Legislature(2023 - 2024)BUTROVICH 205
02/02/2024 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB118 | |
| Eo 132:eliminating the Alaska Chilkat Bald Eagle Preserve Advisory Council | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 118 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 2, 2024
3:30 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
MEMBERS ABSENT
Senator Matt Claman
OTHER MEMBERS PRESENT
Senator Kelly Merrick
Senator Jesse Kiehl
COMMITTEE CALENDAR
SENATE BILL NO. 118
"An Act relating to critical and essential minerals and the
global energy transition."
- HEARD & HELD
EO 132 ELIMINATING THE ALASKA CHILKAT BALD EAGLE PRESERVE
ADVISORY COUNCIL
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 118
SHORT TITLE: CRITICAL NATURAL RESOURCES; REPORTS
SPONSOR(s): SENATOR(s) MERRICK
03/29/23 (S) READ THE FIRST TIME - REFERRALS
03/29/23 (S) RES
02/02/24 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR KELLY MERRICK, District L
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor for SB 118.
KERRY CROCKER, Staff, Senator Kelly Merrick
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 118.
BRENT SHEETS, Director
Petroleum Development Lab
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Invited testimony for SB 118.
DEANTHA SKIBINSKI, Executive Director
Alaska Miners Association
Anchorage, Alaska
POSITION STATEMENT: Invited testimony for SB 118.
KAREN MATHIAS, Executive Director
Alaska Metal Mines
Anchorage, Alaska
POSITION STATEMENT: Invited testimony for SB 118.
RICKY GEASE, Director
Division of Parks & Outdoor Recreation
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Presented EO 132 on behalf of the
administration.
PRESTON KROES, Superintendent
Southeast Region
Alaska State Parks
Juneau, Alaska
POSITION STATEMENT: Answered questions on EO 132.
CHRISTOPHER ORMAN, Assistant Attorney General
Natural Resources Section
Department of Law
Juneau, Alaska
POSITION STATEMENT: Answered questions on EO 132.
DAVID STRONG, Councilman
Chilkat Indian Village
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
JOE NELSON, Director
Sealaska
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
BILL THOMAS, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
MARK SOGGE, Vice Chair
Upper Lynn Canal Fish Advisory Committee
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
JOHN SONIN, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
KIMBERLY STRONG, President
Chilkat Indian Village
Klukwan, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
KIP KERMOIAN, representing self
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
SHANNON DONAHUE, Watershed Campaigner
Rivers Without Borders
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
THOMAS MORPHET, Mayor
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
KATEY PALMER, representing self
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
ERIC HOLLE, representing self
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
PETER GOLL, representing self
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
JESSICA PLACHTA, Executive Director
Lynn Canal Conservation
Haines, Alaska
POSITION STATEMENT: Testified in opposition to EO 132.
ACTION NARRATIVE
3:30:36 PM
CO-CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Wielechowski, Dunbar, Kaufman, and Co-Chair
Giessel.
SB 118-CRITICAL NATURAL RESOURCES; REPORTS
3:31:31 PM
CO-CHAIR GIESSEL announced the consideration of SENATE BILL NO.
118 "An Act relating to critical and essential minerals and the
global energy transition."
3:32:12 PM
SENATOR KELLY MERRICK, District L, Alaska State Legislature,
Juneau, Alaska, provided the following sponsor statement for SB
118:
[Original punctuation provided.]
Senate Bill 118, version A
Sponsor Statement
"An Act relating to critical and essential minerals
and the global energy transition."
The purpose of Senate Bill 118 is to acknowledge the
crucial role of critical and essential minerals to our
state. As we navigate toward a more sustainable energy
future, it is imperative that we position Alaska as a
key player in the production and manufacturing of
these vital minerals.
Alaska could be at the center of U.S. production
through the strategic plans outlined in this bill.
Critical and essential minerals comprise a wide range
of elements, including lithium, copper, platinum,
zinc, and more. These minerals are fundamental
components of much of today's everyday equipment, like
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
crucial resources as their demand increases. More and
more renewable energy sources require components made
of these materials as well, and that demand is likely
to increase, possibly exponentially. Critical and
essential minerals are key elements of emerging energy
technologies, ranging from electric vehicles to solar
panels.
The strategic plans that come out of SB 118 analyze
the impacts of different regulatory frameworks on
mineral development, and include considerations for
economic viability, environmental sustainability, and
efficient production processes. Alaska's commitment to
advancing renewable energy is pivotal for a
sustainable future and our commitment to production of
critical minerals is pivotal for our own economy.
Senate Bill 118 is a forward-looking initiative that
recognizes the critical role Alaska can play in
advancing the global energy transition through
industry and resources that have played such important
roles in our state's past and present.
