated HB 121 provides for an exemption from forest                   
 cutting size limits.  For example, the entire Tanana Valley could             
 be cut.  She said the habitat committee is also concerned about               
 the ability of DNR to predict forest health problems.                         
 Specifically, under the FPA currently, there are numerous                     
 problems with DNR and Alaska Department of Fish and Game (ADF&G).             
 She said the due deference given under the FPA has not been                   
 working and felt HB 121 gives DNR even more power, away from                  
 ADF&G.                                                                        
                                                                               
 MS. OTT told committee members the commercial fishing industry is             
 paying its own way and is the largest employer of Alaskans.  She              
 said the commercial fishing industry cannot afford to subsidize               
 irresponsible timber harvest.  She said HB 121 uses the forest                
 health as an excuse for opening public lands to private cutting.              
 She stated if the timber industry feels this is necessary, the                
 habitat committee would ask that the timber industry, the fishing             
 industry and other users of the forest get together, as they all              
 did under the FPA, and work out the issue together.                           
                                                                               
 Number 269                                                                    
                                                                               
 TERRY HERMACH, REPRESENTATIVE, PRINCE WILLIAM SOUND CONSERVATION              
 ALLIANCE, testified via teleconference and expressed opposition               
 to HB 121.  He said HB 121 would create a maze of roads hindering             
 the long-term health of a natural ecosystem and open up areas for             
 large scale road hunting which would highly impact the game in                
 the area.  He stated HB 121 would also hinder the long-term                   
 recovery of the forest.  He felt if trees are left as they are,               
 regeneration occurs.  He noted it would be a detriment to the                 
 state to create a timber industry where none now exists.                      
                                                                               
 BILL COPELAND, REPRESENTATIVE, ALASKA WILDERNESS RECREATION &                 
 TOURISM ASSOCIATION (AWRTA), testified via teleconference and                 
 explained AWRTA.  He stated ecotourism comprises about ten                    
 percent of the $315 billion that Americans spend each year on                 
 travel.  It is the industry's fastest growing segment, with a                 
 growth rate of 20 percent per year.  He pointed out that in 1993,             
 Alaska visitors spent $1.5 billion, which created 15,200 jobs and             
 generated a tourism industry payroll of between $275 and $300                 
 million.  By contrast, the forest products industry contributed               
 only $565 million to the Alaskan economy, creating 3,185 jobs and             
 producing an industry payroll of $140 million.                                
                                                                               
 Number 311                                                                    
                                                                               
 MR. COPELAND said after reviewing HB 121, AWRTA has no objection              
 to the overall idea of providing for negotiated salvage timber                
 sales where there is a demonstrated economic and scientific basis             
 for salvaging timber and mitigating outbreaks of tree disease or              
 insect infestation.  He felt it must be provided, however, that               
 these timber sales be subject to the requirements of public                   
 notice and allowance for public comment and involvement in the                
 decision making process, and be consistent with overall land use              
 plans and the provisions of the FPA.  He stressed decision making             
 on timber salvage sales should consider other beneficial and                  
 competing uses in the area, as well as the impacts of creating                
 access to the salvage areas.                                                  
                                                                               
 MR. COPELAND stated AWRTA objects to the proposed language under              
 AS 38.05.117(b) to exempt negotiated salvage sales from                       
 AS 38.05.115.  Rather, AWRTA suggests the following:  Add a new               
 subsection applicable only to negotiated salvage sales of over                
 500,000 board feet that reads the same as the present                         
 AS 38.05.115(a), except delete the "without advertisement"                    
 provision contained in the third sentence.  He stressed this new              
 subsection would retain the language requiring the sale to be                 
 consistent with the sustained yield principle and be subject to               
 preferences among other beneficial uses, but would require                    
 advertisement of salvage sales over 500,000 board feet.                       
                                                                               
 MR. COPELAND said AWRTA suggests that for negotiated salvage                  
 sales, a cap on maximum volume and a contract period be                       
 established by statute.  He added that under the present language             
 proposed in HB 121, there is no limit to the volume negotiable                
 and a 25 year maximum is currently allowed by AS 38.05.118(a).                
 He pointed out that the proposed language for AS 38.05.117(a)                 
 would allow the DNR commissioner to offer salvage timber sales in             
 stands that will lose substantial economic value if not salvaged              
 within two years.  He noted this suggests the term of these                   
 salvage contracts should not exceed two years, since after that,              
 the timber will then be of little value.                                      
                                                                               
 MR. COPELAND stated AWRTA objects to the proposed language of                 
 AS 38.05.118(c) to include the addition of the phrase "or will                
 exist within two years" in the first sentence.  He said it is                 
 difficult enough to make resource decisions on existing                       
 conditions, and adding a hypothetical condition only weakens the              
 decision.                                                                     
                                                                               
 REPRESENTATIVE RAMONA BARNES requested Mr. Copeland to fax to the             
 committee information on where he gets his ecotourism figures.                
 She said they are not the figures she has seen.  She reminded                 
 those who were testifying that all the money in the state comes               
 from development dollars such as petroleum.                                   
                                                                               
 Number 385                                                                    
                                                                               
 LOUIE BENCARDINO, REPRESENTATIVE, KENAI ECONOMIC DEVELOPMENT                  
 BOARD, testified via teleconference and stated he is in favor of              
 HB 121.  He said the Seward area meets all the requirements                   
 listed in HB 121.  He added that Seward also has a $30 million                
 mill which has been shut down for the past six months.  He                    
 stressed there is a definite need for timber in order to get the              
 mill back in operation.  He noted the biggest problem is                      
 convincing companies that there is timber available for                       
 harvesting in Alaska.                                                         
                                                                               
 MR. BENCARDINO stated he favors supporting the federal forest                 
 regulations regarding distance from creeks and crucial slide                  
 areas.  He felt the timber in the United States (U.S.) has been               
 studied and restudied and the regulations already in effect                   
 should be used.  He said there is a good possibility for                      
 reforestation.  He also felt it important that the plant in the               
 Mat-Su valley be supported.  He said the state should take                    
 advantage of the timber available and thought DNR could do a good             
 job as long as they have the tools.                                           
                                                                               
