HOUSE BILL NO. 162 "An Act establishing the Southeast State Forest and relating to the Southeast State Forest; and providing for an effective date." CHRIS MAISCH, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES, addressed the Senate Committee Substitute for HB 162, which establishes the Southeast State Forest. He said he would go through a sectional analysis of the bill. 9:11:34 AM Co-Chair Stedman suggested explaining the bill so the people listening at home could understand it. Mr. Maisch agreed to do so. Mr. Maisch read the sectional analysis: This bill would establish a new Southeast State Forest (SESF). The SESF would be managed as part of the State Forest System under AS 41.17.200.230. Lands in the State Forest would continue to be open for multiple uses, including wildlife habitat and harvest and recreational activities. The State Forest designation would not affect the Wrangell Borough municipal entitlement, nor would it affect calculation of entitlement acreage for future municipalities in southeast Alaska. Section 1 - Southeast State Forest   Legal descriptions. Section 1, subsections (a) and (d) provide legal descriptions for the lands to be designated as the Southeast State Forest (SESF). Designated lands include 20 parcels totaling approximately 25,291 acres (see chart) on Prince of Wales, Tuxekan, Kosciusko, Heceta, Revilla, and Gravina islands, and on the mainland at Crittenden Creek. These parcels are an important part of the state timber base, but are classified as General Use land, which may be sold in the future. Legislatively designating a State Forest would ensure that some land will remain available for long-term forest management, and enable thinning to increase timber volumes. Designated lands exclude areas identified as important sites for future state land disposals. Management plan and transportation corridor. Subsection (b) directs DNR to prepare a management plan for the Southeast State Forest. Under AS 41.17.230 a management plan is required within three years after a State Forest is established. State Forest management plans must consider and permit multiple uses, include recreation and tourism, mining, use of fish and wildlife, and other traditional uses, unless the Commissioner issues a site-specific written finding that a use in incompatible with one or more other uses. Public, interagency, and Board of Forestry review is required prior to adoption of a State Forest management plan. As in other state forests, Subsection (c) states that the DNR Commissioner may also establish transportation corridors within the State Forest. Municipal entitlements. Subsection (e) clarifies the relationship of the Southeast State Forest to current and potential municipal entitlements. State Forests can affect the amount of land a municipality is entitled to select, and the land available for selection. The amount of land a municipality may select is based on the maximum total acreage of vacant, unappropriated, unreserved (VUU) land in the borough boundaries within two years after the date of incorporation (AS 29.65.030). Municipal selections are limited to VUU land. Land classified as General Use land is VUU land, but State Forests are not. The SESF is designed to have no impact on Wrangell Borough land selections. The amount of land that Wrangell Borough may select is already fixed by its date of incorporation, and this bill specifies that the Wrangell Borough may select State Forest land within the borough boundary. Three parcels in the SESF are within the Wrangell Borough boundary. If new municipalities are incorporated before June 30, 2019, the SESF will not affect the amount of land that they can select. The bill specifies that State Forest lands that were VUU land before establishment of the State Forest will be included in the calculation of the entitlement acreage. However, parcels in the SESF may not be selected. If municipalities form after 2019, the amount and location of their entitlement would be based on the VUU land at that time. Section 2. Regulations. This section authorizes DNR to immediately adopt regulations to implement the bill. Section 3. Effective date for regulations. Under Section 3 the authority to adopt regulations (Section 2) takes effect immediately. Section 4. Effective date for State Forest. Section 4 provides for an effective date of July 1, 2008. 9:16:20 AM Mr. Maisch explained the process of developing the legislation. It is a project that has been in the works for about four years. There has been extensive public involvement. Mr. Maisch related that he has spoken at two Southeast Conference annual meetings about the legislation, and Southeast Conference has submitted a letter of support. He also reported speaking to Tongass Futures on numerous occasions. Mr. Maisch pointed out that the Board of Forestry has discussed the legislation. The Board is comprised of eight members who represent Alaska Native corporations, forest industry trade associations, non-governmental organizations, a professional forester, a professional fish and wildlife biologist, a mining organization, a commercial fish organization, a recreation seat, and an environmental organization. He referred to a letter of support from the Board. He also listed letters of support from the Resource Development Council, the Society of American Foresters, the City of Wrangell, Community of Coffman Cove, and the Alaska Forest Association. Mr. Maisch said the department has discussed the proposal in numerous forums throughout the state. 9:18:29 AM Senator Thomas asked if the RS 2477 trails are preserved. Mr. Maisch reported that they were. Access will be maintained. Senator Olson inquired about an additional selection by the Wrangell Borough. Mr. Maisch reported on negotiations with Wrangell through the Division of Mining, Land, and Water which led to a compromise on the parcels selected. He noted a parcel near Wrangell that the borough will select as a part of their entitlement selection. Senator Olson asked if Wrangell was in favor of the bill. Mr. Maisch reported a letter of support from Wrangell. 9:20:34 AM Co-Chair Stedman noted one zero fiscal note by the Department of Natural Resources. Co-Chair Stedman asked if there was any opposition to the bill. Mr. Maisch addressed parcels that were opposed; SEACC did not want to see two parcels on Gravina Island used for forest management purposes, and there was opposition to Crittenden Creek. He said the two parcels were already owned by the state and had been through an area planning process in Southeast Alaska. There were extensive public meetings and the lands were established as general use lands in the area plan with intent to use them for forest management. 9:22:16 AM ERIN MCLARNON, BOARD OF FORESTRY, WILLOW (via teleconference), spoke in favor of the bill. She emphasized that not only will the new state forest provide long-term forest management, it will also provide recreational activities. As a representative of the Willow Dog Mushers Association, she appreciated the more accessible trails. She shared her personal story and listed reasons why she supports the creation of state forests. She stressed the importance of the jobs the new state forest would provide. 9:24:38 AM CARL PORTMAN, DEPUTY DIRECTOR, RESOURCE DEVELOPMENT COUNCIL (via teleconference), testified in support of HB 162. He stated that with the establishment of a new state forest in Southeast Alaska, the Division of Forestry would be able to manage state lands for a long-term supply of timber to local processors and retain the land in state ownership for multiple use. The forest would be managed as part of the state forest system. 9:26:28 AM DICK COOSE, RETIRED FORESTER, KETCHIKAN (via teleconference), spoke in favor of HB 162. He stated that a Southeast Forest would maintain some semblance of a forest industry while practicing multiple-use management on state lands. He suggested obtaining additional acreage from the Tongass National Forest and designating it as state forest in order to build back what has been lost. 9:28:17 AM HB 162 was heard and HELD in Committee for further consideration.