She added that Communist China is home to the world market for
the extraction and processing of critical minerals and dominates
with 60 percent of the world's production. She opined that it is
unacceptable. Alaska should reduce reliance on adversarial
nations and increase its investment potential rather than rely
on other nations.
3:33:41 PM
KERRY CROCKER, Staff, Senator Kelly Merrick, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 118.
[Original punctuation provided.]
Senate Bill 118, version A
Sectional Analysis
"An Act relating to critical and essential minerals and the
global energy transition
Section 1: Adds a new section to uncodified law to
produce three reports: 1. The Office of the Governor
shall generate a plan for the exploration, production,
refining, and development of critical and essential
minerals used in emerging technology.
2. The Department of Natural Resources shall compare
Alaska's current and potential critical mineral
production to national and international production,
including regulation, permitting, and incentives. The
report should identify strategies to increase
exploration and development over the next three, five,
and ten years.
3. The Department of Commerce, Community, and Economic
Development shall identify the state's role in
innovation, manufacturing, and transportation to
support the global green energy transition.
3:35:05 PM
BRENT SHEETS, Director, Petroleum Development Lab, University of
Alaska Fairbanks (UAF), Fairbanks, Alaska, invited testimony for
SB 118, conveyed that teams at the Petroleum Development Lab
engage with the petroleum industry to identify and address
challenges that hinder private sector investment and resource
development in Alaska, including technical infrastructure and
environmental issues. Current lab projects include the
development of technology to enable production of the North
Slope's vast heavy oil resources. The lab recently received an
award from the Department of Energy (DOE) for carbon capture
utilization and sequestration (CCUS) to examine depleting gas
2
fields in the Cook Inlet area for potential carbon (CO) storage.
It also focuses on the demonstration of coal-plant technology to
promote affordable energy necessary to build industrial and
manufacturing capacity in Alaska. He noted that he is also the
principle investigator for the DOE-funded carbon ore rare earth
and critical minerals project and it is in that capacity that he
is testifying.
3:36:33 PM
MR. SHEETS moved to slide 2 which shows a map of exploration
projects and prospective locations. He pointed out that Alaska
Division of Geological and Geophysical Surveys (DGGS) is in
partnership with UAF on initiatives funded by DOE. Alaska has
long been a major source for some of the world's most valuable
resources. Alaskan Geologists have been active in characterizing
the state's mineral resources and comprehensive in their efforts
within the capabilities of the characterization technology and
budgets available at the time of specific studies. Much of the
information provided was pulled from archives of rare earth
elements and critical minerals characterization. He noted that
he would use the two phrases interchangeably during his
presentation. Despite documented past findings, rare earth
elements and critical minerals have had minimal commercial
potential. Department of Natural Resources' (DNR) Division of
Geological and Geophysical Surveys (DGGS) is examining this
large body of legacy work and conducting preliminary
examinations of some of the vast archive of minerals samples
that are retained in the Geological Materials Center in
Anchorage, a world-class sample repository. The work has already
yielded results confirming abundant, untapped critical mineral
resources in the state. Rare earth elements can be found at most
known mine sites throughout the state and future discoveries are
anticipated. He pointed out that potential rare earth elements
are coded in red on the map. Ray River is an example shown that
was brought to light by the DOE-funded Carbon Ore, Rare Earth
and Critical Minerals (CORE-CM) program. DGGS reviewed old
reports and subsequently collected samples several miles from
the Ray River near the Yukon River Bridge on the Dalton Highway,
where world class geranium deposits are believed to be held.
Preliminary studies at the Usibelli Coal Mine (UCM) demonstrate
a promising future with its critical mineral concentrations. The
lab is in the early stages of discussions with UCM on a
potential project to concentrate material on site to improve
economics and potentially produce minerals from the coal mine.
He said his teams have also engaged with several other mines in
Alaska and foresee high potential for the production of critical
minerals.
3:39:25 PM
MR. SHEETS moved to slide 3, which shows a chart of critical
minerals imports the United States relies on and Alaska's past,
present, and future potential to produce those minerals. He
stated that while critical minerals in Alaska are vastly
underdeveloped and underexplored, it continues to be a producer
of rare elements and critical minerals. Historic rare earth
element production includes antimony, barite, chromium,
platinum, and tin. Current production includes zinc and
germanium, with the Red Dog Mine being the largest producer of
zinc globally. Germanium is contained in the same ore as zinc
and separated during the smelting process. A company-owned
smelter in Canada receives credit for Alaskan geranium
production, not the Red Dog mine, and produced so the quantity
of geranium produced by the Red Dog mine is unknown. Many
critical minerals needed for economic and national security are
supplied by countries with adversarial relationships with the
U.S. Most of the 34 critical minerals highlighted on the chart
are defined as strategic minerals that Alaska could potentially
supply.
