SJR 7-ENDORSING ANWR LEASING; RELATED ISSUES  1:26:42 PM CO-CHAIR LINCOLN announced that the first order of business would be SENATE JOINT RESOLUTION NO. 7, Requesting that the United States Department of the Interior Bureau of Land Management implement an oil and gas leasing program in the coastal plain of the Arctic National Wildlife Refuge. 1:26:55 PM SENATOR CHRIS BIRCH, Alaska State Legislature, speaking as the sponsor of SJR 7, reminded the committee the comment period for the Arctic National Wildlife Refuge (ANWR) leasing program draft environmental impact statement (EIS) closes 3/13/19 and the purpose of the resolution is to serve as the official comment of the Thirty-first Alaska State Legislature. He described the time needed for the passage of SJR 7 and cautioned if amended, the resolution will miss the deadline by two days. He urged the committee to pass the resolution without amendment. CO-CHAIR LINCOLN said a forthcoming amendment was submitted following the requirements of the co-chairs; however, the maker of the amendment wishes to make changes to the amendment [that was drafted by Legislative Legal Services, Legislative Affairs Agency]. 1:29:01 PM The committee took an at-ease from 1:29 p.m. to 1:30 p.m. 1:30:53 PM REPRESENTATIVE HOPKINS explained the language in the amendment drafted by Legislative Legal Services was divided into two separate amendments labeled Amendment 1 and Amendment 2. Amendment 1 read: Page 3, following line 12: Insert new resolution sections to read: "WHEREAS, to protect the state's record or [sic] successful development, the input of the Gwich'in and Inupiat people, who currently and traditionally reside in the North Slope Borough and the Yukon-Koyukuk census areas, may be taken into consideration, and the full effects of development on the Porcupine and Central Arctic caribou herds, on which they traditionally rely, as well as the full environmental effects of the infrastructure needed to bring the resources to market, may be addressed through the environmental permitting process; and REPRESENTATIVE HOPKINS said the only change to this portion of the language from the drafted amendment is on line 5, a change from "must" to "may". 1:32:21 PM REPRESENTATIVE HOPKINS moved Amendment 1 [text provided previously]. 1:32:34 PM CO-CHAIR LINCOLN objected for discussion purposes. REPRESENTATIVE HOPKINS further explained the purpose of Amendment 1 is to ensure comments are heard from residents who utilize the land and traditional use of the Porcupine and Central Arctic caribou herds in the area of ANWR [designated by section 1002 of the Alaska National Interest Lands Conservation Act (the section 1002 area)]. Furthermore, Amendment 1 addresses the full environmental impacts of the production infrastructure [that is supported by SJR 7] such as feeder lines, seismic activity, and ice roads. REPRESENTATIVE RASMUSSEN agreed it is important to hear from local residents; however, she stated her concern is that any amendment would prevent timely passage of the resolution. REPRESENTATIVE RAUSCHER asked for clarification on the impact to the caribou herds. REPRESENTATIVE HOPKINS said the amendment takes into consideration the long-term impacts on the population of the caribou herds and their migration pattern to the calving grounds within the [section 1002 area]. REPRESENTATIVE SPOHNHOLZ turned attention to the concern about the timeline for the resolution and suggested the legislature could easily waive [Alaska State Legislature Uniform Rules] and thereby improve the language of SJR 7 and meet its deadline. REPRESENTATIVE TUCK stressed the need to improve the language in legislation during committee hearings and thereby avoid problems later on in the legislative process. 1:37:25 PM REPRESENTATIVE RASMUSSEN suggested the intent of the amendment could be more appropriately conveyed in a second resolution to Congress; she pointed out the topic of SJR 7 is directed to the Bureau of Land Management (BLM), Department of the Interior. REPRESENTATIVE RAUSCHER asked the sponsor whether amendments were discussed during Senate hearings. SENATOR BIRCH said no. In further response to Representative Rauscher, he said there was discussion related to the WHEREAS on page 3, lines 6-9, which read: WHEREAS the state continues to strive to ensure the ongoing health and productivity of the Porcupine and Central Arctic caribou herds and the protection of land, water, and wildlife resources during the exploration and development of the coastal plain of the Arctic National Wildlife Refuge; and SENATOR BIRCH recalled comments on the floor of the Senate were that this issue is adequately addressed and noted in the summer [of 2018], the Porcupine caribou herd population was at an all- time high of 218,000. REPRESENTATIVE RAUSCHER questioned whether the Senate would concur in House amendments. 1:40:04 PM SENATOR BIRCH opined there are no serious issues with "any of the resolutions in that context," and the Senate directed SJR 7 not to Congress, but to BLM, to urge for a lease sale. In fact, the resolution does not choose one alternative from four that were identified [in the draft EIS]; however, the language of [Amendment 1] sets an unattainably high bar for state and federal regulators. CO-CHAIR LINCOLN surmised lease sales are one early step in development and resulting projects need specific permits and environmental impact statements. SENATOR BIRCH said correct. 