01/17/2024 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB169 | |
| HB177 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 177 | TELECONFERENCED | |
| += | HB 169 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
January 17, 2024
1:02 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Stanley Wright
Representative Jennie Armstrong
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Jesse Sumner
COMMITTEE CALENDAR
HOUSE BILL NO. 169
"An Act relating to certain fish; and establishing a fisheries
rehabilitation permit."
- HEARD & HELD
HOUSE BILL NO. 177
"An Act relating to critical and essential minerals and the
global energy transition."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 169
SHORT TITLE: FISHERIES REHABILITATION PERMIT/PROJECT
SPONSOR(s): REPRESENTATIVE(s) CRONK
04/24/23 (H) READ THE FIRST TIME - REFERRALS
04/24/23 (H) FSH, RES
04/25/23 (H) FSH AT 10:00 AM GRUENBERG 120
04/25/23 (H) -- MEETING CANCELED --
04/27/23 (H) FSH AT 10:00 AM GRUENBERG 120
04/27/23 (H) Heard & Held
04/27/23 (H) MINUTE(FSH)
05/08/23 (H) RES WAIVED PUBLIC HEARING NOTICE, RULE
23(A)
05/08/23 (H) FSH AT 9:00 AM GRUENBERG 120
05/08/23 (H) Moved CSHB 169(FSH) Out of Committee
05/08/23 (H) MINUTE(FSH)
05/09/23 (H) FSH RPT CS(FSH) 5DP 1NR
05/09/23 (H) DP: MCCABE, STUTES, MCCORMICK,
CARPENTER, VANCE
05/09/23 (H) NR: HIMSCHOOT
05/10/23 (H) RES AT 1:00 PM BARNES 124
05/10/23 (H) -- MEETING CANCELED --
05/12/23 (H) RES AT 1:00 PM BARNES 124
05/12/23 (H) -- MEETING CANCELED --
01/17/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 177
SHORT TITLE: CRITICAL NATURAL MINERALS PLAN AND REPORT
SPONSOR(s): REPRESENTATIVE(s) SADDLER
04/24/23 (H) READ THE FIRST TIME - REFERRALS
04/24/23 (H) RES, FIN
01/17/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE MIKE CRONK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 169.
DAVE STANCLIFF, Staff
Representative Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis for HB 169 on
behalf of Representative Cronk, prime sponsor.
FLIP PRYOR, Aquaculture Section Chief
Division of Commercial Fisheries
Alaska Department of Fish & Game
Juneau, Alaska
POSITION STATEMENT: Provided information during the hearing on
HB 169.
JOE FELKL, Legislative Liaison
Tok, Alaska
POSITION STATEMENT: Provided information during the hearing on
HB 169.
KATIE MCCALL, Staff
Representative Dan Saddler
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis on HB 177 on
behalf of Representative Saddler, prime sponsor.
BRENT SHEETS, Director
Petroleum Development Lab
University of Alaska Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Co-offered a presentation during the
hearing on HB 177.
KAREN MATTHIAS, Executive Director
Alaska Metal Mines
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation during the
hearing on HB 177.
DEANTHA SKIBINSKI, Executive Director
Alaska Miners Association
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation during the
hearing on HB 177.
ACTION NARRATIVE
1:02:06 PM
CHAIR TOM MCKAY called the House Resources Standing Committee
meeting to order at 1:02 p.m. Representatives McCabe, Baker,
Saddler, Wright, Mears, Armstrong, Dibert, and McKay were
present at the call to order. Representative Rauscher arrived
as the meeting was in progress.
HB 169-FISHERIES REHABILITATION PERMIT/PROJECT
1:03:33 PM
CHAIR MCKAY announced that the first order of business would be
HOUSE BILL NO. 169, "An Act relating to certain fish; and
establishing a fisheries rehabilitation permit." [Before the
committee was CSHB 169(FSH).]
1:04:19 PM
MIKE CRONK, Alaska State Legislature, as prime sponsor, read the
sponsor statement for HB 169 [included in the committee packet],
which read as follows [original punctuation provided]:
This legislation would allow individuals, Alaskan
corporations, school districts or other organizations
to apply for a fish rehabilitation permit through the
Dept. Fish & Game. If the commissioner grants a
permit, the individuals, Alaskan corporations, school
districts or other organizations would be allowed to
collect a limited number of fish, fertilize and hatch
the eggs and then place the un-fed natural fish back
into the water where they were taken. This will boost
the survival rate of the fertilized eggs to emergent
fry stage from around 5 percent to roughly 90 percent.
