Alaska Conservation Voters

Alaska Conservation Voters

Conservation Watch

2006 - No. 14
Friday, 4/28/06 -- Friday, 5/5/06

Alaska Conservation Voters
works to protect Alaska's environment through public education and advocacy, and supports pro-conservation candidates for public office.

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Conservation Watch (CW) is a weekly publication of ACV highlighting conservation issues in the AK Legislature.

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ACV Legislative Staff

Suzanne Bostrom
Legislative Campaign Manager
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“The administration has been quite quick in providing information they want to provide but quite slow in providing information that is not good for its case.”

--- Representative Gara, Anchorage Daily News


Breaking News: Sen. Hollis French has won his suit challenging Gov. Frank Murkowski’s decision not to release the natural gas contract until May 10. A state superior court judge ruled this afternoon (Friday, May 5) that the contract must be released. For more information, visit the Anchorage Daily News.


In this Issue


Status Report

As we grind through the final days here’s the latest scorecard:

Still In Play

HCR30 Climate Impact Assessment Commission - Rep. Joule (D-Kotzebue)
This good bill moved from the Finance Committee today and is now in Senate Rules. The next stop is the Senate Floor. The relatively similar Senate companion to this bill, SB 278 by Senator Olson (D-Nome), was effectively merged into HCR30 by adding an amendment to ensure that one of the four legislative members on the Commission would act as its chairman.

HCR 30 establishes an 11 person panel to evaluate and assess the potential economic, health, environmental and social impacts of climate change on Alaska and prepare a comprehensive plan to proactively mitigate, address and prevent such problems.

HB307 Knik River Public Use Area - Rep. Stoltze (R-Chugiak)
HB307 was heard in Senate Finance on Wednesday, May 3 and Thursday, May 4. On Wednesday, additional funding to allow for three individuals to monitor the public use area, rather than only 1, was added to the fiscal note for the bill. A letter of intent also was adopted to allow the Department of Natural Resources to evaluate implementing user fees as part of the management plan that will eventually be developed under HB307. It is expected that such fees will help to address the long term costs associated with management and facility maintenance for the area.

While HB 307 isn’t perfect it is now a good bill. The increased funding and letter of intent are especially appreciated and represent a strong step towards resolving the current problems with the Knik River area. Our big thanks to Rep. Stoltze, Senator Huggins and Senator Green for responding to the longstanding, heart felt and significant concerns of local residents and users of this very special place.

SB85 Dalton Highway ORV Use - Sen. Seekins (R-Fairbanks)
This bill was heard on Tuesday, May 2 in the House Transportation Committee. The bill failed to move from committee on a 3-2 vote, with Representatives Elkins, Salmon and Kapsner voting no and Representatives Gatto and Neuman voting yes. Neither Rep. Thomas nor Rep. Kohring were present for the vote.

This bill would repeal the ban on use of off-road vehicles within five miles of the right-of-way of the James Dalton Highway . At the hearing, a wide range of interests weighed in to express their concern for the provisions of the bill. Testimony reflected a broad range of interests and concerns such as the ways in which it would increase pressure on subsistence and hunting needs, the damage that could occur to the environment and sensitive scientific studies at the Toolik Station, and the harm it would do to the promises made to and the partnership established with the North Slope Borough when the road was initially built.

SJR17 Exxon Valdez Reopener - Sen. French (D-Anchorage)
SJR 17 and HJR 9 were both heard in Senate Judiciary on Wednesday, May 3 and Thursday, May 4. At the hearing, a committee substitute was offered that merged the provisions of the two bills. HJR9 is now the vehicle for both bills which are discussed below. It was moved from committee and now waits in House Rules to be scheduled on the Senate Calendar. If the bill passes the Senate, it will then return to the House for concurrence.

HJR 9 urges Congress to Honor the Exxon Valdez Judgment and to push Exxon to finish pending litigation and pay the punitive damages to victims of the spill. SJR 17, on the other hand, urged the Department of Justice and the Alaska Department of Law to identify all damages that were unforeseen at the time of the original civil lawsuit and to trigger the "Reopener for Unknown Injury" clause in order to claim the full $100,000,000 that is available.

