Legislature(2023 - 2024)BUTROVICH 205

04/17/2023 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 69 GEOTHERMAL RESOURCES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+= HJR 11 ADDRESS AIR POLLUTION IN FAIRBANKS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Jason Olds, Acting Director Division of Air
Quality, Department of Environmental Conservation
*+ SB 82 COOK INLET: NEW ADMIN AREA;PERMIT BUYBACK TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled:
+= SB 92 STATE OWNERSHIP OF SUBMERGED LAND TELECONFERENCED
Moved CSSB 92(RES) Out of Committee
**Streamed live on AKL.tv**
        SB  82-COOK INLET: NEW ADMIN AREA;PERMIT BUYBACK                                                                    
                                                                                                                                
4:40:45 PM                                                                                                                    
CO-CHAIR BISHOP  announced the consideration  of SENATE  BILL NO.                                                               
82  "An Act  relating  to  the powers  of  the Alaska  Commercial                                                               
Fisheries Entry Commission; relating  to administrative areas for                                                               
regulation  of   certain  commercial   set  net   entry  permits;                                                               
establishing  a  buy-back  program  for  certain  set  net  entry                                                               
permits; providing  for the  termination of  state set  net tract                                                               
leases  under  the buy-back  program;  closing  certain water  to                                                               
commercial fishing; and providing for an effective date."                                                                       
                                                                                                                                
4:41:05 PM                                                                                                                    
SENATOR JESSE BJORKMAN, District D, Alaska State Legislature,                                                                   
Juneau, Alaska, sponsor of SB 82, introduced the legislation                                                                    
speaking to the following sponsor statement:                                                                                    
                                                                                                                                
     Senate Bill  82 is the  result of sport  and commercial                                                                    
     fishermen  in  Cook  Inlet working  together  toward  a                                                                    
     viable  solution  to  conserve  King  Salmon.  Alaskans                                                                    
     aware  of the  struggles  between user  groups when  it                                                                    
     comes to  Cook Inlet fisheries  know that it is  a rare                                                                    
     occurrence for  agreement on a  major policy  call that                                                                    
     effects  all of  them. For  decades there  has been  an                                                                    
     unhealthy tension between  commercial set net fishermen                                                                    
     who fish on the east side  of Cook Inlet and other user                                                                    
     groups   on  the   Kenai  and   Kasilof  Rivers.   This                                                                    
     legislation   will   help   alleviate   a   significant                                                                    
     proportion of that tension.                                                                                                
                                                                                                                                
     SB  82 supports  all  user  groups; commercial,  sport,                                                                    
     personal  use  and  subsistence,  providing  relief  by                                                                    
     reducing the  number of  set netters  in the  east side                                                                    
     set  net  fishery by  nearly  half.  Thru reducing  the                                                                    
     number of set  net operations on the east  side of Cook                                                                    
     Inlet we will see a  more viable commercial fishery for                                                                    
     those  remaining   and  adequate  production   for  the                                                                    
     processing  industry.  We  will   also  see  more  fish                                                                    
     available for  in-river users. The bill  offers set net                                                                    
     fishermen, some  of whom  have fished  in the  area for                                                                    
     generations, a  way to  fairly exit  the fishery  or to                                                                    
     reinvest in  remaining operations  once the  200 permit                                                                    
     and site reductions take place.                                                                                            
                                                                                                                                
     In  the  1980s  there  was   a  migration  of  set  net                                                                    
     fishermen to the east side  of Cook Inlet. Returns were                                                                    
     large, fishing in the area  was lucrative and access to                                                                    
     processors   was  easy.   The   appeal  to   commercial                                                                    
     fishermen  was  irresistible.  As  pressure  on  stocks                                                                    
     increased  and commercial  fishing profitability  began                                                                    
     to wane, processors began leaving  the area. Over time,                                                                    
     set net fishermen saw fewer  and fewer opportunities to                                                                    
     fish.  In  recent  years  there   have  been  very  few                                                                    
     openings  during  the  entire season.  This  year,  the                                                                    
     fishery has been closed by ADF&G order.                                                                                    
                                                                                                                                
