ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 9, 2024
1:03 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Dan Saddler
Representative Jennie Armstrong (via Teams)
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
Representative Kevin McCabe
Representative Stanley Wright
COMMITTEE CALENDAR
HOUSE BILL NO. 257
"An Act requiring the Department of Natural Resources to make
Cook Inlet seismic survey data available to certain persons; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 222
"An Act relating to the Alaska permanent fund and the income and
investments of the fund; relating to the permanent fund
dividend; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 223
"An Act relating to the production tax and royalty rates on
certain gas; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 281
"An Act relating to the permitting, lease, and sale of state
land for remote recreational cabin sites; and providing for an
effective date."
- HEARD & HELD
PRESENTATION(S): OIL AND GAS UTILIZATION ISSUES
- REMOVED FROM AGENDA
PREVIOUS COMMITTEE ACTION
BILL: HB 257
SHORT TITLE: COOK INLET SEISMIC DATA
SPONSOR(s): REPRESENTATIVE(s) MCKAY
01/16/24 (H) PREFILE RELEASED 1/12/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) RES
02/05/24 (H) RES AT 1:00 PM BARNES 124
02/05/24 (H) Heard & Held
02/05/24 (H) MINUTE(RES)
02/09/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 222
SHORT TITLE: PERMANENT FUND/AIDEA FUND INVESTMENTS
SPONSOR(s): REPRESENTATIVE(s) SUMNER
01/16/24 (H) PREFILE RELEASED 1/8/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) RES, FIN
02/02/24 (H) RES AT 1:00 PM BARNES 124
02/02/24 (H) Heard & Held
02/02/24 (H) MINUTE(RES)
02/09/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 223
SHORT TITLE: TAX & ROYALTY FOR CERTAIN GAS
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
01/16/24 (H) PREFILE RELEASED 1/8/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) RES, FIN
01/31/24 (H) RES AT 1:00 PM BARNES 124
01/31/24 (H) Heard & Held
01/31/24 (H) MINUTE(RES)
02/07/24 (H) RES AT 1:00 PM BARNES 124
02/07/24 (H) <Bill Hearing Rescheduled to 02/09/24>
02/09/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 281
SHORT TITLE: STATE LAND FOR REMOTE REC CABIN SITES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/24 (H) READ THE FIRST TIME - REFERRALS
01/22/24 (H) RES, FIN
01/29/24 (H) RES AT 1:00 PM BARNES 124
01/29/24 (H) Heard & Held
01/29/24 (H) MINUTE(RES)
02/07/24 (H) RES AT 1:00 PM BARNES 124
02/07/24 (H) Heard & Held
02/07/24 (H) MINUTE(RES)
02/09/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
TREVOR JEPSEN, Staff
Representative Tom McKay
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
257 on behalf of Representative McKay, prime sponsor.
RACHEL LONGACRE, Chief of Operations
Division of Mining, Land and Water
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
281.
LYNN WILLIS, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified during the hearing on HB 223.
ACTION NARRATIVE
1:03:12 PM
CHAIR MCKAY called the House Resources Standing Committee
meeting to order at 1:03 p.m. Representatives Mears, Dibert,
Armstrong (via Teams), Saddler, Baker, Rauscher, and McKay were
present at the call to order.
HB 257-COOK INLET SEISMIC DATA
1:06:43 PM
CHAIR MCKAY announced that the first order of business would be
HOUSE BILL NO. 257, "An Act requiring the Department of Natural
Resources to make Cook Inlet seismic survey data available to
certain persons; and providing for an effective date."
1:07:09 PM
TREVOR JEPSEN, Staff, Representative Tom McKay, Alaska State
Legislature, provided a correction to HB 257 from a previous
committee meeting. He explained that slide 5 of a PowerPoint
had referenced "state infrastructure," which would imply that
the state would have to pay, which was inaccurate as he had not
meant to imply a funding source. He clarified that the
investment would come from the private sector.
1:08:02 PM
CHAIR MCKAY opened public testimony on HB 257. After
ascertaining that no one wished to testify, he closed public
testimony.
1:08:30 PM
CHAIR MCKAY announced that HB 247 was held over.
