HB 162-SOUTHEAST STATE FOREST   2:27:42 PM CO-CHAIR NEUMAN announced that the next order of business would be HOUSE BILL NO. 162, "An Act establishing the Southeast State Forest and relating to the Southeast State Forest; and providing for an effective date." 2:27:55 PM MARTHA WELBOURN-FREEMAN, Forest Resources Program Manager, Division of Forestry, Department of Natural Resources, spoke in support of HB 162 by paraphrasing from the following prepared statement [with some grammatical editing]: I. Introduction. Thank you Mr. Chairman and members of the Committee. My name is Marty Freeman, and I am the Forest Resources Program Manager for the DNR Division of Forestry.   II. Background and purpose  I am pleased to speak in support of HB 162. This bill is part of the state's effort to ensure that local timber processing continues to be a piece of the economy in Southeast Alaska. The majority of timber in [southern Southeast] is on federal land, but federal timber sales have declined drastically. Local mills now depend heavily on state timber for survival. Demand for southeast timber for wood energy is also increasing, further raising the importance of securing a timber base in this region. The State Forest proposal is built on the land use designations in the [Prince of Wales Island] and [Central Southeast] Area Plans. DNR manages approximately 156,000 acres of land in these planning areas. About 31% of that land -- 49,000 acres - is presently part of the state timber base, and managed for a combination of timber production and other public uses. However, there is no assurance that these lands will remain in state ownership and continue to be available for harvesting in the future. HB 162 helps secure a long-term wood supply from state land by designating approximately half of the timber base -25,000 acres (16%)-- as the Southeast State  Forest, retaining it in state ownership for timber harvesting and multiple use management. One of the benefits of a State Forest designation is that it provides the secure land tenure necessary to support pre-commercial thinning of second-growth timber. Thinning increases the harvestable timber volume per acre, shortens rotations between harvests, and benefits wildlife habitat. There is broad support for shifting timber harvesting in SE Alaska from old growth to second-growth stands where feasible. We can accelerate the shift to second-growth harvesting and increase timber volume on state land by thinning these stands. However, thinning is a long-term investment, and is only justified if the land will continue to be available for forest management. Legislatively designating a State Forest would ensure that some land will remain available for long-term forest management. The proposed Southeast State Forest consists of 20 parcels that are classified as "General Use" land on Prince of Wales, Tuxekan, Kosciusko, Heceta, Revilla, and Gravina islands, and on the mainland at Crittenden Creek. A regional overview map and maps of the individual parcels are in the Committee's briefing packet. The Division of Forestry worked with the Division of Mining, Land, and Water Management to identify and exclude lands that are priorities for the state land disposal program. The Southeast State Forest would be managed as part of the State Forest System under AS 41.17.200-.230. In addition to timber management, State Forests are open for multiple uses, including wildlife habitat and harvest, mining, transportation, recreation and tourism. State Forest lands would be managed consistent with the management intent under the current Prince of Wales Island and Central Southeast area plans. Changes to management intent would require public and interagency review through adoption of a State Forest Management Plan under AS 41.17.230. Municipal Entitlements.  One of the other demands on state land in [southern Southeast] is to fulfill land entitlements for new municipalities. To avoid conflicts with the Wrangell Borough entitlement, the Southeast State Forest bill specifies that the new Wrangell Borough may select State Forest land within the borough boundary. The Wrangell borough boundary encompasses three parcels in the proposed state forest (Crittenden Creek and Bradfield Canal East and West). If additional municipalities are incorporated before June 30, 2019, lands that were vacant, unappropriated, unreserved land before establishment of the State Forest would be included in the calculation of the municipal entitlement acreage, but may not be selected. Broad support. DNR has briefed many statewide groups and entities across Southeast Alaska about this proposal, including the SE Conference, local governments, and the diverse groups participating in the Tongass Futures Roundtable. We have received letters in support of the bill from the Southeast Conference, the City of Coffman Cove, the Resource Development Council, and the Alaska Forest Association. In addition, the state Board of Forestry passed a unanimous resolution in support of this bill. The Board includes representatives of the timber and fishing industries, Native corporations, mining, environmental, and recreational organizations, a professional forester, and a fish and wildlife biologist. Finally, the companion bill, SB 127 passed out of the Senate Community and Regional Affairs Committee without opposition. 2:32:32 PM REPRESENTATIVE KAWASAKI asked whether anyone else would be testifying on HB 162. CO-CHAIR NEUMAN replied that no one else was signed up to testify. REPRESENTATIVE EDGMON surmised that the impetus for HB 162 is to allow for harvesting old-growth trees. MS. WELBOURN-FREEMAN responded that the division wants to make sure that harvesting can continue. The concern is making sure the division has the long-term ability to manage by thinning the second-growth timber to increase the productivity and provide habitat benefits, and to continue harvesting old-growth timber which will support timber processors in southern Southeast Alaska. 