 AL SHAFER, SEWARD, testified via teleconference and said he is in             
 the logging business.  He recalled that previously all timber in              
 Alaska which had matured was called over mature which meant it                
 was dying.  He said the Kenai Peninsula has the bug kill and                  
 stressed it is ridiculous for someone to say let those trees die              
 and fall down to put nutrients into the soil.  He stressed Alaska             
 is a resource state.  He urged support of HB 121.                             
                                                                               
 Number 454                                                                    
                                                                               
 STEVE GIBSON, HOMER, testified via teleconference and said his                
 understanding was that the Seward mill was shut down because it               
 was more profitable for the owners to export than mill locally.               
 He expressed opposition to HB 121.  He felt HB 121 is a                       
 simplistic approach to the problem.  He noted that all mature                 
 spruce on the Kenai Peninsula are at risk for the spruce bark                 
 beetle but that does not mean the entire area should be cut down.             
 He added that the requirements of the FPA can be met with two                 
 listings in about a year and one-half which is not a                          
 prohibitively long time.                                                      
                                                                               
 MR. GIBSON stated there are many reasons some stands should not               
 have salvage sales even though there is insect damage.  Often a               
 stand is made up of components which would suffer more damage to              
 the regeneration than would be justified by the recovery of the               
 salvageable trees.  He felt the public review should not be                   
 shortened or exempted in the case of negotiated sales.  For                   
 example, the forest in the Ninilchik area, which has been the                 
 focus of state sales, contain about 4,000 feet an acre.  The                  
 rotation time in those woods are typically 100 to 150 years,                  
 unlike the forest in Southeast and outside.  At minimum bids,                 
 this timber is currently advertised at about $35 an acre or $8.79             
 per thousand.  He said many of the smaller and younger trees are              
 damaged by salvage and thought it was in the public's right to                
 have a year and one-half to consider the trade-offs which will be             
 involved.                                                                     
                                                                               
 MR. GIBSON stated DNR needs to focus on earlier intervention in               
 those areas which are adjacent to the already catastrophic                    
 infestations and execute their prescriptions with a much lighter              
 hand.  He felt HB 121 does nothing to address those problems.  He             
 stressed that salvaging marginal timber cannot be equated with                
 forest health and in many cases it is just the opposite.  He                  
 pointed out the public needs a complete opportunity to review an              
 evaluation of that.                                                           
                                                                               
 Number 511                                                                    
                                                                               
 DUANE ANDERSON, KENAI, testified via teleconference.  He said                 
 there is one lie which continues to circulate and that is, timber             
 loses its value immediately or very soon upon becoming dead.                  
 Referring to a book published by the National Log Home Builders               
 in the U.S., he said there are 126 people (log home builders) and             
 the manufacture is primarily American products.  Since 1970, 105              
 of those people have gone into business, of which none are                    
 currently in Alaska.  He said those outside western American                  
 areas became viable primarily for two reasons.  First, the bark               
 beetle suddenly made a large volume of dry timber available which             
 makes logs a very viable, valuable, and commercially worthwhile               
 product.  Second, the American home building industry and its                 
 people who have the controls and develop guidelines for                       
 construction use of acceptable material for home building began               
 to realize that log homes traditionally were highly successful                
 and began to establish and remove the barriers that were in                   
 place.  He added that finance institutions have precluded                     
 effective log home financing.                                                 
                                                                               
 MR. ANDERSON said Alaska is very late in the entire scenario.  He             
 stated the resource now dying is not nearly under so much stress              
 of time or value lost as perceived.  The state needs to realize a             
 very large opportunity.  He stated HB 121 mainly gives a very                 
 quick mechanism for wood chip people on the Kenai Peninsula to                
 get their hands on more wood.                                                 
                                                                               
 Number 573                                                                    
                                                                               
 STAN STEDMAN, ECONOMIC DEVELOPMENT DIRECTOR, KENAI PENINSULA,                 
 testified via teleconference and said he is not prepared to                   
 represent his organization.  However, he recognized and                       
 appreciated the intent of HB 121 and the desire to protect the                
 state's forest health and provide an opportunity for public                   
 involvement.  He stated he would also like to see a shortening of             
 the time frame to realize the opportunity of utilization of the               
 resource.                                                                     
                                                                               
 MR. STEDMAN pointed out that in terms of the criteria listed on               
 page 2, lines 2-4, the Kenai Peninsula has the highest regional               
 rate of unemployment in the state.  He added he is working with               
 small operators, through the business assistance program, who are             
 challenged with being able to access a supply of timber for their             
 operations.  He noted the Kenai Peninsula has the most severe                 
 timber beetle infestation in the U.S.  He looked forward to the               
 possibility of utilizing the timber and expressed appreciation                
 for the tool to possibly accomplish that.                                     
                                                                               
 KEN FREEMAN, PROJECTS COORDINATOR, RESOURCE DEVELOPMENT COUNCIL               
 (RDC), testified via teleconference and stated RDC is a proponent             
 of a healthy forest products industry and has worked over the                 
 years to advance a forest health initiative addressing the spread             
 of the spruce bark beetle infestation in Southcentral and                     
 Interior Alaska.  He said RDC supports HB 121, which is not a                 
 breach of the FPA.  The FPA provides exemptions to the five-year              
 schedule for timber salvage.                                                  
                                                                               
 MR. FREEMAN pointed out that currently, the commissioner of DNR               
 can conduct a negotiated sale if there is a high level of                     
 unemployment, an underutilized manufacturing capacity, and an                 
 underutilized allowable cut of state timber.  He said HB 121                  
 merely amends current law to add timber that will lose                        
 substantial economic value due to disease, fire, or land use                  
 conversion.  He stated HB 121 simply adds another circumstance                
 under which the commissioner can utilize the existing negotiated              
 sale authority.  He noted that HB 121 will give DNR the ability               
 to accelerate its timber sale program for insect-damaged trees.               
                                                                               
                                                                               
 TAPE 95-8, SIDE B                                                             
 Number 000                                                                    
                                                                               
