▶ 0:14:30The chair is authorized to declare a recess of the subcommittee at any time. The subcommittee is meeting today to hear testimony on unleashing alaska's extraordinary resource potential under committee rule four f any oral opening statement at the hearings are limited to the chairman and the ranking member. I therefore ask unanimous consent that all the members statements be made part of their hearing record if they are submitted in accordance with rule three zero, without objection, so ordered.
▶ 0:14:55I ask unanimous consent for the following members to be allowed to sit and participate in today's hearing. The gentleman from wisconsin, Mr. tiffany, the gentleman from minnesota. Mr. stauber, the gentleman from utah, miss malloy, the gentleman from maryland, miss mcelfresh, the gentleman l-fresh. The gentleman from washington, miss randall, the gentleman from montana. Mr. downing, without objection, so ordered. I now recognize.
▶ 0:15:23I now recognize myself for an opening statement. Good morning everybody. I want to thank our witnesses for being here today to discuss the unleashing alaska's extraordinary resource potential. I especially want to thank those those witnesses who traveled more than 4000 miles from alaska to washington, D.C. to testify. Boy, that's a that's a haul at the end of august.
▶ 0:15:52I was honored to join the largest bipartisan delegation of house committee on natural resources members, led by committee chair bruce westerman and representative nick begich, to visit alaska. During this visit, I was awestruck once again by alaska and its truly extraordinary natural resources. I was also keenly, keenly impressed by alaska's people, with whom I interacted many times, many of whom I wish one thing above all else.
▶ 0:16:19Alaska resource cannot be allowed to waste away, undeveloped as they most certainly see had. For the four years under the biden administration, alaska's lands cannot sit back locked up at the demand of democrats or radical preservationists groups.
▶ 0:16:36We do not who do not understand the importance of the responsible resource conservation that is guided by the multiple use doctrine, rather unleashing alaska's exceptional natural resource potential encourages stewardship while ensuring america's mineral and economic security. For example, alaska's oil and gas industry has been identified by many as the single most important economic engine in the state.
▶ 0:17:01In one year alone, alaska's oil and gas supports nearly 70,000 jobs, generates approximately $4.5 billion in state and local revenues. In fact, alaska's oil and gas generated revenues not only fund most of the state government, but it also allows the state to operate without a sales or personal income tax.
▶ 0:17:23If that's not incredible enough, alaska oil and gas reserves allow every state resident to receive an annual dividend from the alaska permanent fund, based on the value of that year's royalties revenues. Amazing. And all of this is despite the war being waged against alaskans by misinformed environmentalists. Just imagine the economic boom alaska and other americans could see. Once alaska's resources are unshackled and properly developed.
▶ 0:17:48Oil and gas are not only are not the only natural resources with which alaska has been blessed, alaska is home to nearly every single mineral identified as critical by the united states government. These minerals include graphite, cobalt, copper, lithium, and others that are necessary for modern civilization defense technologies and new technology.
▶ 0:18:13Alaska is also rich in other hard rock minerals, rare earth elements like gold, silver, and platinum germanium, to name a few. In a single year, alaska's mining industry accounts for almost 12,000 jobs, high paying jobs, and more than 1 billion in revenue. Wages in alaska's mining industry effectively doubled the state's private sector wage average. Timber and recreation also contribute significantly to alaska's resource potential.
▶ 0:18:39The tongass and natural forests together cover more than 22 million acres and are home to not only to vast tracts ready for production, but also millions of acres of other habitat with thriving wildlife populations that make for sportsman's paradise.
▶ 0:18:55Yet rather than support alaska's wonderful mining potential and advanced projects like building roads to make retrieving, transporting and processing alaska natural resources more effectively, democrats in congress and extremely ngos have continued to dug in their heels to protest sensible development and prosperity. Fortunately, president trump and the house committee on natural resources republicans have worked tirelessly to emphasize the potential of alaska's natural resources spread across its lands and waters.
▶ 0:19:24Immediately upon taking office earlier this year, president trump issued two executive orders to kick start responsible resource development in alaska. One titled unleashing american energy and another called unleashing alaska's extraordinary resource potential. Republicans in congress have followed president trump's call, and just this month passed a bipartisan a resolution repealing harmful actions taken by the biden administration to hinder alaska's ability to unleash its natural resources by locking up its land.
▶ 0:19:52I look forward to continuing to work with my republican colleagues and the trump administration, to at least alaska's extraordinary resource potential. Encouraging these natural resources continue to enrich not only alaska and its people, but america as a whole. Thank you. I now recognize the ranking member for her opening statement. >> thank you, Mr. chair, and thank you to our witnesses for joining us. Agreed. It's a very long distance, so thank you for coming.
▶ 0:20:21Um, the united states is already the top producer and exporter of oil and gas in the world, and alaska is one of the top five oil and gas producing states in the country. And yet alaskans still face some of the highest electricity prices in the country, despite significant renewable energy potential. Many rural communities rely on expensive imported diesel to heat and power their homes and businesses.
▶ 0:20:46The energy product projects that my republican colleagues will celebrate today make little economic sense and do almost nothing to address the high energy prices that alaskan communities are facing. The reconciliation bill mandated more leasing in the arctic national wildlife refuge, which we know is unprofitable. Time and again, budget watchdogs have warned that estimated revenues from these leases are overblown.
▶ 0:21:10Previous arctic lease sales brought in less than 2% of the revenue that was promised, and developers have paid to walk away from their investments in the region. Five major us banks in 18 international banks say they won't finance drilling in the refuge. That should tell us something. We saw the same story in the proposed alaska, with the proposed alaska methane pipeline that would cost well over $44 billion to construct.
▶ 0:21:40The project's outlook was so dire that even the trump administration had to step in, announcing last week that the military will buy some of the methane. Now, this administration is using the proposed pipeline as a trade deal bargaining chip, with no guarantees that the investment will lower alaska's electricity prices. Beyond the bad economics, these projects put people and fragile ecosystems at risk at a time when alaska is warming faster than anywhere else in the country.
▶ 0:22:09As a pulmonary and critical care physician, I can't ignore what that means for the health of those communities. Entire villages are having to be relocated because the climate crisis is melting the ground under their feet. The fire season is longer, and according to the cdc, alaska is at risk of new disease outbreaks like lyme and rabies as the habitats of the pathogens, wildlife hosts like ticks and foxes shift north.
▶ 0:22:36One of the starkest images is that of oil and gas companies having to contract with companies that provide equipment to prevent permafrost from melting so that their pipelines, roads and drilling equipment don't crumble. Oil companies have installed thousands of them already. It's yet another canary in the coal mine warning us. But president trump and my colleagues have adopted an unapologetic agenda of accelerating the climate crisis.
▶ 0:23:05Meanwhile, trump's personal vendetta against renewable energy has killed numerous projects in alaska that would have lowered prices, increased reliability and increased cost certainty. Rural communities, in particular in alaska, have to pay a premium for their fuel to be imported. As we discussed, it's a long ways from anything else. Trump's actions to kill solar for all and attacked wind energy at every turn hurt rural communities the most.
▶ 0:23:31The shovel creek wind project alone could bring over 100mw to communities that need it. Yet it's now in jeopardy because of trump's anti-wind energy crusade. Unfortunately, efforts to prop up non-viable fossil fuel projects are the rule, not the exception. Just last week in this subcommittee, we heard from a nonpartisan taxpayer group that republican energy policies are fleecing taxpayers while boosting returns for big oil.
▶ 0:23:58Alaskans deserve access to cleaner, cheaper forms of energy. Now, clean energy presents an opportunity for alaska to diversify its economy, its energy profile and lower energy costs. As long as alaskans are at the mercy of the global oil and gas market, they will. They will not have true energy independence. Renewable energy is a path to energy freedom.
▶ 0:24:24I urge my republican colleagues to stop picking winners and losers, stop stacking the deck against working people, and to stand up to oil company ceos. Thank you, Mr. chair. I yield back. >> I now recognize the full committee chairman, Mr. westerman, for his five minutes. >> thank you, chairman gosar. And thank you to all the witnesses who are here today. And it has been mentioned, some of you traveled a great distances from alaska. And we appreciate you being here, willing to testify.
▶ 0:24:53As you all know, the state of alaska is also known as the last frontier, and it holds nearly unimaginable quantities of largely untapped natural resources. The state is blessed with vast amounts of energy resources like oil and natural gas. Nearly every mineral identified by the us geological survey is critical. A wealth of timber, forest products, rich supplies of seafood and picturesque public lands that are open for recreation.
▶ 0:25:19In fact, alaska's natural resources are so strongly interwoven into the fabric of the state's identity that alaska's state seal prominently features, among other things, a smelter to represent mining and trees to signify significant timber resources. I find that, uh, really intriguing.
▶ 0:25:38One of the most alarming statistics I think I've ever heard was when governor dunleavy shared with us recently that the state of rhode island has a larger, uh, produces more lumber, has a larger forest products industry than the state of alaska. You know, the state of alaska, which probably has more force than any other state in the country, can't even provide enough lumber for their own citizens to use.
▶ 0:26:03Uh, as I mentioned, just a few weeks ago, representative begich and I led a bipartisan delegation of members of congress to alaska. You know, from the chugach to seward. Seward. We traveled the state by air, train and sea. Uh, it gives you a great perspective of just how big alaska is when you travel from just what seems like a small point to point on the map.
▶ 0:26:27We were able to speak with alaska natives, local and state officials, as well as stakeholders covering issues from energy production, resource management, and economic development that are critical to alaska's future. And the people of alaska, all of it, all of us on this delegation witnessed firsthand both the enormous amount of natural resources alaska possesses and the limitless potential these resources provide.
▶ 0:26:53There is no doubt in my mind that alaskans are proud of their natural resources and are eager to responsibly develop these resources to benefit not only alaska itself, but also the greater good of our nation as well. Recognizing this, president trump and republicans in congress have worked tirelessly to unleash alaska's extraordinary resource potential.
▶ 0:27:13On the very first day of his second term, president trump issued two key executive orders focused on alaska's resource potential eo one 4154 unleashing american energy, and eo one 4153 unleashing alaska's extraordinary resource potential. Together, these executive orders seek to encourage development of alaska's resources to the fullest extent possible to, among other things, deliver price relief for americans, create high quality jobs for our citizens.
▶ 0:27:41Uh, work on our trade imbalances, augment the nation's exercise of global energy dominance, and guard against foreign powers like china and russia. From weaponizing energy supplies in theaters of geopolitical conflict. In other words, allowing alaskans to develop alaskan resources, help secure economic and national security for alaskans and other americans for generations to come.
▶ 0:28:07To further the goals of these executive orders, at the beginning of this month, house republicans passed a resolution introduced by representative begich. Under the congressional review act, repealing a biden era central yukon resource management plan that had locked up more than 13.3 million acres of land in alaska from responsible resource development and blocked national and alaskan prosperity.
▶ 0:28:32The house passed resolution also opened the door to repealing other harmful actions like public land order 5150, and to moving forward with construction of additional crucial statewide projects like the alaska lng pipeline and ambler road. To be clear, alaska's natural resources have been forced to languish by previous administrations for far too long. President trump.
▶ 0:28:55House committee on natural resources republicans and the alaskan people understand that not only by unleashing alaska's incredible natural resource potential can we secure america's critical mineral supply chains, revolutionize energy production, strengthen america's national security, and grow our economy?
▶ 0:29:11I look forward to hearing from witnesses today and to to a robust discussion about how best to develop alaska's natural resources for the benefit of alaska natives, as well as residents of the great state of alaska, and for the benefit of our nation. Thank you, chairman gosar. And I yield back. >> the gentleman from arkansas, the gentleman from california, the ranking member for the full committee. Mr. huffman is recognized for five minutes. >> thank you, Mr. chairman. Before I begin, I do have a unanimous consent request.
▶ 0:29:40Well, you should let me tell you what it is before you agree to it, right? I appreciate how agreeable you are this morning, Mr. chairman. Um, so here's here's what I'd like to enter into the record, Mr. chairman, it is a september 8th news article from uc riverside entitled orange river's signal toxic shift in arctic wilderness.
▶ 0:30:04Um, it is about how rapid warming in the arctic is doing something new and very disturbing in alaska. The quote that I will just share is, is this in alaska's brooks range, rivers, once clear enough to drink from now run orange and hazy with toxic metals as warming thaws formerly frozen ground. It sets off a chemical chain reaction that is poisoning fish and wreaking havoc on ecosystems.
▶ 0:30:27This is what it looks like, and I think it's important since scientists are telling us this is an irreversible shift once it gets started, uh, that that be in the record. And something we think about while we discuss these policies. Thank you so much, Mr. chairman. So I do want to thank the witnesses for being here, especially the long distance travelers. Uh, I'd especially like to thank president christensen for joining us to share his testimony.
▶ 0:30:55His community, the native village of port heiden is seeing the impacts of climate change firsthand. And in real time, erosion and rising sea levels have forced his bristol bay community to move inland. And they are still losing 60 to 80ft of shoreline every year. Think about that. Port heiden is one of many alaskan communities already seeing the dire impacts of climate change.
▶ 0:31:19The arctic is warming at least four times the global average in alaska, and putting communities like port heiden at risk of further damage. But rather than addressing this crisis and its threats to alaskan lands, lives, livelihoods, our republican colleagues are burying their heads in the sand and doubling down on a false narrative of energy security.
▶ 0:31:45Of course, not all alaskans, including indigenous alaskans, share the same perspective on oil and gas development and mining. Revenue from extraction often supports local governments and indigenous regional and village corporations. But for many, the trade offs and we rarely talk about the trade offs. But the trade offs create unacceptable impacts.
▶ 0:32:07Alaska is home to some of the last pristine and wild places left in the world, places not just innately valuable, but essential to many indigenous communities way of life. And they're facing threats from every angle. It is imperative that we treat these special places with the care that they deserve.
▶ 0:32:24Expanding oil and gas development in the region presents profound risks, including catastrophic oil spills and the disruption, disruption of fragile and unique ecosystems like those in the arctic national wildlife refuge. The arctic's extreme conditions make it more likely that infrastructure, destabilization and oil spills will occur, and they have occurred, and it has been catastrophic, and there will be more of that, unfortunately, if we continue down this path.
▶ 0:32:54So let's be clear. More drilling means that most of it will be exported. And that's a lose lose for alaska. Luckily, there are alternatives to address the energy needs of alaskan families. Alaska has considerable capacity for geothermal, wind and solar energy, which are all low cost, low impact solutions. Uh, so this isn't about some of these things. You'll hear about unleashing all types of energy resources.
▶ 0:33:22If it were, my republican colleagues wouldn't be canceling energy projects that create real opportunities for communities to tap into these resources at lower costs. And I'll give you an example. The trump administration has canceled grants that would have allowed rural and tribal communities to transition to energy freedom through clean energy sources. Currently, less than 2% of alaskan homes have solar, and there's immense potential there.
▶ 0:33:49Um, they have the same amount of solar radiation as cleveland and new york. Believe it or not, expanded use could dramatically reduce home energy costs in the state. But the trump administration terminated the solar for all program. The impacts of these cancellations are already being felt in alaska. The tanana chiefs conference, representing tribes in interior alaska, just had a $62 million grant terminated. That's a significant missed opportunity.
▶ 0:34:18And we also know, uh, in fact, the ranking member mentioned the huge wind project, 300mw of energy that was going to go onto the grid that has also been terminated because of the big ugly bill. So my friends who voted for the big ugly bill not only took a lot of health care away from rural communities like those in alaska, they took 300mw of clean, reliable energy. And we should be talking about things like that. Mr. chairman, I look forward to the conversation. So I. Oh, good.
