Alaska Conservation Voters

Conservation Watch

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

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

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Contributing Editors

Suzanne Bostrom
Legislative & Communications Manager
suzanne@akvoice.org

David Rogers
ACV Lobbyist

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ACV- Juneau
419 6th Street, #321
Juneau, AK 99801
(907) 463-3366
(907) 463-2554 fax

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ACV- Anchorage
810 N Street #203
Anchorage, AK 99801
(907) 258-6171
(907) 258-6177 fax

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Web Resources

ACV Legislation Page
Bill position papers, back issues of Conservation Watch, and legislative updates

Legislative BASIS
Current bill text, history & committee schedules

Legislature Homepage
Find Your Legislators, party links, committee lists

State Homepage
Links to state agencies and the Governor

 ACV Homepage

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In This Issue

• Legislative Fly-In
• Action Briefs
  • On the Move
  • New in Town
• Hearings this Week

Special Note: Due to the flurry of events to occur this past week as part of the annual Legislative Fly-In, only an abbreviated version of the Conservation Watch will be sent out this week. Conservation Watch will be back on line next week with our usual lineup of articles and updates.

Legislative Fly-In

Another year, another successful Legislative Fly-In! Following the advice of legislators to hold the Fly-In earlier, this year's event took place from Sunday, March 11th through Tuesday, March 13th. Participants spanned the state—quite literally—with folks from Barrow to Ketchikan interested in conservation issues like renewable energy, mixing zones, coal, the proposed Pebble Mine, fisheries, and more. The Legislative Fly-In is an opportunity for citizens to learn about the workings of the Alaska State Legislature, meet with their legislators, study conservation issues, learn activist skills and network with other pro-conservation constituents. Numerous workshops were also dedicated to learning about the legislature and to honing participants' skills with oral presentations, grassroots efforts, media usage, and lobbying.

The Fly-In culminates with our Legislative Lunch Reception, held this year at Silverbow. ACV's Fly-In participants were graciously joined for lunch by numerous legislators and staff members from both sides of the aisle, proving once again that conservation is a non-partisan value in Alaska.

ACV would once again like to thank the participants, presenters, legislators and staff members that made this year's Legislative Fly-In such a success! We look forward to 2008.

On the Move

HB26 Geoduck Aquatic Farming Exemption - Rep. Seaton (R-Homer)
CS HB26 (FSH) passed in the House 31 to 7. The bill deals with geoduck aquatic farming and says that the Commissioner of Fish and Game may not use the absence of wild geoduck clams in a particular area as a reason for denying an aquatic farm permit. The bill also allows a certified hatchery to transfer geoduck seed to an aquatic farm located in an established fisheries management area that is contiguous to the Gulf of Alaska. In hearings on the bill, Fish & Game and others expressed major concerns about the lack of scientific information available to adequately evaluate potential impacts of introducing fertile geoducks into areas where they are not native.

HB149 Pollutant Discharge Permits - Introduced by request of the Governor
HB149 was heard and held in House Resources this week. The bill was introduced by the request of Governor Palin to revise certain provisions of law governing the department’s permitting and enforcement authority in order to align the state’s permit requirements with the EPA’s. Under the federal Clean Water Act, discharges of pollutants to surface waters require a permit either from the U.S. Environmental Protection Agency or from a state that has received approval from the EPA to administer the permitting program. The EPA is currently reviewing Alaska's application to obtain approval for a state permitting program and the changes in the bill would be necessary to bring the state's law into line with the more stringent federal law.