HB420 Riparian Protection Standards - By Request of the Governor
Last Friday, April 28, HB420 was moved from the Senate Resources Committee. The bill was once again heard this last week in Senate Finance, where it passed from the Committee with little debate. The bill is scheduled to be heard on the Senate Floor on Friday, May 5. If HB420 passes on the Senate Floor, it will next be sent to Governor Murkowski to be signed into law.

HB420 will complete the task of setting statewide riparian standards that began with the 1990 changes to the Forest Practices Act (AS 41.17) and has our strong support.

HB380 State Veterinarian Powers (Avian Flu) - Rep. Meyer (R-Anchorage)
HB380 was heard on Tuesday, May 2, in Senate Finance. The bill was moved from the Committee and was heard on the Senate Floor on Friday, May 5 where it passed 20 to 0. The House will need to concur with the Senate changes before the bill is transmitted to Governor Murkowski to be signed in to law. This important bill is currently listed under "Unfinished Business" in the House and is likely to pass.

HB 380 repeals and reenacts several provisions of Title 3 to modernize the powers of the Commissioner of the Department of Environmental Conservation and the State Veterinarian. Avian influenza is one in a long list of zoonotic diseases that can be devastating to animals and potentially pandemic in human populations. The changes made by this bill will allow the State Veterinarian to respond immediately to potential dangers to Alaskans and our animal populations.

HB378 Chilkat Bald Eagle Preserve Advisory CommitteeRep. Thomas (R-Haines)
HB378 was heard on Monday, May 1 in the Senate Community and Regional Affairs Committee where it was moved from the committee. The bill was subsequently waived from being heard in the Senate Resources Committee and was scheduled to be heard on the Senate Floor on Friday, May 5. After a rocky start, this bill has been fixed with the help of the sponsor and we hope to see it pass.

SB 316 Court Review of Stranded Gas Development Act - Senate Judiciary
After many hours of analysis and debate this bill moved out of Senate Judiciary and is sitting in Senate Rules with an uncertain fate. Under this version, a person may not bring a legal challenge to the commissioner’s findings, the constitutionality of a law authorizing the gas contract or the enforceability of that contract until after the contract has been executed, following legislative approval. This action must be started with 120 days after contract execution.

Another key provision in the bill requires the commissioner to make available to the public copies of the proposed contract and related backup materials (including financial, technical, market data and consultants recommendations) except for information required to be kept confidential.

Last but not least, the committee increased the 30 day minimum comment period to a minimum of 60 days during which the legislature and public will have an opportunity to comment on the proposed contract and the Commissioner’s preliminary findings and determination that the proposed contract is in the long term fiscal interests of the state. After that, the Administration will revisit the contract, negotiate necessary changes and resubmit to the Legislature for approval or disapproval.

HB318 Eminent Domain - Reps. McGuire (R-Anchorage), Holm (R-Fairbanks) and Hawker (R-Anchorage)
This bill passed the Senate Finance and is now on the Senate Floor; then back to the House for a concurrence vote. An amendment in Senate Finance removes the language that allows municipalities the ability to take private property for private economic gain.

SB86 Public Interest Litigation - By Request of the Governor
SB 86 was heard in House State Affairs Committee on April 27 and failed to move from committee thanks to the no votes of Rep. Gatto, Rep. Seaton and Rep. Gruenberg. The measure traveled quickly through the Senate last year and then sat quietly for months in the House this session until recently. We will be watching this situation closely until the end of the session.

The bill limits the award of attorney's fees to public interest litigants who have filed claims against the state and municipalities. Currently, these litigants are often granted full fees in cases determined by the court to be advancing an issue that reflects strong public policies. This “government trumps the people” measure upsets the balance just to save a few bucks and will discourage lawsuits by ordinary citizens to address important policy issues.

SB305 Oil & Gas Production TaxReleased by Request of the Governor
On the evening on Thursday, May 4, the House Finance Committee released a new version of the oil tax bill that is closer to that which Governor Murkowski originally proposed than to the one passed by the Senate on April 25. The new version was released without a hearing and brings the base tax rate back to 20% of oil company profits. The bill also went back to the original plan to provide a credit on 20% of the companies' capital investments back in the state. The version that passed last week in the Senate raised the base tax rate to 22.5% and placed the credit for reinvestment at 25%.