3:40:27 PM
MR. SHEETS moved to slide 4 and listed critical mineral
applications and products. He said critical minerals can be used
for purposes other than renewable energy and provided examples
from the slide:
• Magnetics
• Metal alloys
• Defense
• Catalysts
• Ceramics
• Glass and polishing
• Phosphors
3:41:18 PM
MR. SHEETS moved to slide 5 and elaborated on the lab's vision:
[Original punctuation provided.]
CARBON ORE, RARE EARTH & CRITICAL MINERALS
Vision: Bring Alaska's CORE-CM potential into
perspective
Mission: Establish a CORE-CM industry in Alaska by
working with industry and other stakeholders to ID
opportunities & address challenges
He said the CORE-CM center seeks to not only mine and export
critical minerals, but also establish an industry in the state.
This would be consistent with the vision of DOE to accelerate
research that would enable the commercial development of
advanced processing and production of rare earth and critical
minerals, as well as high-value non-fuel coal products
throughout the country. DOE is also funding the CORE-CM
initiative to support the engagement of public and private
partnerships and would allow self-funding through private funds.
The goal is to advance new and innovative technology
development, and advance opportunities for the education and
training of the next generation of technicians, skilled workers,
and science, technology, engineering, and mathematics (STEM)
students.
3:42:28 PM
MR. SHEETS moved to slide 6 and explained project funding by
phase. DOE established 13 CORE-CM centers that are currently all
in phase 1. The Petroleum Development Lab is one of those 13
centers. All the centers have the same funding amount and tasks.
There will be a downselect from thirteen to eight centers for
phase 2, and later narrowed to five for phase 3 - which is
expected to be competitive and there is a significant funding
increase for each phase. DOE is expected to issue the Funding
Opportunity Announcement (FOA) for phase 2 in March.
He said that the cautionary requirements will be challenging for
the project teams to meet, but DGGS maintains great partners
that support this effort. The Petroleum Development Lab is
working closely with industry, which is where some of the
funding match will come from. Also, any expenditures by DGS on
work within the state can be counted as an in-kind match.
3:44:21 PM
MR. SHEETS moved to slide 7 which lists National Energy
Technology Laboratory (NETL) objectives. He said DOE developed
six objectives that all thirteen Core-CM centers must address to
catalyze regional economic growth and job creation. The table
demonstrates each objective that the project is pursuing.
The list below equates NETL Objective from the Funding
Opportunity Announcement (FOA) to the UAF/DGGS task equivalent:
[Original punctuation provided.]
1. Basinal Assessment of CORE-CM Resources = Task 2:
Basinal Assessments
2. Basinal Strategies for Reuse of Waste Streams =
Task 3: Waste Stream Reuse
3. Basinal Strategies for Infrastructure, Industries
and Businesses = Task 4: Strategies for
Infrastructure, Industries and Businesses
4. Technology Assessment, Development and Field
Testing = Task 5: Technology Assessment,
Development and Field Testing
5. Technology Innovation Centers = Task 6: AK-TIC
6. Stakeholder Outreach and Education = Task 7:
Stakeholder Outreach & Education
MR. SHEETS said SB 118 would enable DGGS to further its efforts
under the CORE-CM program to meet DOE objectives. He stated that
rare earth elements are not typically sought, so one aim is to
help the mines consider the potential for rare earth production.
3:51:16 PM
MR. SHEETS moved to slide 8, which illustrates all components
involved in the critical minerals value chain. He said the
default in Alaska is to focus on the exploration and mining
value of the chain, but a mine alone may not hold the same value
as it would paired with other steps in the process. There is
higher value in achieving multiple steps of the Rare Earth
Element (REE) Value Chain in the state. Mined critical minerals
must be separated and refined to develop the final product. If
it could overcome logistical challenges and high energy costs,
it could become a mining and processing mecca of rare earth
elements in the country. Utah currently has robust mining,
processing, and tourism industries that exist simultaneously.
3:53:10 PM
MR. SHEETS moved to slide 9 and reviewed UAF initiatives:
[Original punctuation provided.]