HB 222-PERMANENT FUND/AIDEA FUND INVESTMENTS
1:08:40 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 222, "An Act relating to the Alaska permanent
fund and the income and investments of the fund; relating to the
permanent fund dividend; and providing for an effective date."
1:08:51 PM
CHAIR MCKAY opened public testimony on HB 222. After
ascertaining that no one wished to testify, he closed public
testimony.
[HB 222 was held over.]
HB 223-TAX & ROYALTY FOR CERTAIN GAS
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 223, "An Act relating to the production tax and
royalty rates on certain gas; and providing for an effective
date."
1:09:44 PM
CHAIR MCKAY opened public testimony on HB 223.
[A public testifier attempted to testify but could not be heard
clearly.]
1:11:17 PM
REPRESENTATIVE MEARS noted a forthcoming committee substitute
(CS) to HB 223 and requested that public testimony remain open.
1:11:34 PM
CHAIR MCKAY accommodated Representative Mears' request.
1:11:47 PM
The committee took an at-ease from 1:11 p.m. to 1:12 p.m.
1:12:54 PM
CHAIR MCKAY confirmed that public testimony would be held open
until the CS to HB 223 was before the committee.
[HB 223 was held over and taken back up later in the meeting.]
HB 281-STATE LAND FOR REMOTE REC CABIN SITES
1:13:13 PM
CHAIR MCKAY announced that the next order of business would be
HOUSE BILL NO. 281, "An Act relating to the permitting, lease,
and sale of state land for remote recreational cabin sites; and
providing for an effective date."
CHAIR MCKAY noted testifiers present to address comments from a
previous meeting.
1:14:10 PM
RACHEL LONGACRE, Chief of Operations, Division of Mining, Land
and Water, Department of Natural Resources, addressed the level
of fire protection raised by testifier James Squyres from the
previous committee meeting on 2/7/24. She said some state-owned
lands are in areas with limited or no fire protection and a
parcel's location could also impact what services are available.
She said parcels are recommended to be included in a database to
aid in fire management and known infrastructures and location.
1:15:19 PM
REPRESENTATIVE SADDLER asked for Ms. Longacre's comments in
writing.
MS. LONGACRE responded that she would supply the request to the
committee.
1:15:43 PM
REPRESENTATIVE RAUSCHER inquired about large families with large
pieces of property on hunting grounds.
MS. LONGACRE answered that she would need to walk through the
process a bit more carefully, given the size of the example.
She offered to provide her answer to the committee in writing.
REPRESENTATIVE RAUSCHER addressed a previous comment that the
fiscal note should be larger because of a cabin being out on
state land, and it may constitute a bigger expense on the state.
MS. LONGACRE responded that one testifier's concern was the cost
of administering fire protection. She reiterated that she could
supply in writing her explanation on various levels of fire
protection.
1:18:14 PM
REPRESENTATIVE SADDLER offered his belief that the testifier
expressed concern that HB 281 may allow motivated individuals to
form a consortium, and whether the bill would allow someone to
take the best parcels for themselves.
MS. LONGACRE said that the example provided eight or more
parcels in a string, and she wished to thoroughly answer the
question in writing, which she opined would be easier to digest.
1:19:24 PM
CHAIR MCKAY announced that HB 281 was held over.
1:19:54 PM
The committee took an at-ease from 1:19 p.m. to 1:20 p.m.
HB 223-TAX & ROYALTY FOR CERTAIN GAS
1:20:19 PM
CHAIR MCKAY announced that the final order of business would be
a return to HB 223, "An Act relating to the production tax and
royalty rates on certain gas; and providing for an effective
date."
1:20:56 PM
LYNN WILLIS, representing self, shared what he described as
quotes from history that describe "what is going on" and
mentioned Yogi Bera and Albert Einstein. He expressed his
feelings on extortion, and he said this was just another
political mirage to buy more time. He opined that space heating
should be the priority rather than natural gas. He asked for
the military to be included in the committee's plans. He read
from Article 8, Section 2 of the Alaska State Constitution and
concluded by suggesting a public utility approach to heating
Southcentral Alaska.
1:25:39 PM
CHAIR MCKAY announced that public testimony on HB 233 would
remain open until the committee substitute was introduced.
[HB 223 was held over.]
1:26:20 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:26 p.m.