▶ 0:34:48Because I had I had a few more things to say. Um, you know, folks, I think the point here is this is not about unleashing energy. It never really has been. When you cancel a 300 megawatt wind project that would have brought so many benefits to alaska, I think it puts the light of this notion that this is about energy dominance or anything else. It is about lining the pockets of billionaires and big oil folks who are well connected across the aisle.
▶ 0:35:16Alaska should be allowed to forge a new long term path that prioritizes the freedom, freedom of a clean energy economy and protects communities from the dire threat of climate change. Mr. chairman, I appreciate that, and I will yield back. >> I thank the gentleman. First of all, I apologize to the gentlelady from maryland. I see that the name of I have a very good friend by the name of mcelfresh, so that's why I went that way. So I'm very sorry. I will now introduce our first panel of witnesses. First, we have Mr. rock horachek.
▶ 0:35:45Did I say that? Close enough. Okay. I don't speak english very well, but I speak hick very well. So, uh, we have Mr. deanna nikki budzinski, the executive director of the alaska miners association, anchorage, alaska. Mr. john christensen, junior tribal president, native village of port heiden, port heiden, alaska. And Mr. clark penny, president of penny capital anchorage, anchorage, alaska. And Mr. mark rokach.
▶ 0:36:13Uh, he is also the president, voice of the arctic in anchorage, alaska. Let me remind you that our system is is that when you, uh, first are speaking, make sure you turn your microphone on. Then our when it's green, you're talking, we yellow, you slow down and when it's red, stop. Okay. Remember your whole detail will be put in. Your whole testimony will be put into the record.
▶ 0:36:42Now, um, I will first recognize Mr. okay. Your heart check for five minutes. Sorry. >> good morning. Chairs. Westermann, grosser, ranking members. >> huffman and dexter and members of the committee. I am president of the voice of the arctic. Inupiat voice represents the elected leadership of 21 north slope organizations and works to ensure our collective voice is heard in dc. Thank you.
▶ 0:37:10Thank you for inviting me to testify today about the critical relationship between the north slope inupiat and the federal government. The north slope of alaska is larger than the state of minnesota, and is comprised of eight villages not connected by permanent roads. The cost of living is high and economic opportunity is low. The north slope fully encompasses the national petroleum reserve in alaska and most of the arctic national wildlife refuge, including the 1002 area.
▶ 0:37:37As inupiat, our lives are dictated by changes in wildlife migration patterns, sea ice conditions, and the unpredictability of mother nature. In the 1800s, outsiders brought a new way of life, restricting our self-determination. This was the start of human forces, not just mother nature, imposing controls over our lives.
▶ 0:37:58One sided policy making dates back to the purchase of alaska and continued right through the 20th century, including the creation of the national petroleum reserve in alaska. Project chariot, the establishment of anwar and gates of the arctic national park, the alaska native claims settlement act, the whaling moratorium, and many, many more. In some instances, the north slope inupiat were such an afterthought that we were not told about new policies until our community members were arrested for violating them.
▶ 0:38:29Those times are sadly not behind us. Just two years ago, the biden administration announced a proposed rule in the npra and anwr, unlawfully canceled leases and issued an unnecessary. Since we learned about these actions not from the administration but from the media. While we supported the biden administration's re-approval of the willow project just months prior, inconsistent policymaking like this has been detrimental to our people.
▶ 0:38:54We impressed upon the biden administration how these actions would threaten our ability to fund critical health and emergency services, schools and water and sewer management. These modern services have directly increased the life expectancy for our people.
▶ 0:39:08The biden administration repeatedly claimed to be the most tribe friendly in history, but instead of respecting the indigenous voices of the people of kaktovik, the only community inside of anwr or the four north slope communities located in the npra the biden administration prioritized outside activists. Climate change cannot be used as an excuse to infringe on the rights of indigenous peoples, as stated at the 2023 arctic peoples conference. This is not a zero sum game.
▶ 0:39:37We can balance economic development and our subsistence lifestyle, as we have done for over 50 years. While many actions taken during the biden administration offer a roadmap of what not to do, there were good policies like the epa's ancsa contaminated lands cleanup program and fema brick grant program that we hope remain during the trump administration today. We are cautiously optimistic.
▶ 0:40:01On day one, president trump signed an executive order unleashing alaska's extraordinary resource potential. This order has the potential to unleash north slope inupiat self-determination, but only if we have a seat at the policymaking table. The elected leaders of the north slope were wowed when president trump sent three cabinet members secretary burgum, secretary wright and administrator zeldin to kalvik to meet face to face with our people on our lands.
▶ 0:40:27During this historic visit, secretary burgum announced that the trump administration would rescind the 2024 npra rule directly. Sharing this news with our people demonstrates a level of respect that we deserve but rarely see. Thank you also to the members of this committee, including chairs, westerman and gosar, for hosting a bipartisan meeting with voice in alaska last month. Thus far, the trump administration has followed through on our request for durable policy.
▶ 0:40:54The one big beautiful bill act mandates multiple onshore lease sales in the npra and anwr, enshrining protections for our economic security into law. But we recognize it's only been eight months. More steps are needed to fully unleash north slope inupiat self-determination. That must include listening to our elected leaders on all issues impacting our lands and people, especially when there might be disagreement. Our partnership must be built on mutual respect.
▶ 0:41:22We need policies informed by the voices of the north slope independent. For those interested in learning more about our region, we're hosting a panel briefing about the complexities of the north slope this thursday at 330 in longworth. 1334. And I want to leave you with the words of eben hopson, senior, the first mayor of the north slope borough. And he said the desire for self-determination on the part of the people who wish to exercise that right should not be denied by those that govern.
▶ 0:41:52Thank you for your time. >> thank you. Mr. does it better? >> uh ha ha. >> tariq. Yes, thank you very much. Uh, now, the chair recognizes miss lewinsky for her five minutes. >> thank you. Chairman, ranking member dexter and members of the committee. Uh, thank you for the opportunity to testify today. My name is diantha skibinski, and I'm the executive director of the alaska miners association. We are a membership organization established in 1939 to represent alaska's mining industry.
▶ 0:42:22Our members are comprised of 1400 individuals and companies that hail from across alaska's 365 million acres, from above the arctic circle to the southernmost coastal rainforest. We have seven large scale mining operation members and dozens of members that are conducting exploration programs to bring new minerals to alaska, to production. Unique to alaska are around 300 active placer gold mining operations. Placer mines are smaller in footprint.
▶ 0:42:48They average only about four employees, but in aggregate, their production and their economic benefits are similar to that of a large mine. The majority of our placer mines in alaska are multi-generational, family owned, which is why we call them the family farm of the north. Today, I'd like to set the stage by describing the tremendous economic opportunities and benefits that come to alaskans and communities, and then outline the meaningful policy needed to grow the industry in alaska, but also increase contributions to america's domestic mineral supply chain.
▶ 0:43:16In 2024, the alaska mining industry paid an average wage of $123,000. That's twice the state average of the other sectors combined. We employed workers in over 80 alaska communities, many of which are in rural areas with limited other employment opportunity. Paid $145 million in local and state government revenues. Mines were the largest property and sales tax payers in alaska. Communities paid 240 million. That's in one year.
▶ 0:43:42And royalty payments that went to alaska native corporations since 1989, a cumulative total of 3.6 billion has been paid, and per the alaska native claims settlement act, 70% of that 3.6 billion payments are distributed to other alaska regional and village corporations in alaska. So mines are clearly important to alaska's economy, and they have an exemplary environmental and safety track record.
▶ 0:44:04Unfortunately, they're constantly targeted by outside opposition groups that use misinformation to generate fear among the general public and overburden regulatory agencies tasked with upholding the nation's permitting process. Federal actions from the prior administration hampered the process by which a mine can be permitted in alaska.
▶ 0:44:22Specific actions include the repeal of the roadless rule exemption for the tongass national forest, a preemptive clean water act, section 404 veto the pebble project, multiple actions to block the ambler road project, and much more. Thankfully, this year, um, this has turned around in the past year, starting with the day one executive order specific to alaska that we're talking about today. Several others that have been signed bring improved permitting processes for mining alaska, including immediate measures to increase american mineral production.
▶ 0:44:51This has a significant impact to alaska as it directs the secretaries of defense, interior, agriculture and energy to identify as many sites as possible on federal land that may be suitable for mineral development. Alaska has 222 million acres of federal land within its borders, and half of those are designated as conservation system units, meaning development can take place there.
▶ 0:45:11The mineral eo directed the departments to identify as many sites as possible on federal lands for mining opportunities, but there was also an opportunity to provide feedback on federal policy and management changes to realize the mining of federal lands. The epa and the department of the army have begun to implement waters of the united states policy, consistent with the supreme court decision. We're hopeful that we see an improved framework for the management of alaska's wetlands mitigation programs that have long been a challenge to developers way outside of the mining industry.
▶ 0:45:43In alaska, over 43% of alaska's surface area is designated as wetlands, and instead of a mitigation program that is designed for lower 48 states without that ratio, we need local flexibility where developers can perform meaningful environmental enhancement projects that assist rural communities with infrastructure to meet their mitigation requirements. Alaska is an extraordinary state with the ability to significantly contribute to our country's prosperity.
▶ 0:46:07With its impressive mineral endowment, superb environmental performance, a workforce with remarkable labor and safety standards, and significant economic benefits. Alaska is the place to start to make our nation a mineral production powerhouse mined in america starts with mined in alaska, and the entire ama stands ready to work with this committee to make that a reality. Thank you again for the opportunity to speak to you today, and I look forward to your questions. >> thank you. Chairman, this.
▶ 0:46:41>> thank you. Uh, members committee, thank you for. >> the opportunity to testify today. My name is john christiansen, president of the native village of port heiden in port heiden, alaska. Reliable and affordable energy is our greatest challenge. Like many alaska native communities, oil and gas and lng pipeline will never reach us.
▶ 0:47:00We survive on diesel flown or barged in from the lower 48 at 749 a gallon when it arrives in 2024, we spent $900,000 on fuel, one generator breakdown alone cost us $350,000 to fix. Our electric base rate is three times higher than anchorage, even though we are only 428 miles away.
▶ 0:47:26We have abundant resources constant wind, summer sun, and fast rivers. Studies show renewables could meet 75% of our needs, yet funding to the very projects that could save us solar, wind, hydro and storage have been delayed or taken away. Promises made to our community have been broken, and the ability to remain on our ancestral lands is threatened.
▶ 0:47:52Port heiden is home to 100 people who still practice subsistence fishing, hunting and gathering as their ancestors did. Family smoked salmon in the summer, hunt caribou in the fall, and harvest berries to last through the long winter. These practices aren't just culture they keep, they are survival.
▶ 0:48:16But the high cost of energy makes it harder each year to keep food stored, keep homes heated, and keep freezers running. Ten years ago, we built a fish processing plant to create jobs and keep more of our value in our community. But we cannot. We cannot afford the diesel to power it. So it is sat empty. If we had affordable local energy, that plant could be running today.
▶ 0:48:41Flying salmon, creating jobs for our young people and helping families stay in port heiden instead of leaving for anchorage, we could even responsibly develop the titanium deposit on our beaches, creating new revenue streams that would benefit not just our villages but the region.
▶ 0:48:57Our vision a thriving village powered by clean, reliable, locally generated energy that lowers costs, supports jobs and keeps our salmon plant running and allows us to thrive where our ancestors have lived for thousands of years. Energy sovereignty a model for rural alaska where communities generate their own power from wind, solar and river hydro.
▶ 0:49:26We want to stop being dependent on fragile diesel shipments and start being resilient, self-sufficient and sustainable. When our generator breaks down, families are left in the cold, elders must ration fuel and children do their homework by flashlight. It is a struggle to survive when that happens in the winter. One of our tribal elders says.
▶ 0:49:52Our people survived the 1912 eruption of aniakchak volcano. We should not be defeated by high diesel prices, but without help, the energy costs could be the force that drives us off the lands that we have occupied for thousands of years. And even when we do everything right, winning grants, purchasing equipment, we run into barriers we cannot overcome.
▶ 0:50:19Last year, my tribe won a grant where we bought a one megawatt battery, solar panels and wind turbines from a canadian supplier to power our clinic runways, lights and water system. But before we could ship it, new tariffs on canada increased the delivery cost by 1.5 million. The equipment is sitting in canada right now waiting to come to port heiden, but our village simply doesn't have the funds to move it.
▶ 0:50:48I am not sure if those tariffs are canceled or put back on. Their inconsistency makes it hard to keep track of. What we ask. We don't need more studies. We need congress to protect the community commitments already made and help us finish what we started.
▶ 0:51:06Support the tariff relief or direct assistance to cover these unforeseen costs would allow us to bring home the equipment we've already purchased and start producing clean, reliable power immediately. Our tribes mission is simple. The vision from our tribe, the vision of our tribe, is that our community is growing, living and thriving as we have for thousands of years. The mission of our tribe is to still be there.
▶ 0:51:35That is why we're asking you to stand with us. Support native communities and building energy systems that work where we live, not just where the pipelines run. Thank you for your time. >> thank you, Mr. christensen. I now recognize Mr. penny for his five minutes. >> chairman, ranking member dexter, congressman begich and members of the subcommittee, thank you for holding a hearing on unleashing alaska's extraordinary resource potential and for the opportunity to testify this morning.
▶ 0:52:02I'm clark penny, proud third generation alaskan born and raised, where my family and I continue to live in anchorage. I operate a wealth management company with an emphasis in public capital markets and assets under management over 1 billion. In addition, my consulting company, penny capital, advises companies ranging from technology startups to natural resource developers at every stage of the supply chain, from upstream mining to midstream processing to recycling. Altogether, those companies are progressing 41 of the 54 acknowledged critical minerals and their respective supply chains.
▶ 0:52:31Given 40 years of lived experience as an alaskan, I can say confidently that our state is interested in many forms of commerce and business development. With alaska's vast size, extreme climate and limited infrastructure, those that choose to live in my home state are bold and solution oriented. A parallel to being an entrepreneur from a car that won't start on a -35 degree morning, to creating an industry around mariculture or multi hundred mile pipelines, alaskans are not short on creative solutions to get through each day.
▶ 0:53:00A skill set that translates directly to our willingness to grind, to get ideas, to market everything. Alaska is big, including our natural resource projects and therefore our solutions for our country. Alaska has known quantities of 49 critical minerals. No other state can say this. And contrary to common rhetoric, alaskan residents are in support of responsibly developing those resources.
▶ 0:53:22Per a statewide survey conducted by diamond research in may of 2025, 72% of alaskans favor oil and gas development and 67% favor new critical mineral projects. The objective now is how do we get these vast resources to market from alaska for america? The us all but eliminated its position on critical mineral development for the last 30 years. To fill that gap, foreign entities of concern known as fox and other countries we do not have the best relations with, have stepped in resource development like nature lows a vacuum.
▶ 0:53:52So we find ourselves in a position where fox control the upstream, the midstream and pricing. They own the market, they have massive the technologies and we are left with deep economic, strategic and geopolitical vulnerabilities. While alaskans and alaska are up for a challenge, I'm very encouraged by the direction this administration is heading with support for the critical mineral industry.
▶ 0:54:14As someone with an investment background, I want to see dollars executed efficiently and supporting industry that create jobs, a circular economy and our quips, our equips our country to innovate, invest, and excel as our american system does without parallel. But this will take all the tools in the us policy toolbox, and maybe even some new ones. We are competing against countries that think in timelines and generations, not quarter by quarter.
