HJR 20-NAT'L PETROLEUM RESERVE IN ALASKA  1:03:21 PM CHAIR MCKAY announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 20, Urging withdrawal of proposed Bureau of Land Management regulations affecting the National Petroleum Reserve in Alaska; and urging meaningful engagement with tribes, local governments, and affected communities. 1:03:55 PM REPRESENTATIVE THOMAS BAKER, Alaska State Legislature, as prime sponsor, presented the sponsor statement for HJR 20 [included in the committee packet], which read as follows [original punctuation provided]: HJR 20 urges that the Bureau of Land Management (BLM) withdraw a proposed rule affecting the National Petroleum Reserve in Alaska (NPR-A). The Resolution also urges meaningful engagement with tribes, local governments and impacted communities. There are many flaws with this proposed policy. In short, the rule lacks meaningful engagement, lacks legal durability and has flawed economics. Lack of meaningful engagement. The timing and rollout of the rule-making was messy. The BLM disregarded the fall subsistence hunting and whaling seasons within my district, despite pleas from my constituents to extend the comment period and engage in formal consultation outside of traditional hunting and whaling times. Yet, BLM ignored those multiple requests. Inadequate time was granted for organizations to respond meaningfully during the public comment period and the BLM's engagement with impacted communities was woefully insufficient. The BLM failed to engage with impacted communities and organizations as required by federal law and agency policy. This all came at a time when Alaskans were asked to comment on multiple projects with overlapping public comment periods to include the cancellation of leases within the 1002 Area and Ambler Road projects. Lack of legal durability. The proposed rule fundamentally alters NPR-A's purpose and contravenes both Naval Petroleum Reserves Production Act (NPRPA) and congressional intent. The NPR-A was originally created in 1923 for the purposes of oil and gas development. Later in 1980, the NPRPA amendments directed the Secretary of Interior to "conduct an expeditious program of competitive leasing" in the area. However, the BLM's proposed rule will treat 13.1 million acres of Special Areas in the NPR-A as defacto wilderness. This rule lacks legal durability because only Congress has the authority to set forth national energy policy, and this proposed rule seeks to usurp Congressional authority. Further, it has the potential to impact future development within the NPR-A because it shifts the national energy policy focus from responsible development to surface estate conservation. This has the potential to impact future leasing and development with the NPR-A, as well as potential tie-ins of satellite fields to the Trans Alaska Pipeline. That is unacceptable for Alaska. Flawed economics. Finally, the BLM failed to adequately assess the economic impact this proposed rule would have on North Slope communities, the Federal Treasury, and the greater State of Alaska. They did not account for the lost revenue to the North Slope Borough, the Federal Treasury, and Alaskan businesses. Furthermore, they did not identify or assign value to the increased costs in services to Alaskans by the Federal or State governments as a result of the economic suffocation this proposed rule would impose. If the proposed rule is published, our ability to continue exploring and producing for oil and gas in the NPR-A will be negatively impacted. It's important to say again, the NPR-A was set aside for the purpose of protecting our national energy security. This will negatively impact our ability to increase oil flowing through the Trans Alaska Pipeline from the NPR-A. Our governments, organizations and residents will be negatively impacted from the loss of revenue, jobs and the multiplier effect of the resource dollars. 1:06:30 PM CHAIR MCKAY opened invited testimony. 1:06:42 PM ANDY MACK, CEO, Kuukpik Corporation, Village Corporation for Nuiqsut, spoke in support of HJR 20. He explained that Kuukpik Corporation is the private landowner of 145,000 acres for Nuiqsut village. For the past several decades, the corporation has been involved in decisions regarding the National Petroleum Reserve in Alaska (NPR-A). The corporation works for balanced development; to protect the land; and to maintain subsistence activities. Development is mitigated as much as possible to avoid impacts. In many instances, Kuukpik has been at the forefront of protecting the land. The corporation sees the most concerning issue to be the impact on subsistence activities. He drew the committee's attention to a particular section of the proposed Bureau of Land Management (BLM) rule which suggests that other things are more important than subsistence. He pointed out the proposed rule is written so the effects would spill out to additional areas and activities in the NPR-A 1:12:31 PM D.J. FAUSKE, Director, Government and External Affairs for North Slope Borough, spoke in support of HJR 20 on behalf of the North Slope Borough. The borough is a home rule government which represents over 10,000 residents, many communities, and the entire national petroleum reserve. The new BLM regulations would drastically change the terms Congress set for the NPR-A. The new regulations were set without consulting Alaska natives or organizations located within the Arctic. An extension was requested but denied. The rule will also affect oil flowing through the pipeline. 