Legislature(2023 - 2024)BUTROVICH 205
01/20/2023 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: University of Alaska's Land Grant Status | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
January 20, 2023
3:31 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Matt Claman
MEMBERS ABSENT
Senator Bill Wielechowski, Vice Chair
Senator Forrest Dunbar
COMMITTEE CALENDAR
PRESENTATION: UNIVERSITY OF ALASKA'S LAND GRANT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CHAD HUTCHISON, Director of State Relations
University of Alaska System
Fairbanks, Alaska
POSITION STATEMENT: Delivered a presentation on the University
of Alaska's land grant status.
ADRIENNE STOLPE, Director of Land Management
University of Alaska System
Anchorage, Alaska
POSITION STATEMENT: Participated during the presentation on the
University of Alaska's land grant status.
ANDY HARRINGTON, General Counsel's Office
University of Alaska System
Fairbanks, Alaska
POSITION STATEMENT: Answered questions during the presentation
on the University of Alaska's land grant status.
ACTION NARRATIVE
3:31:11 PM
CO-CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:31 p.m. Present at the call to
order were Senators Kaufman, Claman, and Kawasaki, and Co-Chair
Bishop and Co-Chair Giessel.
^PRESENTATION: UNIVERSITY OF ALASKA'S LAND GRANT STATUS
PRESENTATION: UNIVERSITY OF ALASKA'S LAND GRANT STATUS
3:31:59 PM
CO-CHAIR GIESSEL announced the committee would hear a
presentation about the University of Alaska's Land Grant Status.
She welcomed the presenters and asked them to introduce
themselves.
3:33:13 PM
At ease to wait for Mr. Harrington to join the committee via
teleconference.
3:33:55 PM
CO-CHAIR GIESSEL reconvened the meeting.
3:34:14 PM
CHAD HUTCHISON, Director of State Relations, University of
Alaska System (UA), Fairbanks, Alaska, introduced himself and
briefly reviewed his professional background.
3:34:51 PM
ADRIENNE STOLPE, Director of Land Management, University of
Alaska System, Anchorage, Alaska, introduced herself and briefly
reviewed her professional background.
3:35:24 PM
ANDY HARRINGTON, Associate General Counsel, University of Alaska
System, Fairbanks, Alaska, introduced himself and briefly
reviewed his professional background.
MR. HUTCHISON began the presentation with an executive summary
of the current status of the university's land grant. He
paraphrased slide 2 that read as follows:
University Land Grant
• University of Alaska is Alaska's state designated
land grant institution
• Historical legacy is the Morrill Act of 1862
which created a mechanism for providing land to
support higher education
MR. HUTCHISON added historical context explaining that the
Morrill Land Grant College Act of 1862 was enacted during the
Civil War. It promised federal lands to establish public
colleges as an enticement for states to join the Union. The
Mexican-American War of [1846-1848] expanded US territory
thereby contributing to the Western expansion.
• However, UA received only portions of lands
Congress originally reserved for it
• Recent movement, federally, allows the state
(DNR) and the UA to move forward with land
selections. This is a positive step, but actual
monetization will be many years in the future and
will not solve all financial need
MR. HUTCHISON noted that the US purchased Alaska as a territory
in 1867 and it became a state in 1959. Only a portion of the
lands that were originally reserved for Alaska were conveyed.
This has been unresolved for decades but there has been
important movement recently, thanks to the work by President
Pitney and the federal delegation. He cautioned that this is
just the first step in a multi-year process as the university
works to acquire and monetize its land grant acreage, which
should help resolve its budget issues. While conversations are
ongoing about minerals, timber, and now carbon offsets,
litigation should be expected so full resolution will be years
in the future.
3:38:33 PM
MR. HUTCHISON turned to slide 3 that shows Alaska superimposed
over a map of the contiguous Lower-48 states. He explained that
the illustration is intended to demonstrate the extent of UA's
land grant deficit compared to the rest of the US. He summarized
the text that read as follows:
UA's Land Grant deficit is 360,000 acres
• Only Delaware & Hawaii rank below Alaska in
higher education land grants
• UA only received ~111,000 acres of its federal
land grant entitlement
• This grant makes up the bulk of UA's current
~149,000 acre holdings
• Remaining land received from state & municipal
sources, private gifts and bequests, and UA land
acquisitions
3:39:23 PM
MR. HUTCHISON turned to the pie chart on slide 4 that
illustrates the 71 percent or 360,000 acre land grant deficit;
the two percent or 12,000 acres that are dedicated to UA
campuses, research sites, and other facilities; and the
breakdown by investment class of the remaining 27 percent or
137,000 acres. The investment classes are as follows:
UA Land Holdings
~149,000 acres
37 percent Sales/Leases
• Recreational
• Residential
• Waterfront
• Commercial
• Remote
23 percent Forest Resources
20 percent Mining and Materials
11 percent Mitigation Management
9 percent Oil, Gas, Coal
SENATOR CLAMAN mentioned the disparity between land mass and the
size of other states' land grants. He asked if some small states
have no land grants at all.