▶ 0:54:39Those same countries have used their governments to subsidize needed infrastructure to get critical mineral projects to market. We don't have to copy them, but we do need to compete apples to apples in our distinct american way. To do that, first, we must make sure us policy at department of interior, department of war, department of energy, and across the federal government demonstrate a clear preference for domestic critical mineral developers.
▶ 0:55:04Allies can help, but there is no substitute for homegrown alaskan and american resources to fuel american innovation and the american economy. Second, use every tool in the toolkit. All the all of defense production act authorities not just stockpile purchases, but long term commitments to purchase, to pull projects forward by signaling strategic interest. And that's my third point. If government sends a signal and maintains the signal, private investment will respond.
▶ 0:55:31Ultimately, there is a path in which private capital can come to the table more willingly. But the question to explore is simply this how can investors assess the risk of a project with an unknown timeline, an unshaped supply chain, and a commodity price that could be manipulated by a nation opposed to american interests? There is a way for america to secure full domestic supply chains for every single critical mineral. Alaska is ready to play a significant role. The storehouse of so many strategic resources.
▶ 0:55:57It will take boldness, good ideas, creative solutions, and the mindset of grinding every day. Not so different than being an alaskan. Thank you for the opportunity to testify today. I look forward to your questions and working with the subcommittee to tackle the urgent issue of critical minerals. And I also want to say thank you to all the alaskans that showed up today. It's great to see everyone. >> thank you, Mr. penny. Now, I will recognize, uh, members for their for their questions. I'm now going to recognize Mr. tiffany from wisconsin for his five minutes.
▶ 0:56:28>> yeah. Thank you very much, Mr. chairman. First of all, I want to thank all of you for the hospitality you showed us when we were, um, up in alaska at the end of august. Um, it truly is a great state, unlike any other state in the united states of america. And we really appreciate, um, uh, your hospitality. Uh, miss skibinski, give me a couple repeals and rescissions that you think are important that you referenced in your testimony.
▶ 0:56:59>> thank you, congressman, for the question. And first, I'd like to turn around the thank you back at you and the members that traveled to alaska. Um, we got a lot of thanks for us coming to dc today. Uh, but really, there is no substitute for seeing the operations that you all have have done on your visits to alaska. And you are able to see, in my experience, um, I was gifted and privileged to be able to join you on your visit to greens creek mine.
▶ 0:57:22Um, there is no substitute for seeing what you saw with your own eyes and coming back and and using what you saw to refute misinformation. Um, and to say, no. You know, I saw very responsibly operating mine with employees that love to work there. Um, and it was a giant investment of your time. And I just can't thank you all enough for taking the time to come learn about our mining industry. Um, so to answer your question, some repeals and rescissions, I talked, um, briefly about the waters of the us rule.
▶ 0:57:49Um, given the statistics that I provided about the water situation in alaska, whether it's wetlands, whether it's how we have more coastline than nation combined, whether we have, um, whatever water body we're talking about waters of the us policy, I think I can venture to say, is most critical for alaska over any other state and sound policy that recognizes the reality of the environment, regardless of what part of the clean water act you're talking about, it has to be done. Understanding that alaska is simply different than arizona and it's different than florida.
▶ 0:58:20And so when you're looking at making sure that the definition of waters us comports with socket, um, and changing what and frankly, did not comport with socket in the previous administration, that is one of the things that jumps to the highest, not just for the mining industry, but to anybody that's developing alaska lands. >> yeah. So with those changes, you'll be sacrificing the environment, right, sir? >> absolutely not. >> so so we don't have to sacrifice the environment to make those changes? >> no, sir.
▶ 0:58:51>> um. Mr. hartsock, tell us, tell me just a little bit about that increased life expectancy. I find this a stunning number. Um, explain that again for everyone here. >> since I think it was in the 80s to 2014, life expectancy increased by, I believe it was 13 years over the course of that.
▶ 0:59:13And interestingly enough, that's when, uh, the north slope borough was making large investments in our own communities, taking that tax revenue that they were generating from oil and gas, reinvesting it into the communities, providing housing, water, sewer. >> so about the time oil was discovered and being made commercially viable, that's when life expectancy went up 13 years over the course of 34 years. >> yeah, once, once we started making those investments.
▶ 0:59:39>> that may be unprecedented in america, to see that rapid of an increase of life expectancy in the history of this country and largely because of oil. Um, what I heard you also say is that the biden administration did not coordinate with you, um, with the actions that they took. Is that accurate? >> that is accurate. And I testified to that effect and Mr. >> Mr. isn't coordination required under federal law? >> coordination is required under federal law. Yes.
▶ 1:00:05>> um, which is really unfortunate that the biden administration, with these indigenous peoples, that they did not follow the coordination law. Um, you said this is not a it is not a zero sum game. Explain that comment a little bit more about how this is not a zero sum game. >> often we hear that you can have one or the other. You can have subsistence or oil and gas development, or you can have this or you can have that.
▶ 1:00:28And I think that we've proven and I said it in my testimony that over the last 50 years, we've proven that we can have both, right. We can have an economy, we can have access to our subsistence resources that is supported by the oil and gas industry on the north slope. That's that's taken advantage of by the north slope borough, a system that that we made sure that we put in place. >> so we don't have to sacrifice the environment. >> absolutely not. >> um, Mr. christiansen, I found something really interesting, your comments in regards to hydropower, how will you harness. Have you figured that out?
▶ 1:00:57How will you harness hydropower? Um, for your community, if you could do that? >> um, we've been, uh, improving our, uh, distribution lines for the for the power. So our power lines will take it, and then we're going to use run of the river technology for, uh, two of the rivers in the area. >> so you'd be able to. There's technology where you can harness the river to be able to get electricity to your local community. >> yes. >> um. That's outstanding.
▶ 1:01:27Um, before I yield, I urge the folks with the save the arctic shirts. It's great that you're here today. Be sure to go to Mr. hart's tutorial that he's going to do this afternoon. That dialog will be very valuable for anyone here, um, to be able to hear what's going on up there, I yield back. >> the gentleman is recognized gentleman from california. Mr. ranking member for the full committee. Mr. >> thank you, Mr. chairman. Um, and good morning, president christensen.
▶ 1:01:56I want to ask you about some of the oil and methane projects in alaska. Um, specifically the proposed lng pipeline, uh, said to be one of the biggest infrastructure projects in the world to date of its kind. Um, would that lower energy cost for port heiden? >> no, not at all. >> why not? >> it doesn't reach us. We are in western alaska and we're nowhere near the pipeline.
▶ 1:02:27>> what about oil and methane projects from the arctic national wildlife refuge? Would that lower energy cost for your community? >> no. >> same. >> same same. We're nowhere near, uh, the pipeline or the city, so we couldn't get the cheaper costs. >> what about the npra energy development? >> no. >> ambler road mining? >> no.
▶ 1:02:53>> um, I do want to ask you about something that I think would, uh, provide a lot of economic benefits for your community. Port heiden is located near the biggest sockeye salmon fishery in the world, bristol bay. And your community made a major economic investment in building a processing plant some time ago. Is that right? >> yes. >> what is the status of that plant. >> right now?
▶ 1:03:18It's sitting, um, and with the unused, because we can't afford to run it right now because of the diesel prices keep going up and it makes it harder. >> and you've got to bring that diesel into the community from faraway places. So the economics of finding energy for your processing plant, uh, are super challenging. Is that fair to say? >> yes. >> could renewable energy provide enough power to that plant to make it economically viable again?
▶ 1:03:48>> yes, it with the run of the river, we're hoping to generate, uh, 400 kilowatt hours, and we'd only need 100 kilowatt hours to run our plant. >> all right. So climate change is having impacts all over the place. I feel it in my district. We see it really just about everywhere, whether it's wildfires or deadly floods. But no place feels it quite the way you do.
▶ 1:04:15Uh, in alaska, where warming is occurring four times the global average. President christensen. Um, I serve with folks here on this committee who deny the reality and the science of climate change. I want to give you a chance to speak to them. How has climate change impacted your community? >> we have, uh, significant erosion now with the increased storms. There's no ice on the beach anymore.
▶ 1:04:44So the fall and winter storms, um, you will erode 30 plus feet per per storm. Um, so. >> and this wasn't happening 20, 30 years ago? >> no. >> uh, if somebody questioned whether climate change was a serious problem, what would you say to them? >> well, we already had to move my village once, so I'd like to not do that again, so that'd be good. >> appreciate that. Um, Mr.
▶ 1:05:15Chairman, I'd like to yield the balance of my time to the ranking member. >> thank you very much. Uh, to our ranking member, uh, for sharing his time. Um, president christensen, thank you again. I just want to follow up on some of the costs for your community. What is the current price of electricity per kilowatt hour for your community? >> $0.75 a kilowatt hour.
▶ 1:05:41>> and just to be clear, in oregon, where we don't have anywhere near the reserves that you do, our average electricity prices are about $0.13 per kilowatt hour, and that is unaffordable for our community. Um, and it's still lower than the national average of $0.15. So I feel a significant, um, discordance between our ability to have affordable energy and your unaffordable energy.
▶ 1:06:07And I would just put on the table that we have hydroelectric power and solar and wind that we've invested in. Do you feel like your ability to control the cost of electricity for your community is dependent on renewable energy development? >> yes. Uh, because the transportation of bringing diesel in is getting higher.
▶ 1:06:29Um, it rolls over a dollar a gallon in one year. So it could be going up even more next year. We're not sure. >> how far. How far does that diesel have to be trucked in? Like what is the distance from the supply position? >> it has to come from?
▶ 1:06:51Uh, the lower 48, because it's refined down down there and then barged over to dutch harbor or to, uh, maybe seward and then barge back up to my village, which is. >> I'll follow up with you, president christensen. I've gone over my time. Thank you. >> thank the gentleman, the gentleman. The full committee chairman, Mr. russell fry, is recognized for five minutes.
▶ 1:07:20>> thank you, chairman gosar and, uh, witnesses. Thank you for your testimony. Testimony? Mr. Mr. harsh. Um, as I mentioned earlier, we visited alaska not too long ago. And if if folks haven't been there, it's hard to understand the the vastness of alaska. Um, can you talk more about how this impacts your region's economy and life, the remoteness and the landscape? >> yeah, it's, uh, I appreciate the question, Mr. chairman.
▶ 1:07:51It's huge. And I think we're, uh, Mr. christensen was alluding to some of that, but on the north slope, we've got eight communities I mentioned. They're not connected by road. We often have to have things barged in as well to travel in between communities. You have to take an airplane because of that. Um, and tickets from, uh, to a village that are 60 miles away can cost upwards of, you know, 4 to $600 for a round trip. Right.
▶ 1:08:14So the and then getting things from anchorage up to barrow, um, just everything is more expensive, right. The lumber and things to build homes, the equipment and materials it takes to maintain the systems that we have on the north slope have to be barged up from, from, uh, seattle or 48 or barged over from prudhoe after they've been trucked up, which really increases the cost of all of the systems that we have and all of our communities. Um, and it becomes very expensive to maintain those things.
▶ 1:08:43So maintaining that economic foundation, maintaining that that revenue that's generated to the north slope borough is extremely essential, um, to be able to provide those services for that, for those communities on the north slope. >> and it makes it even more important that you have, uh, good paying jobs and a strong economy so that people can afford those things that are just it's a logistical nightmare to try to get, um, building materials and everything else, food, all of
▶ 1:09:14That distributed, uh, across such a large area. So you and your organization, voice of the arctic and inupiat, have made clear that decisions affecting arctic alaska must remain in the hands of those who call it home, rather than preservationists, activists and other parts of america who have never stepped foot in the north slope, much less understand the alaskan arctic's economy.
▶ 1:09:38Uh, you know, I served here for quite a while with don young, and he this was one of his key points that, um, you know, you get people who live a long ways from alaska who think they know what's best for alaska. And it's always a a privilege preservationist mindset. We want to leave it alone, leave it untouched.
▶ 1:10:01Instead of a conservationist mindset of let's use it, be good stewards of it, and pass it along, uh, to the next generation. So voice has championed the message that, especially in the arctic, you need a strong economy to survive. As we were discussing discussing, um, in your written testimony, you mentioned that revenues from responsible resource development have funded schools, health clinics and critical infrastructure. Can you share more about those investments and how they've transformed daily life on the north slope?
▶ 1:10:33>> yeah, I'll try to do it quickly. But you know, the the alaska native claims settlement act, we viewed it as an unjust settlement. Uh, so our early leaders decided to take matters in their own hands to make sure that we were benefiting as much as we could from the development that was going to happen in prudhoe bay, whether we wanted it or not. So they stood up the north slope borough. The north slope borough has taxing authority on infrastructure, not production. Uh, very important distinction. They take that revenue that's generated through that tax and reinvest it into the communities.
▶ 1:11:01And before the north slope borough was there, people were in dilapidated homes, insulated with cardboard. Now, when you go to the communities, you see modern homes, you see water and sewer systems. If it does get dark, which it does happen in the winter time, uh, where there is no essentially no solar energy for part of the year, you go and you can turn on your light. If you get cold, you go and you turn the heat up. And now you can actually graduate school in your community. And my mom graduated from a school in anchorage. I graduated from barrow high school at home.
▶ 1:11:31So all of these services, all of these things that, uh, you know, were 1 or 2 generations away from third world living conditions, essentially. I remember when the first flush toilet was installed in my house in barrow, um, in the early 90s. So not that long ago that a lot of these services have been brought to our communities, brought to our people. Um, and we'd like to maintain that for as long as we can. >> thank you, miss kaminski.
▶ 1:11:58You, uh, you had another kind of wild statistic there. That 43% of alaska is classified as wetlands. She also talked about how it would be better if the state could work with, with permitting authorities. Permitting reform is something we're, uh, we're working on and focused on, on this committee. Uh, would you like to elaborate on how much that's needed? >> absolutely, sir. I would say it was one of our number one priorities to make sure that permitting reform takes place.
▶ 1:12:27The provisions in this act are very welcomed by, um, members that are working in the mining industry in alaska, from everything from the duplicative reviews to putting sideboards on, um, page limits and scopes that are in eis, which to it would be remiss if I didn't point out that that also makes it much more easier for the public to engage in the process and to understand more about proposals.
▶ 1:12:49So yes, it is, um, it is very needed reform in order to get the investment needed in very, very expensive mineral projects to bring more mines online. >> out of time, Mr. chairman. >> thank you, Mr. chairman. Now, the gentlelady from maryland is recognized. >> thank you. Thank you very much, Mr. chair. I also want to add my thanks to to everybody on the panel who I had the opportunity to meet on the congressional delegation visit last month. The hospitality was unmatched, and I concur with everything everybody said.
▶ 1:13:20Until you can see this wilderness, until you can see these communities and meet with folks on the ground, you have very little understanding of it. So I'm just so grateful for that opportunity and grateful for everybody in the audience who traveled so far to be here today. It does not go unnoticed by this committee. So thank you. I want to just add on to some of the comments the ranking member made. Um, in addition, you know, I think we all here at home in our own communities and districts, the true affordability crisis facing many americans. What I saw in alaska was, was unmatched.
▶ 1:13:48And I, you know, in terms of energy affordability, we're talking about today, housing affordability, food affordability, all of those things. We hear you. I also saw the vastness and the sensitivity in the wilderness and the vulnerability of of alaskan nature, um, all around me during the week that we were there. And so, you know, I use the word balance quite a bit in this committee, but I just want to make sure that we we strike the balance.
▶ 1:14:18I am it's more of a thought than a than a question here, Mr. chair, if I could. But what I'm hoping for here is obviously the highest of environmental standards for anything that moves forward. And I know that there's bipartisan agreement on that. But as the ranking member said, we need to make sure the people who are most impacted by these projects also benefit the most from these projects.