HB156 Mining Production & License Taxes / Royalties - Rep. Seaton (R-Seward)
HB156 was heard and held in House Ways and Means on Friday, March 16. An overview of Alaska ’s mining license tax was also given in House Ways and Means on Wednesday. Public testimony and committee discussion on the bill will continue next Wednesday, March 21. The bill makes changes to the Mining License Tax, state royalties for minerals and coal, and the per acre rental fees for mining activity on state land. Proposed changes to the Mining License Tax would be the first changes to the tax rate structure since 1955 and would increase the current graduated scale from 3-7% to 5-9% of net income and would add an additional bracket for income over $500,000 to be taxed at 11%. We also expect discussions to continue on the deductions allowed and not allowed currently in statute and in the bill. HB156 would also change the current 3 1/2 year exemption from taxes on production to a 3 1/2 year deferral that would be payable in equal installments over the 10 years following the end of the deferral period. Rep. Seaton indicated at the hearing that the exemption has never been used before since many mines already operate with no net profit during that time period. Changes would also be made to alter the calculation of the royalty for mineral mining on state land from a 3% of net profits to 3% of Net Smelter Return (NSR). Rep. Seaton indicated that most rights holders in Alaska base their negotiated royalty system on a Net Smelter Return royalty, with Mental Health lands using a 5% NSR royalty, some large mines subject to a 4.5% NSR royalty and other mines negotiating a sliding scale with a 2.5% - 5% NSR royalty that changes depending on the price. At the hearing, Rep. Seaton also highlighted the results of a survey of mining companies done by the Fraser Institute which indicated that--from the mining industry’s perspective-- Alaska is number 2 in the world for attractiveness of our taxation regime and is 7th in the world for composite attractiveness of both our policy and mineral potential. Industry witnesses that testified at the Friday hearing expressed strong concerns with the potential impact of the bill on mining in Alaska. Working to ensure Alaska receives a fair share of mining revenues is a top priority for ACV.

HB164 Ocean Rangers & Reporting Vessel Location - House Transportation Committee
HB164 was moved from House Transportation this week with a “do pass” from Reps. Kohring and Johansen, “do not pass” from Rep. Doogan, and “no recommendation” from Reps. Fairclough, Johnson and Neuman. The bill is now in the Judiciary committee, an additional committee referral added this week. The proposal addresses the “Ocean Ranger” requirements of Ballot Measure 2, “The Cruise Ship Initiative” that passed in last year’s election. According to the House Transportation Committee, “this bill will allow the Department of Environmental Conservation (DEC) to implement the initiative in a reasonable way” and states that “in no way does HB 164 ease or lessen the federal and state environmental laws that have regulated cruise ship discharges since 2001.” However, big questions remain about whether the proposed legislation is consistent with the requirements and intent of the Initiative, especially regarding the scope and duration of Ocean Ranger duties. Critics of the bill contend it would significantly weaken the program and duplicate a state monitoring program already in place. We expect there to be further debate in House Judiciary on the constitutional issues involved in changing a voter initiative.

HB177 Natural Gas Pipeline Project - Released by request of the Governor
Several hearings were held this last week on HB177 in House Oil & Gas. Several more hearings are lined up for Oil and Gas and Resources (pending referral) in the next week and we expect this important bill to become a major focus of the Legislature for the remainder of the regular session and possibly beyond. Major issues identified so far include proposed incentives (a 10 year tax freeze, etc.), whether evaluation criteria should be weighted in the bill, and the scope of the legislature’s role in considering a proposed contract. Public testimony is slated to be taken on the 21 st and 24th of next week. See the schedule below for more details. HB177 is the house version of Governor Palin’s gas pipeline plan, the Alaska Gasline Inducement Act (AGIA). AGIA defines the Governor’s plan to encourage competition and “induce” potential pipeline builders and North Slope gas holders into building a natural gas pipeline that is in the best interest of Alaskans. For more information on the provisions of AGIA, visit Conservation Watch Issue 8.

SB82 Supplemental Appropriations: Oil & Gas - By Request of the Governor
This Governor-requested appropriations bill, which would provide $33.1 million for gasline related activities, passed in the Senate this week and has moved to the House.

SB104 Natural Gas Pipeline Project - Released by request of the Governor
SB104 was a hot topic in Senate Resources this last week as the legislature begins to examine the details of Governor Palin’s gasline bill. SB104 is the Senate counterpart of HB177 and Governor Palin’s Alaska Gasline Inducement Act (AGIA). Several more hearings are scheduled for Senate Resources in the upcoming week. See HB177 above for more information on the provisions of the Act.