The Senate also included an escalator that raised the tax rate by .2 percent for each $1 increase in the price of oil over $50/barrel. The House Finance version changed this number by allowing companies to subtract their costs before the escalator kicks in, while increasing the escalator to go up .25 percent for every $1 increase. The original version of the tax proposed by Governor Murkowski did not increase incrementally along with the price of oil. According to Department of Revenue estimates, the Senate's version of the bill would bring in around $1.2 billion more next year if oil averages $60/barrel. The exact effects of the House Finance version are not yet known. The House Finance version moved the starting date for the tax from April 1 to July 1, which could mean a difference of hundreds of millions of dollars in tax revenue.

Questions abound as to what the final version of the tax rate will be. Democrats still continue to support a higher tax rate but have also stated that they believe a gross profit tax structure rather than a net profit structure, is the best way to go. Representative Berkowitz also stated in a press conference on Friday, May 5, that he believes the tax on natural gas should not be addressed in this bill. Both the Senate and the House versions of the bill tax natural gas at a third the rate of oil.

Time is running short for the Legislature to pass the tax bill by the end of the regular session on May 9. If the House passes a bill but the Senate fails to approve the changes made, there may not be enough time to work out the details in a conference committee. If this happens, the oil tax could be added to the agenda of the special session Governor Murkowski plans to call to start on May 10. Murkowski has stated that he plans on releasing the contract for the gasline proposal on May 10 as well.

HB365 House Operating Budget Released by Request of the Governor
The operating budget is still in a conference committee where they are working through the differences between House and Senate versions.

SB231 Capital Budget Released by Request of the Governor
This one is now in the House Finance Committee and will probably be considered this weekend. The bridges and the Juneau road are still in the bill for the amounts requested by the Governor and funding for the Stampede Road has been removed.


Dead or Done

HB445 Alternative Energy Grant Fund - Rep. Thomas (R-Haines)
This priority bill is dead. With only a few days remaining in the session, there wasn’t enough time to sort through the remaining issues. The good news is that this bill and others like it have brought attention to the issue and interest in renewable energy is on the rise. We are optimistic that legislation will have a strong chance of moving forward next session.

HB445 sets up a grant program within the Alaska Energy Authority for alternative energy and energy efficiency projects. The bill suggests that for each year West Coast oil prices exceed $35 per barrel, the legislature should appropriate to the fund an amount equal to 10 cents per barrel of oil produced plus income earned on the fund. Grants can be up to $20 million per grantee. Grantees can be electric utilities, a government entity, or independent power producer. Grants are subject to a 25% match.

HB415 Liability for Recreational Land Use - Rep. Seaton (R-Homer)
HB445 encourages recreational use of private lands by granting immunity to landowners who allow free access. It was scheduled for a hearing last Thursday, April 27, in Senate Resources but was never heard. Since that time, no hearings have been scheduled. The Resources Committee has now shut down for the session so the bill is dead but probably will be back next year.

SB 170 Department of Fish & Game Powers & Duties - Sen. Seekins (R-Fairbanks)
This very long, very complicated and very controversial measure covers a tremendous amount of Fish and Game territory and also is dead for this year – may it rest in peace.

HB360 Regulation of Public Drinking WaterRep. Meyer (R-Anchorage)
This bill is still sitting in House Finance and also is dead due to lack of time and concerns raised by several committee members. It directs the Department of Environmental Conservation to regulate small public water systems to ensure that the public's water supply is safe and clean.

HB328 Ban Mixing Zones in Spawning Areas - Reps. Seaton (R-Homer), LeDoux (R-Kodiak), Olson (R-Soldotna) and Gatto (R-Palmer)
Due to unresolved issues about its impacts on placer miners–and the lateness of the day– this bill is dead. The bill would have prevented a rollback as currently proposed by the Administration and codified the existing regulatory ban on mixing zones in spawning areas with some improvements.

