Legislature(1993 - 1994)
04/12/1993 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 269 An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; and providing for an effective date. HB 269 was held in Committee for further discussion. CONSENT AGENDA HOUSE BILL 269 "An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; and providing for an effective date." JEROME SHELBY, (teleconference), MAYOR, CITY OF KODIAK, KODIAK, ALASKA, noted his disappointment with the proposed legislation. He pointed out that Kodiak experienced over 50% of the damages from the oil spill although they are scheduled to receive only 1% of the restoration fund. He urged the Committee to find a way to fund Kodiak the $8.5 million dollars. MARY MCBURNEY, (teleconference), EXECUTIVE DIRECTOR, CORDOVA DISTRICT FISHERMEN UNITED (CDFU), CORDOVA, ALASKA, noted that the proposed legislation disregards the needs of the Cordova Sound area. She would not support the legislation and would not support using funds for the oil spill ferry. He pointed out that HB 411, HB 10 and SB 98 support the needs of the people and damage created by the oil spill. DAVE CRANE, (teleconference), MAYOR, CITY OF SEWARD, SEWARD, ALASKA, noted his support for the proposed legislation. He felt that the legislation provided long range planning with inclusion of the Sea Life Center. 4 WAYNE CARPENTER, (teleconference), DIRECTOR, SEWARD CHAMBER OF COMMERCE, SEWARD, ALASKA, noted his support of the legislation. He voiced the need for marine mammal research rehabilitation which the bill would accommodate. NANCY LETHCOE, (teleconference), PRESIDENT, ALASKA WILDERNESS RECREATION & TOURISM ASSOCIATION (AWRTA), VALDEZ, ALASKA, questioned the feasibility studies provided by the proposed legislation. She noted her support for SB 98, pointing out that funds would be used for restoration rather than construction projects. RONALD KUCZER, (teleconference), ASSISTANT GENERAL MANAGER, MUNICIPAL LIGHT AND POWER, ANCHORAGE, ALASKA, addressed Section VI of the proposed legislation. He stated that the completed project would double the capacity of the sport fishery hatchery. He added, Municipal Light and Power would support Section VI. JOHN FRENCH, (teleconference), DIRECTOR, FISHERY INDUSTRIAL TECHNOLOGY CENTER, KODIAK, ALASKA, commented on Section X which would enhance development of fish processing techniques. Section X would directly affect the recovery of the commercial subsistence and recreational fishery services. Representative Brown questioned the feasibility study and the additional costs incurred by the University resulting from the proposed expenditure. Mr. French noted that the overall project will cost $15 - $20 million dollars. The project will involve finding "other" funding sources. BOBBY POOL, (teleconference), DESIGN AND TECHNICAL DEVELOPMENT AT CAMBRIDGE SEVEN ASSOCIATES, CAMBRIDGE, MASSACHUSETTS, commented that his company is the United States premier developer of environmental cultural institutions. He thought the facility would be popular effecting the economics in the region where it is located. The facility would become a self supporting institution and would provide an increase to tourism and at the same time would be an education research location for marine animals in Alaska. WILLARD DUNHAM, CHAIRMAN FOR THE SEWARD ASSOCIATION FOR ADVANCEMENT OF MARINE DEVELOPMENT (SAAMS), SEWARD, ALASKA, provided the Committee with a handout, ALASKA SEA LIFE CENTER BUSINESS PLAN. [Attachment #2]. He pointed out that the facility would be a self sustaining operational facility providing research rehabilitation for public education. DR. A.J. PAUL, ASSISTANT PROFESSOR OF MARINE SCIENCE, UNIVERSITY OF ALASKA - FAIRBANKS, FAIRBANKS, ALASKA, urged 5 the Committee to support the Alaska Sea Life project. He provided the Committee with Attachment #1, illustrating population decline to mammal sea life since the oil spill. He added, the legislation is widely supported. Research indicates that the facility would be a destination point for Alaskan visitors and tourists. Representative Brown asked if it would be necessary to have all funding obtained before the conditions of the appropriation would be met. Mr. Dunhan replied it would not. Financial liability could be demonstrated with an allocation of $12.5 million dollars. To fully fund the project will cost $46 million dollars. The anticipated "other" funding sources are general foundations. Mr. Dunham pointed out, two hundred and ten