▶ 1:14:41So, first and foremost, tribal communities, the people of alaska, the american people, then our allies abroad and not our adversaries abroad. And right now, I'm not convinced that there's any restrictions or guardrails on who is benefiting from anything we're talking about here. And that's of deep concern to me as a member of this committee, also a member of the armed services committee, how are we ensuring that we're literally not fueling our adversaries with the wealth that we're talking about here today?
▶ 1:15:09So that's something I would like to pursue on both sides. And obviously having the highest environmental standards. So there's a lot of work ahead. Um, I'm excited to get to work with all of you and the audience and this committee. And with that, I'd like to yield the remainder of my time to the ranking member. >> uh. >> to that gentlelady. >> all right. Thank you very much. Uh, to the chair and to representative elfreth for sharing her time.
▶ 1:15:35I wanted to follow up, um, president christensen on our conversation that you were explaining, because I think it's ironic that the harvested oil that we are talking about from alaska, very modest amounts, my understanding is, are refined in alaska, and those are all in the southern portion of the state. So the barges that you're talking about do come from the lower 48, not from alaska. Is that correct? >> yes. >> okay.
▶ 1:16:03And and how often do those barges come in for your delivery of diesel? >> we get two two fuel deliveries per year, one in the spring and one in the fall. >> and are those reliable deliveries? Are there things that can impede those deliveries? >> um, the fall one. Is it changes quite a bit because of the weather. You can get storms and where they, uh, don't come in very often because of storms.
▶ 1:16:32And, uh, long time ago in the springtime, there would be ice on the beach, so the fuel barge had to wait. Then. Then we'd have to ration. So. But now there's less ice on the beach, so we get the spring barge pretty regularly. >> okay. Thank you for that. And is it fair to say that, um, it is because you have to import all of your fuel that your electricity costs or your diesel costs are high? >> yes. >> okay.
▶ 1:17:02Um, how much of your community's energy demand could be met by renewables? >> I was hoping with the hydropower it would be 100%. And it's it's a small amount of like 120 kw that we need to produce to, uh, sustain our village. >> okay. And you had mentioned earlier that you needed 100 kilowatt hours to keep the processing plant running. Is that accurate? >> yes.
▶ 1:17:33>> so that plus what you need for your village could be met with a renewable source. >> yes. >> would that give you economic stability as a village, you think? >> yes. A lower electric rate would, uh, make it cheaper for businesses to run like our store. And we'd be able to run our fish processing plant and hopefully mine the titanium.
▶ 1:17:59>> and I just want to share, like my my thoughts about children doing homework by flashlight in a place where it's dark for many, many hours, especially in the north, that that feels like an impact on quality of life, as well as just the feasibility of life generally. Is that is that accurate? >> yes. >> thank you. And once again, I've gone over my time. I'll come back. Thank you, Mr. chair. >> I think the gentleman, the gentleman. >> from minnesota, Mr.
▶ 1:18:28Stauber, is recognized for five minutes. >> thank you, Mr. chair. Before I begin, I would ask unanimous consent to enter the record. This study by the perryman group, titled potential economic benefits of the alaska lng project. Well, it highlights the project's potential huge economic impacts, impacts across alaska through 2056, Mr. chair, including related to job growth and lower energy prices, prices for all of alaskans. And Mr.
▶ 1:18:54Chair, I have one more if you'd indulge me and I ask unanimous consent to submit to the record an article titled united states appeals court allows trump's epa to terminate climate grants from reuters, which explains the court's decision and potential for fraud, waste and abuse, along with an ongoing fbi and doj doj investigation.
▶ 1:19:17The epa, under administrator lee zeldin, maintained the program did not align with the agency's priorities, and it cited concerns with potential fraud, waste, and abuse. The fbi and justice department under trump also investigated the program. I ask unanimous consent to enter them without objection. So ordered. Thank you very much. You know, when alaska became a state in 1959, there was an explicit understanding and requirement that the state would responsibly develop its vast natural resources, most of which are under federal control.
▶ 1:19:46Rather than upholding this, the biden administration again and again took action to shut down alaska. By the end of his administration, president biden levied 70 sanctions against alaska, far more than he did on adversarial nations like iran.
▶ 1:20:04Alaska has incredible natural resource wealth, ranging from oil and gas resources, the cook inlet and the national petroleum reserve, alaska and the arctic national wildlife refuge to the tremendous timber stock and some of the most valuable critical mineral deposits in the entire world. And I was proud to lead bipartisan legislation last congress, like the alaska's right to produce act, which sought to reverse the biden administration's attempts to shut down oil and gas development in npr-a and anwr.
▶ 1:20:36Well, this bill was signed into law last congress. President trump took action on day one to reverse these dangerous policies, embrace alaska's potential, and go even farther, including embracing the alaska lng project that we just looked at last month. Uh, Mr. hartsock, it was great to travel to your region.
▶ 1:20:58Last year when we traveled to new exit, we first we saw firsthand how oil and gas was being responsibly developed, as well as visit with individuals and local leaders who were directly benefit from it. I remember, uh, one of the individuals in, uh, shared with me and in her memory, a member of congress never traveled to the village.
▶ 1:21:19We had several members of this natural resource committee, including alaska's then congresswoman, along with senator sullivan and governor dunleavy. She shared, they finally felt like they were being heard. Last congress, you testified before this committee and noted how your voices were not heard, especially by the department of the interior, under the leadership of president biden and secretary haaland.
▶ 1:21:46How has the engagement between the people of the north slope and the federal government changed under the trump administration? >> thank you, congressman stover. And before I answer, you know, I want to say that that people, the people of alaska are one of our more most extraordinary resources up there. And the people of new york are definitely no exception to that. Um, the the changes that have come about have been huge. Right.
▶ 1:22:13Your visit that you brought up to the cabinet members that came up, your the most recent visit of the committee to anchorage, um, I think speaks volumes compared to what we were dealing with previously. Uh, I think it was in 2023.
▶ 1:22:27We made eight trips, eight, maybe nine trips out here that year trying to get meetings with secretary h were denied, some of which were ignored, uh, throughout that entire year with her until 2024, late in the administration in june. And nothing really concrete came of that. Uh, you know, there was a lot of writings that were in white house national strategy for the arctic region that they. >> wouldn't meet with you.
▶ 1:22:52You you traveled from alaska anchorage, 3377 miles, and they wouldn't even give you a meeting. Is that correct? >> we had meetings with staff, but not with not with the secretary yourself. Yeah. Thank you. >> uh, miss zabinski, it's great to see you once again. And as you know. Well, alaska has the greatest mineral wealth of any state in the entire nation, including my great state of minnesota. We have the second most. Alaska has the first. It was it was great to see this mineral wealth up close when we visited it. The greens creek mine just last month.
▶ 1:23:22In your testimony, uh, you run through the president's executive orders that have begun to put us on the right track. You also discussed the importance of consistency and certainty. What do you think it is most important for congress to prioritize in order to provide this consistency and certainty to the mining industry in alaska. >> thank you for the question, sir. And thank you again for taking the time two summers in a row, to come visit alaska and learn about our resources.
▶ 1:23:48And also, thank you for not holding the whole mineral wealth thing against us. I appreciate it. Um, I honestly think the most important thing to prioritize right now is the measures that are in the speed act. And I won't belabor that point because you guys have spent a lot of time talking about that in this committee. But the measures that are in the speed act, and really dovetailing that with some of the things that are happening positively on the administration side within the permitting improvement steering council and the fast 41 process. I think it seems basic, but it's really not.
▶ 1:24:18And we've lost sight of how important it is to ensure that agencies are working together. And that's my favorite part of the whole thing. We can talk about page limits. We can talk about, um, ensuring that the scope is appropriate. But the requiring agencies to work together, you would be stunned, including the mine site that you visited, how the us forest service and the environmental protection agency work on the same permit at different times and different time periods. If one of them has 60 days day 61, it goes to the other one and they don't talk to each other.
▶ 1:24:47And you would think two agencies like that that are responsible for upholding science would do that. >> well, thank you very much. And, Mr. chair, I'm out of time. It's great to see you all again. Thank you. >> thanks. The gentleman, the gentleman from puerto rico, Mr. fernandez, is recognized for five minutes. >> thank you. Uh, I simply want to share my sympathies for the people of alaska and the energy challenges that they face coming from puerto rico.
▶ 1:25:07I can relate to the the challenges posed by the high costs of energy and the need for practical solutions that go beyond parties, go beyond ideologies, and address the concerns of the people. I'd like to yield my time to, uh, ranking member uh, for the remainder of my time to the ranking member. >> thank you very much.
▶ 1:25:27Um, once again, to my colleagues and to the chair, um, president christensen, I wanted to ask you you mentioned that you had to move your village in the past. Can you tell me more about that? >> uh, we started moving, uh, our village in the 80s. Um, there was a slight erosion going on, and then.
▶ 1:25:50So, uh, people in my tribe decided to move, move more inland towards the mountain. Right now, our old community of meshik is gone. It's in the water right now. So, uh, we started we started early, and then it just sped up. Um, right now we're. Our fuel farm is at.
▶ 1:26:18They said it wasn't supposed to be moved until 2025, and we moved it six years ago. So. >> I'm sorry. I just want to make sure I heard you correctly. Your entire village is gone. That was previous to the 80s. >> yes. >> okay. And what accounts for for that? You said it's erosion. Is that literal land falling into the ocean? >> uh, land and houses. >> okay.
▶ 1:26:46Um, that feels like an extraordinary disruption. And how did that impact the people of your community? And does it still impact the people of your community? >> um, right now, the impacts we have is we have no more access to safe harbor for our boats. So when we pull in from the fishing season, we have to pull up our boats right away because of the there's really not many places to park.
▶ 1:27:15>> and was that true before the 1980s onward? >> no. We were able to access a a harbor lagoon that where we parked in and, um, we kept our boats in there until october. We were able to use them to go hunting and fishing, but now we have to pull them out right away. >> is it at all unclear to you that climate change is having an impact on your village?
▶ 1:27:44>> no, I believe it is a clear impact. Climate change. >> okay. No, I that feels extraordinary to me. And the cost of that. Who bore the cost of moving your village and rebuilding. >> just the people in port heiden? Nobody helped us move. >> are you a rich community? >> no, no. >> okay, so that. >> poor fisherman.
▶ 1:28:10>> that that feels like the impact of climate change on your community is already been extraordinary. And we continue to perhaps hasten that, um, we can argue about our, our behaviors, but clearly this is impacting your community. Do you think you are unique in native communities or indigenous communities in alaska? >> no. There's a few other places that are, um, having trouble right now. There's one of the communities below us.
▶ 1:28:40Port mueller is planning on moving their community, and there's villages like kivalina is trying to move. But the logistics of it's pretty hard. >> I can imagine. And is the us government or the state of alaska helping fund the moving of your villages or their villages at all? >> uh, not that I know of. They nobody helped us, so I wasn't sure if anybody helped them. >> okay. And the dividend fund?
▶ 1:29:08I trained in medical school with people from alaska and spent many weeks in anchorage practicing in training. And my understanding is the dividend fund is a really important resource for people in alaska. Can you help me understand? Does that, um, do you as tribal members, have the same dividend payments or is it different? >> no, it's the same. >> it is the same. Do you know of, um, other communities that have had to move that are not indigenous communities? >> no.
▶ 1:29:39>> okay. I'll, um, yield at this point. And thank you very much. >> for the yield. The gentleman from utah, miss malloy, is recognized for five minutes. >> thank you, Mr. chairman. Uh, I also was in alaska on the bipartisan trip last month. And, uh, also want to say thank you for your hospitality. Um, there really isn't anything else like it.
▶ 1:30:03Um, and because of that, I'm going to repeat something that I said when I was there, uh, here on the record for the benefit of everyone. But the thing I heard most probably while we were in alaska was alaska is different. That's everywhere we went, everywhere we stopped. People kept saying, alaska is different. And it clearly is in so many ways. Uh, but sitting here in this hearing, I'm struck again by how similar all of our states are in the concerns we have.
▶ 1:30:31So, um, Mr. hajicek, I and I hope I'm saying your name right. I, I apologize, um, what I'm hearing you say is that more coordination and less regulation helps you have the strong economy that increases life expectancy and quality of life. Is that fair? >> yeah, I think that that's fair. >> yeah. I think my constituents in utah would very strongly agree with that.
▶ 1:30:57And and then you talked about people traveling here and not being able to get meetings. And I can tell you my constituents also get really frustrated when the federal government isn't responding, isn't listening, isn't even taking the meetings to try to hear and understand the problems. Um, the good news is that I had constituents in town a couple of weeks ago who are thrilled that they don't only got the meeting, they weren't just heard and understood, they got concrete answers and solutions.
▶ 1:31:23Um, and so I think we're going in a good direction with that. But as different as alaska is, I think we're all the same in that we need a government that is listening and responding and finding solutions, um, not just giving us more red tape. So thank you for bringing that up. Um, miss skibinski, it was great to meet you in alaska. Um, you mentioned the opposition groups are spending millions on misinformation campaigns and serial litigation in your state.
▶ 1:31:54Another thing that I think we have in common. Can you quantify the delays and the costs from lawsuits against your members projects? >> um, congresswoman, thank you for that question. I believe I could, with a little lead, time to do some homework, and I would be happy to commit to that. I can think of single standalone examples where, yes, I can think of some that are currently in existence where they're sitting there waiting.
▶ 1:32:19And it's been nearly two years of waiting for a court decision for, frankly, a court litigation, a lawsuit that was brought nine years later after the permitting process and the public, um, opportunities to participate had concluded. So, um, I can give you standalone examples and I can give you an aggregate one as well. >> okay. Yeah, we'll we'll submit that as a question for the record, so that you can have some time to go back and and do the math and give us some examples, because I would really like to know what the economic impact of that is.
▶ 1:32:49Um, Mr. penny, as someone with deep experience in public capital markets, I was interested in what you were saying about, um, the the unwillingness or maybe the hesitancy to invest in some of these projects when there's uncertainty. What concrete steps should we, congress, take to help american companies compete against state subsidized foreign competitors? >> yeah. No. Thank you for the question.
▶ 1:33:17Um, look, individual investors, institutional investors, companies looking to invest, they want some certainty, right? You want to know how much risk am I taking? For what period of time and what is my return look like for taking that risk? How do I profile this? So anything that the federal government can do to help shore up some of the unknown risk that has been in place for over 30 years in the critical industry is very, very supportive and very important.
▶ 1:33:44Um, we're starting to see things like national defense stockpile agreements take place, um, through the department of war. We're starting to see, um, also looks like department of defense at the time. Now, department of war, um, looking at how to structure long term commitments to purchase, which is basically a long term, long term offtake agreement. Those are financeable activities. Those will free up, um, capital from from the private markets to come into play and help support to get those industries to market. >> thank you.
▶ 1:34:13You probably won't be surprised to hear that when I've traveled with this committee, even in foreign countries, they've said the same thing. Our allies want to invest in critical minerals in the us, in energy in the us, but they face the same uncertainty. And and it's strange to be in a foreign country and have them say that we need to get our permitting under control so that they can invest. So thank you for your testimony. Um, I only have a few seconds left, so I will yield back. Mr. chairman. >> I thank the gentleman from utah. Gentlewoman from washington, miss randall, recognized for five minutes. >> thank you so much, Mr. chair.