     This  voluntary  program  established by  SB  82  would                                                                    
     become effective  only after  an election  held amongst                                                                    
     the  permit holders.  Once established,  permit holders                                                                    
     would apply  for the program  and 200 permits  would be                                                                    
     drawn  in lottery-fashion  to  determine  the order  of                                                                    
     permit  retirement.  When  a  permit  is  retired,  the                                                                    
     waters where the  permit was fished would  be closed to                                                                    
     future commercial fishing.                                                                                                 
                                                                                                                                
     Improved  King Salmon  conservation and  a more  viable                                                                    
     set net  fishing industry make  this concept  a win-win                                                                    
     for all user groups.                                                                                                       
                                                                                                                                
     I   respectfully  ask   for   your   support  of   this                                                                    
     legislation  for the  benefit  of all  the salmon  user                                                                    
     groups on the Kenai Peninsula.                                                                                             
                                                                                                                                
SENATOR  BJORKMAN stated  that the  only difference  between this                                                               
and the previous  iteration of the bill is that  the current bill                                                               
does  not change  the powers  of the  Commercial Fisheries  Entry                                                               
Commission.                                                                                                                     
                                                                                                                                
4:45:01 PM                                                                                                                    
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State                                                                     
Legislature, Juneau, Alaska, presented the sectional analysis                                                                   
for SB 82.                                                                                                                      
                                                                                                                                
     Section 1:  Amends the uncodified  law of the  State of                                                                  
     Alaska by  adding a new section  which establishes that                                                                  
     this legislation may be known  as the East Side of Cook                                                                    
     Inlet Set Net Fleet Reduction Act.                                                                                         
                                                                                                                                
     Section 2:  Amends the uncodified  law of the  State of                                                                  
     Alaska by  adding new  Legislative findings  and intent                                                                  
     relating to the bill.                                                                                                      
                                                                                                                                
     Section  3:  Amends  AS  16.43.200   by  adding  2  new                                                                  
     subsections:  (c)  Establishes  an area  of  the  Upper                                                                    
     Subdistrict  of the  Cook Inlet  Central District  as a                                                                    
     distinct  administrative area  separate  from the  Cook                                                                    
     Inlet Central District on December  31, 2023. This area                                                                    
     is  made  up of  the  statistical  areas identified  on                                                                    
     January  1, 2023  as 244-21,  244- 22,  244-31, 244-32,                                                                    
     244-41 and 244-42. (d) Provides  that an individual who                                                                    
     has  a  set  net  permit for  the  Cook  Inlet  Central                                                                    
     District on  December 31, 2023  is not entitled  to set                                                                    
     net  in  the  administrative area  created  under  this                                                                    
     section as  of January  1, 2023  unless the  permit has                                                                    
     been reassigned to that new administrative area.                                                                           
                                                                                                                                
     Section 4:  Amends the uncodified  law of the  State of                                                                  
     Alaska by adding  a new section which  provides how the                                                                  
     commission  will determine  whether  an individual  who                                                                    
     holds a set net entry  permit in the Cook Inlet Central                                                                    
     District  on January  1, 2024  is  reassigned an  entry                                                                    
     permit  for the  administrative area  established under                                                                    
     AS 16.43.200(c)  (added by sec.  3 of the bill)  or the                                                                    
     portion  of the  Cook Inlet  Central District  that was                                                                    
     not assigned  into the administrative  area established                                                                    
     under AS 16.43.200(c).                                                                                                     
                                                                                                                                
     Section 5:  Amends the uncodified  law of the  State of                                                                  
     Alaska  by  adding  a new  section  which  defines  the                                                                  
     appeals process  in the  new administrative  area. This                                                                    
     section  provides that  a provisional  license will  be                                                                    
     issued  pending   resolution  of  an  appeal   and  the                                                                    
     provisional  permit  holder   may  cast  a  provisional                                                                    
     ballot in the election established under section 6.                                                                        
                                                                                                                                
     Section 6:  Amends the uncodified  law of the  State of                                                                  
     Alaska by adding a new  section which requires on April                                                                  
     1,  2024 an  election  be conducted  by the  commission                                                                    
     among    persons   holding    permits   in    the   new                                                                    
     administrative  area, to  affirm support  or opposition                                                                    
     to a buy-back program.  Requires the commission provide                                                                    
     public  notice of  the election,  hold public  meetings                                                                    
     concerning  the election,  and clarify  the details  of                                                                    
     the  buy-back program  to  those  participating in  the                                                                    
     election.                                                                                                                  
                                                                                                                                