ADDITIONAL ASSETS
• UAF INE: Installing an ICP-MS
• UAF GI: Operates a hyperspectral imaging facility in
the state
• UAF GI: Advanced instrumentation Laboratory
• UAA is developing bioreactors to separate elements
from ores without the use of acids
• UAS and UAF are expanding their respective efforts to
provide mine training
MR. SHEETS said appropriations UAA made to UAF last year have
expanded critical mineral development efforts. The Institute of
Northern Engineering (INE) is using funds to invest in
inductively coupled plasma mass spectrometry (ICP-MS)
technology, an instrument that identifies specific elements
within ore samples. The measurements are considered the only
acceptable data DOE accepts. There are two ICP-MS units in
Alaska, but due to contamination concerns, their use in mining
is often prohibited. Measurements using ICP-MS are considered
the only acceptable data by DOE. Companies often refuse to work
on analysis samples from UCM and entities associated with coal
or carbon. However, he believes the technology will be a huge
asset for the state and anticipates a high volume of customers
and the technology can be sued for a wide variety of purposes
outside of mining. The Geophysical Institute's (GI) HyLab
airborne cameras and spectrometers provide an exceptionally
detailed map of an area's geologic makeup by measuring surface
reflectivity in a variety of wavelengths, which reveals the
mineral composition of the ground surface. The Geophysical
Institute's advanced instrumentation lab has many assets for use
in determining rare earth element composition of minerals. Its
equipment also reveals how an element is bound to the ore, which
helps to determine the best method for the separation of an
element from the ore.
3:55:16 PM
MR. SHEETS briefly moved to slide 10, which lists phase 1
objectives and concluded his presentation.
[Original punctuation provided.]
PHASE 1
- Basin Resources Assessment & Planning
- Carbon ore REE and critical mineral basin-focused
critical mineral resource assessments
- Assessment of technology needs and initial testing
- Understand industrial and energy needs for development
- Develop strategy for integrating regions resources,
infrastructure, needs and opportunities
3:55:32 PM
CO-CHAIR GIESSEL announced invited testimony.
3:55:51 PM
DEANTHA SKIBINSKI, Executive Director, Alaska Miners
Association, Anchorage, Alaska, invited testimony for SB 118.
She expressed support for SB 118 and offered recommendations on
behalf of the Alaska Miners Association. She said it is
unfortunate that the majority of essential minerals are sourced
from foreign adversarial relationships and unacceptable
environmental and social values. SB 118 would direct the state
government to identify strategies to attract investment
opportunities. These directives send a powerful message to
investors that the state of Alaska is a jurisdiction of choice
in which to invest. She opined that Alaska cannot rely solely on
renewable energy, and only reliable fuels can bring reliable
power to businesses in the state.
3:58:37 PM
KAREN MATHIAS, Executive Director, Alaska Metal Mines,
Anchorage, Alaska, invited testimony for SB 118. She
acknowledged the increase in global demand for responsibly-
produced metals and minerals, and the nation's dependence on
these resources. Alaska currently depends on foreign-imported
minerals, which poses as a national security risk. Considering
the abundance of minerals in the state and its rigorous
regulatory process, she proposed that Alaska should be part of
the solution. She listed three key points from the perspective
of Alaska Metal Mines:
1. There is a risk in exclusively focusing on the term "critical
minerals" given there are three federal mineral lists that
change annually. For example, zinc was only recently listed. The
Department of Defense (DOD) reviews current supply and risk,
whereas DOE focuses on supply, demand, and risk to that supply.
There is widespread agreement that the amount of copper needed
for clean energy technologies over the next decade greatly
surpasses supply. While these lists draw attention, Alaska's
focus should be on the production of its own minerals. The state
has one of the greatest zinc mines in the world, tremendous
copper resources, and several other minerals.
2. There is a limited number of mines in the state due to high
energy costs and a lack of infrastructure that make it difficult
to turn deposits into producing mines. Industry clusters are
mutually beneficial and bring together companies, suppliers,
research and development, and workforce development. Alaska
needs a diverse mining industry in order to create mutual
support. Gold may not be in short supply, but the state's gold
mines are key to the health of the industry.
3. Many of the listed critical minerals are not economically
feasible to develop on their own and are often produced as
byproducts. The exceptionally high-grade deposit made it
possible to build the Red Dog Mine in a remote Alaska location.
The mine also produces a substantial amount of germanium, which
is used in electronics and optical industries. It is not
feasible to have a geranium mine, but the zinc mine permits its
production in Alaska.
MS. MATHIAS concluded that SB 118 calls for the state to
investigate strategies to encourage investment, increase
exploration, and the production of critical and essential
minerals.
4:04:03 PM
SENATOR MERRICK said SB 118 would attract investment, create
jobs, boost the state economy, and keep the U.S. safe.
4:04:14 PM
CO-CHAIR GIESSEL held SB 118 in committee.
^EO 132:Eliminating the Alaska Chilkat Bald Eagle Preserve
Advisory Council
EO 132 ELIMINATING THE ALASKA CHILKAT BALD EAGLE
PRESERVE ADVISORY COUNCIL
4:04:25 PM
CO-CHAIR GIESSEL announced the consideration of EO 182
Eliminating the Alaska Chilkat Bald Eagle Preserve Advisory
Council.
4:05:09 PM
RICKY GEASE, Director, Division of Parks & Outdoor Recreation,
Department of Natural Resources (DNR), Anchorage, Alaska,
presented EO 132 on behalf of the administration. He moved to
slide 2 of the presentation and provided an overview:
[Original punctuation provided.]