▶ 1:34:44Um, I also enjoyed my time in alaska on the congressional delegation. It was as a washingtonian, my first time visiting our neighbors to the north. And I'm, um, disappointed that it took me so long, but so, um, glad to have had the opportunity to, um, visit and better understand the economic drivers in the state, but also, um, you know, the real differences, um, in tribal law from the lower 48 and from
▶ 1:35:16A state like washington to, um, uh, the state of alaska, but similar to my colleague from utah, I will say the the challenges that, um, folks in coastal washington state faced are not dissimilar from the challenges that, um, you have been speaking about. President christiansen, um, really appreciate your testimony.
▶ 1:35:41And, um, I want to follow up on a thread that my colleague from oregon started and that you have spoken on already. You mentioned that port heiden has made efforts to build the small hydroelectric project, um, to complement your other investments in wind and solar. And, you know, you've mentioned some of the benefits, given that your costs are so high.
▶ 1:36:14What's the status of the project right now? >> the wind or the hydro? >> the hydro. >> the hydro is stalled or stopped right now. >> um, and. Have any of the trump administration's actions caused that project to get stuck? >> yes and yes.
▶ 1:36:45>> it's my understanding that the, um, cancellation of the greenhouse gas reduction fund grants, um, cost some of that. Um, and you're in the courts right now trying to, um, to unleash some of that funding. Is that accurate? Is there anything else you can tell us about? Um, the hold up.
▶ 1:37:13>> uh, right now, they're in, uh, in having legal battles to try to release some money. >> um. >> and I get updates occasionally, but it doesn't seem to be going very far. >> yeah. Um, I know you mentioned this earlier, but can you remind us how much electricity costs in port heiden? >> $0.75 a kilowatt hour.
▶ 1:37:38>> and how much would the hydro project have lowered that cost? >> probably $0.55. >> that's significant. That's very significant. And with the price of power, I understand that you would have been able to reopen, uh, salmon processing plant that was closed because of diesel costs. Is that, um, is that right?
▶ 1:38:09>> yes. The diesel prices rose very fast, very quickly. And it makes it hard for our community by that to buy that much fuel. Yeah. To and to be able to store it. So just it's hard to spend $1 million plus per year for 100 people. >> right. And I think one of the.
▶ 1:38:33One of my reflections, um, you know, as a kid who grew up in, like with a salmon in the classroom program when we went to alaska was how, um, how different our experiences from the lower 48 are with salmon.
▶ 1:38:53Everyone loves almost everyone loves to eat it, but not everyone you know knows how it gets to their table in, you know, another state outside of alaska or washington or oregon or here, even here on the east coast. Um, can you tell us a little bit about what the implications for opening reopening that processing plant would be beyond your community?
▶ 1:39:21>> we would be able to hire people in the surrounding communities to come work during the summer times for seasonal work. Um, we might be able to bring in people to, to move to our community, to continue to grow it. >> yeah.
▶ 1:39:36I, um, I appreciate you traveling so far to, you know, share your experience, and I'm share your the frustration that you and so many members of your community must feel by projects being stalled. Uh, I believe that we need to figure out how to.
▶ 1:39:57Make government work better for the communities who, um, benefit from it. But I also want to. To just say on the record that it is all speed is not good speed. Right.
▶ 1:40:17This project is stalled not because of red tape, but because we decided that this this administration decided that it didn't want to fund renewable energy. >> thank you, gentlemen. Thank you. The gentleman from alaska, Mr. begich, is recognized for five minutes. >> thank you, Mr. chair. And because I only have five minutes, I'm going to jump right into questions. I hope that's all right with everybody. Um, first, uh, Mr. hart, I always call you. A hard truck.
▶ 1:40:49Uh, in your testimony, you discussed economic opportunities. Given these new federal directives, what kinds of jobs or infrastructure development do you believe are realistic in the short and medium term for your region of alaska? And how should policy here in dc ensure that local communities benefit from these opportunities? >> thank you for the question. I think from an infrastructure perspective, it's it's maintaining and building new in all of those communities that are supported by that north slope borough, supported by our alaska native corporations.
▶ 1:41:20Policies that can help with that is policies that allow for those opportunities, that don't limit that economic opportunity, but open that up for economic opportunity, open it up, and then allow us to help make the decision as to whether or not we want to take advantage of those opportunities or not, depending on how we weigh those, how the communities weigh those, um, and maximizing that opportunity and allowing us to take advantage of that. But schools need to be built. Water and sewer facilities need to be built. $80 million water and sewer system in the community of point lake needs to be built.
▶ 1:41:51The north slope borough is going to fund a majority, if not all of that. Um, and that requires economic development and then those jobs in those communities. Right. It's not necessarily jobs in the field. It's allowing people to stay in those communities and provide those services for those communities and be able to earn an income at home and then go out and subsist and further provide for their families. >> thank you.
▶ 1:42:11Next question to, uh, miss skibinski, uh, with the executive order enabling greater access to lands under anwr, npr-a and federal lands more generally, how does the mining industry see new opportunities for critical minerals or other mineral development in alaska? >> yes, sir. Thank you for that question. I think new access, new access to new federal lands is incredibly important. If you've ever seen a map of alaska, it looks like a jigsaw puzzle of patchworks of different land status.
▶ 1:42:37Um, earlier in my testimony, I talked about how alaska is 365 million acres. 200 plus is that of federal lands. There's conservation system units. So you may have a deposit on state land, which, frankly, we've gotten to the point in our industry is highly, uh, preferential. Um, industries really have become accustomed to finding it to be easier and more certainty with pursuing a project on state land.
▶ 1:42:59But there are chances are, you pat, you cross over several different types of land, several different types of federal land throughout that process. So when you see things in the executive order that improve the entire land land management picture, lift public landowners, order blm to do, uh, land planning better overall, you're going to see a better path forward to developing projects that aren't on the road system and cross several different types of land. >> that's great, and it's a perfect corollary to what we were just talking about.
▶ 1:43:29Uh, with Mr. hart. And, uh, about local opportunities, uh, being necessary to support these smaller communities of alaska. Uh, Mr. penny, uh, how did the how did the executive order and, uh, the one big, beautiful bill act together, change the investment risk climate for alaska in mining and energy specifically? >> yeah. Thank you. Congressman. Um, look, it's a de-risking, right?
▶ 1:43:58I mean, private capital is looking for signals on how to derisk their investment to feel comfortable getting involved. It's it's a it's largely an untouched and unknown space for the last 30 years. So anything that can be done to to shore up some of the unknown risk is something that's going to get capital to the table. It could be permitting timeline, those being more definitive, um, national defense stockpiles commitment to purchase over a number of years.
▶ 1:44:23All of that uh, loans, loan guarantees, lots of different formats that can be used, uh, from the federal government. Um, all of all of those are de-risking mechanisms and something that's going to help provide willingness to private capital to come to the market. >> thank you. And final question, Mr. christiansen.
▶ 1:44:41Um, can you describe how the the alaska, uh, power cost equalization program works and how it benefits, uh, communities throughout alaska that are like port heiden, smaller, more isolated. >> the pce program, uh, subsidizes 500 kilowatt hours for residential communities. Uh, people, not businesses.
▶ 1:45:07And I'm told it's been on the chopping block for quite a bit of years. They're trying to get rid of it. >> what what specific enhancements would you recommend to power cost equalization that would improve, uh, the the cost of energy for both businesses and residential consumers in your town? >> well, if you could include businesses, that would be great. And and increase the cap.
▶ 1:45:36Everything uses more power now it right now it's 500 kilowatt hours. 1000 kilowatt hours would be way more efficient. I know a lot of places. A lot of houses don't use that much. But as soon as you get over the 500 kilowatt hours, it will dramatically increase your electric bill. >> thank you, and thanks to the witnesses for making the long trip from alaska. Uh, some of you, this is this is an infrequent trip, sometimes more frequent.
▶ 1:46:05But we always appreciate hearing directly from those who are impacted by the decisions that we make here in D.C. and with that, my time has expired, and I yield back. >> the gentleman from alaska, the ranking member, Mr. dexter from oregon, is recognized for five minutes. >> thank you so much. Um, Mr. chair, um, president christiansen, I just want to double down on a couple of things, because I know you've already said this, but in 2024, your committee won federal funding to power wind, solar and battery project.
▶ 1:46:34Is that right? >> yes. >> okay. And the energy we've covered what that would have been used for for tribal buildings, for the processing plant. Are there other things that would be important to highlight here that that energy would be used for. >> the clinic?
▶ 1:46:49Um, the airport, the airport has, uh, equipment in it that, um, it helps the planes, the large planes that fly over when we had, uh, generator issues, the nasa called and said, how come we're shutting off their equipment? And we didn't know that we had nasa equipment there for all the airplanes there, so that it was a surprise to us. >> okay.
▶ 1:47:17And, um, what is the status of that project right now? >> um. >> the the wind. Right. Right now they're shipping out, uh, materials for the foundation, which is the cement, the the turbines and the solar panels are, um, in canada, I believe. And we're waiting on more money to pull those out. The battery system.
▶ 1:47:44We had to switch to a different battery because of the. It would have cost way more money with the tariffs than it would have, just keeping them so that the batteries cost $100,000 more. But in the end they'll be cheaper because of the tariffs. >> so the tariffs clearly were an unpredicted cost that you are having to bear yourself as a as a tribe. Is that correct? >> um, a large cost, yes.
▶ 1:48:15>> okay. Um, and I think you mentioned before that it would be $1.5 million more due to tariff impacts. Is that right? >> that was the initial assessment. Um, right now. Without the tariffs, we're already we're seeing an increase of 300,000. >> okay. And so getting your parts, which to be clear, you've already paid for those parts. Is that accurate. >> yes. >> okay. Out of a canadian warehouse. Um, somewhere would cost more.
▶ 1:48:44Much more than what you paid for fuel in total last year as a community. Is that accurate? >> yes. The tariffs alone. We could power our community for a year and a half. >> okay. So I appreciate all of your time and, um, your testimony. And I think, you know, the line of questioning that I have is that the direct impacts for communities, especially indigenous communities, is unpredictable.
▶ 1:49:12And certainly you're not reaping the benefits of this massive increase in or desired increase in harvesting of oil. Is that an accurate statement? >> yes. >> okay. Thank you. Um, Mr. penny, I just want to ask you briefly. I don't know if you're an expert on, um, the alaska permanent fund, but do you feel comfortable with me asking a few questions about that? >> um, probably not appropriate.
▶ 1:49:39I mean, I've been in alaska for 40 years, but certainly not an expert on the permanent fund, but I'm happy to address questions, post hearing, if that's helpful for you. >> I appreciate that. I do just want to understand because my understanding is, um, the agreement when alaska became a state, also in 1959, as did oregon, um, was that 90% of revenues would go to the people of alaska and 10%, um, to the federal government in the current, um, bill that was just
▶ 1:50:10Passed the big beautiful bill, um, it's 5050 until 2033 and then 7030. Is that accurate? If I can yield to my colleague from alaska. >> we passed 9010 out of this committee was changed in the senate to 7030. Okay. Yep. >> all right. Thank you. Um, that clearly impacts the dividends that people in alaska are going to get. Is that accurate to my colleague. I yield again. >> that is accurate. >> okay. So, um, thank you all for your testimony.
▶ 1:50:38I have taken up plenty of this committee's time at this point. Thank you. I'll yield back. >> it's my turn. Huh? Okay. Uh, president christensen, your written testimony references. The village worked with a group called climate united west for their hydroelectric project. To clarify these. There have been issues with this grant, and I don't necessarily want to assume anyone has any issues with hydro.
▶ 1:51:06Is there a way that your village can work directly on this project with the government, instead of using, uh, instead of the problems with this ngo, particularly on this grant. >> I would be willing to take any kind of money to get cheaper power. >> okay, well, I'm glad we rectify that because I have a bill that basically asked for a federal government gives an ngo one penny, either directly or indirectly. They have to tell us where they got all their money.
▶ 1:51:35And right now the irs does that, but they won't give it to members of congress. It's all blacked out. It's pretty obvious. Now, my question is, Mr. penny, you mentioned that you think there's a way for america to secure domestic clean supply chains, claim chains for every single critical mineral. How can development in alaska help us get there? >> yeah. Thank you, Mr. chair. Um, the resources in alaska are second to none, and they are ready to support this country, sir.
▶ 1:52:03I mean, we have, um, you know, I've been asked here today, invited here today to speak on behalf of alaska in general, not project specifically. But, you know, we have deposits of graphite that can help provide 100% of us supply needs for 100 years. Potentially. We've got deposits of nickel that can help supply us. Supply needs 100% of it. For many decades. We've got antimony at surface. That's that's ready to go. Alaska is ready to use their resources to help this country move forward and secure their supply chains.
▶ 1:52:32>> so let me ask you, if you're in the markets, you say you are you definitely understand technology, right? So how do we get to, you know, better better attitude towards these aspects. We have to mine right. Because a lot of these technologies have have a lot of these critical minerals involved do they not. >> yes, sir. That's very correct. And uh, unfortunately, uh, with all 54 criticals, uh, it's not going to be one process that solves for all of them. They're very, very unique in their own nature.
▶ 1:52:59And there's a lot of, uh, serious specifications that have to be met for end users to be interested in purchasing those critical minerals. Uh, way above my pay grade left for the engineers. But it's going to take a lot of work. It's going to take a lot of research, and it's a function of how much time do we want to spend on this? How quickly do we want to get these critical minerals to the us market? >> now, eventually these marketplaces are going to there will be oil and gas someday. Right. So that's that's a little bit about the permanent fund that I have by reference to.
▶ 1:53:29This includes dividend program that has paid more than 24 billion to alaskans through their annual tax, imagining that using natural resources as wealth for the benefit of everyday people. All of you have said that it's a benefit, right? Now. We can learn a lot from alaska. Uh, yeah. Um. I'll yield a minute to. Thank you. >> thank you, Mr. chair. Um, I will tell you that, uh, Mr.
▶ 1:53:59Christiansen, you had mentioned the the pce fund, which originally started, uh, with the oil and gas royalties. Now it's state investment. Um, that fund. You always want to keep that fund in balance. You want to keep it healthy. Would that be an accurate statement from your standpoint? >> yes. It it would be nice to keep the pc program. >> yeah. And you're aware that the npra all those royalties are earmarked for the pce fund, which would help reduce electricity for all alaskans.
▶ 1:54:30You're aware of that? >> yes. >> um, and still you want to say your anti-mining. >> I'm anti-mining. I will mine, uh, the titanium on the beach in port heiden. >> I didn't hear you repeat. >> anti-mining. >> are you anti the anti-mining anti oil and gas? >> no, >> you're support it. >> I if it benefits my region. Yes. >> perfect. The two individuals to your right, Mr.
▶ 1:54:59Christiansen are adamantly supportive. Supportive of mining in the great state of alaska and oil and gas production. Furthermore when we were up there Mr. chair in alaska, the opportunity for alaska to grow and actually smelt there, this is the next opportunity for alaska because we have ships passing the great state of alaska, going to china to smelt alaska is where it's going to happen.
▶ 1:55:27And he is going to lead it. He's leading it already. He led. We learned so much in that trip. Mr. christensen, you are blessed. And many people in alaska are blessed to live in that state. So many states wish they had that opportunity that you have alaska's front and center on the energy independence and the critical mineral dominance. And the state of minnesota is just behind nipping at your heels, I yield back. >> I thank the gentleman. Um.
▶ 1:55:56I thank the witnesses for their testimony. The chair will now recognize. Member. Oops, sorry.
▶ 1:56:23The members of the committee may have some additional questions for the witnesses, and we will ask you to respond to these in writing. Under committee rule three, members of the committee must submit their questions to the subcommittee clerk by, septembeg record
▶ 1:57:09For these. We'll now take a short break to allow the second panel of the witnesses to take their.