Similar types of fish rehabilitation permits are
already allowed by the department for scientific
research or other educational purposes, but these
purposes are limited and thus the data collection,
fish rehabilitation projects and fish population
information is limited. This bill allows the private
sector and the department to work together in a
responsible collaborative effort to increase the
natural salmon populations and scientific data
collection throughout the state.
This legislation will be one more tool that can be
used to ensure that we both today and, in the future,
maximize our resources as stated in our state
constitution. Thus, Alaskans will benefit from
Alaska's natural fish resources to help feed our
families.
1:06:32 PM
DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State
Legislature, on behalf of Representative Cronk, prime sponsor,
offered the sectional analysis for HB 169 [included in the
committee packet]. He said Section 1 would create a new section
[in AS 16.05] to create a fisheries enhancement permit. It
would create [subsection (a)] for the activities that would be
allowed under the new permit; [subsection (b)] that would
prescribe an application form created by the department for
those interested in gaining a permit; [subsection (c)] that
would allow the Alaska Department of Fish & Game (ADF&G)
commissioner to issue a permit under certain determinations;
[subsection (d)] regarding factors that the commissioner would
consider when deciding whether permit will be issued;
[subsection (e)] that would require a permittee to collect and
provide project data and reports requested by the department and
to reasonably communicate with individuals affected by the
project; [subsection (f)] that would set the timeline for when
ADF&G must act on a permit; [subsection (g)] to enact
requirements of a permittee to collect no more than 500,000 eggs
[for fertilization], implement controls to avoid the
introduction of nonindigenous pathogens; [subsection (h)] that
would ensure that any fish released in state water with an
enhancement project permit under this section would be available
for common use, as are wild fish; [subsection (i)] that would
specify the duration of a permit and how to extend a permit; and
[subsection (j)] that would create definitions for the bill.
MR. STANCLIFF said Section 2, [related to AS 16.05.871], would
add a new subsection to state that fisheries enhancement
projects under AS 16.05.855 shall be considered by the
commissioner as outlined in AS 16.05.872(d) because precautions
in subsection (d) will not damage a fish enhancement project.
He explained that Section 3, [related to AS 16.10.375], would
amend this section to allow enhancement projects created through
this Act to be included in regional comprehensive salmon plans.
MR. STANCLIFF reviewed the changes that had been made under CSHB
169(FSH), the version before the committee. He said some of the
changes were recommended by people in the fishing industry while
other changes were put forth by the department. The first
change, on page 3, line 1, was the addition of the term "local
wild" to the species of salmon. On page 4, line 5, the
following words were deleted: "If the commissioner fails to act
within that period, the application is approved and the
department shall issue a permit." Another change was on page 4,
line 18, where the following was added: "The commissioner may
modify, suspend, or revoke a permit issued under this section
for cause. If a permittee violates this section, the
commissioner may, after providing the permittee notice and an
opportunity to be heard, suspend or revoke a permit issued under
this section." Finally, the "tribe" was added to page 4, line
24, as an entity to be considered in the issuing of permits.
1:10:02 PM
MR. STANCLIFF, in response to Representative Saddler, said this
new program would not conflict with existing programs. He added
that CSHB 169(FSH) would enhance salmon reproduction by 85
percent. In response to Representative Rauscher, he said the
plan would be fluid in terms of maximizing returns [of fish].
Further, he noted that schools districts would be involved in
teaching students where salmon come from and how to increase the
salmon populations.
1:14:49 PM
FLIP PRYOR, Aquaculture Section Chief, Division of Commercial
Fisheries, Alaska Department of Fish & Game, directed the
committee to the last page of CSHB 169(FSH), which describes how
existing regional hatcheries would continue with current
management plans and incorporate local knowledge into the plan.
1:15:43 PM
JOE FELKL, Legislative Liaison, Alaska Department of Fish & Game
described the last section of CSHB 169(FSH) as a conforming
amendment to existing regional salmon plans and rehabilitation
plans already in place.
1:16:17 PM
MR. PRYOR, in response to questions from Representative Mears,
indicated that each application is judged on its own merit and
multiple applications in the same spot would be analyzed
according to the annual brood-stock of returning salmon. He
said these factors would be taken into consideration during
permit review. He reiterated that CSHB 169(FSH) would be an
extension of the current aquatic resources and the same
processes for evaluation.