HCR29 Pebble Mine - Rep. Hawker (R-Anchorage)
This resolution is dead. HCR29 requests the Commissioner of Natural Resources to complete a management plan for the area encompassing the Pebble copper deposit.

HB324 Invasive Species - Rep. LeDoux (R-Kodiak)
This House bill remains in the Senate Labor & Commerce Committee and appears to be dead. HB324 bans the importation, transfer, and cultivation of orange hawkweed and purple loosestrife. While the bill represents a step in the right direction, we continue to encourage the Administration to establish an invasive species working group to take a comprehensive look at both marine and terrestrial issues.

HB418 Mining Taxes and Royalties - Rep. Seaton (R-Homer)
HB418, which would increase mining taxes and royalties, is dead but we expect the issue to be back on the table next year.

SB 166 Wildlife Conservation Tag - Sen. Bunde (R-Anchorage)
SB166 is dead. A new CS would change this from a mandatory fee system to an optional one where you could buy a conservation pin with proceeds going to a wildlife conservation account in the fish and game fund.

SB232 Supplemental Appropriations Released by Request of the Governor
The Supplemental Appropriations bill is a done deal and has been signed by the Governor. It includes $750,000 for Arctic Power; $3 million to PAC West Communications for a lobbying effort to open ANWR; $3.3 million for the Power Cost Equalization program (House number); and $250,000 for the bulk-fuel loan program.


Hot Bills

Bills move at a rapid pace this time of year. You can obtain up-to-date legislative information on the BASIS website. The following chart notes the status of a few bills of importance to the conservation community.

Bill
Status
Additional Information
HB 307 [Knik River Public Use Area] (S) Sched.
for Senate
Calendar
5/5/06
Passed in Senate Finance
on 5/4.
HB 318 [Limitation on Eminent Domain] (S) Passed -
sent to (H)
for concurr.
Passed on the Senate Floor,
5/5. Waiting for concurrence
from House.
HB 324 [Invasive Species] (S) L&C

Passed on House Floor
on 4/3. Transmitted
to Senate and referred
to (S) L&C.

HB 328 [Mixing Zones] (H) RES Heard and Held on 4/12.
HB415 [Liability for Recreational Land Use] (S) RES Scheduled for 4/27 but
not heard.
HB418 [Mining Production and License Taxes/Royalties] (H) W&M Appears to be dead.

HB 420 [Riparian Protection Standards for Rorest Resources & Practices]

(S) Sched.
for Senate
Calendar
5/5
Passed in Senate Resources,
4/28. Passed in Senate
Finance, 5/3.
HB445 [Alternative Energy Grant Fund] (H) FIN Heard & held, 4/4.
Appears to be dead.
SB 85 [Off-Road Vehicle Use on Dalton Highway] (H) TRA

Heard in House
Transportation, 5/2. Failed to
move from committee with
3-2 vote.

SB 86 [Public Interest Litigants] (H) STA Heard 4/27 - Failed to move
out of committee.
SB 170 [Hunting Fees/Licenses] (S) RES Scheduled for 4/26 but
not heard.
SB 278 [Alaska Climate Change
Task Force]
(S) FIN Passed (S) RES 4/20. Heard
and Held in Senate Finance,
5/3.
SB305 [Oil and Gas Production
Tax]
(H) FIN Passed on reconsideration
in Senate. Now in House
Finance.
HCR 29 [Pebble Copper Deposit Management Plan] (H) RES Appears to be dead.
HCR 30 [AK Climate Impact Assessment Commission] (S) Rules

Passed in
Senate Finance,
5/5.

HJR 9 [Urge Congress to Honor Exxon Valdez Judgment] (S) Rules Passed in
Senate
Judiciary, 5/4.
Sent to Senate
Rules.
HJR 14 [Urge Congress to Grant Land to University] (S) Rules Passed in
Senate Comm.
on University
Oversight, 5/1.

SJR 17 [Urge to Collect More Exxon Valdez Spill Damages]

(S) JUD Heard on 5/3 &
5/4. Merged in
to CS for HJR9.