     Section 7:  Amends the uncodified  law of the  State of                                                                  
     Alaska by  adding a new  section which  establishes the                                                                  
     set  net  entry  permit buy-back  program  for  certain                                                                    
     permits fished  in the administrative  area established                                                                    
     under AS  16.43.200(c) (added by  sec. 3 of  the bill).                                                                    
     This section  will only take  effect if approved  in an                                                                    
     election by  the set  net entry  permit holders  in the                                                                    
     administrative area established  under AS 16.43.200(c).                                                                    
     If it is approved, the  buyback program will become law                                                                    
     30  days following  notification  of  the Lt.  Governor                                                                    
     (see  secs.   9  and   11).  Sets   qualifications  for                                                                    
     participation  in the  program,  provides the  buy-back                                                                    
     price for permits, requires  that the purchased permits                                                                    
     be cancelled  and not re-issued, provides  that certain                                                                    
     waters that  were fished  with permits  purchased under                                                                    
     the program will be closed  to future commercial salmon                                                                    
     fishing, and  specifies other  details of  the buy-back                                                                    
     program.                                                                                                                   
                                                                                                                                
     Section 8:  Amends the uncodified  law of the  State of                                                                  
     Alaska  by  adding a  new  section  which requires  the                                                                  
     commission  to   provide  a   written  report   to  the                                                                    
     Legislature  on the  status of  the  program not  later                                                                    
     than January 15, 2030.                                                                                                     
                                                                                                                                
     Section 9:  Amends the uncodified  law of the  State of                                                                  
     Alaska  by  adding a  new  section  which requires  the                                                                  
     chair  of  the  commission  to  notify  the  Lieutenant                                                                    
     Governor and the Revisor of  Statutes of the outcome of                                                                    
     the election held under section 6.                                                                                         
                                                                                                                                
     Section 10: Repeals sections 1, 2,  7 and 8 on June 30,                                                                  
     2030.                                                                                                                      
                                                                                                                                
     Section 11: Amends  the uncodified law of  the State of                                                                  
     Alaska  by adding  a new  section  which provides  that                                                                  
     secs. 1,  2, 7,  and 8  take effect  only if  notice is                                                                    
     provided  under section  9  that  the buy-back  program                                                                    
     established under section 7 was approved.                                                                                  
                                                                                                                                
     Section  12: Effective  Date Clause.  Section 4  of the                                                                  
     bill takes effect January 1, 2024.                                                                                         
                                                                                                                                
     Section   13:  Effective   Date  Clause.   Provides  if                                                                  
     sections 1, 2, 7 and,  8, take effect under section 11,                                                                    
     they  take effect  30 days  following the  date of  the                                                                    
     notice provided  in section 9 that  the buyback program                                                                    
     was approved.                                                                                                              
                                                                                                                                
     Section 14:  Effective Date Clause. Except  as provided                                                                  
     in sections  12 and 13,  the bill takes effect  July 1,                                                                    
     2023.                                                                                                                      
                                                                                                                                
4:49:48 PM                                                                                                                    
SENATOR  BJORKMAN  directed attention  to  page  2, line  4,  and                                                               
highlighted that  the bill  would have no  adverse effect  on the                                                               
state  treasury.  The funding  to  support  the optional  buyback                                                               
program is  designed to come from  non-governmental organizations                                                               
or grants.                                                                                                                      
                                                                                                                                
CO-CHAIR BISHOP noted that Section 3 identifies the areas from                                                                  
which the 200 permits might come. He asked if permit holders who                                                                
decide  not to  participate could  continue to  fish in  the same                                                               
area.                                                                                                                           
                                                                                                                                
SENATOR BJORKMAN answered that the  statistical area remains open                                                               
to  the  set  netters  who  decided not  to  participate  in  the                                                               
buyback.  The statistical  area is  closed to  commercial fishing                                                               
for the retired permit.                                                                                                         
                                                                                                                                
4:51:45 PM                                                                                                                    
SENATOR DUNBAR  said he assumes  that each permit holder  has the                                                               
option to  participate in the  buyback program. It's  not binding                                                               
on every member who votes, even if they vote "no."                                                                              
                                                                                                                                
SENATOR BJORKMAN confirmed that was correct.                                                                                    
                                                                                                                                