                                                                               
 MR. FREEMAN said HB 121 provides the tools to advance proper                  
 forest management on state lands and helps decrease the potential             
 for damage to the forest and its resources.  He stated HB 121                 
 will help expedite the recovery of the forest by promoting                    
 managed reforestation, which is considerably faster than natural              
 regeneration.  Habitat values for fish and wildlife will benefit              
 if Alaskans are allowed to harvest and reforest.   In addition,               
 he stressed HB 121 will encourage the establishment of a rural                
 forest products industry with year round jobs and tax revenues                
 for local communities.  He said RDC encourages the committee to               
 pass HB 121.                                                                  
                                                                               
 TABITHA GREGORY, REPRESENTATIVE, ALASKA CENTER FOR THE                        
 ENVIRONMENT, testified via teleconference and stated HB 121                   
 removes the multiple use mandate for state forested land.                     
 Alaskans have many views on the best use for forest lands.  She               
 noted it is far from unanimous that the highest value of trees,               
 even dead or dying trees, is after they have been cut and hauled              
 out of the forest.  In many areas which are targeted by HB 121,               
 trees prove much more valuable (aesthetically, ecologically, and              
 economically) when they are an integral part of a forest system.              
 She felt it is unacceptable to unilaterally elevate the use of                
 trees as timber over their importance for other things.  This                 
 alone creates a single-use, not a multiple use, management agenda             
 for DNR.  She pointed out by removing the 500,000 board feet size             
 limit on salvage sales, HB 121 would promote timber harvest on                
 state lands on an uncontrollable scale.  She said HB 121 makes                
 salvage sale just another term for "come and get it".                         
                                                                               
 MS. GREGORY felt HB 121 shuts people out of decision making                   
 processes.  She said one of the most important aspects of forest              
 management is public involvement.  Currently, timber sales must               
 be shown on the five year schedule for at least two years prior               
 to being offered for sale.  This provision is there so that                   
 people are aware of upcoming changes to their area's forests and              
 can respond to decision makers.  She stressed that often,                     
 important local knowledge is passed on to DNR foresters so they               
 can alter harvest and sale plans to better provide for all of the             
 people in Alaska, not just the timber industry.                               
                                                                               
 MS. GREGORY expressed belief that it is not appropriate to direct             
 the commissioner of DNR to predict the future in order to free up             
 more timber sooner, and with no public oversight.  She said HB
 121 sets the stage for the commissioner to negotiate sales for                
 forests that may, in actuality, not experience fire, disease, or              
 insect infestation for a decade or longer.  She stressed HB 121               
 allows DNR to use these natural conditions as excuses to allow a              
 greater cut on forests that are traditionally used for other                  
 things.                                                                       
                                                                               
 MS. GREGORY stated that although HB 121 asks the commissioner to              
 negotiate timber contracts in an effort to head off possible high             
 levels of future unemployment, there is no provision for the very             
 real threat to existing industries like tourism and fishing by                
 this increased logging.  She expressed opposition to HB 121                   
 because it creates single-use forests, removes meaningful public              
 oversight, and directs the commissioner to predict the natural                
 and economic future in order to open the state's forests to large             
 scale logging.                                                                
                                                                               
 SEAN MCGUIRE, FAIRBANKS, testified via teleconference and                     
 expressed opposition to HB 121.  He questioned the concept of                 
 protecting the forest from itself.  He said before the white men              
 arrived, North America had some of the most vast and healthy                  
 forests on the planet.  He felt the idea of needing to save the               
 forest from itself is a bogus proposition.  He mentioned that a               
 renowned forester from Canada recently detailed how important it              
 is to have old growth die and fall down.  It is important for                 
 habitat.  The forester said it was crucial that old growth be                 
 allowed to fall down and that the health of the forest is                     
 dependent on old logs dying and rotting.  If those old logs are               
 taken out of the system, within a couple of cycles, the forest is             
 no longer healthy.                                                            
                                                                               
 MR. MCGUIRE stated he does not want a situation where one person,             
 such as the commissioner, can make broad decisions about the                  
 forests.  He stressed that all Alaskans own the state's forests.              
 He felt HB 121 provides a way for loggers to get around the                   
 public process.  He stressed Alaska has the only remaining intact             
 boreal forest ecosystem in North America.  He said HB 121 appears             
 to be little different than the idea that everyone now knows is               
 bogus and that is, all forest fires should be put out.                        
                                                                               
 MR. MCGUIRE pointed out that tourism is the state's fastest                   
 growing industry and he felt that industry is the key to the                  
 state's economic health in the future.  People are visiting                   
 Alaska in ever increasing numbers to see the state's natural                  
 wonders.  He noted that people all over the nation are sick about             
 what has happened to their forests.  Polls have shown that over               
 one-half of the nation's population wants all cutting on federal              
 lands stopped.  He stressed the state's forests are most valuable             
 left standing.                                                                
                                                                               
 Number 092                                                                    
                                                                               
 DAN RITZMAN, REPRESENTATIVE, NORTHERN ALASKA ENVIRONMENTAL                    
 CENTER, testified via teleconference and expressed opposition to              
 HB 121.  He said HB 121, as written, would exempt salvage timber              
 sales from the existing size limits, public review and                        
 reforestation provisions of the state law.  He felt the                       
 provisions in HB 121 give the DNR commissioner extraordinary                  
 latitude in predicting forest health.  He stated as he read HB
 121, any tree that could lose economic value due to insect or                 
 fire could be salvaged, without any public comment.  He stressed              
 the entire forest would fall into that category.                              
                                                                               
 MR. RITZMAN said under current Title 38 language, DNR can                     
 complete the timber sale process in less than two years.  He                  
 pointed out that HB 121 salvage sales would be unnecessary if DNR             
 efficiently and competently planned sales under existing laws.                
 He commented on the forest health issue and the need for salvage              
 sales.  He stated there are currently a number of people and                  
 organizations crying out for the need to save the forest from                 
 insects, and the need for logging to do this.  He cited an                    
 analogy.  If he was concerned with a sound coming from his car's              
 engine and wanted to know if it was normal, he would check with a             
 mechanic rather than a car dealer.  Both of these people                      
 presumably know about cars, but the mechanic would be concerned               
 with how the car runs and the dealer would have an economic                   
 interest in convincing him he needs a new car.                                
                                                                               