1:18:27 PM
REPRESENTATIVE MCCABE observed that the plan proposed under CSHB
169(FSH) differed from a regular hatchery. He understood the
genesis of the legislation arose from an individual with a five-
gallon bucket that began stocking their own stream with
fertilized salmon eggs in gravel bars. He reassured the members
that CSHB 169(FSH) would work in concert with the existing
hatcheries around the state and would not serve as a mechanism
to release too many eggs into a spawning system.
1:19:52 PM
MR. PRYOR affirmed each regional hatchery has a plan for salmon
enhancement that would fall under the same umbrella as the
proposed legislation. In response to follow-up comments from
Representative McCabe, he maintained that another level of
oversight is a permit for fish transport and where they go. He
said the difference is that a permit is not necessary for the
program proposed under CSHB 169(FSH). He confirmed
Representative McCabe's observation that the "bucket plan" was
closer to nature with the limit of 500,000 eggs per person
instead of releasing eggs from all over the place into different
rivers.
1:23:15 PM
REPRESENTATIVE SADDLER asked for a primer on the different kinds
of permits for fish hatcheries.
1:23:46 PM
MR. PRYOR, in response to Representative Saddler, spoke about
different types of permits for fish hatcheries. He said CSHB
169(FSH) would assess rehabilitation projects which aren't
currently the focus of ADF&G. In response to a follow-up
question, he spoke about incubation boxes.
1:26:00 PM
MR. FELKL, in response to Representative Mears, affirmed that
the fiscal note would allow for one part-time biologist to be
stationed in Juneau.
1:26:31 PM
REPRESENTATIVE MEARS had a science question and asked if there
are other things to consider on a small-scale with HB 169.
1:26:59 PM
MR. PRYOR replied, HB 169 is addressing egg and fry survival;
most places in Alaska where salmon are struggling are not due to
a habitat issue similar to the south, HB 169 would increase the
number of fry into the spawning system to enhance habitat.
1:27:54 PM
REPRESENTATIVE BAKER followed Representative Mears' comment
regarding the fiscal note that was coming out of the
unrestricted general fund. He wondered if the position could be
repurposed into an existing position at Alaska Department of
Fish & Game due to staff shortages in recent years.
1:28:21 PM
MR. FELKL said the statewide aquaculture permitting and planning
section has been reduced in past years. He said the Alaska
Department of Fish & Game has looked at other options and it was
determined that a part-time position is needed to do the
additional work.
1:28:45 PM
REPRESENTATIVE DIBERT said she was curious if this [program] was
happening elsewhere and if we can learn from other states across
the nation.
1:29:05 PM
MR. PRYOR was unfamiliar with other states but said it was
similar to aquatic resource permits that have been issued to the
Auke Bay Laboratory that produced fish over a 3-year period.
1:29:44 PM
CHAIR MCKAY invited Representative Cronk back to the testifiers
table to answer further questions.
1:30:08 PM
REPRESENTATIVE MCCABE asked Representative Cronk to elaborate on
how far salmon have to travel up the Yukon River to spawn and
why HB 169 is necessary for the Alaska Native community
subsistence, culture, and day-to-day existence. He used another
example from the Salcha River in the Interior that has one of
the highest Chinook salmon returns.
1:30:51 PM
REPRESENTATIVE CRONK said the Yukon River is a really long river
with a lot of obstacles for salmon. He reported the Yukon River
is noticing the lowest returns of salmon in history and
fisherman haven't been able to subsistence-fish for Chinook in
three years with only a little fishing for Chum salmon. He
reemphasized the program design in HB 169 would essentially
double the salmon returns that are happening today. He insisted
in years past he had seen pictures of 40-60 lbs. Female Chinook
in Eagle with a substantial amount of eggs; however, the fish
returning in the last few years have been much smaller with
fewer eggs. He said the essence of HB 169 is to return more fry
to the rivers. He said the most important fish is the fish on
the table and HB 169 aims to continue that "lifeway."
REPRESENTATIVE CRONK used the Gulkana Hatchery as a global
example that has produced millions of salmon in the Gulkana and
Copper Rivers that have reached the international market.
1:33:29 PM
CHAIR MCKAY invited closing comments.
1:33:35 PM
REPRESENATIVE CRONK stated that Alaska is at a crossroads and
needs to do something - anything that can benefit the fishery.