2:33:49 PM REPRESENTATIVE EDGMON inquired whether there has been opposition to HB 162. MS. WELBOURN-FREEMAN answered that there has been no opposition to this point. She said she has met with representatives from the Southeast Alaska Conservation Council (SEACC) who asked whether multiple use would be allowed in this area. The legislation, she continued, makes it very clear that multiple use occurs on state forests and restricting other uses would require a finding of incompatibility. REPRESENTATIVE WILSON commented that this is very important for her region because of the difficulty in getting timber from federal lands for a long period of time as there is no guarantee of supply. However, she said, the state is willing to work with people in order to have a year-round, careful harvest. In response to Co-Chair Neuman, Representative Wilson noted that over the past several years the timber industry has come to a standstill and the sawmill in Wrangell shut down last October. She said people have had to move away and the economy of Wrangell has been greatly impacted. CO-CHAIR NEUMAN thanked Representative Wilson for her work on this issue. 2:36:39 PM REPRESENTATIVE KAWASAKI asked whether designating these lands as state forest is compatible with the intent of multiple-use land. MS. WELBOURN-FREEMAN replied that these lands are very clearly multiple-use lands. The statute, which is part of the state Forest Practices Act, has standards for the state forest system that say the primary purpose is to have active timber management while allowing for other uses. The statute also says that when undertaking a state forest management plan, other uses, such as habitat, recreation, and mining, must be specifically allowed. The plan must have a finding of incompatibility in order to restrict the other uses. 2:37:45 PM REPRESENTATIVE KAWASAKI inquired whether it is the state or the businesses wanting to log that suggest which lands to harvest. MS. WELBOURN-FREEMAN explained that the starting point is the area plan which is part of the regional land-use plan for DNR lands. She said DNR manages about 156,000 acres in this area and that here is an extensive public and inter-agency process to identify the main uses of those lands. Of that 156,000 acres, about 49,000 were designated for this mix of timber and other multiple uses and those lands are the current timber base. The Division of Forestry needed some security for its investment in thinning and second-growth management, so it reviewed the 49,000 acres with the Division of Mining, Land and Water to identify which of these lands could be kept in long-term state ownership without adverse impacts on the state land disposal program. This review arrived at the 25,000-acre package. 2:39:14 PM REPRESENTATIVE KAWASAKI asked whether mining is considered a multiple use. MS. WELBOURN-FREEMAN responded yes, mining is part of the list of things that are specifically recognized as multiple uses within state forests. REPRESENTATIVE KAWASAKI inquired whether a state forest designation would hamper the ability to do mining or transportation routes in addition to timber harvest. MS. WELBOURN-FREEMAN answered no, transportation routes are specifically provided for under state statutes and mining is listed as a use that is protected unless there is a specific finding of incompatibility. That finding must be for a specific site and a specific time period. 2:40:31 PM REPRESENTATIVE KAWASAKI asked whether fishing, recreation, or commercial tourism near state forest land would be considered incompatible. MS. WELBOURN-FREEMAN responded that tourism and recreation are two of the multiple uses specifically allowed in the state forest statutes. REPRESENTATIVE SEATON inquired whether state forest designation would diminish, prohibit, or restrict the use of logging roads after they are no longer used for logging. MS. WELBOURN-FREEMAN replied that there is nothing in state forest statute or HB 162 that would restrict those types of uses. The division would have to make a decision for each road as to whether to continue its maintenance or to pull out the culverts and bridges, but the use of the road would continue to be open. 2:42:24 PM REPRESENTATIVE TUCK asked which uses get eliminated when an area is designated as state forest. MS. WELBOURN-FREEMAN answered that the main change is that the land is committed to stay in state ownership in perpetuity and would therefore not be available for land sales. Mining is allowed within a state forest, she added. REPRESENTATIVE TUCK inquired whether, along with the timber harvest, there is any guarantee that there will be processing jobs for Alaskans in order to help the local economy. CO-CHAIR NEUMAN interjected that it is called the economies of scale to make more land available for harvesting timber. MS. WELBOURN-FREEMAN responded that there are some restrictions due to interstate commerce clauses on what can be required. However, she continued, the division tailors its sales to the local market because that is its niche. With rare exceptions, such as the clearing of utility right-of-ways where the timber has been allowed to be exported, the timber from these sales goes to local mills. 2:44:21 PM CO-CHAIR NEUMAN noted that this same question was asked at a forestry presentation last week and all the mills have all the access to ensure that they have all they can get. REPRESENTATIVE WILSON added that when the economy is as bad as it is, each area wants to make as many jobs as possible for local people; thus, each town is promoting this. CO-CHAIR NEUMAN closed public testimony on HB 162. REPRESENTATIVE SEATON said it is important to have long-term management for state forests without the worry of land disposals. He offered his appreciation for HB 162. 2:45:55 PM REPRESENTATIVE WILSON moved to report HB 162 out of committee with any individual recommendations and the attached zero fiscal note. REPRESENTATIVE TUCK objected, saying he would like some intent language stating that the timber harvesting is for the purposes of providing jobs and building the local economy. CO-CHAIR NEUMAN noted that HB 162 will be going to the House Finance Committee, then the House floor, and then to the Senate side. REPRESENTATIVE KAWASAKI agreed with Representative Tuck. He suggested putting the language under Section 2 as a conceptual amendment. The committee took an at-ease from 2:48 P.M. to 2:49 P.M. 2:49:14 PM CO-CHAIR JOHNSON offered his belief that the public record of this meeting makes it clear that the intent is to provide jobs and putting such language into the bill would be duplicative. REPRESENTATIVE EDGMON agreed with Representative Wilson's comments and noted that DNR has a multiple-use policy. He said he therefore believes that intent language is unnecessary. CO-CHAIR NEUMAN reminded members that the motion on the table is to report HB 162 from committee. REPRESENTATIVE TUCK withdrew his objection. There being no further objection, HB 162 was reported from the House Resources Standing Committee.   The committee took an at-ease from 2:51 P.M. to 2:52 P.M.