Hearings this Week

Click on the date in the table below to get the most current schedule information for that day, or check the BASIS hearing schedule. Once a bill has been heard in a particular committee it may be brought up again without public notice or listing on the weekly committee schedule. You can click on a committee name to see a list of its members.

Date Time
Place
Committee Bills Summary
5/1
M
9:00 am
Rm532
Senate
Finance
SB231 Budget: Capitol & Other
Appropriations --
Moved
CSSB 231(FIN) Out of Committee
  1:30 pm
Rm519
House
Finance
SB305 Oil and Gas Production Tax --
Delayed
  1:30 pm
Rm211
Senate
Community
& Regional
Affairs
HB378 Chilkat Bald Eagle Preserve Advisory
Council - Moved from Committee;
Transmitted to (S) Resources
  4:00 pm
Rm532
Senate
Conference
Committee on
HB365
HB365 Appropriations: Operating Budget/
Loans/Funds
  5:00 pm
Rm211
Senate
Committee on
University
Oversight
HJR14 Urge Congress to Grant Land to
University --
Moved SCS CSHJR
14(UOV) Out of Committee; Referred
to House Rules
5/2
TU
9:00 am
Rm532
Senate
Finance
HB318 Limitation on Eminent Domain --
Moved SCS CSHB 318(FIN) Out of
Committee
  9:00 am
Rm532
Senate
Finance
HB380 State Veterinarian Powers [Avian Flu]
--
Moved SCS CSHB 380(RES) Out of
Committee
  1:30 am
Rm17
House
Transportation
SB85 Off Road Vehicle Use on Dalton
Highway --
Failed To Move Out Of
Committee
 
  4:00 pm
Rm532
Joint (S) & (H)
Conference
Committee on
HB365
HB365 Appropriations: Operating Budget/
Loans/Funds
5/3
W
8:30 am
Rm519
House
Finance
SB271 Authorize Highway Program
Participation - Moved from Committee
  8:30 am
Rm205
Senate
Judiciary
HJR9 Urge Congress to Honor Exxon Valdez
Judgment - Heard & Held
  8:30 am
Rm205
Senate
Judiciary
SJR17 Exxon Valdez Reopener - Heard &
Held
  9:00 am
Rm532
Senate
Finance
HB307 Knik River Public Use Area - Heard
& Held
  9:00 am
Rm532
Senate
Finance
HB420 Forest Resources & Practices
Standards [Riparian Buffer Zone] -
Moved CSHB 420(FSH) Out of
Committee
  9:00 am
Rm532
Senate
Finance
HCR30 Climate Impact Assessment
Commission - Heard & Held
  1:30 pm
Rm519
House
Finance
SB305 Oil and Gas Production Tax --
Meeting Cancelled
  4:00 pm
Rm532
Joint (S) & (H)
Conference
Committee on
HB365
HB365 Appropriations: Operating Budget/
Loans/Funds - Postponed to 5/4/06
5/4
TH
8:30 am
Rm205
Senate
Judiciary
HJR9 Urge Congress to Honor Exxon Valdez
Judgment -
Moved SCS HJR 9(JUD)
Out of Committee
  8:30 am
Rm205
Senate
Judiciary
SJR17 Exxon Valdez Reopener - Merged with
HJR9 in
SCS HJR 9(JUD)
  9:00 am
Rm532
Senate
Finance
HB307 Knik River Public Use Area - Heard
& Held
  1:30 pm
Rm519
House
Finance
SB305 Oil and Gas Production Tax --
Meeting Cancelled
  1:30 pm
Rm211
House Rules SB305 Oil and Gas Production Tax --
<Pending Referral>
Meeting Cancelled
  4:00 pm
Rm532
Joint (S) & (H)
Conference
Committee on
HB365
HB365 Appropriations: Operating Budget/
Loans/Funds - Postponed to 5/5/06
5/5
F
8:30 am
Rm211
House
Finance
SB305 Oil and Gas Production Tax --
Recessed to a call of the Chair
  1:30 pm
Rm211
House Rules SB305 Oil and Gas Production Tax --
<Pending Referral>
  4:00 pm
Rm532
Joint (S) & (H)
Conference
Committee on
HB365
HB365 Appropriations: Operating Budget/
Loans/Funds