1:34:15 PM
CHAIR MCKAY thanked staff and set an amendment deadline for
January 22, 2024.
CHAIR MCKAY announced that HB 169 was held over.
1:34:39 PM
The committee took an at-ease from 1:34 p.m. to 1:37 p.m.
HB 177-CRITICAL NATURAL MINERALS PLAN AND REPORT
1:37:57 PM
CHAIR MCKAY announced the final order of business would be HOUSE
BILL NO. 177, "An Act relating to critical and essential
minerals and the global energy transition."
CHAIR MCKAY noted that this is the first hearing on HB 177 in
House Resources and there would be invited testimony with the
intent to hold the bill in committee until the following week.
1:38:40 PM
REPRESENTATIVE SADDLER, as prime sponsor, introduced HB 177. He
offered HB 177 as a means for Alaska to be the lead in providing
critical and essential minerals to the global market. He
defined "essential minerals" as those that are necessary for
industry and national defense; "critical minerals" are limited
with no reliable or secure source. He provided examples of
essential minerals: copper, tin, gold, zinc, graphite, lead,
and silver. He also identified several lesser-known, essential
minerals: molybdenum and chromium. He presented the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
These minerals are fundamental components of many of
today's ubiquitous technologies, such as computers and
household appliances. To keep our economy and our day-
to-day lives moving forward, we need to ensure we have
a plan for accessing these critical resources.
Demand for critical and essential minerals has
increased in recent years and is likely to continue
to increase, possibly exponentially as the demand
for renewable energy sources grows. Critical and
essential minerals are a key element of many emerging
energy technologies, ranging from electric vehicles to
solar panels.
What's more, critical and essential minerals are also
increasingly essential components of the high-
technology industrial processes and weapons systems
that play increasingly important roles in maintaining
a strong national defense.
Currently, China is home to most of the global market
for processing and refining critical minerals, which
has concerning implications for the health of our
nation's economy, and the strength of our nation's
armed services and defense capabilities. It is vitally
important that our nation be able to reliably produce
such minerals and use them to manufacture technology-
forward products and systems.
HB 177 helps meet that imperative. It directs the
Alaska government to assess the state's potential as
an alternative source of these minerals, identify
strategies to attract industry investment, and review
the possible impacts of potential regulatory regimes.
This proposal has the potential to not only decrease
our reliance on imported critical minerals, but also
increase investment in Alaska's natural resource
industry.
Alaska has an opportunity to position itself as a
competitive source of critical and essential minerals
in the global supply chain. HB 177 requires the
Departments of Natural Resources and Commerce,
Community, and Economic Development to provide the
information that industry experts and state officials
need to take the next steps toward making Alaska a
globally competitive source of critical and essential
minerals.
1:42:41 PM
KATIE MCCALL, Staff to Representative Saddler, on behalf of
Representative Saddler, prime sponsor, gave the sectional
analysis for HB 177 [included in the committee packet], which
read as follows [original punctuation provided]:
Section 1, Subsection (a) Page 1, Lines 3-15 & Page
2, Lines 1-4
Subsection (a) of HB 177 adds a new section of
uncodified law to direct the Office of the Governor to
develop a plan for the state to encourage exploration,
production, and refining of the minerals needed to
support emerging renewable energy technologies.
The plan must specifically identify strategies to
attract industry investment and position the state's
critical mineral production at the center of U.S.
production and manufacturing initiatives employing
critical minerals. The plan must also review the
impacts of various regulatory frameworks on mineral
development.
Section 1, Subsection (b) Page 2, Lines 5-18
Subsection (b) of HB 177 directs the Department of
Natural Resources to provide a report to the
Legislature by the start of the legislative session in
January 2026 that compares the state's current mineral
production and potential future production to national
and global production of critical and essential
minerals.
The report must identify strategies to increase
industry exploration and state production of critical
and essential minerals in the next three, five, and 10
years. The report must also compare the state's
permitting timelines and exploration incentives to
those in other jurisdictions.
The department may consult with other state and
federal agencies, the University of Alaska, industry
representatives, and advocacy organizations to compile
the required information for the report.
Section 1, Subsection (c) Page 2, Lines 19-31 & Page
3, Line 1
Subsection (c) of HB 177 directs the Department of
Commerce, Community, and Economic Development to
provide a report to the Legislature by the start of
the legislative session in January 2026
that identifies the state's role in the global energy
transition. The report must include the potential role
of Alaska's mineral resources in the supply chain for
electric batteries, solar panels, wind turbines, and
consumer devices.
