HB 162-SOUTHEAST STATE FOREST  4:49:34 PM CO-CHAIR WIELECHOWSKI announced HB 162 to be up for consideration. 4:49:38 PM CHRIS MAISCH, Director, Division of Forestry, Department of Natural Resources (DNR), said that HB 162 would establish a new Southern Southeast State Forest and it 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. He explained that Section 1 (a) and (d) provide legal descriptions for the lands to be designated as a Southeast State Forest in AS 29.65.030. Designated lands include 20 parcels totaling approximately 25,291 acres on Prince of Wales, Tuxekan, Kosciusko, Hecate, 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 lands, 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. MR. MAISCH said the management plan and transportation corridors were in subsection (b). It 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; and state forest management plans must consider and permit multiple uses including recreation, tourism, mining, use of fish and wildlife, and other traditional uses unless the commissioner issues a site specific written finding that a use is incompatible with one or more of the other uses. Public interagency and board of Forestry review is required prior to adoption of the state forest management plan. As in other state forests, subsection (c) states the DNR commissioner may also establish transportation corridors within the state forest. The next category (section 1) is municipal entitlements, and subsection (e) clarifies the relationship of the Southeast State Forest to current and potential municipal entitlements. State Forest 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 and unreserved 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. He said that Southern Southeast State Forest is designated to have no impact on Wrangell Borough land selections. The amount of land that the Wrangell Borough may select is already fixed by its date of incorporation and this bill specifies that it may select state forest land within the borough boundary. Three parcels in the Southeast State Forest are within the Wrangell Borough Boundary. If new municipalities are incorporated before June 30, 2019, the Southeast State Forest will not affect the amount of land that they can select. MR. MAISCH said HB 162 specifies that state forest lands that were VUU lands before establishment of the State Forest will be included in the calculation of the entitlement acreage. However, parcels in the southern Southeast State Forest 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. MR. MAISCH said section 2, authorizes DNR to immediately adopt regulations to implement the bill. Section 3 is the effective date for regulations; section 2 takes effect immediately and finally section 4 provides for an effective date of July 1 for the State Forest; it currently reads 2008 and that will be amended. 4:54:47 PM He noted letters of support from the Resource Development Council, the Southeast Conference, the Society of American Foresters - both Juneau and Statewide Chapters, the City of Wrangell, the Community of Coffman Cove, and the Alaska Forest Association. The Board of Forestry supports this; the membership of the board includes Alaska Native corporations, the Forest Industry Trade Association, a non-government professional forester, a non-governmental professional fish and wildlife biologist, a mining organization, a commercial fish organization, a recreation organization, and an environmental organization. All those entities reached consensus on this and unanimously supported this legislation. He said this is a governor-sponsored bill and the administration supports it wholeheartedly. He said this bill helps show the State of Alaska will make investments in long term forest management in southern Southeast and help these communities maintain diversification. 4:56:34 PM SENATOR WAGONER asked if it is safe to assume all the units either have water frontage for the timber to be taken off or other access. MR. MAISCH answered yes; all the parcels have either log transfer facility access or the logs are already accessed by a transportation system. On Prince of Wales that would be primarily a road system. SENATOR FRENCH asked what other steps would be necessary besides passing this bill to get thinning started on these lands - either through the state or other agencies. MR. MAISCH replied that pre-commercial thinning can be done on these lands now, but they have not been willing to make that investment because these lands could be sold, selected by a future municipal process or essentially be lost to state ownership - and it's an expensive proposition to do pre- commercial thinning. He said they did secure some American Recovery and Reinvestment Act (ARRA) funding for thinning, which they will use. SENATOR FRENCH asked what the state expenses are and why aren't they borne by the people who are selling the logs. 4:58:27 PM MR. MAISCH answered that the state currently has a pre- commercial thinning program in the Haines State Forest (in Southeast). They have not been willing to spend their funding on land that is not allocated for long term management. The ARRA funds supplement the money they already have. SENATOR STEDMAN asked how much timber volume is on these lands in percentage of old growth versus what had been harvested since industrialized logging in the 1950s. MR. MAISCH replied about 1,100 acres of state forest land has previously been harvested. The 29,000 acres is not all productive forest land. The allowable cut for these parcels of land is 8.7 million feet annually. To put that in perspective, he said the current Tongass Land Use Management Plan (TLUMP) calls for up to 100 million feet of volume to be harvested annually. SENATOR STEDMAN said he thought they used to do around 369 million board feet. MR. MAISCH explained there are three phases of the TLUMP, and the third phase calls for up to 280 million feet. SENATOR STEDMAN said the forest is proposed to be 25,300 acres and asked how much acreage is commercial timber, second growth and scrub land that has no significant timber volume. MR. MAISCH said he didn't know the actual acreage of the old growth volume that is present on that 25,000 acres, but that translates to an 8.5 million annual figure. He offered to get accurate information for the committee. 