MR. HUTCHISON deferred the question to Mr. Harrington.
3:40:33 PM
MR. HARRINGTON offered to provide a table that shows the federal
land grants by state. He agreed that the disparity was striking
as demonstrated by the fact that the federal land grant for
Rhode Island was more than for Alaska. He described the reasons
for the differences as historical and complicated.
3:41:38 PM
MR. HUTCHISON returned attention to the pie chart and the
investment classes of UA's land holdings to explain that the
purpose of the land grant was to monetize the land to help the
university. President Pitney's presumption has been that UA is
still due 360,000 acres.
MR. HUTCHISON directed attention to slide 5 that compares UA's
land grant acreage to the University of Texas land grant and the
Mental Health Trust lands, and how each entity has monetized its
lands.
The University of Texas land grant was 2.1 million acres and
from that acreage the university cumulatively has generated
$21.4 billion as of 2019. He noted that post 1836 there was
particular interest in settling Texas and making it a state,
which could partially account for that state's particularly
large land grant.
The University of Alaska received just 149,000 acres but was
able to generate $6.8 million from these assets in 2019. Despite
the incomplete land endowment, UA has generated more than $249
million from its trust land assets since the 1980s.
The Mental Health Trust Authority, for comparison purposes,
generated $10.6 million from its 1 million acre holdings.
3:43:39 PM
MR. HUTCHISON reviewed the land grant history outlined on slides
6-9. The slides read as follows:
Land Grant History
Pre-Statehood Federal Laws for UA Lands
• 1862 Morrill Act: Each state upon admission was
to receive 30,000 acres per member of Congress
(90,000 acres for Alaska) dedicated to higher
education. Congress in the Alaska Statehood Act
said that the State's large general land
selections were to be "in lieu of" Morrill Act
lands, so the Morrill Act was "declared not to
extend" to Alaska.
• 1915 "Wickersham" Land Grant Statute: Reserved an
estimated 336,000 acres in Tanana Valley area.
Lands remained largely unsurveyed and less than
5% were ever conveyed to UA.
• 1929 "Sutherland" Land Grant Statute: Congress
grants 100,000 acres for UA. Left intact at
Statehood, and acreage was (eventually) conveyed
to UA, where it makes up most of current land
holdings.
3:45:08 PM
• Following Statehood, the Alaska Legislature tries
to provide UA's land. In 1959 a bill reserving 1
million acres, passes both Houses, but is vetoed
• Alaska Legislature in 2000 passes bill, and
overrides gubernatorial veto, to grant UA 260,000
acres
• In 2004, Alaska Supreme Court rules land
conveyance is not an appropriation, but declines
to address dedication clause issue
3:46:02 PM
• 2005: Legislation identifies specific lands for
transfer to UA (HB 130)
• 2007: Environmental group sues arguing land
transfer violates Constitution's anti-dedication
clause (Article 9, Section 7)
• 2009: Alaska Supreme Court agrees and strikes
down the 2000/2005 legislation. State can't make
a land grant to UA that "would operate in a
manner similar to the way that the University's
federal land grant has operated since before
statehood." Important: Dedications are
constitutionally allowed when required by federal
government for state participation in federal
programs. In other words: There was a need for
state participation in federal program.
• 2010: UA begins transferring land back to the
state
3:47:28 PM
• 2020: Sen. Murkowski, Sen. Sullivan and Rep.
Young introduce bills for the "University of
Alaska Fiscal Foundation Act" (UAFFA). Sets up
federal program [through the Department of
Interior and BLM.] However, Congress adjourns
without passing the bill.
• 2021: Sen. Murkowski, Sen. Sullivan and Rep.
Young introduce bills in the Senate and House for
the UAFFA. State legislature passes SJR 8
supporting the federal delegation's effort.
• 2022: Newly elected Rep. Peltola announces her
support for the UAFFA. The Senate incorporates
the provisions of UAFFA into the Omnibus
Appropriations bill which passes both chambers
and is signed into law.
• Today: UA owns ~149,000 acres, most from 1929
Sutherland Act, private party donations, as well
as from local governments.
MR. HUTCHISON added that the difference today is that there is
optimism that UA will eventually receive additional acreage.
3:49:10 PM
MR. HUTCHISON reviewed the provisions listed on slide 10 of the
University of Alaska Fiscal Foundation Act (UAFFA). It read as
follows:
What did the provisions of the University of Alaska
Fiscal Foundation Act (UAFFA) do?