 MR. RITZMAN said the same can be said of the people and                       
 organizations pushing for salvage.  He did not find it surprising             
 that groups, who have an economic interest in cutting those                   
 trees, are promoting large scale logging as a response to spruce              
 bark beetles and suggesting a logged forest is a healthy forest.              
 He told committee members if they check with biologists and                   
 ecologists who are concerned with how wild forests function and               
 do not have an economic interest in logging, they will find many              
 who believe that insect epidemics are important to the long-term              
 health of a naturally functioning forest.  He added that where                
 fires are infrequent, such as on the Kenai, insect epidemics are              
 believed to be nature's way of recycling the older trees to make              
 way for the new forest.  Along the way, the insects provide food              
 for a variety of birds and the dead trees provide valuable                    
 habitat for wildlife before enriching the soil for the new forest             
 that will follow.                                                             
                                                                               
 MR. RITZMAN stated before succumbing to the sales pitch offered               
 by groups with an interest in logging, Alaskans need to do more               
 research and get other opinions from trusted professionals.  He               
 felt it should not be assumed that a logged forest is a healthier             
 forest or that beetle killed trees increase the fire hazard.  He              
 encouraged members to find out what effects logging has on                    
 fisheries and tourism, find out why logging has actually                      
 increased unwanted grass and why reforestation efforts have had               
 poor results.  He stressed it is important to understand what the             
 salesmen are trying to sell before buying their line.                         
                                                                               
 Number 136                                                                    
                                                                               
 JOE YOUNG, PRESIDENT, YOUNG'S TIMBER, testified via                           
 teleconference and said he has a value-added milling operation in             
 Tok.  He expressed support for HB 121.  He felt HB 121 will                   
 provide a tool to speed up the process for salvaging dying timber             
 and will also increase the wildlife habitat.                                  
                                                                               
 K.A. SWIGER, EXECUTIVE DIRECTOR, STAND UP!, testified via                     
 teleconference and stated her testimony reflects the voice of                 
 community people throughout the region dedicated to maintaining a             
 stable economy in Southeast Alaska.  She said in terms of sound               
 resource management, HB 121 is a win-win proposition.  She                    
 pointed out that HB 121 provides for people and the economy, as               
 well as the value of forest health.  She felt the avenue                      
 providing the DNR commissioner the power to negotiate timber                  
 sales in diseased or damaged forest areas within two years is                 
 highly acceptable.  Stand UP! believes this will enable foresters             
 to act in a timely manner to arrest bug infestation or rot due to             
 fire or blow down, as well as add value to a resource otherwise               
 wasted.                                                                       
                                                                               
 MS. SWIGER mentioned that land in the Haines valley currently                 
 contains 14,000 acres of forest killed by beetle infestation.                 
 She noted Haines is an area of high unemployment, has an                      
 underutilized timber manufacturing capacity, and has timber which             
 is losing substantial economic value due to insects.  She said                
 after years of rampant bug kill, there are currently two salvage              
 sales underway.  She stressed the level of salvage is so small,               
 there is no chance of curbing the infestation, and therefore no               
 real help to restoring the forest.  She pointed out that Haines               
 would be a likely benefactor from the passage of HB 121, by                   
 perhaps increased sales which will ultimately benefit the forest              
 and the people.                                                               
                                                                               
 MS. SWIGER stated damaged trees are already exempt from sustained             
 yield management and for a good reason.  The entire stand must be             
 harvested if the disease is going to be brought under control.                
 That is why the size of harvest of a damaged stand should not be              
 a matter of law, but rather a matter of silviculture.  She said               
 Stand UP! does not believe the public process is jeopardized by               
 HB 121.  Preparation, planning, following guidelines and public               
 comment are still very much a part of the sale offering process.              
 Stand UP! encourages the committee to adopt HB 121 and push for               
 its passage.                                                                  
                                                                               
 Number 188                                                                    
                                                                               
 CHRIS MOSS, HOMER, expressed opposition to HB 121.  He felt HB
 121 gives too much latitude to the DNR commissioner in                        
 determining what "losing substantial economic value" is,                      
 determining what the disease process is, and determining what                 
 will exist in two years.  He also expressed concern about the                 
 size and length of negotiated contracts and the possibility of                
 lack of public input on a fast track method.  He stressed the                 
 disease process cannot be stopped by cutting trees.  He said most             
 disease and fires create mosaic patterns which leave islands of               
 viable populations within a forest and he would like to see                   
 protection of those areas for reforestation in the future.                    
                                                                               
 MR. MOSS said as a resident in Homer, he knows what happens to                
 most of the trees which are cut on the Kenai Peninsula.  Those                
 trees are packed down in log bundles and piles of chips are sent              
 overseas.  He stated there are a number of small operators in                 
 that area who create a rough cut lumber bought locally.  He hoped             
 that if HB 121 is passed, there will be a method where the chunks             
 of salvage timber is sold in small enough lots enabling local                 
 people to have an opportunity for land also.                                  
                                                                               
 Number 215                                                                    
                                                                               
 WILLY DUNNE, REPRESENTATIVE, ALASKA ENVIRONMENTAL LOBBY (AEL),                
 said the AEL supports the salvage sale of timber on land which                
 will be converted to non-forest use, but AEL has reservations                 
 about other provisions in HB 121.  He stated the DNR has                      
 acknowledged that cutting down the forest does not improve forest             
 health.  Forest ecologists believe that forest insect epidemics               
 are often self-regulating and can often improve habitat for many              
 types of wildlife.  He added that HB 121 would only consider the              
 economic value of timber when determining salvage sales.  He                  
 stressed other economic values such as hunting, fishing,                      
 trapping, outdoor recreation, other forest products, etc. would               
 be ignored.  AEL would like to see those economic values                      
 acknowledged in HB 121.                                                       
                                                                               