▶ 2:02:49I will now introduce my second panel of witnesses. First, we have Mr. ethan tyler, senior director, policy, public policy and lands corporation, anchorage, alaska. Mr. dutch kuiper, vice president, lands and development, cook inlet region, inc. Anchorage, alaska. Mr. philip wright, associate professor of history and arctic and northern studies, university of alaska, fairbanks, fairbanks, alaska. And Mr.
▶ 2:03:18Clarence clark, owner, southeast alaska resources, ketchikan, alaska. I'll remind you that you're limited to five minutes. On our way, we go turn on your mic, you'll see green light, and then it says yellow. Start turning it up, closing it down. And when it's red, stop. Remember your whole testimony? We put it part of the record. I'll now recognize, uh, Mr. kuiper. No, Mr. tyler, for his five minutes. Sorry.
▶ 2:03:44>> chairman, ranking member dexter and members of the subcommittee, thank you for the opportunity to testify. Today, I serve as the senior director of public policy and lands for the aleut corporation, or aleut, one of the 12 alaska native regional corporations created under the alaska native claims settlement act, or ancsa. Ancsa was historic, transferred more than 44 million acres and nearly $1 billion to alaska native people.
▶ 2:04:13Not as reservations, but as native owned corporations. That structure gives us a dual mission to provide for the health, education, and welfare of the aleut people while also creating economic opportunity for our shareholders and their descendants.
▶ 2:04:34It means that we are stewards of traditions passed down through generations, and also of modern enterprises that provide jobs, dividends, and community investment. Balancing these responsibilities is at the core of who we are honoring where we come from while building a strong future for the next generation. Simply put, aleut mission is to maximize opportunities and dividends for our shareholders.
▶ 2:05:03Aleut and our sister native corporations are unique. We are landowners, but also economic drivers. Revenues from business operations fund dividends, scholarships, cultural programs, and support our alaska native shareholders. And we approach development with balance. Business opportunities and projects must create opportunity, but also reflect our responsibility to shareholders, communities and future generations.
▶ 2:05:32Alaska's resources are vital not only to our state but to the nation. Oil, gas, critical minerals, fisheries and renewable energy all lie within our lands. Development here directly strengthens us. Energy independence, clean energy technologies and national defense. The aleutian islands highlight that dual role of community and national security.
▶ 2:06:03The region is remote with limited infrastructure, but it contains two strategic assets cold bays, all weather runway and a deep water port and airfield. Adak once served as a vital base during world war two and the cold war. With the growing tensions in the pacific and arctic, it is again emerging as a frontline outpost.
▶ 2:06:27Aleut owns significant land and facilities there, and we stand ready to partner with the department of war to ensure aid supports both national security and local development. On the resources side, aleut is partnering with industry leaders to responsibly advance mineral exploration on our lands and our region.
▶ 2:06:47On island helios star is uncovering high grade gold deposits with real potential to bring new jobs and investment into the sandpoint community north of sandpoint, copper bay resources is exploring a significant copper deposit that could support both regional economies and national security needs.
▶ 2:07:11While both projects are still in the exploration phase, they demonstrate how alaska native corporations can responsibly develop resources in a way that reflects local knowledge, environmental accountability, and direct benefits to our alaska native shareholders. At the same time, our communities face urgent needs.
▶ 2:07:35In king cove, residents live without safe, reliable access to cold bays. All weather airport. For decades, decades, they have sought a simple land swap and road connection. Aleut strongly supports the land exchange to finally make this road a reality. We are eager to see this administration continue the momentum and see the success.
▶ 2:08:03This historic land exchange that finally enables the king cove road. Finally, I must note that regulatory delays are among our greatest challenges. We fully support strong environmental safeguards, but current permitting is often duplicative, sequential, and disconnected from the realities of rural alaska.
▶ 2:08:29These delays discourage investment, cost jobs, and sometimes stall critical projects altogether. What we need is balance processes that protect the environment while also respecting local knowledge and community needs. In closing, alaska native corporations like aleut are uniquely positioned to responsibly unlock alaska's resource potential.
▶ 2:08:58Our work benefits our shareholders, supports us energy and mineral security, and strengthens our nation's defense. We ask for your partnership to modernize, permitting, advance infrastructure and support projects like the king cove road so that our communities are not left behind and our resources can serve all americans. Thank you. I look forward to your questions. >> I thank the gentleman. Now I recognize Mr. kuiper.
▶ 2:09:26Did I say it right for his five minutes? >> thank you, chairman gosar and ranking member dexter, for inviting me to participate in the hearing today. I appreciate the opportunity to provide testimony on unleashing alaska's extraordinary resource potential. My name is dutch kuiper. I'm the vice president of lands and real estate for cook inlet region, inc. An alaska native corporation.
▶ 2:09:50I bring over 30 years of experience in investment management, real estate development, land economics, land stewardship, and natural resources, including. Renewable energy, agriculture and timber operations. Like other alaska native. >> corporations. >> siri was created. >> by the passage of the alaska native claims settlement act, or ancsa, in 1971. Alaska native people did not want a reservation system like tribes in the lower 48.
▶ 2:10:18Instead, alaska native leadership fought for a different model that created 12 land based regional corporations and over 220 village corporations that are for profit companies with economic, social and cultural purpose. Today, siri is the most culturally diverse alaska native corporations, with nearly 10,000 shareholders and an estimated 18,000 descendants, representing every alaska native ethnicity in our state.
▶ 2:10:49Many of our shareholders reside in your home states and are your constituents. Given that over 40% of our shareholders live in the lower 48, entrusted as stewards in perpetuity of some of the most resource, richest and ecologically valuable lands in alaska, siri prioritized prioritizes striking a balance between sustainably developing our natural resources to improve economic opportunities for shareholders and descendants and all alaskans, while protecting the land for future generations.
▶ 2:11:19Serious, committed to responsible resource development in compliance with all applicable environmental laws, regulations, and standards of review, siri is heavily involved in resource development in alaska and has invested in large scale resource development projects on its lands, including oil and gas, mineral development and renewable energy projects such as fire island energy.
▶ 2:11:41This is a 17 megawatt wind project that has been operational since 2012, and has delivered energy to help power over 7000 homes in south central alaska, and is visible as you fly into anchorage international airport. Siri's lands include rich deposits of copper, gold and strategic minerals, including those critical to national defense and advanced manufacturing.
▶ 2:12:05We've continued to actively evaluate and develop these resources through responsible exploration and investment. As part of this effort, siri is proud to have received its third round of funding through the department of the interior's bureau of indian affairs, energy and mineral development program. This grant supports our ongoing exploration of a copper porphyry mineral system on siri owned lands, while also evaluating the potential for other strategic minerals.
▶ 2:12:35Strategic minerals, including rare earth elements such as graphite, cobalt and tungsten are essential to the us economy and our country's national defense. Many of these minerals are sourced in part from overseas, creating supply chain vulnerabilities. Alaska's geology holds promise for many of these resources, but exploration is complex, capital intensive and often located in remote regions with limited infrastructure.
▶ 2:13:00Programs like emp are essential to helping alaska native corporations and tribes responsibly assess and unlock that potential. We thank the bureau of indian affairs for its continued support, and urge congress to maintain and expand funding for this vital program. Siri's lands also hold large amounts of oil and gas resource, which siri has developed to help bring energy stability to alaska.
▶ 2:13:23Siri currently has 140,000 acres of lands under lease for active oil and gas development, and plays a critical role in attracting independent oil and gas companies to develop new reserves on our lands. Siri has seen firsthand the benefits the development of the resources can provide to our shareholders, our state and the entire us.
▶ 2:13:44We hope to continue to work hand in hand with qualified partners, our permitting agencies and lawmakers to continue to grow alaska's potential and to responsibly develop its resources. Thank you. >> I thank the gentleman. I now recognize Mr. wright for five minutes. Thank you, chairman gosar and ranking member dexter, for. >> the opportunity to testify today. Testifying to this committee has special meaning for me because my representative, representative begich, sits on this committee.
▶ 2:14:15Um, I am an energy and environmental historian at the university of alaska fairbanks. I teach classes and conduct research on alaska history and alaska's energy policies. Uh, I do not speak on behalf of the university of alaska, and I'm speaking today in my personal capacity as an alaskan. There are three key points I'd like this committee to please consider. First, development isn't black or white alaskans care deeply about how our natural resources are developed.
▶ 2:14:44Number two, it's essential that alaskans receive a fair share for our resources. And number three, alaskans need energy choice and energy security. So to dive into these, first, alaskans are pro-development and we are pro-environment. We do not accept any development at any cost. The question is, what kind of development and how will this development enhance the well-being of alaskans? We support sustainable development that delivers long term value to alaskans.
▶ 2:15:14Alaskan republican governor jay hammond offered a three part test for development projects. Do alaskans want it? Does it pay its own way? Is it environmentally sound? In the 1950s and 1960s, federal officials, including new deal democrats, fought to build a giant dam on the yukon river, would have created a reservoir the size of lake erie and flooded half a dozen athabascan villages. It would have also decimated the yukon river salmon populations.
▶ 2:15:40The late representative don young actually started his political career opposing that dam, because he was a school teacher in one of the villages that it would have flooded. So the upshot here is just because we can utilize a resource does not mean that it's wise to do so. Second, we must ensure that alaskans receive a fair share for the development of our resources. This year marks the 70th anniversary of the alaska constitutional convention on the campus of the university of alaska.
▶ 2:16:10Perhaps the most respected speaker at the convention was bob bartlett, alaska's sole territorial delegate to congress. Bartlett focuses speech on what he viewed as the single most important question of alaska statehood, how the new state would manage its resources.
▶ 2:16:26Bartlett told the convention, quote, the story of alaska natural resources has too often been one of exploitation, with very little of the great wealth extracted going to pay for necessary government services and for the permanent development of a sound economy for the people. End quote. This is a challenge that alaska continues to face today. Evidence demonstrates that alaska is not getting a fair share of our resource wealth.
▶ 2:16:53Our schools are closing, our public workers are underpaid, and our families are leaving the state. Developments like willow provide precious little long term value to the state treasury. We have policies which favor the quick accumulation of wealth by outsiders, but do not leave enough for alaskan communities. Third, alaskans need energy freedom, and we need the flexibility to meet our significant challenges. We are an all of the above energy state due to necessity and frontier pragmatism.
▶ 2:17:21We deploy technologies that work in our challenging environments regardless of politics. We invested our oil wealth in low cost hydropower and transmission lines in the 1980s and 1990s, and saved the equivalent of 2 billion gallons of diesel through those prudent investments. While numerous studies have demonstrated that wind power is one of the least expensive options for ratepayers, we have a federal administration that opposes permitting new wind projects. We are being denied our cheapest and cleanest energy sources.
▶ 2:17:51What happened to in all of the above energy policy? Alaskan projects are being delayed and canceled. Companies are going out of business. Power bills are rapidly increasing. The federal government is a key partner in alaska's energy security. Over the past five years, the federal government collectively awarded over $1 billion for alaskan energy development, the single largest investment ever in alaska's electricity system, to put $1.1 billion.
▶ 2:18:18In perspective, it's the same amount of money that the federal government spent to build the alaska railroad, right? This is the rail belt region that you all have heard so much about and got to see us. We have an alaska railroad sized opportunity in front of us. Congress must ensure that appropriated or obligated federal programs, from tribal energy programs to solar for all to the new era program, are unencumbered and accessible.
▶ 2:18:44We have the affordable energy technologies which can power a sustainable future. As jay hammond eloquently put it, alaska is truly a gift outright. It is a gift that keeps giving to all the generations who follow. Thank you. >> thank the gentleman. I now recognize Mr. clark for his five minutes. >> thank you, Mr. >> chair and committee members. >> for the. >> opportunity to speak. Um, my name is clarence clark.
▶ 2:19:12I'm the owner of southeast alaska resources, a forestry consulting business. Um. >> I was asked by the. >> alaska forest association to speak for. Them at this meeting. >> um. >> I must admit, this is as farther than I ever thought I would get away from my day job of speaking in front of you. >> so, again, thank you for the opportunity. The state of alaska. >> is the home to the two largest national forests in the nation, the tongass and the chugach. The chugach national forest is 6.9 million acres.
▶ 2:19:44And 95% of the chugach is in roadless. The forest plan for the chugach has no allowable cut for sawlogs. They do allow the harvest for sawlogs and do approximately 200,000ft a year. In southeast alaska, the federal government owns 94% of all of the land. 85% of that land is in the tongass national forest at 16.8 million acres. 66% of the tongass is in roadless areas.
▶ 2:20:13There are 19 wilderness areas, more than any other national forest, and that contains 5.9 million acres in total, 13.5 million acres of the tongass national forest is in non-development. Land basis.
▶ 2:20:31Land uses that leads to the development land base for the tongass at 3.3 million acres, approximately 20% of the tongass of that 3.3 million acres, approximately 360,000 of those acres are suitable and available under the current force plan. What that really means is 2% of the tongass is available for timber harvest at this time.
▶ 2:20:59The current forest plan has an annual projected timber sale quantity, which used to be called the allowable cut of 46 million board feet on an annual basis. The forest products industry in southeast alaska uses 50 to 55 million board feet a year. Over the last five years, the forest service has offered an average of 2.5 million board foot.
▶ 2:21:23During that five year period, the industry has harvested 11.6 million board feet off of the tongass. The rest of the volume that they use has come from state lands, be it state owned forest, university of alaska lands mental health trust. You've asked for us to talk about in this committee meeting is about unleashing the potential to unleash the potential of the timber industry. The industry needs to ability.
▶ 2:21:52We are currently starting the third forest plan. In the last 17 years, the tongass, the last three administrations, the roadless rule has flip flopped back and forth between being applied to the tongass, not applying to the tongass, to being unemployed again.
▶ 2:22:11There was a press release in 2021 that circumvented the existing forest plan that required the forest service, or gave them the authority to transition immediately to a young, growth dependent timber sale program. The current industry is old growth dependent. What this has done to the forest service employees is my testimony.
▶ 2:22:35I speak of them as a punch drunk boxer who has been knocked out, beat up and confused. Which way do they turn every four years or less? Management direction has changed. When you're looking at three years for an eis project to be completed, the odds of your project ever being completed is pretty high.
▶ 2:23:02Stability means a steady supply, a steady supply of economic timber at a volume that matches the needs. The timber industry, like the wildlife in southeast, is dependent upon old growth timber. We provide high end products for the united states and for the world.
▶ 2:23:23High end products such as if you look around this room, the doors, the trim, the podium, the chairs were sitting in are all wood products, all solid wood. We like to tell everybody that we supply the world music, steinway pianos, one of a high end piano makers in the highest end piano makers in the world, needs and uses only sitka spruce from southeast alaska.
▶ 2:23:55We provide wood for the national defense system. Sitka spruce goes into submarines. It goes into missiles. It is used by nasa for space exploration and providing propellers for their wind tunnels. How do we fix this? How do we provide the stability? We'd like to ask congress to act. You have set aside numerous acres for preservation in the conservation units. Do the same for the timber industry.
▶ 2:24:22Set aside acres that cannot be undone for timber harvest. >> I think the. >> if excuse me, if I could continue. >> well, you're. >> I'm over time. >> excuse me. Thank you very much. Thank you. I'm going to recognize members of the committee for their testimony or questions. And I recognize Mr. westerman. Okay, then I'll start with Mr. begich.
▶ 2:24:52>> thank you. Mr. >> thank you, Mr. chair. My first question to Mr. clark. Um, why is the industry reliant on old growth? What makes old growth so important relative to some of the younger growth timber?