Alaska Chilkat Bald Eagle Preserve
• 43,921 acres of river bottom near Haines
• Established by Legislature in 1982 (AS 41.21.611)
• Primary purpose: protect and perpetuate the bald eagle
habitat inside the preserve
• One of the world's largest concentrations of bald
eagles
4:06:15 PM
MR. GEASE moved to slide 3 and spoke to statute:
[Original punctuation provided.]
Alaska Chilkat Bald Eagle Preserve
• Alaska State Constitution Article 8, Section 7:
Special Purpose Sites: Legislature may reserve land
from the public domain
• Legislature closed the preserve to "multiple use" and
dedicated area as special purpose site (closed to oil
and gas leasing, mineral entry) (AS 41.21.610(d)
• Traditional uses including hunting, fishing, trapping,
and other subsistence and recreational uses are
allowed (AS 41.21.618)
4:06:59 PM
MR. GEASE moved to slide 4 and explained the 12-member Advisory
Council:
[Original punctuation provided.]
Advisory Council Members
The 12-member Advisory Council established by AS
41.21.625:
• Governor appoints 3 members to 2-year terms:
- Haines Borough resident representing a conservation
organization
- United State Fish and Wildlife Service representative
- Upper Lynn Canal Fish and Game Advisory Committee
member
• Haines Borough Mayor recommends to Governor appointee
to fill seat representing commercial or industrial
interests
• Ex-officio members are named positions in statute (or
designees):
- Haines Borough Mayor
- Klukwan, Inc. President
- Chilkat Indian Village Council chair
- Chilkoot Indian Association chair
- Haines Borough Assembly member
- Alaska Department of Fish & Game Commissioner (or
designee)
- Alaska Director of Division of Parks & Outdoor
Recreation (or designee)
- Alaska Director of Division of Forestry & Fire
Protection (or designee)
MR. GEASE added that of the 12 seats there are four vacancies.
4:08:16 PM
MR. GEASE moved to slide 5 and listed the following points:
[Original punctuation provided.]
- Advisory council provides feedback, recommendations
and local insight regarding management, operations and
facilities
- Meetings serve as a forum for public input on preserve
management
- Members set agenda items and discuss topics such as
user conflicts, resource issues, proposed developments
and proposed regulation changes
- Council shall assist the Department in monitoring and
revising preserve management plan (AS 41.21.625(e))
- Council may provide feedback on matters for which
Division of Parks & Recreation, Division of Forestry &
Fire Protection and Alaska Department of Fish & Game
are required to seek council input
MR. GEASE said the management plan was last revised in 2002. The
Division of Mining, Land and Water (DMLW) conducts robust
management planning for state parks.
4:09:41 PM
MR. GEASE stated that the Advisory Council could provide input
on commercial use permits before the start of the upcoming
operating season, regulations impacting preserve, findings by
the director that traditional use is causing resource damage,
use information from cooperative resource studies to comment on
management decisions, and review notice of proposed additions to
the preserve. The process requires the Division of Forestry to
consult with the council administering the Haines State Forest
resource management plan, which is currently being updated. He
clarified it is important to note that the Department of Fish
and Game sets all regulations in all state parks for all
management of fish and wildlife.
4:11:01 PM
MR. GEASE moved to slide 6 and spoke to the following:
[Original punctuation provided.]
The Division of Parks & Outdoor Recreation coordinates
and supports the Advisory Council by:
• Issuing public notice for meetings
• Assisting with agendas
• Taking meeting minutes and/or recording meeting
• Posting meeting minutes and/or recording meeting
• Coordinating appointments through Governor's
office
• Filling requests for information from DNR The
council has met online since 2020 and the most
recent council meeting was November 2022. The May
2023 meeting lacked a quorum.
MR. GEASE said the Governor's Office has 130 boards that DNR
operates with. The Advisory Council has a set of bylaws that
coordinate how meetings are run.
4:12:44 PM
SENATOR DUNBAR asked if any boards were vacant in May of 2023.
4:12:57 PM
MR. GEASE replied that he believes there has been an issue with
governor's appointments continuing to have vacancies, and
invited Superintendent Kroes to answer.
4:13:27 PM
PRESTON KROES, Superintendent, Southeast Region, Alaska State
Parks, answered questions on EO 132. He said all three boards
were vacant in May of 2023.
4:13:41 PM
SENATOR DUNBAR asked if there would have been a quorum if all
three governor's appointments were filled.
4:13:47 PM
MR. KROES responded he was unsure of the exact turnout, but
believes it would have likely reached a quorum.
4:14:10 PM
MR. GEASE moved to slide 7 and elaborated on the impact of EO
132.
[Original punctuation provided.]