 MR. DUNNE stated HB 121 does not mention damaged timber but                   
 mentions on line 6, page 1, "timber stands that will lose                     
 substantial economic value because of insect or disease epidemics             
 or fire..."  He felt that verbiage is open to interpretation.                 
 AEL would like to see language specifically indicating salvage                
 refers to dead or downed timber.                                              
                                                                               
 MR. DUNNE said the biggest problem AEL has with HB 121 is the                 
 provision for a negotiated timber sale which could last up to 25              
 years in length.  AEL would like to see an amendment restricting              
 negotiated salvage sales to no longer than two years.  He stated              
 the U.S. Forest Service has had a history of abusing salvage sale             
 rules and now their salvage sales are restricted to only dead and             
 down material.                                                                
                                                                               
 MR. DUNNE stated under current Title 38 regulations, the DNR can              
 conduct timber sales in less than two years and has the authority             
 to have emergency sales in response to forest health problems.                
 He said AAC 71.010 specifically addresses the loss of economic                
 value of timber as a reason for allowing salvage sales.  He added             
 that AEL objects to the phrase beginning on line 15, page 1, "or              
 will exist within two years," because it gives the DNR                        
 commissioner the authority to predict future events.  He noted                
 last year the legislature passed SB 308 and one of the main                   
 arguments was that the DNR commissioner should not be required to             
 predict future events in the disposing of natural resources.                  
                                                                               
 MR. DUNNE closed by reading a quote from a government survey of               
 an Alaska forest, "Spruce bark beetles have killed a large number             
 of trees.  It is estimated that 60 percent of the spruce is                   
 already dead or dying.  In a few years green spruce will be hard              
 to obtain, and travel will be made more difficult by windfalls.               
 The danger of forest fires will be increased.  The beetles are                
 not confining themselves to one particular area, but are                      
 threatening to devastate the entire region of spruce."  He stated             
 the quote might sound like  a survey conducted in 1995 on the                 
 Kenai Peninsula, but in fact is from a 1933 survey in the Susitna             
 Valley.  He said that area is now designated as a critical                    
 habitat area due to its exceptional fish and wildlife habitats.               
                                                                               
 REPRESENTATIVE OGAN asked Mr. Dunne if he had flown over the                  
 Kenai Peninsula recently.                                                     
                                                                               
 MR. DUNNE responded he has flown over it numerous times.                      
                                                                               
 Number 303                                                                    
                                                                               
 TYLER JONES, CITY MANAGER, CITY OF SEWARD, testified via                      
 teleconference and said the city council had not had the                      
 opportunity to act on HB 121 specifically.  However, previously               
 the council has taken specific actions to favor enhancement of                
 productive and timely use of the forest resources in the Seward               
 area.  He assumed he had council backing when making his                      
 comments.  He stated the comments previously made from Seward and             
 those supporting HB 121 would be echoed by the council and the                
 community.                                                                    
                                                                               
 MR. JONES told committee members that Seward has a high rate of               
 local unemployment and an underutilized timber manufacturing                  
 capacity with a dormant mill and an underutilized allowable state             
 timber in the area.  Therefore, the city qualifies under the                  
 terms of HB 121 and would be interested in enjoying the more                  
 ready access to beetle kill timber in the area.  He stated HB 121             
 does shorten the time frame for access to timber which is                     
 something the community would support.  He noted there are still              
 requirements for the professional evaluation for the appropriate              
 treatment of diseased or infested timber.  He added that HB 121               
 does not detract from adequate public comment processes or limit              
 public engagement.  Therefore, the council feels HB 121 would be              
 supported and useful in Seward.                                               
                                                                               
 MR. JONES stated it is the sentiment of the community of Seward,              
 although not unanimous, that the beetle kill issue on the Kenai               
 Peninsula is not being addressed productively.  He urged                      
 committee support for HB 121.                                                 
                                                                               
 Number 355                                                                    
                                                                               
 RON LONG, SEWARD, testified via teleconference and pointed out                
 that one of the duties of good government is responsibly managing             
 resources for quality.  He said sometimes that means recognizing              
 when situations change, such as the beetle kill problem on the                
 Kenai Peninsula (indiscernible) and the tools are in place to                 
 deal with.  He added the (indiscernible) strategy is not in                   
 existing regulations to address those changes.  He felt a                     
 provision should be allowed to respond to the changes                         
 responsibly.  He said existing regulations prohibit response and              
 serious thought should be given to changing them.  He urged                   
 committee support of HB 121.                                                  
                                                                               
 G.R. BROOKMAN, KENAI, testified via teleconference and felt HB
 121 is too broad, too vague, and gives too much authority to the              
 DNR commissioner.  He said the commissioner will be relying on                
 advice from the state forester and other professionals.  He                   
 stated when a law is put in the books, it is going to remain                  
 there into the indefinite future and it is not known who will be              
 occupying those positions of power.  Therefore, he expressed                  
 wariness of the idea of giving this much power to any future DNR              
 commissioner.                                                                 
                                                                               
 MR. BROOKMAN said another reservation he has is the fact that a               
 negotiated sale can go 25 years into the future.  He suggested a              
 two year time limit should be included in HB 121.  He stated on               
 page 2, lines 2-4, there are undefined terms such as "high level"             
 and "underutilized".                                                          
                                                                               
 Number 407                                                                    
                                                                               
 RED SMITH, COOPER LANDING, testified via teleconference and said              
 he bought his first sawmill through the Sears catalog in 1951                 
 because the highway projects were wasting all of the timber.  He              
 stated he has continuously owned sawmills throughout the years.               
 He stressed he has never seen anything as disgusting and as                   
 deplorable as the management of the timber resource on the Kenai              
 Peninsula in the 46 years he has resided there.  No one has ever              
 been able to catch up with the continuous waste of the timber                 
 there.  He noted that at one time about 25 years ago, statistics              
 could show that destruction by bugs and various construction                  
 projects was occurring at 40 times the milling capacity of all                
 the sawmills on the Kenai.  He stressed today, that statistic is              
 vastly beyond that figure.  The bugs, by government statistics,               
 are killing about 2,000 acres of the area's spruce forest every               
 day.  He added there is no milling capacity that anyone has                   
 envisioned or even suggested which can come close to utilizing                
 the waste which is occurring in the forest.                                   
                                                                               