▶ 2:25:14>> the businesses that deal and by purchase timber from the industry in southeast depend on that high growth, high value, high quality wood. We are not an industry that produces two by fours. It's not. We're not a dimensional lumber spaghetti mill. We custom cut high end products for the world. >> so so the old growth has some particular qualities to it that are different from the inherent qualities of young growth. >> it takes years to develop that high end quality in a tree.
▶ 2:25:46>> and how long would you say generally it takes for that those qualities to develop? >> what we're finding now is approximately 250 years before you start seeing those that high in quality. >> and that's what goes into a steinway piano. >> what goes into a steinway piano. That's what goes into, um, the defense submarines, missile heads. >> so when we hear an artist play on a steinway that's 250 years of alaskan growth, and we're reliant on that in order to continue to hear that quality music. Yes. Okay.
▶ 2:26:17>> most of the acoustic guitars built in the us are made with sitka spruce as well. >> thank you. Uh, next question to Mr. tyler. Mr. tyler, the executive order and the recent budget reconciliation bill opened much of alaska for responsible development. What would you like to see that has not yet been done? Back to my comments.
▶ 2:26:43Thank you, congressman, and thank you for your your support and your work on behalf of alaskans. Um, elliott would like to as I noted in my comments, ali would like to see, uh, a more balanced regulatory framework.
▶ 2:26:59Uh, when we're looking at these two mineral projects, exploration projects that we have in the region, we're looking at a 20 year turnaround from exploration discovery to production, and to meet the needs of national security and national defense, um, and mineral independence, that that turnaround is just far too long.
▶ 2:27:24So reviewing regulatory the regulatory framework to make it, uh, to make it more business friendly, I think that's such an important point. And we we discussed this on the committee with frequency, making sure that a american resource, uh, industry, that our industry has the ability to compete at a global scale.
▶ 2:27:44And currently we do not, because in part, the regulatory compliance framework that's in place, as you pointed out in your opening remarks, is serialized. It's not parallelized. And it takes oftentimes decades to move a mine from discovery to production. Uh, Mr.
▶ 2:28:02Kuyper, uh, as it relates to your extensive land, uh, experience and current portfolio with siri, uh, do you welcome this new administration's approach to alaska's oil and gas potential and mineral potential, specifically, given the portfolio that you are currently responsible for? >> yes, I do, and I would agree with Mr. tyler. It's interesting. Um, in my role, my job is in part to interface with the marketplace.
▶ 2:28:30And so whether it's oil producers or mining companies that are interested in exploring resources in alaska, um, the last year, year and a half have spent quite a bit of time, um, exploring new relationships. And what's fascinating about that is there are operators in the mining industry who used to be in alaska many, many years ago and left alaska.
▶ 2:28:53Um, and in fact, some have left the us because the, you know, the scrutiny of, of these excessive regulations. So I think the opportunity to streamline them and of course, do everything in a in appropriate upfront way with transparency and all the environmental sensitivities. But some of these porphyries have been discovered 20, 30 years ago. And, you know, they're real opportunities for alaska in the united states. >> thank you. And and, Mr.
▶ 2:29:21White, I couldn't agree more with your opening remark as it relates to, uh, the fact that alaskans are pro-development and pro-environment. We are both. And I tell folks here, and anytime I get an opportunity, uh, no one's going to going to care about alaska more than alaskan will. And, uh, so I really appreciate that that comment, uh, the permanent fund has been a source of wealth for alaskans, and it was genius in its construction.
▶ 2:29:49When you mention, uh, governor hammond, you know, this construction was so important because we took a temporary resource and turned it into a permanent one for the benefit of the people of alaska. Um, as we think about how we embark on this next, uh, era of resource development, responsible development in alaska. What do you think, uh, the university system can do to make sure that our workforce is, is prepared and that these jobs are going to alaskans? >> thank you very much, representative begich.
▶ 2:30:19Um, you know, absolutely with with the permanent fund and the big picture of the state, I mean, this is arguably the single most intelligent thing that we've done as a state. And I hope to continue to, uh, see that we grow that permanent fund because we now receive more revenue, um, for state government from the permanent fund than we do from oil and gas. Right. We're more of an endowment state than an oil and gas state right now.
▶ 2:30:43Uh, when it comes to the university, I do want to reiterate that I'm speaking on behalf of myself, but I feel so privileged to be amongst colleagues who are doing world class research. Um, whether it's at the institute of northern engineering, uh, figuring out how to engineer in arctic environments, um, or, or whether it's my colleagues in the, in the humanities. And so I do think there is extraordinary potential in alaska, and we need a trained workforce to do that. And there are so many, so many ways to go about doing that.
▶ 2:31:12I just feel privileged to work with those folks. >> thank you. And with that, I'm out of time and I yield back. >> the gentleman, the gentleman from montana, Mr. del, is recognized. >> uh, thank. >> you, Mr. chair. And thank you for the panelists for participating. Um, alaska is blessed with world class energy, mineral timber resources, as is my home state of montana. And both states face the same challenge. Abundant resources held back by washington red tape.
▶ 2:31:41Previous administrations chose preservation over production, costing us jobs, energy independence, and economic growth. President trump's executive orders and congress has worked to roll back. Harmful regulations are turning the tide and the repeal of restrictive roadless rules alone opens the door for new timber jobs and stronger supply chains, with expedited permitting and responsible development, alaska and montana alike can help secure america's resource needs, create jobs across the country, and reduce
▶ 2:32:12Dependance on foreign adversaries. Uh, for my questions, I'm going to start with Mr. tyler. How do reforms like the roadless rule repeal open up new opportunities for alaska native corporations and shareholders to benefit from resource development while maintaining conservation? >> thank you. Congressman. Uh, I don't think I'm the person to speak to the roadless rule specifically.
▶ 2:32:39Uh, it's more of a southeast issue, though I can say that the, um, that the king cove road is a is a top issue for the aleut corporation. And the people in, in the aleutian region. And, uh, with the help of congressman begich and this administration, we were working to, uh, to, uh, see a land exchange through that provides for that king cove road. >> right. Thank you. Um, and anybody else on the panel want to respond to that one or we'll move on. Um, Mr. clark.
▶ 2:33:08>> if I could, I think there's been a lot of conversation this morning in regards to electricity and the cost of electricity. The roadless rule has been detrimental in the ability for communities in northern southeast to develop reasonably cost electricity. There are six communities in northern southeast that the electrical associations, companies that provide them power have furca permits for hydro projects.
▶ 2:33:36They are currently uneconomical because of the requirements put in the ferc permit by roadless rules, uh, such things as painting the infrastructure to match the timber or to match the landscape. Um, again, these small villages are spending upwards of $1 million a year for diesel fuel.
▶ 2:33:59For electricity, they're paying 40 to $0.50 a kilowatt hour instead of the 11 to $0.15 for hydropower. So roadless rule is, is stopping that economic development, making life in small villages able to continue. >> right. Thank you. Uh, Mr.
▶ 2:34:22Kiper, just curious if you have anything to add as the leader of the cook inlet region, how this repeal, uh, may improve the ability to responsibly develop resources and provide long term economic benefits, uh, for the region. Any any further comments on there? >> I'm sorry. Could you repeat the question? I'm deaf in my left. Oh. >> I'm sorry, I was just going to say, as the leader of the cook inlet region, how does the repeal of the roadless rule improve the ability to responsibly develop resources and provide long term economic benefits for the region?
▶ 2:34:52>> I think that's probably more relevant to western alaska than than south central. >> okay. Well, then I'm just going to move on and I'll open this up to the panel. So looking ahead, uh, to to any of you, uh, what more should congress do to ensure that our nation's abundant resources are developed responsibly to strengthen us energy independence, national security and economic prosperity? Uh, I'll start with, uh, Mr. wright, we haven't heard from you yet.
▶ 2:35:21>> thank you for the question, congressman. I would reiterate what I said in my opening comments. Right. Alaska has been given a golden opportunity. Right. And alaska railroad sized opportunity to develop our renewable resources. And many of those funds, uh, unfortunately, are encumbered right now. And our people need access to those funds to develop the crucially needed energy, not simply to export from alaska, but to use, uh, in our local environments. >> right. Thank you. Any last seconds? Anybody else want to comment on that, Mr. tyler? >> yes, sir. Thank you.
▶ 2:35:51Um, I, I didn't specifically mention this in my comments, but I alluded to it and I'll say it explicitly here, and that's that local voices matter. So we ask that you listen to the people who are there and the people who are on the ground and carry out their wishes. And as Mr. white pointed to, alaskans are pro resource development. Thank you. >> well, um, quickly, we're almost out of time, Mr. cooper.
▶ 2:36:20>> I might just add that from a resource management perspective, you know, china has proactively sought to gain control of refining, especially in the mining industry. So if you look at 24 of the top 25 industrial metals, china has more than 50% refining capacity. Um, and so the us has fallen behind both in mining and refining capacity. >> all right. Well, thank you all for participating. And on that, Mr. chair, I yield. >> thank you. The gentleman yields gentleman from minnesota. Mr. stauber. >> thank you very much, Mr.
▶ 2:36:52Chair. Before I begin, I want to ask unanimous consent to submit to the record a report titled alaska lng good for alaskans, explaining the greenhouse gas benefits and determinations from epa that alaska lng would actually improve air quality in the state through lower emissions energy resources. Thank you, Mr. tyler. Uh ancsa.
▶ 2:37:11Set up a very unique system of governance and economic development for alaska native people, which is much different from the reservation system that native american communities in the lower 48 operate under, while alaska native corporations like elliott corporation are given great opportunity to responsibly develop their natural resources. Under ancsa, you do not have full autonomy, and the federal government still has a lot of power and plays a significant role in this regard.
▶ 2:37:40How have you seen the federal government hold the aleut people back? In other words, how is the federal government been a hindrance to your economic development and ultimate success? >> thank you, congressman, and I don't know if this is official or not, but you are, uh, you are an honorary alaskan, and we welcome you to the state all the time. >> proud to be here. >> thank you for your support.
▶ 2:38:05Um, some of the some of the activities that hinder our ability to develop our land have to do with land ownership. And I've mentioned the king cove road a couple of times in my, in my discussions here. Um, that is a simple land exchange with us fish and wildlife service that has dragged on for years and ignoring the local voices, uh, in the community to complete this land exchange.
▶ 2:38:33And to be honest, it's a land exchange that benefits the us fish and wildlife service. Uh, it is a favorable land exchange to the us fish and wildlife service. Similarly, aleut is in negotiations with fish and wildlife service for a land exchange for the copper project that I mentioned.
▶ 2:38:50And while I will say that the us fish and wildlife service has been cooperative because, again, it is a favorable land exchange for the us fish and wildlife service, um, it's the process has taken years and it just adds to the length of time that it takes to bring a discovery to development and production.
▶ 2:39:12>> no, you had mentioned it's actually on average, it takes 29 years to, uh, permit a mine here, uh, in the united states of america, um, the country of zambia is the only country that takes longer. It's just it's just wrong in so many ways. Uh, also in your testimony, you mentioned some of the potential mining projects that the corporation is partnering on to explore and potentially develop, including the gold deposits found on unga island and the copper deposits north of sandpoint.
▶ 2:39:40Can, uh, can you speak to what these opportunities mean? >> yeah, absolutely. Um, so unga island and the prospect that's just north of sandpoint, all very close to the sandpoint community. Um, sandpoint community is supportive of these mining projects, despite the fact that that is a fishing community.
▶ 2:40:01The people in sandpoint welcome the economic opportunity and the opportunity to have well-paying jobs in the region and in the community, allowing them to stay in their home, uh, as opposed to having to leave because they don't have the economic opportunity that's there. >> so so it's safe to say the people support responsible mining and want to see their resources responsibly mined and developed. >> that's correct, sir. >> if it's not mined or it's not grown, it doesn't exist.
▶ 2:40:32Mr. clark, responsible timber harvesting is one of the backbone industries for the district that I represent in northern minnesota. So I really appreciate your commitment to and support of responsible timber harvesting. Timber harvesting is an important tool for sustainable forest and landscape management, along with protection of our environment. I always like to remind folks, one of the best ways to sequester carbon from the atmosphere is to manufacture and enduring wood product.
▶ 2:40:56Expanding on your testimony, how will the policy changes the trump administration making like the rescissions of the roadless rule, led to a healthier, more sustainable forest. >> with the roadless rule going away. Excuse me? Going away? Um, it opens up some more land that's available for harvest.
▶ 2:41:21And so instead of, um, operating on that 2% of the tongass, we could operate on a larger platform. So we're not as intensely managing any timber resource in any given set of acres. Um, it it provides us the opportunity to, I should say this. The state of alaska is working with a shared stewardship agreement with the forest service, which, um, provides a partnership between the state and the forest service, where they can help each other manage timber sales.
▶ 2:41:52So, um, the state has very little land in southeast being able to connect their lands with forest service lands and to offer combined timber sales will make a huge difference to the industry. Um, being able to look at and think about and talk about managing on a longer rotation. So instead of cutting old growth and and producing young growth trees that we cut two by fours, why aren't we managing old growth to produce old growth long term rotation?
▶ 2:42:19Let's let's not change the tongass national forest from an old growth forest to, uh, a spaghetti mill which is producing dimensional lumber. Let's keep it an old growth forest. There's a lot of value for the timber industry as well as wildlife, as salmon subsistence. >> yeah. So it's safe to say the rescission of the roadless rule. It's not going to lead to the destruction of tongass national forest or other national forests in alaska. Is that correct? >> that's correct, sir. >> and, Mr. chair, yield back. >> thank you.
▶ 2:42:48I thank the gentleman. The gentleman from utah, miss malloy, is recognized for five minutes. >> thank you, Mr. chairman. I don't have very many questions. So, Mr. clark, at the end of your testimony, you had a couple of points that you wanted to make and didn't have time to make. Do you want to take a couple of minutes and finish your testimony? >> thank you very much. I appreciate that. Uh, the one thing I really wanted to say is.
▶ 2:43:11It would be nice if congress would look at beefing up anilca and why I say that is the federal agencies for the last 45 years since the passing of nlca, has developed workarounds to the no more clause. Um, we'll look at the chugach national forest, where there is a million plus acre wilderness study area that's been ongoing for decades. Uh anilca.
▶ 2:43:34Basically says within a year, if congress doesn't act and make it a wilderness, that it should become part of the development land base or not set aside. Um, we look at the roadless rule. To me, that's another set aside that anilca says no more. We have reached a balance. Um, when we look at the non-development lands in the tongass national forest, again, those are workarounds.
▶ 2:43:58They're not part of the conservation unit system, but they are set asides that prevent the use of those resources. So again, being able to say no more federal agencies, congress has acted. This is what we want. We think we've reached a balance, manage the federal lands accordingly. >> thank you.
▶ 2:44:23So as I've been sitting here listening to you all testify, I'm struck by a couple of things. You know, if we're only utilizing 2% of the tongass national forest and we're falling behind china when it comes to being able to process resources, and I just went to alaska in august. It was my first trip there. And alaska is a resource rich state. And you're all saying that alaskans are pro production.
▶ 2:44:51It feels like we're standing knee deep in a river and dying of thirst up there where we've got resources, but we're just not developing them. Um, and so this is a question for the whole panel, you know, as we're working to make sure we're protecting and restoring multiple use principles on our federal lands, and we have jurisdiction over natural resources for the federal government, what specific regulatory reforms would you
▶ 2:45:22Like to see that would benefit, um, alaska and and the nation by allowing us to use our natural resources. And if you're all right with it, I'll just start with Mr. tyler and work my way back to Mr. clark. >> I would just I would just echo my comments on, um, streamlining the regulatory process to shorten the the distance between, uh, discovery and and production. >> I'll give you a hallelujah and amen on that.
