Legislature(2011 - 2012)BARNES 124

04/07/2011 08:00 AM House ECON. DEV., TRADE & TOURISM


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08:03:22 AM Start
08:04:03 AM Presentation: Biomass Boiler Heating Systems
08:13:05 AM HJR27
08:42:56 AM HB222
09:06:36 AM HB191
09:37:19 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Presentation: Biomass Boiler Heating Systems by TELECONFERENCED
Representative Thompson
*+ HJR 27 RELOCATE COASTAL VILLAGES REGION FUND TELECONFERENCED
Moved Out of Committee
*+ HB 222 AK PROMOTION & MARKETING FUND/BOARD TELECONFERENCED
Heard & Held
+= HB 191 DEPARTMENT OF AGRICULTURE AND FOOD TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HJR 27-RELOCATE COASTAL VILLAGES REGION FUND                                                                      
                                                                                                                                
8:13:05 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced  that the next order  of business would                                                               
be HOUSE  JOINT RESOLUTION NO.  27, Supporting the  relocation of                                                               
the home port  of the Coastal Villages Region  Fund fishing fleet                                                               
from Seattle to Alaska.                                                                                                         
                                                                                                                                
8:13:18 AM                                                                                                                    
                                                                                                                                
KATIE KOESTER,  Staff, Representative  Paul Seaton,  Alaska State                                                               
Legislature, stated  HJR 27 is  a resolution to  support bringing                                                               
the Alaska  fishing fleet  home.  She  reminded the  committee of                                                               
the 3/31/11  presentation by representatives of  Seward detailing                                                               
the  merits  of  this  initiative,  and  that  several  committee                                                               
members have signed  as co-sponsors.  Ms. Koester said  HJR 27 is                                                               
an  effort to  bring about  economic  development in  all of  the                                                               
state by encouraging  the Coastal Villages Region  Fund (CVRF) to                                                               
homeport its  fleet in Seward.   Coastal Villages Region  Fund is                                                               
one of  six Community  Development Quota  (CDQ) groups  that were                                                               
developed  in the  '90s  and given  "a stake  in  the Bering  Sea                                                               
fisheries."  The  CDQ groups represent 65  Bering Sea communities                                                               
and  are required  to reinvest  their profits,  bringing economic                                                               
development, jobs,  and hope  to coastal  villages in  the Bering                                                               
Sea  region.    Coastal  Villages  Region  Fund  is  the  largest                                                               
Alaskan-owned  and Alaska-based  fishery  company, with  expected                                                               
seafood  sales  in  the  amount  of $75  million  in  2011.    In                                                               
addition, CVRF has an impressive  fleet of vessels that spend $5-                                                               
$10 million on  maintenance each year, $20 million  in moorage in                                                               
Seattle,  and $10  million on  crew annually.   She  relayed that                                                               
CVRF wants  to return its  fleet, crews, and  jobs to Alaska.   A                                                               
survey indicated  that the  requirements to  homeport a  fleet of                                                               
this size are:  a year  around ice-free port; road, rail, and air                                                               
access;  space for  harbor and  uplands  development; a  maritime                                                               
licensing  facility.   Nearby Seward  is able  to provide  all of                                                               
these  services,  in  addition  to   a  drydock  and  the  Alaska                                                               
Vocational Technical Center (AVTEC),  which is an educational and                                                               
licensing  facility.   Ms. Koester  restated the  purpose of  the                                                               
resolution  is about  economic development,  and she  pointed out                                                               
the  letters of  support from  around  the state  and the  Alaska                                                               
Congressional   delegation  found   in   the  committee   packet.                                                               
Furthermore, the  City of Seward  has funded a  preliminary study                                                               
in favor of  this issue, the U.S. Corps of  Engineers (USACE) has                                                               
found that the relocation is  economically feasible, and CVRF has                                                               
determined that Seward is the best choice for an Alaska port.                                                                   
                                                                                                                                