The department may consult with the appropriate state
and federal agencies to compile the required
information for the report.
The report must include the value of the state's
location in the global supply chain and identify
strategies for in-state innovation, manufacturing, and
transportation for the next three, five, and 10 years.
1:45:38 PM
REPRESENTATIVE ARMSTRONG said he was curious why working with
local communities wasn't explicitly written into the HB 177
draft.
1:46:28 PM
REPRESENTATIVE SADDLER believed it was written into HB 177 from
an existing system of legislation and said he did not see any
reason to leave out language that included input from local
communities.
1:46:57 PM
REPRESENTATIVE ARMSTRONG followed up with the suggestion of
adding "other relevant products that may come up" to HB 177.
1:47:28 PM
REPRESENTATIVE SADDLER said he thought it was a good idea in
order to keep up with the rate of technology.
1:47:41 PM
CHAIR MCKAY announced invited testimony on HB 177.
1:48:15 PM
BRENT SHEETS, Director, Petroleum Development Lab, University of
Alaska Fairbanks, joined invited testimony via Teams. He
explained the lab are heavily involved in resources issues in
addition to petroleum. He informed the committee that the lab
is involved in carbon capture and sequestration, small-scale
coal technology, and rare earth mineral projects. He updated
the committee that the petroleum engineering program is
transitioning to the energy resources engineering program.
1:49:34 PM
MR. SHEETS, via a PowerPoint [hard copy included in the
committee packet], moved to slide 2, titled "Mineral Resources,"
with a map showing current mines and advanced mineral
exploration projects with potential mines highlighted in red.
He emphasized the partnership between the University of Alaska
Fairbanks (UAF) and the Division of Geological and Geophysical
Surveys (DGGS). He imparted Alaska has numerous untapped
mineral resources that could be developed. He cited the recent
finds of world-class Germanium and Gallium deposits in Ray
River, near the Yukon River, which would be attractive for the
state to lease to developers.
1:51:41 PM
MR. SHEETS moved to slide 3, titled "Background-Alaska's
Critical Mineral Potential," that displayed a bar chart of the
underdeveloped critical minerals in Alaska. He said Alaska has
the potential to supply most of the commodities shown on the
graph, especially zinc, which Alaska in leads market production
thanks to Red Dog Mine.
1:53:06 PM
MR. SHEETS advanced to slide 4, titled "Applications/Products,"
that proposed the use of these minerals for magnetic products,
metal alloys, defense mechanisms, catalysts, glass and polishing
compounds, ceramics and phosphors.
1:53:50 PM
MR. SHEETS described slide 5, titled "Carbon Ore, Rare Earth, &
Critical Minerals," which outlined the vision to bring Alaska's
Carbon Ore, Rare Earth-Critical Minerals (CORE-CM) into
perspective and echo the mission to establish a CORE-CM industry
in Alaska by working with industry and other stakeholders to
identify opportunities and address challenges.
1:54:45 PM
MR. SHEETS moved to slide 6, titled "Budget By Phase," and
outlined three phases of how to compete with China. He posited,
Phase 1 is a planning period, Phase 2 and 3 will be a cost
challenge but with the partnership and funding with DGGS, UAF
can count on an in-kind match. He stressed the importance of
that partnership and suggested bringing in the Department of
Environmental Conservation for additional input.
1:56:30 PM
MR. SHEETS moved to slide 7, titled "Overview," which listed the
following Department of Energy and equivalent UAF/DGGS tasks:
Task 2, Basinal Assessments; Task 3, Waste Stream Reuse; Task 4,
Strategies for Infrastructure, Industries and Businesses; Task
5, Technology Assessment, Development and Field Testing; Task 6,
AK-TIC; and Task 7, Stakeholder Outreach and Education. He
pointed out that rare earth elements (REE) are not that rare but
are difficult to mine economically.
2:02:53 PM
MR. SHEETS moved to slide 8, titled "REE Value Chain," which
illustrates the progress of value from exploration to mining to
on-site concentrations to separation to metal making and,
finally, to alloy production.