▶ 2:45:52>> thank you. Ma'am. >> uh, thank you for the question. I called out the bia grant program in my testimony. And so I think there's the reform that's required on the regulatory side. But I also think there's the exploration and funding and the ability to attract partners. And I will tell you that the bia funds that we've spent have produced the kind of field research that is sufficient to attract interest, which is real.
▶ 2:46:16So the marketplace benefits from actually having that early stage exploration work funded by bia. So I appreciate that program very much. >> thank you, Mr. white. Quickly. >> thank you for the question. Yeah. You know, I would really underscore something that my colleague said, which is about stability.
▶ 2:46:33And I think actually what we saw in the past five years with the passage of the inflation reduction act was a coherent industrial policy which sent very clear signals to the market, um, not just in terms of our supply chain, but also on the demand side, right. Getting american consumers to buy some of these technologies, alaskan consumers to buy some of these technologies, that makes a real difference in our daily lives. Right? I got a 30% tax credit for installing solar panels on my home, because we pay close to $0.30 per kilowatt hour for electricity.
▶ 2:47:03So I would really encourage us to think about a coherent industrial policy that makes sure that we have both the supply side and the demand side of the equation. >> thank you. All right, Mr. clark, you might run out of time again. I've only got 30s. >> I'll try to be quick this time. Having congress act pass laws. Uh, multiple use, sustained yield. National forest management act, tongass timber reform act. They have stood the test of time.
▶ 2:47:28Let's let's move away from executive orders, memorandums, press releases. Items that can be changed quickly in four years or less. That's we need stability and laws, I think provide us that stability. >> all right. Thank you. You did that in less than 30s, Mr. chair. >> I the gentlelady is the ranking member, miss dexter, for her five minutes. >> thank you. And I very much appreciate all of your testimony. And, Mr.
▶ 2:47:56Clark, it felt like a very clear segue for me, because I think what you're saying I'm hearing from our timber companies and people across oregon, they want stability or even our businesses. Um, and what I know of alaskans is very similar to oregonians. They're fiercely independent. Um, I very much appreciate what I heard about the permanent fund, that you were getting more revenue from that than the harvesting of oil and gas. Mr.
▶ 2:48:24White, um, I think that that sort of independence is born from people who had to make do on their own. And that is absolutely true in alaska. Um. Mr. right. I also, um, with you being a historian, just want to make sure everyone's clear we share statehood in the 59 year but a century apart, just to be clear about that.
▶ 2:48:46Um, so, doctor white, can you explain briefly what the proposed energy project project at shovel creek is and why it's now in trouble? Just really focusing on that independence. >> yeah, absolutely. So, um, excuse me. >> uh, absolutely. Thank you for the question. So I'm here in, uh, I live in fairbanks, alaska. We have high energy bills like much of the rest of the state.
▶ 2:49:08Even though we're on the rail belt, the more developed part, um, and people don't often think about it, but we actually have phenomenal wind resources in the interior, especially in the middle of the arctic winter. And the wind blows like heck in the middle of the night. Um, and so this is a project on the outskirts of town, various iterations between 100, up to 200mw. Um, that would provide our local community with up to 30% of our electricity needs.
▶ 2:49:34Um, and it is a project which is, um, study after study has shown that this is, uh, you know, really competitive energy for us. It's one of the best energy prospects for us. That's that project still needs federal, uh, permits before it can move forward. And because of that, it has really slowed down the permitting of that project. Um, because we're waiting on those federal permits. >> interesting. Permitting continues to come up.
▶ 2:50:01So obviously we have some work to do there. Are there other renewable projects in alaska that are in trouble because of permitting or executive order changes? >> yeah. Um, both in rural alaska and on the rail belt. Maybe I'll focus on the rail belt. Um, so we were seeing some phenomenal, uh, solar developments, especially in south central places like houston and willow. And, um, those projects were coming in for less than avoided cost. So less than the cost of the fuel to burn.
▶ 2:50:29And unfortunately, that the company that was developing those has gone under. I had a good friend who worked for that company that lost his job, and part of that was the loss of the, um, the policy certainty, right, that there would be a tax credit for those projects. Um, and so, you know, like I said, we are seeing companies go out of business and we are at a moment in time in the railbelt, um, where we are facing this natural gas cliff. And so we need, um, every electron that we can get to help provide energy security for alaskans.
▶ 2:50:59>> I appreciate that. I'm going to pivot really quickly to Mr. clarke. You mentioned, um, the old growth harvest and the importance of the number of years that those trees grow for the quality of the wood. Do you only sell those old growth, um, products to high quality makers like steinway and to the department of defense for submarines? Or could anyone buy that wood? >> anyone can buy that.
▶ 2:51:27I can mention a small operation in craig on prince of wales island. It's a father son company. They deal with high end music. Wood again. They have some 4000 different clients that they sell blanks for guitars, for stringed instruments. Um, so yeah, there's there's anything. What I haven't mentioned is if we talk about cultural use, it takes a long time to grow a tree to make a totem pole. And there is that. >> sorry.
▶ 2:51:56Just to because I'm cognizant of my time. My guess is you don't want to just cut it all down and then be done with it. I've heard that sustainable harvesting is a primary issue for you. Is that accurate? >> that's correct. Why would we cut ourselves out of business? >> I appreciate that. I want to now pivot to Mr. white. Do you have examples of where old growth harvesting has led to poor use? Um, I understand there was mulching happening in japan, perhaps with old growth wood.
▶ 2:52:25Um, if you could just help us understand, like, are we being sustainable in how we sell and harvest? >> yeah. So I'll start by saying that I'm not I'm not an expert on the topic. And I'm happy to provide a follow up for the record. But, you know, historically, a lot of the timber operations from southeast alaska, we had, um, large pulping operations that were happening. The japanese had a large, uh, plant.
▶ 2:52:47Um, and so, uh, I would think it is fair to say that historically the wood has not been used as prudently as perhaps it is being used today. >> that is a great place to end, and hopefully we can aspire to that for the future. I yield back, Mr. chair. >> Mr. clark, great, great comments. Um, I'm from arizona. We haven't had the, uh, exercise we had before service. In fact, we have these huge, large fires.
▶ 2:53:15Now, you said something about, um, you know, certainty. Well, one of those things that gave certainty was the taylor grazing act. So this was a time that after teddy roosevelt took all these monuments into custody, there's a group that went around and said, listen, we're going to use these responsibly, these lands we're going to harvest. We have a dedicated money towards and sustainability of forests and said, you have to graze. You have to use multiple use doctrine. Okay.
▶ 2:53:41So with that in mind, do all forests actually grow the same? Are they treated the same? All forests? >> no. >> well, I mean, I'm very much like you guys. We have big trees I have in my yard. There are over 250 years old, but they're not worth much they can use, you know, seed and lumber and stuff like that, but we can't. I worked with the forest service. I worked with the democrat, uh, and we tried to get this, these catastrophic fires off, off the list.
▶ 2:54:10So typically, a ponderosa pine will grow 40 to 60 trees per acre. We have acres that have 1200 to 1500 of them. So the dynamics of fire are very different. They can take the heat from a grassland fire, but they can't take it up in the canopy. So we have to manage those a little bit differently. But we have been kicked out of the forest and that roadless rule is principal to that. I wanted that, so I'm really hitting.
▶ 2:54:38Does it take a long time for our road to be, uh, terminated? Like say, for example, go back to nature. >> for a road itself? >> yeah. >> roseville in southeast alaska, roads will start developing or have trees grow on them 20, 30 years after if the road is not maintained, if the roads are maintained, the road will last forever. >> yeah. There you go.
▶ 2:55:03Um, and then when you, uh, the ranking member made a comment about sustainable forests, um, we're using a lot differently, right? You just made the comment that you use it for finance. I have one of those instruments, so I love those. So we're using our timber very differently. We're learning about these forests. Right. >> yes.
▶ 2:55:25We are as we're learning about everything and we learn about timber products as we develop and as we as we grow. Um, cross-laminated timbers. Uh, it's a new technology where we're starting to build panels where we can build skyscrapers instead of using concrete and iron. Um, it's a wood product. We cannot live. I think, as everyone knows, without wood products, we would not last a day without wood products. >> you're saying we really have to use it responsibly, right?
▶ 2:55:55Yes, but the key word here is use. Use. Yes. Okay. >> and if I could, I'll say this in your comments about the ponderosa pine. I truly believe, and I think most of the industry believes that once we start managing a stand of timber, it's our responsibility to manage that stand forever. Once we walk away or we stop managing, that's when we have issues such as wildland fires that you were seeing in the west. We it's our responsibility if we're not going to manage forever. Don't.
▶ 2:56:27>> right. And I think you're leading to the aspect that we have to have, uh, more nimble lumber mills and that maybe many lumber mills. Right? >> yes. There's there's some that, um, if I could add, there's basically two types of mills.
▶ 2:56:43Um, there's what we call a spaghetti mill, which is a fast high mill that takes a set diameter logs, and they pass them through one at a one log at a time, one pass, and they make dimensional lumber in general. Or we look at the mills like we have in southeast alaska, which are high grade mills, quality mills, where they will take that log, look at that log, turn it multiple times and cut from that.
▶ 2:57:08And all they're doing is trying to cut the grade, the quality out of that. They'll take the time. The cost of doing that is much more than that high computer generated mill. But we're talking quality and using the highest use for that tree, that log. >> okay, so I'm a little different tack now. Um, I have a bill that's called the the lasso act. And what it basically does, it takes all our public lands.
▶ 2:57:36It takes 10% of the revenues that come off those public lands and put it in this fund. I benefited from a fund like in wyoming. Uh, the gentleman from alaska benefits from the permanent fund. Do you guys find that something that we could get back to and maybe get the resources back in the hands of the people where it belongs? I'll start with you, Mr. tyler. >> I think there's a I think that there's an avenue for that. I think, uh, the alaska permanent fund shows a success of that. >> yeah. How about you, Mr. keeler?
▶ 2:58:07>> well, I had the benefit of, um, visiting norway three weeks ago and learned a lot about their equivalent to their permanent fund, as you may know, which is over $1 trillion with a population of 6 million. So it works. >> how about you? >> yeah, I think, uh, the example of the alaska permanent fund is a great one. And that was specifically thinking about nonrenewable resources because we wanted to turn those into renewable resources with the permanent funds. So it'd be interesting to consider how it would work for a more renewable resource like timber.
▶ 2:58:37But I think norway is exactly the model that we should aspire to, you know, um, they, uh, have not pumped that much more oil than we have, but they're sovereign. Wealth fund is something like 20 times the size. So there are a lot of important lessons to learn there. >> how about you, Mr. clark? >> I'll agree with the three other speakers.
▶ 2:58:56I'll also say, um, truly believe in good neighbor authority and stewardship contracting that the forest service uses because that money generated stays on that force to do work on that forest. And instead of coming back to to dc to go into the federal coffers. >> to take one more liberty, I'm going to ask you, what was the question you were most wanted to be asked? It wasn't asked. And what's the answer? Okay, we'll start with you, Mr. tyler. >> well, that's the tough part of being on this end of the table.
▶ 2:59:24I always get those questions first. Um, the question that I wanted to be asked that I wasn't asked about was in the answer and the answer to. It's tough round here. Um. I wanted to talk more about alaska native corporations and ancsa and specifically the 70 provision in ancsa 70 provision was touched on in the previous panel.
▶ 2:59:53Um, and I could talk all day about alaska native corporations and 70, but 70 is a is an agreement where, um, it requires corporations, alaska native corporations to share 70% of resource revenues with each other. So take a moment and imagine if microsoft was required to share 70% of its profits with apple and meta it.
▶ 3:00:22It boggles the mind, but it's a strategy that was set up with the creation of ancsa that ensured no community was left behind simply because their lack of oil, gas or minerals. And for more than 50 years, this revenue sharing has embodied the alaska native value that prosperity should be shared. Thank you. >> uh, I agree with that. Actually, I would say, um, the phenomenon of the anc is, is fascinating for somebody like me.
▶ 3:00:51I was actually born and raised in hawaii. And as you may know, the experience of the hawaiians is very different than the experience of the alaskans. In 1851, the kingdom decided to adopt private property rights. In 25 years, the kingdom sold 70% of its lands, and 20 years later there was no more kingdom.
▶ 3:01:09Um, and so what I think is very interesting about alaskans having their home and their land together and to help culturally preserve what is important to them, their values, but the responsibility to the community to actually give back as part of this, the phenomenon of the of the seven I, seven j.
▶ 3:01:29And if you look at the three example series distributed over $1 billion to its shareholders and descendants since its birth, and, um, one of, uh, the social services organizations that helped establish was the southcentral foundation, with early funding, which is now a $700 million enterprise providing health care to our community in south central.
▶ 3:01:51So it's amazing the impact that can that can be had with the compounding of distributions and support to the community to create enterprises like health care provider with recurring revenue, to provide health care to our citizens. >> yes. >> thank you for the question, Mr. chairman. Um, so, uh, the question that I would love to be asked is about the benefit of clean electrification for local alaskans, right?
▶ 3:02:17For our daily lives, we often think, you know, alaska is different in many ways. Um, but we also now have technologies for the first time that can make an incredible difference in our quality of life. Right? So, um, you know, at a high level, when we think about this, this has to do with heating. It has to do with transportation. I drive an electric vehicle in fairbanks, alaska, at -40. It is the most reliable, phenomenal vehicle you could ask for. Um, I drove it up, uh, all the way from the lower 48 to alaska.
▶ 3:02:47Um, I use a heat pump. Right. Both the ev and the heat pump use about a third of the energy as their fossil fueled counterparts, and I can power both of those from energy that I collect in my yard. Right. That's phenomenal. If we were to electrify the entire economy and power that off of clean, zero carbon energy sources, it would actually require half the amount of primary energy, because those devices are so efficient.
▶ 3:03:12Um, and so I think, you know, alaska is different. Um, obviously, you know, we still need, um, petroleum and a lot of products, but we have a phenomenal opportunity in front of us to deploy these technologies, which can displace diesel dependance, save us a lot of money, and really improve the quality of our lives. >> Mr. clark.
▶ 3:03:36>> I was hoping for a question about land ownership in southeast alaska and the fact that there is very little private land in southeast, which is stagnating the communities. There is no room for to for growth because almost all of the land is federal land. So how do we grow our communities? How do we sustain an economy when we're have no place to go, no place to grow?
▶ 3:04:01Um, I like the idea of the concept of the alaska mental health trust and the fact that we've set aside land for the mental health trust to help cover the cost of dealing with people at risk. Personally, it's really, really important to me is I have a son who is a trustee or a beneficiary of the trust, and that means a lot to me to be able to see that land use, land management, money generated from that is going for a purpose that we need to take care of. We need to take care of our people at risk.
▶ 3:04:31And so again, land ownership, how do we grow our economy? >> well, I think you got something there because there was a thing called equal footing clause that basically said the original 13 got these lands, that they're not the federal government. They're destined to the state and private ownership. And that's what we're all promised and we're never given it. So it just as an fyi, might want to concentrate there. Hey, thank you so very much for the for staying for the questions.
▶ 3:04:59Now, the members may have some different questions to be asked. We ask you that. You ask that you answer them. And those responses in writing under committee rule three, members of the committee will submit these questions to the subcommittee clerk by 5 p.m. On friday, september 19th. The hearing record will be held open for ten business days for these responses. If there's no further business.