 MR. SMITH stated the public decision making process is a dismal               
 failure.  He has listened to many people, some of them purporting             
 to be scientifically knowledgeable, talking about things they                 
 know nothing about.  He felt if they would come to the forest and             
 see what good forest management can do, they would change their               
 minds on how to approach the management of the state forests.  He             
 stressed the waste cannot be allowed to continue.  He felt the                
 waste will not continue and the problem will be addressed in                  
 every manner reasonable to get an industry started which can                  
 utilize the wasting resource.                                                 
                                                                               
 MR. SMITH said he listens and tries to understand the attitudes               
 of the environmental community but everybody has told him the                 
 dead or dying timber should be used rather than cutting the                   
 healthy green.  He stated that is the best public relations for               
 any conservationist or environmentalist.  He felt it was                      
 important to stop destroying the forests, particularly the                    
 healthy forests and develop better programs for utilizing the                 
 dead and dying trees.                                                         
                                                                               
 Number 475                                                                    
                                                                               
 CLIFF EAMES, REPRESENTATIVE, ALASKA CENTER FOR THE ENVIRONMENT,               
 testified via teleconference and stated there are a couple of                 
 assumptions that underlie HB 121 which are not warranted.  He                 
 said the first assumption is that logging should be a primary use             
 of state forests...that is the only economic value which really               
 matters is trees which are cut and taken off the land.  He noted              
 there was testimony from hundreds of people on HB 310 last year               
 who believe that is not the case.  Rather, they believe the                   
 state's forests should be managed for a wide variety of uses and              
 resources.  He stated it was ironic that a legislature which paid             
 so much consideration to the multiple use idea would now pass a               
 bill like HB 121 that gives commercial logging a clear preference             
 on the state's forests.                                                       
                                                                               
 MR. EAMES agreed with previous testimony that the assumption the              
 trees are going to waste if they are not logged is not accurate.              
 He said most scientists believe the damage from large scale                   
 logging and road building in many of these areas is greater than              
 allowing the beetle to take its course.  He echoed the idea there             
 is no need for HB 121.  The state can already quickly get through             
 the five year requirement.  He stated it is clear that HB 121 is              
 aimed at the Kenai Peninsula, yet already on the five year                    
 schedule is the proposal to log two-thirds of all of the state-               
 owned commercial forest land on the peninsula within ten years.               
                                                                               
 MR. EAMES noted other reasons for logging, in addition to                     
 salvage, is to bring the insect infestation under control.  He                
 stressed that is not going to happen.  He said the fire hazard                
 has also been grossly exaggerated and he did not think                        
 professional foresters would risk their reputation using that as              
 a justification.                                                              
                                                                               
 Number 542                                                                    
                                                                               
 ROBERT LACOCK, ANCHORAGE, testified via teleconference and                    
 expressed opposition to HB 121.  He said the presumption that the             
 best solution to the beetle infestation is to cut the forest only             
 addresses the short term economic value and does not consider how             
 the long term health of the forest can be helped.  On the                     
 contrary, logging will be a detriment to the long term health of              
 the forest by the profound negative impacts on any ecosystem from             
 the introduction of roads and destruction of wildlife habitat.                
 He noted that even though wildlife habitat may be under stress                
 due to the beetle infestation, that stress would be only worsened             
 by HB 121 and logging.                                                        
                                                                               
 MR. LACOCK said HB 121 also ignores the many other long term                  
 values of the forest and the beetle infestation.  A forest with               
 the beetle still provides (indiscernible), recreation, and fish               
 and wildlife.  He noted all of these exist even in areas infested             
 by the bark beetle.  He stated the forest value is only worsened              
 far beyond the effects of the bark beetle by logging.  He noted               
 HB 121 does not consider anything outside the short term economic             
 profit by timber harvest.  HB 121 exempts forest harvest size                 
 limits and an appropriate period of time for public review.  He               
 stressed HB 121 ignores the long term health of the forest.                   
                                                                               
 Number 578                                                                    
                                                                               
 DOUG YATES, REPRESENTATIVE, ALASKA BOREAL FOREST COUNCIL (ABFC),              
 testified via teleconference and stated pursuant to the hearing               
 on HB 121, the ABFC pointed out that insect outbreaks are a                   
 normal part of forest ecology.  Insect outbreaks have always been             
 a part of the forest and in many times, it is believed they are               
 self-regulating.  He said to base a policy strictly on commodity              
 values is not good stewardship.  He added that provisions within              
 HB 121 would give DNR extraordinary latitude in determining and               
 even predicting forest health, employment levels, and timber                  
 values while removing from the decision making process the wisdom             
 of local residents and the concerns of the public which own and               
 use the resources.                                                            
                                                                               
 MR. YATES said given the consequences to Alaska's fisheries from              
 increased logging that can be assumed by the passage of HB 121,               
 Alaska's fish and subsistence users deserve a greater voice in                
 debating this critical issue.  He expressed support for earlier               
 testimony suggesting HB 121 be referred to the Special Committee              
 on Fisheries.  He said ABFC opposes HB 121 in its current form.               
                                                                               
 TAPE 95-9, SIDE A                                                             
 Number 000                                                                    
                                                                               
 MARK LUTTRELL, PRESIDENT, EASTERN KENAI PENINSULA ENVIRONMENTAL               
 ACTION ASSOCIATION, testified via teleconference and expressed                
 opposition to HB 121.  He felt HB 121 would inhibit the public                
 process, the intended proper scientific management and the proper             
 compliance and oversight by professionals.  He said HB 121 also               
 gives the DNR commissioner too much power and asks the                        
 commissioner to predict the future.  He also objected to the                  
 unlimited size of a salvage sale.  He stressed that HB 121                    
 focuses on the single commercial value of timber and does not                 
 address other values, both economic and aesthetic.                            
                                                                               
 MR. LUTTRELL stated he is not against logging but is against                  
 wholesale logging without public input or recognition of other                
 forest values such as outdoor recreation.                                     
                                                                               