2:05:15 PM
MR. SHEETS moved to slide 9, titled "Additional Assets,"
highlighting additional resources from DGGS such as: ICP-MS
installation; hyperspectral imaging; an advanced instrumentation
laboratory; bioreactors to separate elements from ores without
the use of acids; and the UAS/UAF effort to expand mining
training.
2:07:15 PM
CHAIR MCKAY thanked Mr. Sheets and expressed his excitement
about the subject matter especially for those having visited
Iceland and toured the energy infrastructure of that country.
2:08:21 PM
REPRESENTATIVE MEARS asked Mr. Sheets if there were requirements
for continuing through the phases that would need support from
the legislature.
2:08:48 PM
MR. SHEETS replied the main one would be the ability to meet
matching funds with DGGS to progress through all of the phases
of the budget. He said the department has a 20 percent cost
match.
2:10:05 PM
MS. MCCALL, in response to a comment by Representative Mears,
pointed out there are two fiscal notes for HB 177.
2:10:49 PM
REPRESENTATIVE DIBERT expressed to Mr. Sheets her excitement
regarding where HB 177 is heading and indicated she would like
to know about the critical minerals in Ray River and whether the
communities and workforce have a bridge between them to provide
local jobs moving forward.
2:12:18 PM
KAREN MATTHIAS, Executive Director, Alaska Metal Mines, provided
invited testimony in support of HB 177. She reiterated the
increasing demand for essential and critical metals in several
sectors of the economy. She warned that imports from
adversarial countries are a risk; therefore, the U.S. needs more
domestic mineral production and Alaska should be part of the
solution. She contended the term "critical minerals" is defined
differently by DGGS, DNR, and other departments and changes
through time. Ms. Matthias pointed out that copper is not on
the United States Geological Survey (USGS) critical mineral list
as an example opposed to the United States Department of Energy.
Ms. Matthias emphasized the amount of copper needed to produce
clean energy is insufficient to meet the Federal Government's
goals. In addition, Ms. Matthias highlighted the rich goal and
silver deposits in Alaska.
2:15:30 PM
MS. MATTHIAS said there are only a small number of mines which
have economic challenges to develop; she suggested a diverse
mining economy for the state to succeed. Ms. Matthias advocated
for HB 177 to encourage investment, exploration, and production.
2:17:57 PM
DEANTHA SKIBINSKI, Executive Director, Alaska Miners
Association, as invited testifier expressed AMA's support of the
bill and made suggestions for its improvement. She echoed that
the majority of the minerals that have been mentioned are being
sourced from foreign nations with tenuous connections with the
U.S. She said passage of legislation such as HB 177 would send
a powerful message to investors that Alaska is "a jurisdiction
of choice" in which to invest. She recommended the committee
remove references to the global energy transition because it
describes "an unrealistic pivot from fossil fuel energy
generation." She emphasized that relying on only renewable
energy "is not a reality for Alaska or the world." She said AMA
suggests the word "expansion" could be used in the discussion.
That said, she concluded that HB 177 outlines how Alaska's
mining industry should play a role in providing the essential
minerals needed to provide energy technology.
2:21:02 PM
REPRESENTATIVE MCCABE expressed appreciation of the suggestion
for the change from transition to expansion and indicated that
he would offer that amendment.
2:21:37 PM
REPRESENTATIVE SADDLER was amenable to such an amendment and
offered the term "energy addition" as an alternative.
2:21:50 PM
CHAIR MCKAY asked Mr. Sheets to further explain slide 6 "Budget
By Phase" expenditures and asked if he was looking for funds
from the legislature.
2:23:13 PM
MR. SHEETS said the slide pointed out what the "DOE" should be.
He attested the state will have to contribute a $1.7 million
match in order to meet the proposed 20 percent requirement.
2:24:53 PM
CHAIR MCKAY remarked that when work is done in the budget
subcommittee addressing DNR, its members will refer to the DGGS
budget.
2:25:28 PM
REPRESENTATIVE BAKER asked how landowners will be incorporated
under HB 177 and said he wanted to make sure local traditional
ecological knowledge incorporated into the proposed legislation.
2:26:38 PM
REPRESENTATIVE SADDLER answered that DNR has worked well with
local communities and listened to input from tribal
organizations and he said he was confident those voices have
been heard and incorporated.
2:27:25 PM
CHAIR MCKAY thanked the committee and set the amendment deadline
for 12:00 p.m. Monday, January 22, 2024.
CHAIR MCKAY announced that HB 177 was held over.
2:28:22 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:28 p.m.