thousand people visited Seward last year. (Tape Change, HFC 93 - 100, Side 2). MARY FORBES, (teleconference), AUTOBAHN CONSERVATION CHAIR, KODIAK, ALASKA, stated that her organization does not support the proposed legislation, whereas, they do support HB 10 and SB 98. ANN TASTALINA, (teleconference), SUPERINTENDENT OF FIORD NATIONAL PARK, SEWARD, ALASKA, noted support of the legislation and the Sea Life Center facility. She pointed out that there is no place in Alaska to do research on dying birds and marine animals. Rehabilitation is an important component for the State. ALAN PHIPPS, (teleconference), ALASKA CENTER FOR THE ENVIRONMENT, ANCHORAGE, ALASKA, noted his support of SB 98 and HB 10. He emphasized that the proposed legislation has no relationship between environment and restoration. NANCY BIRD, (teleconference), SELF, CORDOVA CITY COUNCIL, CORDOVA, ALASKA, expressed disappointment with so little funding allocated to the Prince William Sound area through the legislation. She added that the funds purpose was clearly defined of which construction was not included. She urged support of HB 10. CHIP DENNERLEIN, (teleconference), COOK INLET REGION, SEWARD, ALASKA, noted his support of the agreement with the State. JACK BABCOTT, (teleconference), SELF, PRINCE WILLIAM SOUND, CORDOVA, ALASKA, advised that HB 269 does not affect the actual oil spill impacted areas especially for fishery related projects. He urged the Committee to reject the proposed legislation. 6 RAY ROLANDE, AQUACULTURE SPECIALIST, UNIVERSITY OF ALASKA MARINE ADVISORY PROGRAM, ANCHORAGE, ALASKA, spoke in support of the portion of the bill which address the construction of shell fish hatcheries. He pointed out that Alaska does not have a facility to tap research already classified by other organizations. He recommended the area be expanded to include the Kenai Peninsula and added that Alaska only needs one high quality hatchery facility. DAVE DAISEY, VILLAGE DEVELOPMENT IN PRINCE WILLIAM SOUND OF AQUACULTURE PROJECTS - OYSTER FARMS, ANCHORAGE, ALASKA, pointed out that oyster development is a current resource to many village areas. For these programs to work, it is necessary that a hatchery provide a reliable supply of seed. Section V provides the necessary allocation to operate a hatchery for three to five years before it can sustain itself. He urged the Committee's support. Representative Brown questioned the overall costs of the program. Mr. Daisey offered to provide the Committee additional information. TYLER JONES, (teleconference), CITY MANAGER, CITY OF SEWARD, SEWARD, ALASKA, stated his support of the legislation, pointing out that it would provide a location for research, rehabilitation and education. He added, the City of Seward has not received restoration funds to date. CARL BECKER, (teleconference), SELF, CORDOVA, ALASKA, testified against the legislation. Cordova supports HB 10 and SB 98 and added that money from the Exxon Valdez settlement should go to restitution and damages of resources. DIANE MCBRIDE, (teleconference), SELF, HOMER, ALASKA, asked that Section III remain in the legislation. Habitat acquisition is important to the fisheries in Cook Inlet. KENNY BLATCHFORD, CHUGIAK REGIONAL RESOURCE COMMISSION, SEWARD, ALASKA, spoke in favor of HB 269, encouraging a change to the site consideration. He asked that the Chugiak Region and Kenai Peninsula receive funds for hatchery development. Representative Brown reiterated concern for the total cost of the proposed project. Mr. Blatchford stated it would be $1.2 million dollars for a portion of the facility. There would be two separate projects. The technical research facility would be administered by the Department of Fish and Game. The hatchery would be administered by Mt. Marathon Native Association. Representative Brown asked if the 7 current language in the bill would authorize the Department of Fish and Game authority to allocate the project funds. Mr. Blatchford stated that language was contained in the original bill, although through committee substitute it has been changed. MARGARET BRANSON, ALASKA SHELLFISH GROWERS ASSOCIATION, JUNEAU, ALASKA, provided the Committee with letters written to the Governor addressing the growth in the technical and shellfish hatcheries. [Attachment #5]. (Tape Change HFC 93-101, Side 1). PENNY OSFALT, (teleconference), SELF, CORDOVA, ALASKA, emphasized HB 269 would be unfair legislation to those living in Prince William Sound. She stated that HB 10 