Legislature(2023 - 2024)BUTROVICH 205

01/17/2024 03:30 PM Senate RESOURCES

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Audio Topic
03:32:20 PM Start
03:33:04 PM Introductions and Committee Discussion of Resource Topics
03:51:12 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Committee Discussion of Resource TELECONFERENCED
Topics
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                     ALASKA STATE LEGISLATURE                                                                                 
               SENATE RESOURCES STANDING COMMITTEE                                                                            
                         January 17, 2024                                                                                       
                            3:32 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Cathy Giessel, Co-Chair                                                                                                 
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Scott Kawasaki                                                                                                          
Senator James Kaufman                                                                                                           
Senator Forrest Dunbar                                                                                                          
Senator Matt Claman                                                                                                             
                                                                                                                              
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
INTRODUCTIONS AND COMMITTEE DISCUSSION OF RESOURCE TOPICS                                                                       
                                                                                                                              
     -HEARD                                                                                                                   
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
JULIA O' CONNOR, Staff                                                                                                          
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of bills in committee                                                                
and their status.                                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                            
                                                                                                                                
3:32:20 PM                                                                                                                    
CO-CHAIR  CATHY  GIESSEL  called the  Senate  Resources  Standing                                                             
Committee meeting  to order at 3:32  p.m. Present at the  call to                                                               
order   were   Senators   Kawasaki,  Claman,   Dunbar,   Kaufman,                                                               
Wielechowski, Co-Chair Bishop, and Co-Chair Giessel.                                                                            
                                                                                                                                
^Introductions and Committee Discussion of Resource Topics                                                                    
         INTRODUCTIONS AND COMMITTEE DISCUSSION OF RESOURCE TOPICS                                                            
                                                                                                                                
3:33:04 PM                                                                                                                    
CO-CHAIR  GIESSEL opened  with an  overview of  current bills  in                                                               
committee  and other  suggested  interests. Some  of the  current                                                               
legislative focuses  include Senate  Bill 49, a  geothermal bill,                                                               
executive  orders,  Alaska Department  of  Fish  and Game  (ADFG)                                                               
issues, as well  as North Slope activity,  Santos, gas extraction                                                               
and production numbers, mining,  critical minerals, energy issues                                                               
with  Alaska  Energy  Authority   (AEA),  and  the  state's  zero                                                               
emissions goal.                                                                                                                 
                                                                                                                                
3:34:24 PM                                                                                                                    
JULIA  O' CONNOR,  Staff, Senator  Cathy Giessel  Giessel, Alaska                                                               
State  Legislature,  Juneau,  Alaska,  provided  an  overview  of                                                               
committee discussion  of resource  topics, with most  having been                                                               
referred at  the start of  the new session. The  tracker outlined                                                               
the  status,  bill number,  short  title,  and highlighted  other                                                               
components.  She noted  that there  are currently  five executive                                                               
orders  that  were referred  to  the  committee and  one  hearing                                                               
request for HB 125.                                                                                                             
                                                                                                                                
3:35:44 PM                                                                                                                    
CO-CHAIR  GIESSEL   said  that  these  conversations   provide  a                                                               
refresher  on last  session's  hearings. A  request  for a  legal                                                               
analysis on each of the  five executive orders was submitted. She                                                               
confirmed the 60-day  timeline to take action on  these orders or                                                               
they  automatically take  effect. She  stated that  some senators                                                               
have  bills in  committee that  had  not yet  been submitted  for                                                               
hearing requests  and invited members to  deliver those. Co-Chair                                                               
Giessel  indicated  her  interest in  informational  hearings  on                                                               
topics such  as the  status of  Santos Energy  Solutions' efforts                                                               
and its methods for reaching a zero emissions goal.                                                                             
                                                                                                                                
3:36:53 PM                                                                                                                    
SENATOR WIELECHOWSKI  said that there  is a gas crisis  in Alaska                                                               
resulting in gas running out by  March of this year, but possibly                                                               
next year.  Gas contracts will  begin to  end in 2028  and ENSTAR                                                               
Natural Gas'  contracts will terminate  in 2033. There is  a long                                                               
lag time to bring other gas  sources to the Cook Inlet region, so                                                               
this is a critical issue to  focus on. He mentioned that it seems                                                               
like  geo-political forces  are  aligned  in a  way  that make  a                                                               
natural gas  pipeline a plausible project,  and suggested hearing                                                               
ideas  from other  organizations  such  as the  Alaska Industrial                                                               
Development and Export Authority  (AIDEA). Developing a permanent                                                               
fund is one  possible approach to addressing this  issue. He also                                                               
noted that fishing  issues are a concern as king  and chum salmon                                                               
populations  are declining  in Alaska  and mandate  attention, so                                                               
there is an opportunity to work toward resolutions.                                                                             
                                                                                                                                
3:38:37 PM                                                                                                                    
CO-CHAIR GIESSEL  referred back to  the Cook Inlet gas  issue and                                                               
acknowledged  utility  organizations    presentations  from  last                                                               
year.  She suggested  that ENSTAR  Natural Gas  could provide  an                                                               
update on  pipeline ideas.  She invited  Senator Claman  to share                                                               
his thoughts on this issue.                                                                                                     
                                                                                                                                
3:39:04 PM                                                                                                                    
SENATOR CLAMAN  said that he met  with Hilcorp on the  Cook Inlet                                                               
gas  issue and  was  advised that  the results  of  one well  had                                                               
improved,  thus the  Homer Electric  contract was  extended by  a                                                               
year. It would be helpful to  hear from not only large buyers but                                                               
also smaller  or potential  producers of  gas, such  as BlueCrest                                                               
Energy, Inc.  and Furie,  to better  understand the  landscape of                                                               
this issue.                                                                                                                     
                                                                                                                                