SENATOR DUNBAR observed that this was  not a quota fishery so the                                                               
remaining permits would  gain in value as they are  able to catch                                                               
more fish.                                                                                                                      
                                                                                                                                
SENATOR BJORKMAN said a goal of  the program is to develop a more                                                               
economically viable  east-side set  net fishery, and  a reduction                                                               
of gear  theoretically would  leave more  fish for  the remaining                                                               
set netters.                                                                                                                    
                                                                                                                                
4:53:00 PM                                                                                                                    
SENATOR DUNBAR  asked if  it would  be accurate  to say  that the                                                               
goal is to create a  more economically sustainable fishery rather                                                               
than  reduce   the  total  catch  because   the  remaining  sites                                                               
presumably would catch more fish.                                                                                               
                                                                                                                                
SENATOR BJORKMAN  replied that  the nets can  only catch  so much                                                               
and  the fishing  time is  limited based  on where  the nets  are                                                               
placed on the  beach and within the tide cycle.  Less gear in the                                                               
water translates to fewer fish caught.                                                                                          
                                                                                                                                
4:54:34 PM                                                                                                                    
CO-CHAIR GIESSEL asked whether reducing  the Chinook salmon catch                                                               
was still an aspect of the legislation.                                                                                         
                                                                                                                                
SENATOR BJORKMAN said yes.                                                                                                      
                                                                                                                                
CO-CHAIR  GIESSEL   asked  how  $260,000  for   the  buyback  was                                                               
determined.                                                                                                                     
                                                                                                                                
MR. JACKSON explained  that $260,000 is an aggregate  of 10 years                                                               
historical fishing revenue  for each permit. A  small portion was                                                               
included for administrative costs for  the CFEC to administer the                                                               
program and for some level of tax protection.                                                                                   
                                                                                                                                
4:55:41 PM                                                                                                                    
SENATOR CLAMAN  offered his perspective  that the  buybacks would                                                               
create a patchwork area.                                                                                                        
                                                                                                                                
SENATOR BJORKMAN  directed attention to  the map in  the packets;                                                               
the red  outline reflects the  location of gear currently  in the                                                               
water and the boxes reflect set  net sites. When a set net permit                                                               
is sold,  three nets  would be  removed from  the fleet  and that                                                               
water  would be  closed  to commercial  fishing. The  statistical                                                               
area would  exist but  the area  where those  three nets  used to                                                               
fish would be closed.                                                                                                           
                                                                                                                                
SENATOR CLAMAN observed that the map would have 200 fewer boxes.                                                                
                                                                                                                                
SENATOR BJORKMAN agreed.                                                                                                        
                                                                                                                                
4:57:40 PM                                                                                                                    
CO-CHAIR  BISHOP discerned  there were  no further  questions and                                                               
announced he would hold SB 82 in committee.                                                                                     

Document Name Date/Time Subjects
SB 82 Sponsor Statement.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 ver A.pdf SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Sectional Analysis ver A.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Fiscal Note ADFG - Central Region Fisheries Management.pdf SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-DNR Shore Fishery Leasing Fact Sheet 10.1.2010.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-DNR Shore Lease Fishery Sites Map 01.18.18.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-Eastside Setnet Area Map.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-News Article ADN 8.12.21.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-News Article KDLL Radio 03.02.23.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-News Article Peninsula Clarion 03.24.23.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
SB 82 Supporting Documents-Upper Cook Inlet Management Area Statistical Areas.pdf SFIN 2/19/2024 1:30:00 PM
SRES 4/17/2023 3:30:00 PM
SB 82
HJR 11 Sponsor Statement.pdf SRES 4/17/2023 3:30:00 PM
HJR 11
HJR011 Ver. A.PDF SRES 4/17/2023 3:30:00 PM
HJR 11
HJR 11 Fiscal Note HRES.pdf SRES 4/17/2023 3:30:00 PM
HJR 11
HJR 11 Letters of Support through 04.15.23.pdf SRES 4/17/2023 3:30:00 PM
HJR 11
SB 82 Fiscal Note DNR.pdf SRES 4/17/2023 3:30:00 PM
SB 82
SB 92 Amendment #1.pdf SRES 4/17/2023 3:30:00 PM
SB 92
SB 69 SRES DNR Answers to Committee Questions 04.17.23.pdf SRES 4/17/2023 3:30:00 PM
SB 69