5:00:53 PM SENATOR STEDMAN said some would be more interested in old growth selection rather than swamps. MR. MAISCH replied that this land was through an area planning process and so these lands were selected for their forestry potential. They worked closely with the Division of Mining, Land and Water to look at the total 49,000-acre package they have that is identified as GU with forest management intent, and from a forestry perspective, these lands are the most productive in that 49,000 acres. SENATOR FRENCH asked for an estimate of how many jobs would be created with the opening of these lands. MR. MAISCH said he could estimate, but the industry is growing with the enhanced value added concept. He said the state timber program has become more and more important to the remaining mills that are left in Southeast. One large mill is left on Prince of Wales Island and a bridge timber program has supplied some of the critical volume to that mill to keep it open. Volume is also provided to many small one and two person operations that are scattered through Southeast Alaska, including Icy Straits Lumber Corporation in Hoonah. It's hard to estimate the number of jobs, but it is very important volume because of what has happened to the federal timber sale program in Southeast. SENATOR HUGGINS asked how often a new state forest is established. MR. MAISCH answered it's not very frequent. There are only two other Alaska state forests in existence - the Tanana Valley State Forest, which is the largest at 1.8 million acres and the Haines State Forest. This would be the third forest in that system and would be the first one since the Tanana Valley State Forest was authorized in the 1980s. SENATOR HUGGINS asked how long he had been working on this project. MR. MAISCH answered for the better part of four years. He said the federal program in Southeast is in dire straits, and they have been working with the federal government to try and turn that program around. "This is a very important comment to make, in my opinion, to the communities and to the Forest Service that the state supports long term management and this is the way to do that by designating the state forest." SENATOR HUGGINS said he supports what they are trying to do. CO-CHAIR WIELECHOWSKI asked what kind of public process they went through and if they found any opposition to the bill. MR. MAISCH answered that they had an extensive process; they met internally and other agencies that would have potential interest in them establishing a state forest. After that they did further outreach to communities in the areas the state forest would be around, they talked before the Tongass Futures Round Table Organization, he presented twice to the Southeast Conference, talked to local community councils, legislative bodies, and environmental groups. By and large they have found strong support for this bill. Last year, Mr. Maisch said, concerns were expressed about two of the parcels - one was Crittenden Creek and the other was on Gravina Island - by some individuals who worried about their location and the fact that they would be used for forest management purposes. He provided a lengthy response that is in the record. Briefly, it says the lands had been through an extensive area planning process which included public meetings in all these communities, a lot of public outreach, and these lands were chosen to be set aside for GU purposes, but with a forestry management intent. It continued that the City of Wrangell may indeed select the Crittenden Creek parcel and that would put that parcel in local control which means the local community could decide what the best use of that particular parcel might be. 5:07:26 PM DICK COOSE, representing himself, Ketchikan, supported HB 162. He said he is a retired forester and knows it will allow more efficient multi use management of those state lands. The use of the forest products that comes from these lands helps the local economy and adds jobs. Alaska is now a leader in quality effective and efficient management of forest lands; the more lands that can be designated as state forest lands the better off we are. The feds aren't managing their lands effectively. 5:08:57 PM JACK SLAGHT, representing himself, Petersburg, Alaska, said he supported HB 162 and believes that Southeast Alaska needs to strive to rebuild a diversified economy. In the past 20 years a relentless assault has remained on the forest products industry by environmental groups that has reduced that industry to almost nothing. Currently only fishing, processing and some tourism exit in the Petersburg area. Thankfully some mining is still being done. There will be increased competition for ocean resources, and no one knows how future energy costs will affect fishing and processing. 