 LARRY SMITH, HOMER, testified via teleconference and encouraged               
 committee members to read testimony received by the committee                 
 last year.  He said there have been many salvage sales around                 
 Cook Inlet.  He noted the west side salvage sale involved 223,000             
 acres in the early 1970s and cost the state $1.5 million.  He                 
 felt the state's salvage sale abilities have not improved as                  
 $150,000 was just lost, compared to a scarce $600,000                         
 appropriated by legislative budget and audit in the last few                  
 months for reforestation.   He said that money was squandered to              
 try and hold a timber sale but Klukwan's report advised the state             
 it would never happen because there was no way to make any                    
 revenue.                                                                      
                                                                               
 MR. SMITH said there is another salvage sale proposed at False                
 Creek.  The state hired and paid a contractor $50,000 to $60,000              
 to lay out the timber sale and then had to redo all the work with             
 state employees.  He suggested that DNR should not be any more                
 trusted with salvage sales today as it has in the past.  He felt              
 giving bad management more tools just leads to more bad                       
 management and more dollars spent.  Therefore, a significant                  
 fiscal note is needed for HB 121.                                             
                                                                               
 MR. SMITH stated the DNR never fights the Division of Forestry's              
 budget and there was a need to almost impose the request for                  
 reforestation dollars granted recently.  He said thanks to                    
 Speaker Gail Phillips that money was received.  He noted that                 
 Speaker Phillips has pledged to oppose these subsidized timber                
 sales.                                                                        
                                                                               
 MR. SMITH pointed out that in present circumstances HB 121 would              
 be better represented as an export subsidy measure.  He felt                  
 HB 121 is a thief of local jobs.  He said there is no reason to               
 have these trees shipped off instead of being available on the                
 long term for local sawyers.  He asked committee members, that                
 before they enlarge the salvage sale problem, to use the                      
 legislative investigative and honest staff to look at last year's             
 failed subsidy and waste of reforestation dollars.  He encouraged             
 members to visit the Kenai area.                                              
                                                                               
                                                                               
 Number 062                                                                    
                                                                               
 CHUCK ACHBERGER, EXECUTIVE DIRECTOR, JUNEAU CHAMBER OF COMMERCE               
 (JCC), stated the JCC supports HB 121.  He said HB 121 does not               
 hamper the public process.  He noted that with regard to timber               
 sales, the FPA would still be in effect.  He pointed out that                 
 HB 121 provides DNR with the additional tools necessary to deal               
 with special situations addressed in the bill (disease, insect                
 infestation, and fire).  He said put aside the jobs which might               
 be created, the recreational opportunities that can be saved, and             
 the lives and property which are lost to uncontrolled wild fires              
 resulting from nature's efforts to manage dead and dying forests.             
 Instead, the committee should look at their role as stewards                  
 managing the state's ecosystem to create food and shelter for the             
 creatures who call the forest home.                                           
                                                                               
 MR. ACHBERGER stressed HB 121 provides the necessary tools to                 
 manage the state's lands for a healthy ecosystem...management                 
 done in a controlled manner that eliminates the need for nature's             
 catastrophic fires...management that can turn a dead and dying                
 forest into one which is productive and healthy.  He said if, in              
 the process, this creates jobs, saves lives and communities are               
 spared from nature's whims, great.                                            
                                                                               
                                                                               
 Number 084                                                                    
                                                                               
 CHRIS GATES, EXECUTIVE DIRECTOR, ALASKA FOREST ASSOCIATION,                   
 testified via teleconference and said much of the previous                    
 testimony provides information in regard to reasons why nothing               
 much has happened on the Kenai Peninsula.  He stated one can                  
 still drive through miles and miles of dead and dying timber                  
 which is of no value to the recreation industry and tourism                   
 industry, and which could have provided substantial jobs and                  
 economic activity to the region.  He said the state has in the                
 past and is now paying substantial money to build fire breaks on              
 the Kenai Peninsula to protect people from losing their lives and             
 property from fire and beetle kill areas.  He stressed that money             
 could have been used productively for rural and year round                    
 jobs...much higher paying jobs than normally occur in tourism.                
                                                                               
 MR. GATES advised that a recent report said 20 million trees died             
 in Alaska last year, which is about 38 trees a minute.  He stated             
 these trees died because there is no mechanism available to take              
 advantage of those trees.  He said an earlier testifier tried to              
 confuse committee members with a fact that a sustainable yield is             
 not being dealt with.  Mr. Gates stated a dead tree does not come             
 under any confines of sustained yield.  He stressed the tree is               
 dead and needs to be harvested and produce value to people.                   
                                                                               
 MR. GATES said HB 121 will not hurt the multiple use of the                   
 forest but rather will build the health of trees by eliminating               
 the area where beetles can generate to affect other areas.  He                
 stated the environmentalists will never talk about the cost of                
 reforestation.  He pointed out the real damage and real problem               
 with the Kalgin sale was the trustees for Alaska delayed the sale             
 long enough that the value could not support the $500,000 of                  
 required reforestation.  He felt that was a shame because the                 
 wildlife now has to wait for the trees to die and reforest                    
 naturally, which is much longer and has a much more severe impact             
 than if it would have been done under managed reforestation.  He              
 encouraged committee members to think about reforestation and the             
 costs of reforestation when considering HB 121.                               
                                                                               
                                                                               
 Number 128                                                                    
                                                                               
 TOM BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DNR, said he would                
 answer any questions from committee members.                                  
                                                                               
 REPRESENTATIVE OGAN stated there has been a lot of testimony                  
 stating the best way to manage a forest is not to manage it at                
 all but rather allow the trees to die and fall.  He wondered what             
 Mr. Boutin's opinion was on that subject.                                     
                                                                               
 MR. BOUTIN said much of the testimony spoke to the Kenai                      
 Peninsula situation and noted that HB 121 has a statewide                     
 application and implication.  He responded specifically to the                
 Kenai where DNR is being sued both for not logging enough timber              
 and for logging too much timber.  He added that many of the                   
 people testifying are plaintiffs against the state.                           
                                                                               
