Legislature(2015 - 2016)BUTROVICH 205

03/28/2016 03:30 PM RESOURCES

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Audio Topic
03:30:19 PM Start
03:31:25 PM HB137
04:13:34 PM Confirmation Hearing
05:10:26 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Hearing May Go Until 5:30 p.m. --
+= HB 137 HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS TELECONFERENCED
Moved SCS CSHB 137(RES) Out of Committee
+ HB 216 NAVIGABLE WATER; INTERFERENCE, DEFINITION TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Consideration of Governor's Appointees: TELECONFERENCED
Board of Directors, Alaska Gasline Development
Corporation: Joey Merrick, Luke Hopkins
-- Public Testimony on Appointees --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         March 28, 2016                                                                                         
                           3:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator John Coghill                                                                                                            
Senator Peter Micciche                                                                                                          
Senator Bert Stedman                                                                                                            
Senator Bill Stoltze                                                                                                            
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 137(FIN) AM                                                                             
"An Act raising  certain fees related to  sport fishing, hunting,                                                               
and trapping; relating  to the fish and game  fund; providing for                                                               
the  repeal of  the  sport fishing  surcharge  and sport  fishing                                                               
facility revenue  bonds; replacing  the permanent  sport fishing,                                                               
hunting, or  trapping identification  card for  certain residents                                                               
with an  identification card valid  for three years;  relating to                                                               
hunting  and  fishing  by  proxy;   relating  to  fish  and  game                                                               
conservation decals; raising  the age of eligibility  for a sport                                                               
fishing,  hunting,  or  trapping   license  exemption  for  state                                                               
residents; raising the age at  which a state resident is required                                                               
to obtain a license for  sport fishing, hunting, or trapping; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED SCS CSHB 137(RES) OUT OF COMMITTEE                                                                                 
                                                                                                                                
CONFIRMATION HEARING                                                                                                            
     Alaska Gasline Development Corporation                                                                                     
          Luke Hopkins                                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 216(RES)                                                                                
"An Act relating to obstruction or interference with a person's                                                                 
free passage on or use of navigable water; and amending the                                                                     
definition of 'navigable water' under the Alaska Land Act."                                                                     
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 137                                                                                                                  
SHORT TITLE: HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS                                                                           
SPONSOR(s): REPRESENTATIVE(s) TALERICO                                                                                          
                                                                                                                                
03/06/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/15       (H)       RES, FIN                                                                                               
03/20/15       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/20/15       (H)       Heard & Held                                                                                           
03/20/15       (H)       MINUTE(RES)                                                                                            
03/25/15       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/25/15       (H)       Moved  CSHB 137(RES) Out of Committee                                                                  
03/25/15       (H)       MINUTE(RES)                                                                                            
03/27/15       (H)       RES RPT CS(RES) NT 2DP 3NR 2AM                                                                         
03/27/15       (H)       DP: OLSON, TALERICO                                                                                    
03/27/15       (H)       NR: HERRON, JOSEPHSON, JOHNSON                                                                         
03/27/15       (H)       AM: SEATON, TARR                                                                                       
04/07/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/07/15       (H)       Heard & Held                                                                                           
04/07/15       (H)       MINUTE(FIN)                                                                                            
04/10/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/10/15       (H)       Heard & Held                                                                                           
04/10/15       (H)       MINUTE(FIN)                                                                                            
04/13/15       (H)       FIN RPT CS(FIN) NT 5DP 5NR                                                                             
04/13/15       (H)       DP: PRUITT, WILSON, GATTIS, MUNOZ,                                                                     
                         THOMPSON                                                                                               
04/13/15       (H)       NR: SADDLER, GARA, GUTTENBERG, EDGMON,                                                                 
                         NEUMAN                                                                                                 
04/13/15       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/13/15       (H)       Moved  CSHB 137(FIN) Out of Committee                                                                  
04/13/15       (H)       MINUTE(FIN)                                                                                            
04/15/15       (H)       TRANSMITTED TO (S)                                                                                     
04/15/15       (H)       VERSION: CSHB 137(FIN) AM                                                                              
04/15/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/15/15       (S)       Scheduled but Not Heard                                                                                
04/16/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/16/15       (S)       RES, FIN                                                                                               
04/16/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/16/15       (S)       Heard & Held                                                                                           
04/16/15       (S)       MINUTE(RES)                                                                                            
04/17/15       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/17/15       (S)       Scheduled but Not Heard                                                                                
02/29/16       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/29/16       (S)       Heard & Held                                                                                           
02/29/16       (S)       MINUTE(RES)                                                                                            
03/23/16       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/23/16       (S)       Heard & Held                                                                                           
03/23/16       (S)       MINUTE(RES)                                                                                            
03/28/16       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
AKIS GIALOPSOS, Staff to Senator Giessel and the Senate                                                                         
Resources Committee                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained the changes from HB 137, version                                                               
V, to version SCS CSHB137 (RES), 29-LS0625\U.                                                                                   
                                                                                                                                
REPRESENTATIVE TALERICO                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As sponsor of HB 137 supported version U.                                                                
                                                                                                                                
KEVIN BROOKS, Deputy Commissioner                                                                                               
Alaska Department of Fish and Game (ADF&G)                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on HB 137.                                                                                     
                                                                                                                                