• The bill establishes a program directing the
Bureau of Land Management (BLM) to identify and
convey available federal land in Alaska to the
University of Alaska for a land grant to support
higher education.
• The bill also permits the BLM or the Department
of Agriculture to acquire by purchase or
exchange, with the university's consent,
university-owned inholdings within conservation
system units.
• Any land exchanged shall be of equal value.
3:49:36 PM
CO-CHAIR GIESSEL asked whether the university would be given a
menu from which to select acreage.
MS. STOLPE answered that UA would be able to choose acreage from
the state-selected federal lands.
CO-CHAIR BISHOP highlighted that SJR 8, that the legislature
sent to the delegation, Congress, and the President in 2021,
illustrates that these resolutions do have weight.
MR. HUTCHISON agreed that SJR 8 was very important and noted
that Governor Dunleavy did a good job of expressing its value.
3:50:32 PM
MR. HUTCHISON continued to discuss the provision of UAFFA.
Slides 11 and 12 read as follows:
• No later than four years after enactment of the
bill, Alaska and the university may jointly
identify no more than 500,000 acres of land for
inclusion in the program, of which not more than
360,000 acres may be conveyed and patented to the
university.
• Upon the request of Alaska and the university,
BLM shall provide technical assistance in the
identification of land.
• If Alaska and the university notify the BLM in
writing that Alaska and the university jointly
concur with the conveyance of all or a portion of
the land identified for conveyance, and that
Alaska relinquishes its selection rights to the
land covered by the notification, the BLM shall
convey the land to the university, to be held in
trust for the exclusive use and benefit of the
university.
• The BLM shall notify Congress of the land
conveyed and patented.
• The law establishes a framework for the
university to work with the state Dept. of
Natural Resources to jointly identify up to
500,000 acres of federal land to be conveyed to
the state.
• It would require the Bureau of Land Management to
survey the selection and work with UA to transfer
up to 360,000 acres of state land to the
university.
3:51:43 PM
MR. HUTCHISON reviewed the current status of the land selection
outlined on slide 13:
Where are we now?
• The UA Lands office already has selected approx.
200,000 acres and provided the selection to DNR
for review
• The acreage ultimately transferred to UA would be
deducted from Alaska's outstanding statehood
lands entitlement and managed by the UA for the
benefit of our students and to further meet our
mission of teaching, research and workforce
development for Alaska
3:52:53 PM
SENATOR CLAMAN asked for confirmation that the university was
selecting from lands the state previously selected.
MR. HUTCHISON said yes.
SENATOR CLAMAN asked whether or not the state already had title
to those lands.
MS. STOLPE clarified that the lands were in state-selected
status. They have not been conveyed. She directed attention to
slide 14 that provides additional explanation. It read as
follow:
Land Batches - UA Land Office
WHO/WHAT/WHEN/WHERE/WHY
• The UA Lands office has already been working with
DNR
• Support from Governor's office
• Timeline
- UA began identifying potential lands in 2019
- DNR provided informal feedback on initial land
batches, allowing UA to modify and resubmit
~200,000 acres to DNR
- DNR and other state agencies are reviewing the
revised batches
- UA and DNR are meeting monthly to review
requested lands
- UA is identifying lands valuable to mineral
potential, carbon sequestration potential, and
remote land sales, to provide short, medium,
and long term revenue streams to the endowment
3:53:53 PM
MS. STOLPE said it's important to note that the 360,000 acres
will come from the state's overall entitlement. The remaining
state selection is about 13,000 acres, predominantly in the
Interior. Very little coastal land and land in Southeast is
left.
CO-CHAIR GIESSEL commented that she had not realized that the
land grant comes out of the remaining state conveyance.
SENATOR CLAMAN remarked that there would be no net loss to the
lands in federal control.
MR. HUTCHISON agreed.
CO-CHAIR GIESSEL stated appreciation that UA was carefully
analyzing the resource value of the land.
3:56:19 PM
SENATOR KAUFMAN commented that he was pleased that the process
was moving.
MR. HUTCHISON said UA looks forward to providing updates.
CO-CHAIR GIESSEL expressed appreciation for the history that
demonstrates the century old push pull.
MR. HARRINGTON thanked the committee.
CO-CHAIR GIESSEL concluded the meeting.
3:57:25 PM
There being no further business to come before the committee,
Co-Chair Giessel adjourned the Senate Resources Standing
Committee meeting at 3:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| UA Land Grant Update Presentation.pdf |
SRES 1/20/2023 3:30:00 PM |
|
| UofA Land Management Letters to DNR & Map Overview.pdf |
SRES 1/20/2023 3:30:00 PM |