5:12:33 PM OWEN GRAHAM, Alaska Forest Association, supported HB 162. He said the division wants to make sure the money they invest in these lands won't be lost and the trees will be allowed to grow to maturity after thinning so that investment can be recouped through timber sales in the future. He said this industry has shrunk by 85 percent since 1990 and it is solely the result of an inadequate supply of timber. The federal timber supply has just disappeared, and the federal government controls more than 90 percent of the timber lands in Southeast Alaska. In contrast the Division of Forestry has done a good job with its timber sale program. 5:14:22 PM MARK VINSEL, Executive Director, United Fishermen of Alaska (UFA), said he is speaking as the seat designated for commercial fishing on the Board of Forestry. He pointed out that the board works on a consensus basis and there was no opposition to this bill. He had not heard of any opposition from UFA members or individual fishermen on this bill. 5:15:13 PM RON WOLFE, Alaska Native Corporation representative to the Board of Forestry, said he is also the Sea Alaska Corporation Natural Resource Manager. He added his support to this legislation. 5:15:53 PM WAYNE NICOLS, member, State Board of Forestry and the Society of American Foresters, supported HB 162. He said he is also a Certified Forester and is retired after working 37 years for the Forest Service. There are several reasons for establishing a state forest in this area and they have heard most of them. A primary reason is to enable long term investment in forest land. Effective forest management involves investments in terms of creating access for harvest and for subsequent management activities. Investments in good forest management are only feasible and prudent with long term ownership provided by dedication of forest land as in a designated state forest. He said that timber management on the Tongass National Forest has become very limited due to litigation and other factors. While the state forest cannot begin to compensate entirely, it can help offset it. As such, mature timber existing now can be properly harvested soon contributing a wood supply for the industry and creating jobs. As the harvested portions of the new forest degenerate the young growth will be managed for optimum or maximum quality and quantity to establish cultural treatment of new stands and increase their value as the years pass. MR. NICOLS said all state forests are managed by the Division of Forestry successfully under the very effective State Forest Resources and Practices Act. It provides an umbrella-like set of regulations and best management practices to protect and enhance other resources, most notably streams and water sheds. He said this act is exemplary among at least 35 states that have similar laws, and that most forest management enhances fish and wildlife habitat. He said that the Society of American Foresters is a unit of the largest such organization in the world and is the only professional forestry organization in the United State. By a resolution first initiated by the Juneau Chapter, and subsequently by unanimous conference the statewide organization endorses establishes of the Southeast Forest. He hoped they recognized the importance and wisdom to environmental and economic benefit of all Alaskans of establishing a new state forest in Southeast Alaska. 5:20:06 PM MR. WOLFE responded to a question from Senator French about why the purchaser didn't bear the cost by saying that would be difficult simply because of the time period involved. Typically, pre-commercial thinning is done 15-20 years following timber harvest. So image factoring that funding into your bid. It is not uncommon for the purchaser to be responsible for reforestation, however in the kind of forest Southeast Alaska has that is rarely a problem. 5:21:00 PM MR. NICHOLS commented in regard to Senator Huggins' question about how often state forests happen that he hoped they would hear lots more about them in the future. 5:21:28 PM JOHN SANDOR, representing himself, Juneau, supported HB 162. He said he is a former regional forester and commissioner of the Department of Environmental Conservation (DEC). He said the state forest would be professionally managed in accordance with the Alaska Forest Practices Act, and the DNR and the Forester has an excellent record of managing Alaska's diverse ecosystems. Since the closure of Southeast Alaska pulp mills in Ketchikan and Sitka and with the ongoing political and legal challenges to virtually every U.S. Forest Service road and timber sale in Southeast Alaska, the integrated forest products industry of Southeast Alaska that had generated more than 3500 jobs has been eliminated - to the detriment of every Southeast community. To this day any road timber sale cannot be proved locally, but has to be submitted to the Secretary of Agriculture's office for approval. The establishment of the Alaska Southeast State Forest authorized by HB 162 will help begin the process of restoring professional forest management practices with multiple benefits from timber recreation, wildlife, fisheries, and other uses, resulting in economic and environmental and quality of life benefits to Wrangell and other Southeast communities. SENATOR WAGONER commented that the state of Utah has taken a solid stance against the federal government. He asked what he thought about having the state take over the federal lands in the State of Alaska. MR. SANDOR said he is very much in favor of that move. Over 90 percent of Southeast Alaska is managed by the federal government and even though the Tongass plan authorizes up to 100 million feet to be harvested, less than 25 million is harvested. It is a fact that the 1890 and 1900 census of the State of Alaska recorded more saw mills operating than today in Southeast Alaska. 5:25:42 PM CO-CHAIR WIELECHOWSKI thanked everyone for their comments and held HB 162 for further work. He adjourned the meeting at 5:25 p.m.