and SB 98 were more equitable to all communities affected by the spill. She reiterated that construction would not be the appropriate use of the fund. DONNA FISHER, (teleconference), MEMBER OF VALDEZ CITY COUNCIL, VALDEZ, ALASKA, testified in opposition to the road construction recommended near Whittier. Representative Brown requested backup material for Sections intention of the Exxon Valdez Council Board of Trustees to provide the $25 million dollars to make up the total anticipated costs of $46 million dollars. CHARLES COLE, ATTORNEY GENERAL, DEPARTMENT OF LAW, stated that the Council consisted of the Department of Commerce and Economic Development, the Department of Agriculture - federal, Department of Natural Resources, Department of Environmental Conservation, and the Department of Law. The Trustees have not yet considered the application as it has not been presented to date through the restoration team. Representative Brown recommended that the appropriation be conditioned until the entire balanced is obtained. Co-Chair Larson asked if it would be a viable operation with a $12.5 million dollar appropriation. Attorney General Cole recommended the matter be addressed by Seward residents. CARL ROSIER, COMMISSIONER, DEPARTMENT OF FISH AND GAME, responded that less than $46 million dollars could provide a viable program, although he did not know at what level. CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF LAW, stated that funds will be required for both the financial feasibility study and the match grants. 8 Representative Brown noted her concern that the $12.5 million dollars would not provide the necessary resources to finish the project. She felt that the proposal should be conditioned to provide assurance that State monies are not the only funds to carry the project. Dr. Paul refuted Representative Brown's suggestion stating that most of the money would come from the National Science Foundation. Attorney General Cole reminded the Committee that the Governor strongly supports the project. JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, addressed Section IV. He stated there are no plans for the Visitor Center although the proposal would be consistent with what the Kachemak Bay State Park Citizens Advisory Board has recommended. Representative Brown asked if the board had specifically considered that project. Commissioner Sandor replied they had not. Representative Brown asked if the Department of Fish and Game would respond to the operational costs listed in Section V. Commissioner Rosier indicated there are two parts to the project. The proposal in HB 269 addresses the part of the facility which would be operated by the Department. Currently, there is a proposal before the trustees to fund a private hatchery facility in the Prince William Sound area. The initial funding would require $300 thousand dollars annual operational expense. Representative Brown asked how many hatcheries can Alaska support. Commissioner Rosier noted that hatchery operations for the shell fish industry are limited. Co-Chair Larson questioned the $15 million dollar allocation for design and construction of the Whittier access road. BRUCE CAMPBELL, ACTING COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied that the environmental impact of the Whittier access road currently is being studied from federal funds. Concluding the study, a location determination will be made. The $15 million dollars will be used to expedite environmental studies if the road is not built. There will be no construction money requested. Representative Martin recommended adding the language "and match" to the $15 million dollar request. Representative Brown asked the total cost of the road. Acting Commissioner Campbell noted that cost could not be estimated. Representative Brown asked if the balance of the cost would be a federal expense. Acting Commissioner Campbell stated that it could be funded with federal funds 9 and offered to provide the data requested. Attorney General Cole provided the Committee with a comparison of HB 411 (SB 483), HB 10, SB 98 and HB 269. [Attachment #6]. He urged the Committee to adopt the proposal provided by the Governor. (Tape Change, HFC 93-101, Side 2). Co-Chair Larson pointed out that the $5 million dollar allocation for the oil spill ferry would no longer be necessary in the proposed legislation. HB 269 was HELD in Committee for further consideration.
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