WHAT:
• Sunsets the advisory council; stakeholder input
would be received through traditional channels
and creation of informal advisory groups WHY:
• Creates efficiency and establishes single point
of contact for preserve management
• Eliminates duplication within state government
• Aligns management activities with those of other
parks
FUTURE:
• Management processes don't change revisions
subject to robust public process and multiple
input opportunities
• Alaska Department of Fish & Game remains involved
in management plan development, associated
activities
MR. GEASE said regional input is vital to the operations of
Alaska state parks.
4:16:48 PM
MR. KROES moved to slide 8.
[Original punctuation provided.]
DNR has other important engagement tools:
• Creation of a local citizen advisory board
covering the parks in the local region
• Citizen advisory boards assist DNR staff with
management and development issues
• Alaska State Parks director appoints members for
up to 3-year terms
• Members are representative of multiple user
groups
• Currently active boards in Chugach, Juneau,
Kachemak Bay, Ketchikan, Kodiak, Mat-Su, Northern
Region and Seward
MR. GEASE said one issue in statute is there are 20k acres of
different park units in the Haines area in addition to the
Chilkat Reserve. DNR does not have the means for robust public
input. The department recently had a design and construction
project which involved four to five public meetings, but a
regional citizen advisory board would have streamlined the
process.
4:20:42 PM
MR. GEASE said board members represent multiple user groups and
the region designates seats when establishing bylaws.
4:21:28 PM
SENATOR DUNBAR asked if there are statutory requirements that
current or other Indigenous entities are included in the future
council.
4:22:07 PM
MR. GEASE replied yes. He said regional citizen advisory boards
are established through an informal process that is done through
bylaws. There are not currently designated seats, but he offered
to work with the Haines municipality if desired.
4:22:35 PM
SENATOR KAWASAKI asked if there are currently local citizen
advisory boards that overlay the Chilkat Bald Eagle Preserve.
4:22:48 PM
MR. GEASE replied no.
4:22:54 PM
SENATOR KAWASAKI asked for confirmation of his understanding
that a local citizen advisory board appointed by DNR would be
duplicative.
4:23:03 PM
MR. GEASE replied that DNR would work with the local community,
which would most like be the existing advisory council. They
would comprise the initial set of members. Then bylaws would be
written for a citizen advisory board. One advantage to having
director-appointed seats when there are vacancies is that it
would be simpler to make recommendations to the director. The
turnaround time would be one to two weeks as opposed to several
months. A regional citizen's advisory board would permit all
parks to involve public input. The time of the vacancies would
decrease resulting in less vacancies and more meetings that
would have quorums. The management plan process would remain the
same.
4:25:32 PM
SENATOR KAWASAKI asked how the current makeup would be changed
under EO 132. He referred to slide 5 and wondered how frequently
advisory council responsibilities are revised.
4:25:59 PM
MR. GEASE said that in the 70s and 80s, the legislature
established legislatively designated areas, which were set up as
management plans. In the 90s and early 2000s, a group of
management plans were updated. These types of plans generally
exist for 20-30 years. DNR has not yet made changes to the
management plan because it is uncertain if the hydro project
would be certified through the Federal Energy Regulatory
Commission (FERC). If it is certified, the legislature would
likely need to make adjustments to the boundaries around Wood-
Tikchik State Park.
4:27:46 PM
SENATOR WIELECHOWSKI asked if there have been discussions about
potential carbon offset projects in Haines State Park.
4:28:01 PM
MR. GEASE invited the Assistant Attorney General to respond.
4:28:47 PM
CHRISTOPHER ORMAN, Assistant Attorney General, Natural Resources
Section, Department of Law, Juneau, Alaska, answered questions
on EO 132. He said Department of Law is currently in the process
of drafting regulation for carbon offset projects on state land
pursuant to AS.38.95.400 through AS.38.95.499.
4:29:40 PM
SENATOR WIELECHOWSKI asked for confirmation of his understanding
that the administration supports local control.
4:29:54 PM
MR. GEASE stated his belief that the administration prefers that
state parks have public involvement at the local level. He said
DNR, the Commissioner, and the Governor support this method.
4:30:09 PM
SENATOR WIELECHOWSKI provided a potential scenario of a federal
law that required consulting with Alaska before taking action
and wondered how DNR would respond if the Biden administration
opposed this.
4:30:41 PM
MR. GEASE suggested consulting with the Governor's Office for an
answer.
4:30:45 PM
SENATOR WIELECHOWSKI said Section 2 includes a series of
requirements that state, "Division of Forestry & Fire Protection
shall consult with the Chilkat Bald Eagle Preserve Advisory
Council." He also referenced other sections that require
consultation. Requirements under current law give power to the
local community, but EO 132 would remove that component. He
asked whether the proposed section would compensate for
consultation requirements or diminish the ability for local
engagement.