3:40:05 PM                                                                                                                    
SENATOR  KAWASAKI said  that in  addition to  the previous  items                                                               
discussed, agriculture,  which only receives a  miniscule portion                                                               
of   the   Department   of  Natural   Resources   (DNR)   budget,                                                               
necessitates  attention.  It is  important  to  look toward  this                                                               
topic as members  continue to discuss ways to  meet food security                                                               
goals  and  obtain an  update  on  the Nenana-Totchaket  (NenTot)                                                               
Agricultural Project.  He relayed  that discussions were  held in                                                               
Fairbanks on  the restoration  of wood bison  in the  Yukon Flats                                                               
region.  In  line with  the  salmon  crisis, including  the  pink                                                               
salmon fishery problem  in the Cook Inlet  region, recent studies                                                               
on hatchery  fisheries have surfaced.  He spoke to  the potential                                                               
impact  of hatchery  fisheries  in China  and  overseas that  may                                                               
affect  fisheries   in  Alaskan  regions.  Mining   and  critical                                                               
minerals also remain a priority for the country and state.                                                                      
                                                                                                                                
3:41:37 PM                                                                                                                    
CO-CHAIR  GIESSEL   acknowledged  a   recent  Cook   Inlet  study                                                               
conducted on the impact of hatchery fish.                                                                                       
                                                                                                                                
3:41:48 PM                                                                                                                    
SENATOR DUNBAR shifted back to the  gas issue and stated that the                                                               
Governor will introduce a measure  on royalty relief. 200 million                                                               
dollars of grip  funding along with transmission  issues open the                                                               
door for discussions. He said  he welcomes informational hearings                                                               
and   legislative   vehicles   that  touch   on   what   Senators                                                               
Wielechowski  and  Claman said  about  the  gas and  transmission                                                               
issues.  He stated  that  he anticipates  a  discussion with  the                                                               
Division of  Parks and Outdoor  Recreation on state  parks, which                                                               
are  under the  purview of  the committee,  but have  rarely been                                                               
discussed.                                                                                                                      
                                                                                                                                
3:43:34 PM                                                                                                                    
SENATOR KAUFMAN added that the committee  now has a clear idea of                                                               
priorities, but with  the dynamic nature of  issues including the                                                               
Cook   Inlet   Gas  and   grid   updates,   he  supports   having                                                               
informational updates to monitor these issues.                                                                                  
                                                                                                                                
3:44:08 PM                                                                                                                    
CO-CHAIR GIESSEL indicated  that she hopes to  see a transmission                                                               
grid bill  introduced as the  Resources Committee  reviews energy                                                               
issues  in  lieu  of  a special  energy  committee.  She  invited                                                               
Senator Bishop to speak to upcoming agenda items.                                                                               
                                                                                                                                
3:44:35 PM                                                                                                                    
CO-CHAIR BISHOP  stated that  although the  committee has  a good                                                               
sense  of  direction  it  is   important  to  review  energy  and                                                               
transmission issues. He noted the  appeal of Iceland's affordable                                                               
energy  avenues and  selectiveness on  adopting foreign  business                                                               
development. He  suggested the consideration of  an Ambler Mining                                                               
District update on three projects  when critical minerals and its                                                               
road  development project  are discussed.  Discussions are  being                                                               
held in light of the U.S.  Supreme Court's Sachet decision on the                                                               
404 wetlands. With that decision,  Alaska's wetlands will change,                                                               
so  clear definitions  of federal  and  state wetlands  territory                                                               
through  formal  informational hearings  are  vital.  He said  he                                                               
anticipates ADFG  updates, as  well as  an update  on how  Area M                                                               
restrictions affected Western Yukon  chum returns. He stated that                                                               
although targets on  return were not met, the increase  is a step                                                               
in  the right  direction.  He opined  that  technology should  be                                                               
utilized by  ADFG. He  suggested that the  state of  Alaska could                                                               
use unmanned aerial  vehicles (UAVs) to conduct  game surveys and                                                               
track moose,  sheep, and caribou  population data.  University of                                                               
Alaska  Fairbanks'(UAF) UAV  could  potentially remain  stationed                                                               
round-the-clock.                                                                                                                
                                                                                                                                
3:48:31 PM                                                                                                                    
CO-CHAIR BISHOP said that permit  reform is needed on the federal                                                               
level.  There  are several  permit  reform  bills circulating  in                                                               
Washington D.C. that  target this issue. He  and Co-Chair Giessel                                                               
had a conversation at an  energy council meeting in Wyoming about                                                               
a  large  wind  farm  that   intends  to  export  electricity  to                                                               
California.  He stated  that in  order to  have energy  resources                                                               
Alaska needs  permit reform.  He stressed  the 17-year  lead time                                                               
needed  to  complete  the  project  due  to  obstacles  like  the                                                               
Environmental Protection  Agency's National  Environmental Policy                                                               
Act  (NEPA).   The  legislature   anticipates  two   of  Governor                                                               
Dunleavy's  land bills  coming forward  to shift  more land  into                                                               
private ownership.                                                                                                              
                                                                                                                                
3:50:07 PM                                                                                                                    
CO-CHAIR   GIESSEL  acknowledged   the  agenda   items  as   good                                                               
discussion  topics. Some  of these  issues were  referred to  the                                                               
committee, such  as the  trapping cabins  and fishery  bills. She                                                               
thanked  committee members  for  their ideas,  which help  inform                                                               
legislation.                                                                                                                    
                                                                                                                                
3:51:12 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Co-Chair   Giessel  adjourned   the  Senate   Resources  Standing                                                               
Committee meeting at 3:51 p.m.                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SRES Bill Referral as of 1.16.24.pdf SRES 1/17/2024 3:30:00 PM