1:41:33 PM REPRESENTATIVE TALERICO pointed out in the [Coastal Plain Oil and Gas Leasing Program] draft EIS, produced by BLM, four possible decisions were identified. He then remarked: BLM has been in contact with the Arctic Village Council, the Inupiat community of the Arctic slope, the Native Village of Kaktovik, Venetie Village Council, Native Village of Venetie Tribal Government, Beaver Village, Birch Creek Tribal Council, Chalkyitsik Village Council, the Gwich'in Tribal Government - which is located in Fort Yukon - Anaktuvuk Pass, the Native Village of [Utqiagvik], the Inupiat Traditional Government, the Native Village of Nuiqsut, the Native Village of Stevens. ... No doubt, these folks have been in, BLM has been in contact and this was for consulting purposes.... ... I'm opposed to ... the amendment just due to the fact that I think that the agency has, has done their due diligence in this process .... SENATOR BIRCH added there was extensive supporting testimony during the Senate Resources Standing Committee hearing of SJR 7 from the North Slope Borough, Arctic Slope Regional Corporation, and the Village of Kaktovik. REPRESENTATIVE HOPKINS stated Amendment 1 would urge [BLM] to continue working with the Gwich'in and Inupiat people during the EIS process and ensure developing [the section 1002 area] will not negatively impact the size of the caribou herds. He stressed amending SJR 7 to include additional precautions may prevent litigation. 1:45:57 PM CO-CHAIR LINCOLN maintained his objection. 1:46:31 PM The committee took a brief at-ease. 1:47:02 PM A roll call vote was taken. Representatives Tuck, Hannan, Hopkins, and Spohnholz voted in favor of Amendment 1. Representatives Rasmussen, Rauscher, Talerico, and Lincoln voted against it. Therefore, Amendment 1 failed by a vote of 4-4. 1:47:44 PM REPRESENTATIVE HOPKINS moved Amendment 2, which read: Page 3, following line 12: Insert new resolution sections to read: "WHEREAS, while most Alaskans support development in the coastal plain of the Arctic National Wildlife Refuge, many do so with the understanding that the state's workforce will be used to the maximum extent possible if the leasing program moves forward; and 1:47:49 PM CO-CHAIR LINCOLN objected for discussion purposes. REPRESENTATIVE HOPKINS explained the language of Amendment 2 is similar to that of many resolutions passed by the legislature urging Congress to ensure the state's workforce will be used to the maximum extent possible should the EIS process and leasing program advance. He acknowledged state legislation cannot mandate "Alaska hire"; however, at the municipal level and through interstate commerce regulations, "this would not be an unconstitutional step based on our research on putting Alaskans to work for Alaska's resources ...." 1:49:51 PM The committee took an at-ease from 1:49 p.m. to 1:52 p.m. 1:52:41 PM REPRESENTATIVE RAUSCHER opined the aforementioned issue is unconstitutional. REPRESENTATIVE HOPKINS clarified at the federal level, Congress is allowed to regulate interstate commerce, and previous resolutions in this regard have included language urging for Alaska employment preference. SENATOR BIRCH pointed out SJR 7 does not go to Congress; although no one would question a preference for Alaska hire, the resolution will go to "the administrative side" at BLM. He restated his concern about the limited time available to achieve passage of the resolution. REPRESENTATIVE TALERICO said he will not support Amendment 2, citing the 1977 Alaska Supreme Court opinion in Hicklin v. Orbeck which states, "The durational residence requirements are subject to strict scrutiny under the equal protection clauses of the federal and state constitutions because they penalize those who have exercised their fundamental right of interstate migration ...." 1:56:34 PM REPRESENTATIVE TUCK expressed his support for Amendment 2 which is an opportunity to communicate the legislature's support for local hire, and specifies the "workforce will be used to the maximum extent possible." SENATOR BIRCH said Amendment 2 is not necessary under these circumstances. REPRESENTATIVE HOPKINS reported his research has determined that there is sufficient time - due to a history of legislative support for similar resolutions - to allow for the change to ensure Alaskans receive maximum benefit for their resources. 1:58:57 PM CO-CHAIR LINCOLN withdrew his objection. 1:59:05 PM REPRESENTATIVE RAUSCHER objected. A roll call vote was taken. Representatives Hannan, Hopkins, Spohnholz, Tuck, and Lincoln voted in favor of Amendment 2. Representatives Rasmussen, Rauscher, and Talerico, voted against it. Therefore, Amendment 2 was adopted by a vote of 5-3. 2:00:22 PM REPRESENTATIVE HOPKINS moved to report SJR 7, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS SJR 7(RES) was reported out of the House Resources Standing Committee.