4:32:43 PM
MR. GEASE responded that DNR's process of public engagement
would remain the same. He said all management plans and any
amendments would follow the same basic process.
4:33:50 PM
SENATOR WIELECHOWSKI opined that the statute requirement to
consult is unequal to a management plan that would permit public
testimony.
4:34:22 PM
SENATOR DUNBAR said he has worked with the Chugach State Park
Citizen Advisory Board and acknowledged active public
participation but does not understand why the council seeks to
fix the current process.
4:35:14 PM
MR. GEASE replied that all state park units in the area will
have a public forum. He said during his time as Director, he has
had the ability to review and make appointments to citizen
advisory boards more quickly than the Commissioner's Office or
the Governor's Office, ensuring fewer board vacancies and
helping to establish more meetings without needing a quorum.
Different citizen advisory boards involve arrangements for
sister agencies to speak to issues.
4:37:20 PM
CO-CHAIR GIESSEL opened public testimony. She informed the
committee that a large amount of comments were received but only
one email was received in support EO 132.
4:38:48 PM
DAVID STRONG, Councilman, Chilkat Indian Village, Klukwan,
Alaska, testified in opposition to EO 132. He introduced himself
in Tlingit and introduced his clan opposite, Joe Nelson. He said
Chilkat Indian Village is a federally recognized tribal
government with inherent sovereignty, and its tribal
constitution requires members to protect tribal lands. He urged
the legislature to reject EO 132 by passing a special concurrent
resolution that protects the integrity of the Alaska Chilkat
Bald Eagle Preserve Advisory Council. He provided background on
the four clans that settled the area and expressed the Chilkat
relationship with the land occupied by yéiks or "spirits that
are all things." He spoke to the impact dissolving the council
would have on Klukwan.
4:41:00 PM
JOE NELSON, Sealaska, Juneau, Alaska, testified in opposition to
EO 132. He introduced himself, stating his moiety is Eagle and
his clan opposite is Raven. He said Indigenous people have been
on the land for thousands of years because of their ties to the
people of the area. He said to achieve efficiency and alignment,
long-lived ancestral knowledge about a place must be accounted
for. He urged that local tribes are the stewards of the area and
should chair these advisory committees. He encouraged members to
reject EO 132.
4:43:18 PM
BILL THOMAS, representing self, Haines, Alaska, testified in
opposition to EO 132. He stated he has been involved in Alaskan
politics since 1973. He said he was Chairman and CEO of Klukwan,
Inc. when the Chilkat Bald Eagle Preserve was created. He gave a
brief history of how the preserve came into existence and stated
it was intentionally recognized as a preserve rather than a
park.
4:46:57 PM
MARK SOGGE, Vice Chair, Upper Lynn Canal Fish Advisory
Committee, Haines, Alaska, testified in opposition to EO 132. He
stated that EO 132 is not in the state's best interest and
suggested the legislature pass a special resolution in its
place. The Chilkat Bald Eagle Preserve is not a park and should
not be managed as such. It was created for the specific purpose
to protect and perpetuate the Chilkat Bald Eagles and their
essential habitat in the preserve. EO 132 would eliminate the
ability for council members to directly participate in the
process as an equal player. The Chilkat Bald Eagle Preserve
Advisory Council is composed of representatives and entities
with vested interests in the preserve that DNR does not
represent. Subsistence and economic resources are essential for
the people of Haines and Klukwan. The council provides
management expertise and ensures representation of vested and
legal interest.
4:49:29 PM
JOHN SONIN, representing self, Douglas, Alaska, testified in
opposition to EO 132. He expressed dissatisfaction with the
current executive trend, which fails to bring justice for all,
what the nation was built on. He urged the legislature to oppose
the power grab demonstrated by the Governor's actions. EO 132
would generate a sense of misery for the population in the
impacted area. He urged the legislature to stop the destruction
of the planet. EO 132 is duplicative, a waste of energy, and
would destroy the home planet.
4:51:48 PM
KIMBERLY STRONG, President, Chilkat Indian Village, Klukwan,
Alaska, testified in opposition to EO 132. She said she took
part in the development and creation of the Chilkat Bald Eagle
Preserve Advisory Council. When this occurred, the council
opposed federal regulation to ensure the advisory council would
be managed by local authority. She expressed appreciation for
Senator Wielechowski's comments and encouraged members to pass a
joint resolution opposing EO 132.