 MR. BOUTIN stated most professional foresters and scientists                  
 believe the situation on the Kenai Peninsula is not a natural                 
 situation.  The spruce bark beetle is endemic to Alaska and it                
 can be seen in other places throughout the state.  He said on the             
 Kenai Peninsula, large scale fires have been suppressed in the                
 past eighty years.  Therefore, the mosaic of different age                    
 classes of timber has been prevented.  He added that fire is now              
 not an acceptable remedy for the situation on the Kenai                       
 Peninsula.  He stressed that no one at DNR has ever represented               
 that logging will eliminate the spruce bark beetle.                           
                                                                               
 MR. BOUTIN noted in regard to the timber sales being offered and              
 sold on the Kenai Peninsula, the winning bidder is committing to              
 incur most of the reforestation.  Therefore, it is possible to                
 get regeneration going more quickly by logging.  He said absent               
 the timber sale, regeneration in many cases might take 30 to 40               
 years.                                                                        
                                                                               
 REPRESENTATIVE IRENE NICHOLIA stated testimony indicated that DNR             
 already has the capability of implementing an emergency salvage               
 sale.                                                                         
                                                                               
 Number 189                                                                    
                                                                               
 MR. BOUTIN responded AS 38.05.113 allowed DNR to promulgate                   
 regulations allowing emergency sales to be exempt from                        
 AS 38.05.113.  He said DNR did that but added that the advice                 
 from the Department of Law was in theory AS 38.05.113 could be                
 interpreted to mean a requirement of one year and one day.                    
 Therefore, the Department of Law advised if DNR is going to use               
 emergency regulations they had better be for a sale which can be              
 sold, logged, and done within one year and one day or less.  He               
 noted logging on the Kenai is winter only and occurs in a very                
 short period of time.  Therefore, those regulations are not                   
 useful for the Kenai Peninsula.                                               
                                                                               
 REPRESENTATIVE NICHOLIA wondered if a reapplication and extension             
 would be possible.                                                            
                                                                               
 MR. BOUTIN replied the Department of Law advised DNR not to                   
 extend a sale.  He reiterated the department has been advised to              
 be done with a sale in one year and one day or less.                          
                                                                               
 REPRESENTATIVE DAVIES asked why DNR could not issue an emergency              
 order in those situations, simultaneously put that sale on the                
 five year plan, and go through the emergency time period of one               
 year and one day.  He felt by having parallel tracked the sale on             
 the five year plan, the department would be ready to offer a                  
 considered sale beyond the end of that time period.                           
                                                                               
 MR. BOUTIN stated if HB 121 were enacted and signed into law, the             
 Division of Forestry would put all sales into the five year plan.             
 He stressed the five year plan is a valuable public process and               
 needs to be complete and comprehensive.  He explained even in the             
 instance of a small sale involving a forest health situation                  
 where the department could get that sale up quickly, the                      
 department would still put that sale in the existing five-year                
 plan.  He added that on the Kenai Peninsula, the department has               
 put all sales in the five-year plan.  The department does not                 
 have the ability to have two five-year plans in the span of one               
 year and one day.  Therefore, the bark beetle sales have                      
 deteriorated much in the period of time when the department has               
 gone through the five-year plan or 24-month process.                          
                                                                               
 Number 254                                                                    
                                                                               
 REPRESENTATIVE DAVIES clarified the department's intention is to              
 always also parallel emergency sales on to the five-year plan.                
                                                                               
 MR. BOUTIN replied that is correct but added the Division of                  
 Forestry would utilize HB 121 and many salvage sales would be put             
 up for sale, logged, and reforested inside of a two year period.              
                                                                               
 REPRESENTATIVE DAVIES stated that many people testifying                      
 suggested there should be a time limit.  He wondered if there is              
 a time limit which might be workable.                                         
                                                                               
 MR. BOUTIN responded the timber sales currently have a three,                 
 four, or occasionally five year time limit.  He added the                     
 division is not required by law to have a time limit but                      
 administratively and as a matter of contract performance, the                 
 division needs a time limit.  He stressed the current time limit              
 seems to work well.  He was not sure what advantage there is in               
 having a time limit in the law.                                               
                                                                               
 REPRESENTATIVE DAVIES stated concern has been expressed that the              
 salvage sale mechanism would be abused to establish 25 year sales             
 and concern was also expressed about future people in Mr.                     
 Boutin's position in regard to that abuse.                                    
                                                                               
 MR. BOUTIN stressed there is no time limit today on the duration              
 of a timber sale.  The division could do a 50 year timber sale                
 currently under state law.  He said there is a limit if the sale              
 is sold as a negotiated sale and that limit is in regulation, not             
 in law.  DNR adopted a regulation pursuant to AS 38.05.115 which              
 limits negotiated sales to one year.  He noted that DNR very                  
 rarely uses negotiated sales.  He said it is far better to have a             
 competitive sale and have one bidder than to have a negotiated                
 sale.  He added that salvage sales would be less likely to be of              
 long duration because the timber is dying or dead.                            
                                                                               
 Number 317                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked for Mr. Boutin's interpretation of                
 the word underutilized allowable cut in the context of a multiple             
 use forest.                                                                   
                                                                               
 MR. BOUTIN stated that has been defined in regulation.                        
                                                                               
 REPRESENTATIVE DAVIES asked if the calculation of allowable cut               
 takes into account the multiple use planning which goes into                  
 developing the area plans for a forest.                                       
                                                                               
 MR. BOUTIN stated under AS 41.17.060 which is the intent language             
 for the FPA, multiple use is clearly defined and the department               
 cannot violate that multiple use in its forest land use plans                 
 under AS 38.05.112 or in its five year harvest schedules under                
 AS 38.05.113.  He said allowable cut is in accord with multiple               
 use.  He noted that multiple use and sustained yield are                      
 overriding factors.  He pointed out HB 121 does not address                   
 sustained yield.                                                              
                                                                               
 CO-CHAIRMAN WILLIAMS stated HB 121 would be brought back to the               
 committee for action on Monday, February 6 at 8:00 a.m. and the               
 committee will also hear HB 113.                                              
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to come before the House                      
 Resources Committee, Co-Chairman Williams adjourned the meeting               
 at 10:00 a.m.                                                                 
                                                                               
                                                                               

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