HB203 Kodiak Narrow Cape Public Use Area - Rep. LeDoux (R-Kodiak)
This act would create the Kodiak Narrow Cape Public Use Area. The bill works to ensure that public access is maintained by setting up a public use area that would protect, maintain, perpetuate, and enhance year-round general public recreation and public enjoyment and use of fish and wildlife. As part of the bill, the commissioner will hold public hearings and is required to adopt and authorized to revise a management plan for the public use area. The bill was introduced in response to concerns by some that public access to this special area might be restricted in the future as a result of competing interests. HB203 is the House counterpart to SB111.

HJR13 Natural Gas for State Residents - Rep. Gardner (D-Anchorage)
HJR13 is a joint resolution urging the attorney general, the producers of natural gas in the Cook Inlet region, and the Regulatory Commission of Alaska to work to secure long-term and affordable supplies of natural gas for the people and businesses of the state. In the resolution, the Legislature requests that the attorney general evaluate whether the extension of the Kenai Liquefied Natural Gas Plant's export license is in the best interest of local consumers and the state and whether termination of the license would result in lower prices for Alaska businesses and residents. It also urges natural gas producers in the region to work with local utilities to ensure an adequate and affordable long-term supply of natural gas for Alaskans and for the Regulatory Commission of Alaska to expedite review of any utility contract that will provide long-term and affordable supplies of natural gas for the people of the state.

HJR14 Resolution Encouraging Federal Passage of SB552 for Exxon Valdez Plaintiffs - House Special Committee on Fisheries
HJR14 would urge Congress to enact Senate Bill 552 so that individuals receiving a damage award from the Exxon Valdez oil spill can benefit from the income averaging and retirement contribution provisions of the bill. Senator Murkowski and Senator Stevens' SB552 would benefit the commercial fishermen, who make up 80 percent of the plaintiffs seeking to recover damages from the Exxon Valdez oil spill. It would authorize increases in the deductions and income caps applicable to traditional individual retirement accounts, Roth IRAs, and other qualified retirement plans to the extent of the amount of the damage award. SB552 would also authorize individual plaintiffs to average income from the award for tax purposes over the period from January 1, 1994 through the end of the year in which the award is made.

SB111 Kodiak Narrow Cape Public Use Area - Sen. Stevens (R-Kodiak)
SB111 would create the Kodiak Narrow Cape Public Use Area and is the Senate counterpart to HB203. For more information on the bills, see HB203 above.

SB118 Plastic Bag Fee; Establish Litter Fund - Sen. Elton (D-Juneau)
This legislation would establish a fee for disposable plastic bags and would establish the Alaska litter and marine debris reduction and recycling fund. A fee of $.15 for each disposable plastic bag would be added to the cost of the goods purchased. In the bill, "disposable bags" would include grocery sacks, dry-cleaning bags, take-out food bags, retail bags, membership or wholesaler bags and service station bags that are provided by a retail seller of goods or services to a consumer to allow them to carry away or protect goods purchased from or serviced by the retail seller. The Alaska litter and marine debris reduction and recycling fund would be established within the general fund as an entity that, amongst other things, would provide grants to establish and maintain programs that focus on the reduction and cleanup of litter and marine debris, to fund nonprofit organizations that are involved in collection, cleanup or promotion of public awareness problems, and to establish a statewide information campaign to educate the public on the hazards and issues with litter and marine debris and to promote the need to increase recycling of disposable bags.

SB121 Cruise Ship Discharge - Sen. Elton (D-Juneau)
SB121 was introduced in order to reinstate an alternate compliance program for a group of small cruise vessels built before 2004. The compliance program, which employed "best management practices," was passed by the legislature in 2004 as HB522 and was enacted as Chapter 153, SLA 04. The initiative that was approved by voters in August 2006 inadvertently repealed this section. The bill is intended to act as a corrective action and, according to Sen. Elton, is not opposed by the sponsors of the initiative.

SJR4 Natural Gas for State Residents - Sen. Wielechowski (D-Anchorage)
SJR4 is the Senate counterpart to HJR13, which is described above.

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.