1:17:41 PM REPRESENTATIVE MCCABE referenced a book titled The Moral Case for Fossil Fuels which brought to light the issue of life expectancy among people in the Arctic. He asked Mr. Fauske to comment on how the generation views oil. MR. FAUSKE responded to the question with personal experiences, referencing his family history. He also discussed the life expectancy which was previously 56 years old. Now the average life expectancy is between 68 and 69. People of the Arctic have benefited greatly from oil exploration. 1:20:58 PM CHAIR MCKAY called on several testifiers who could not be heard due to technical difficulties. 1:22:05 PM KARA MORIARTY, President and CEO, Alaska Oil and Gas Association (AOGA), provided invited testimony in support of HJR 20. She stated that the oil and gas industry expect to spend over 14 billion dollars in capital expenditures in a five-year period from 2023 to 2028, much of which will be spent in the NPR-A. This legislation appropriately requests BLM to withdraw its proposed NPR-A rule which would be a complete shift in BLM management of the area. The proposed rule presents many new substantive standards which would have significant and adverse impacts. Additionally, the proposed rule conflicts with congressional intent and raises questions of legal durability of the proposal. 1:25:28 PM BRIDGET ANDERSON, Senior Vice President, External Affairs, Arctic Slope Regional Corporation, spoke in support of HJR 20, emphasizing the lack of input by people who live in the area. She also called into question the necessity of the rule, pointing out that the proper process was not followed. The proposed rule is worded in such a way that it calls into question whether the people who live in the area will be able to use the land. There is unified support for HJR 20 from the region. 1:28:40 PM DOREEN LEAVITT, Director, Natural Resources, Inupiat Community of the North Slope, spoke in support of HJR 20, drawing attention particularly to the lack of notification. All eight of the communities and nine federally recognized tribes are impacted by the BLM decision. The tribes have a legal entitlement to proper consultation which did not occur. The tribes were left out of the decision-making process. This has a direct impact on the land and the people, changing the tax base as well as access to privately owned land. 1:31:47 PM CHAIR MCKAY opened public testimony 1:32:27 PM CHERYL BOWIE, representing self, spoke in support of HJR 20. She discussed being born in Kotzebue and described personal experiences regarding the issues of oil and gas. She described the values of the Arctic. 1:36:21 PM NAGRUK HARCHAREK, President, Voice of the Arctic Inupiaq, spoke in support of HJR 20. He described the Voice of the Arctic Inupiaq as a non-profit comprised of cities, tribes, corporations, and regional organizations concerned with the North Slope who are concerned about the future of the Arctic and explained why the organization supports HJR 20. 1:38:04 PM KARI NORE, Director, External Affairs, Alaska Chamber of Commerce, spoke in support of HJR 20. She described the diversity of the Alaska Chamber of Commerce membership. The Chamber supports Alaska oil and gas exploration in Alaska's federal areas. She pointed out that the NPR-A ensures America's national energy security while balancing it with conservation. 1:39:42 PM LEILA KIMBRELL, Executive Director, Resource Development Council for Alaska, spoke in support of HJR 20. She described the work of the Resource Development Counsel for Alaska (RDC) and explained why the RDC supports the resolution. She emphasized the potential for irresponsible development in the NPR-A and the North Slope. Time is of the essence. 1:42:35 PM CHAIR MCKAY closed public testimony. 1:42:44 PM CHAIR MCKAY noted that there were no amendments. 1:42:56 PM REPRESENTATIVE RAUSCHER moved to report HJR 20 out of committee with individual recommendations and accompanying fiscal notes. 1:43:17 PM REPRESENTATIVE MEARS objected for purpose of discussion. She expressed appreciation for the resolution and pointed out that all Alaskans have a responsibility to look out for the land for the greater good. REPRESENTATIVE MEARS removed her objection. 1:44:01 PM REPRESENTATIVE SADDLER explained that what the BLM has done is unconscionable; it seems the bureau is going to incrementally choke off the life blood of the state. 1:44:57 PM CHAIR MCKAY announced there being no objection, HJR 20 was reported out of the House Resources Standing Committee.