4:54:03 PM
KIP KERMOIAN, representing self, Haines, Alaska, testified in
opposition to EO 132. He stated he has engaged in subsistence
activities, hunting, recreation, and worked within the Chilkat
Bald Eagle Preserve for more than 40 years. He also held the
Upper Lynn Canal Fish and Game Preserve Advisory committee seat
on the Chilkat Advisory Council for several years. During his
tenure, he understood that the advisory functioned as a
community-based democratic forum to address numerous local
issues, often reflecting broad community support. The platform
allowed the community to voice their thoughts. The Governor's
contention to eliminate this 40-year, transparent tradition
would be replaced by a state department that prioritizes the
permitting of extraction activities at the expense of the
habitat. It would put existing traditional subsistence
activities at risk that have been followed for centuries.
Fishing and tourism could also be at risk as a result of a
decline in the health of the preserve.
4:56:41 PM
SHANNON DONAHUE, Watershed Campaigner, Rivers Without Borders,
Haines, Alaska, testified in opposition to EO 132. She spoke to
the economy, local communities, and fisheries that would be
impacted by EO 132.
4:57:55 PM
THOMAS MORPHET, Mayor, Haines, Alaska, testified in opposition
to EO 132. He said the Chilkat Bald Eagle Preserve Advisory
Council is not broken and has worked for over 40 years. It
involves common people and government officials who meet, hold
discussions, and vote together. Haines battles over many issues,
but not the advisory council, which has done a good job at
airing and resolving issues in an agreeable way. The council
relies on science and local expertise to make decisions. He
reiterated that the preserve is not a park and enables
subsistence fishing, hunting, and other essential practices. He
stated his belief that there is language in state law that
allows for a separate advisory council in Haines for the other
four park units, but this administration has underfunded and
abandoned state parks in Haines over the past three to four
years. He expressed concerns about the administration's
management of the parks and ongoing chronic neglect. He urged
the legislature to reject EO 132.
5:00:51 PM
KATEY PALMER, representing self, Haines, Alaska, testified in
opposition to EO 132. She expressed appreciation for Senator
Wielechowski's comments and said the DNR's explanation of the
purpose of EO 132 fails to demonstrate how it would increase
efficiency or align with the management of other parks. She
stated that the preserve is not a park, but a unique unit within
itself and the only one within the Division of Parks and Outdoor
Recreation (DPOR) that has its own regulations.
5:02:34 PM
ERIC HOLLE, representing self, Haines, Alaska, testified in
opposition to EO 132. He stated that he was both vice-president
and president of Lynn Canal Conservation in Haines for over 35
years and played a key role in establishing the Chilkat Bald
Eagle Preserve. He also occupied a conservation seat on the
council. EO 132 would not make government more efficient but
would discard a perfectly fine council. It would also establish
a single point of contact, which he questioned. There is already
a broad spectrum of input from citizens, agencies, and tribal
entities with centuries of local expertise and knowledge. None
of the other explanations for EO 132 make any sense. He
suggested reading the history and legal environment from the
Chilkat Bald Eagle plan and requested the passage of a
concurrent order that would maintain the current advisory
council.
5:05:12 PM
PETER GOLL, representing self, Haines, Alaska, testified in
opposition to EO 132. He said he worked with elected officials
on the development of the first management plan for the Chilkat
Bald Eagle Preserve Advisory Council. He opined that removing
the preserve would be problematic. When a similar measure was
proposed in 1978, the legislature experienced pushback from
dozens of angry people. Thereafter, parties came together to
develop a collective plan and subsequently a resolution. He
expressed that the current law has worked. Disenfranchising
Native people would take away their only formal voice, which
would result in controversy and financial repercussions.
5:08:28 PM
JESSICA PLACHTA, Executive Director, Lynn Canal Conservation
(LCC), Haines, Alaska, testified in opposition to EO 132. She
urged the legislature to pass a concurrent joint resolution to
overturn EO 132 and maintain the Chilkat Bald Eagle Preserve
Advisory Council for the essential services it provides. The
advisory council ensures a fully informed state agency and is
crucial for the responsible management of the preserve. LCC was
a founder of the preserve and has monitored its success over the
decades. The legislature established the preserve during a
challenging time, but it has grown to be universally appreciated
and a significant economic driver. EO 132 is not in anyone's
best interest and would diminish essential values. The community
depends on the preserve's resources, including fish and
wildlife, commercial activity, recreation and tourism, and
subsistence food. LCC is especially concerned that the
Indigenous seats on the advisory council are the only formal
voice for the original stewards of this land to have a voice on
its management. The advisory council is nothing less than a
community voice on the lands and waters at the heart of the
Chilkat Valley. Members on the advisory council include various
local entities with local knowledge and perspective, and there
is no substitute for local knowledge. She said she applied and
interviewed for a vacant conservation seat several years ago but
continues to await the Governor's response.
5:11:07 PM
CO-CHAIR GIESSEL closed public testimony and held EO 132 in
committee.
5:11:50 PM
There being no further business to come before the committee,
Co-Chair Giessel adjourned the Senate Resources Standing
Committee meeting at 5:11 p.m.