8:18:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER   has  heard   from  a   Seward  resident                                                               
questioning the  city's public process  prior to  the engineering                                                               
study  on this  issue.   Also,  she asked  about  any efforts  on                                                               
Seattle's part to keep the fleet there.                                                                                         
                                                                                                                                
8:19:23 AM                                                                                                                    
                                                                                                                                
MS. KOESTER  said Seward did a  small study at a  cost of $5,000,                                                               
and  has  submitted a  capital  budget  request for  $400,000  to                                                               
complete  an   in-depth  study  that  would   incorporate  public                                                               
testimony.   Regarding a response  from the Port of  Seattle, she                                                               
opined  it is  the legislature's  responsibility to  advocate for                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR HERRON  observed a fleet of  this size is important  to any                                                               
economic region.                                                                                                                
                                                                                                                                
8:20:43 AM                                                                                                                    
                                                                                                                                
CHAIR HERRON opened public testimony.                                                                                           
                                                                                                                                
8:21:55 AM                                                                                                                    
                                                                                                                                
WILLARD DUNHAM, Mayor, City of  Seward, expressed his belief that                                                               
this is  a unique opportunity  in that an industry  is interested                                                               
in  moving its  operation  to Alaska.   The  City  of Seward  has                                                               
passed  two resolutions  and has  held public  hearings regarding                                                               
this issue;  in fact, the  property involved is a  476-acre tract                                                               
zoned for industrial use.  He  advised the idea for the expansion                                                               
of the port has been vetted  in the community and is supported by                                                               
most residents.  Mr. Dunham agreed  that there will be a reaction                                                               
from the Port of Seattle; furthermore,  if all six CDQs decide to                                                               
move, that would entail a fleet of 200 vessels.                                                                                 
                                                                                                                                
8:25:30 AM                                                                                                                    
                                                                                                                                
PHILLIP OATES,  City Manager, City  of Seward, added that  one of                                                               
the resolutions  passed by Seward was  a comprehensive resolution                                                               
outlining the merits  of the proposed project.    The first phase                                                               
of the project  will be built onto existing  infrastructure in an                                                               
area  that already  has been  permitted.   Dr. Oates  assured the                                                               
committee  Seward  will continue  to  address  concerns from  its                                                               
residents.    He  advised  that   members  of  the  Congressional                                                               
delegation felt that  the Port of Seattle may not  have an impact                                                               
on the CVRF  phase of this project, because federal  money is not                                                               
involved.  In fact, the ultimate  funding for the project will be                                                               
a  combination of  general obligation  (GEO) bonds  at the  state                                                               
level,  revenue  bonds at  the  local  level, and  public-private                                                               
financing.     He   called  attention   to  documents   from  the                                                               
Congressional delegation  and others  in full  support of  HJR 27                                                               
that are found in the committee packet.                                                                                         
                                                                                                                                
8:29:01 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON stated his intent  for the committee to visit the                                                               
site  during interim.    He asked  Dr. Oates  to  comment on  the                                                               
significance of the support from the Congressional delegation.                                                                  
                                                                                                                                
DR.  OATES  opined  that  the   support  from  the  Congressional                                                               
delegation indicates  that they  see this  as the  fulfillment of                                                               
the vision of  the original purpose of the CDQ  groups, which was                                                               
to strengthen  the American presence  in the fishing  fleets that                                                               
were  formally  dominated  by foreign  vessels,  and  to  provide                                                               
quotas to the  communities surrounding the fishing  areas.  Also,                                                               
CDQ groups allow for the  reinvestment of profits into education,                                                               
and growth of the local fishing  industry.  Dr. Oates pointed out                                                               
that support for  HJR 27 extends from both  political parties and                                                               
urges other CDQ groups to move their homeports to Alaska.                                                                       
                                                                                                                                
8:32:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER asked how the resolution would help.                                                                      
                                                                                                                                
DR. OATES  said the resolution  indicates there is  solid support                                                               
at  all  levels   for  the  project,  which   always  helps  with                                                               
permitting.   In addition,  the resolution  will indicate  to the                                                               
Senate and the governor that  the House supports Seward's capital                                                               
budget  request to  pay for  the full  engineering, geotechnical,                                                               
and economic analysis of the project and its costs.                                                                             
                                                                                                                                
8:33:49 AM                                                                                                                    
                                                                                                                                
MR.  DUNHAM added  that fishing  organizations are  supportive of                                                               
the project.                                                                                                                    
                                                                                                                                
NEIL  RODRIGUEZ,  Regulatory  Manager,  Coastal  Villages  Region                                                               
Fund, affirmed that moving the fleet  is a long-time goal for the                                                               
CDQ program and a benefit to the fishing industry.                                                                              
                                                                                                                                
8:35:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALAN AUSTERMAN,  Alaska State Legislature, relayed                                                               
his  experience as  a commercial  fisherman in  the '60s  when he                                                               
watched foreign  fishing vessels  interfere with and  destroy his                                                               
crab pots.   Today, through  the Congressional imposition  of the                                                               
three-mile  limit,  the  fisheries  are  American,  but  are  not                                                               
Alaskan.  The  value of the fishery in the  Bristol Bay region is                                                               
between  $2.3 billion  and $2.5  billion, but  90 percent  of the                                                               
jobs and profits  go to Seattle and Oregon.   He opined the value                                                               
of keeping  fleet jobs  and support services  in Alaska  is "mind                                                               
boggling."   Representative Austerman  strongly supported  HJR 27                                                               
and the idea of bringing all of the CDQ groups back to Alaska.                                                                  
                                                                                                                                
8:39:04 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON closed public testimony.                                                                                        
                                                                                                                                
8:39:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK stated that HJR  27 represents a great vision                                                               
and  plan, and  an  opportunity  to keep  money  in  Alaska.   In                                                               
addition, the  move would  create new  industries to  support the                                                               
fishing fleet.   He expressed his support for  the resolution and                                                               
said he would like to participate as a co-sponsor.                                                                              
                                                                                                                                
REPRESENTATIVE  FOSTER  observed that  the  power  and impact  on                                                               
Western Alaska  of the CDQ  program -  which brings an  influx of                                                               
jobs and money to small villages - has been amazing.                                                                            
                                                                                                                                
8:40:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved to report  HJR 27, Version 27-LS0780\M,                                                               
from   committee   with   individual  recommendations   and   the                                                               
accompanying fiscal note.   There being no objection,  HJR 27 was                                                               
reported   from  the   House   Special   Committee  on   Economic                                                               
Development, International Trade and Tourism.                                                                                   
                                                                                                                                
8:41:42 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:41 a.m. to 8:42 a.m.                                                                       
                                                                                                                                
8:42:40 AM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
EDT 4.7.11 Biomass Heating Powerpoint.pdf HEDT 4/7/2011 8:00:00 AM
HB 191 Alaska's State-Funded Ag Projects and Policy.pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - SPONSOR_STATEMENT_HB_191 (Revised #2).pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - 14 Fiscal Notes.pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB222-CCED-DED-04-01-11.pdf HEDT 4/7/2011 8:00:00 AM
HB 222
HB 222 Sponsor Statement.docx HEDT 4/7/2011 8:00:00 AM
HB 222
HJR 27 CVRF letter.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 KPB resolution of support.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 KPED resoultion of support.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 PND economic and scoping study.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 sponsor statment.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 letter from congressional delegation.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HB 191 - Back-up.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Div of Ag - Building a sustainable agriculture industry.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Div. of Ag - Dev. Component from FY12 Budget.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Letter of Opposition.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Letters of Support.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Sectional Analysis (updated).pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Alaska Farm Bureau.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 222 - Sectional Analysis.PDF HEDT 4/7/2011 8:00:00 AM
HB 222
HB 191 - Hollembaek LTR of Support.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HJR 27 - Fiscal Note (Zero) Corrected.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27