BRUCE DALE, Director                                                                                                            
Division of Wildlife Conservation                                                                                               
Alaska Department of Fish and Game (ADF&G)                                                                                      
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on HB 137.                                                                                     
                                                                                                                                
TOM BROOKOVER, Director                                                                                                         
Division of Sportfish                                                                                                           
Alaska Department of Fish and Game (ADF&G)                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Commented on HB 137.                                                                                     
                                                                                                                                
LUKE HOPKINS, representing himself                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Alaska Gasline Development Corporation                                                                   
Board (AGDC) nominee.                                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:19 PM                                                                                                                    
CHAIR  CATHY   GIESSEL  called  the  Senate   Resources  Standing                                                             
Committee meeting  to order at 3:30  p.m. Present at the  call to                                                               
order  were  Senators  Costello,  Micciche,  Coghill,  and  Chair                                                               
Giessel. Senator Stedman joined the committee.                                                                                  
                                                                                                                                
        HB 137-HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS                                                                     
                                                                                                                                
3:31:25 PM                                                                                                                    
CHAIR GIESSEL  announced consideration of  HB 137, last  heard on                                                               
March 23.                                                                                                                       
                                                                                                                                
SENATOR COSTELLO  moved to bring SCS  CSHB137 (RES), 29-LS0625\U,                                                               
before the committee as the working document.                                                                                   
                                                                                                                                
CHAIR GIESSEL objected for discussion purposes.                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI joined the committee.                                                                                      
                                                                                                                                
3:32:00 PM                                                                                                                    
AKIS  GIALOPSOS,   Staff  to  Senator  Giessel   and  the  Senate                                                               
Resources  Committee, explained  the  changes from  version V  to                                                               
version U version of CSHB 137 as follows:                                                                                       
                                                                                                                                
1. Page  1, Lines 1,  3, and 12: Amends  the title to  remove the                                                               
language related to the powers  and duties of the commissioner of                                                               
fish  and game  (an attempt  to institute  a Chitina  dip netters                                                               
fee); replaces  the word "rivers"  with "watersheds"; and  adds a                                                               
new semicolon related to the Chitina dip net fishery.                                                                           
                                                                                                                                
2.  Page 2,  Lines  2-7:  Adds a  new  Section.  1, creating  the                                                               
"Sustainable Wildlife Account" as a  separate account in the Fish                                                               
and Game  Fund. The  account would  receive moneys  accruing from                                                               
the intensive management surcharge imposed  by a later section of                                                               
the bill (Section. 23).                                                                                                         
                                                                                                                                
3:33:02 PM                                                                                                                    
3. Removes the former Sections. 1,  2, and 3 of the prior version                                                               
"V" of  the bill.  Those items were:  intent language  related to                                                               
the North  American Wildlife Conservation model;  a new paragraph                                                               
related to the powers and duties  of the commissioner of fish and                                                               
game; and a  section removing language related to  the payment of                                                               
hatchery bonds (that conforms throughout this version).                                                                         
                                                                                                                                
4.  Page 4,  Line  10:  Lowers the  resident  hunting license  in                                                               
Section. 4 (Prior  Version Section. 7) from "40"  dollars to "35"                                                               
dollars.                                                                                                                        
                                                                                                                                
5. Removes the former Sections. 6,  11, 13, 15, and 17 of version                                                               
"V".  Those  sections  are  related   to  maintaining  the  prior                                                               
hatchery surcharge on  several licenses after the  bonds had been                                                               
paid. The  repeal language for  those bonds will remain,  but the                                                               
surcharge finding a way to remain  has gone away as a consequence                                                               
of removing  those sections. So  there should  not be a  9 dollar                                                               
surcharge from now on.                                                                                                          
                                                                                                                                
3:34:36 PM                                                                                                                    
SENATOR STOLTZE joined the committee.                                                                                           
                                                                                                                                
6. Page  8, Line 19:  Amends Section. 20 (Prior  Version Section.                                                               
27) to reword "the age of 16" to "16 years of age."                                                                             
                                                                                                                                
7.  Page  8,  Lines  25-28: Amends  Section.  21  (Prior  Version                                                               
Section.  28) by  adding the  word "watersheds"  after the  words                                                               
"Kenai and Kasilof rivers" on lines 25 and 28, respectively.                                                                    
                                                                                                                                
8.  Page  9, Lines  21-31:  Adds  a  new Section.  22,  repealing                                                               
certain hatchery surcharge provisions  (effective date is further                                                               
in the bill with other  effective dates related to the expiration                                                               
of the hatchery surcharge).                                                                                                     
                                                                                                                                
3:35:39 PM                                                                                                                    
9. Page 10,  Line 13: Amends Section. 23  (Prior Version Section.                                                               
29)  by   increasing  the   intensive  management   surcharge  on                                                               
nonresidents from "2010"  dollars in the previous  version of the                                                               
bill, to  "30" dollars  while keeping  the resident  surcharge at                                                               
"10" dollars.                                                                                                                   
                                                                                                                                
10. Page  13, Lines 9-20:  Adds a  new Section. 31,  amending the                                                               
existing AS 16.10.570  (Article 11: Chitina Dip  Net Fishery), by                                                               
adding the  duties of maintaining and  improving state-owned land                                                               
used to access  the Chitina dip net fishery,  and maintaining and                                                               
operating  sanitary facilities  provided for  the use  of persons                                                               
participating in the  Chitina dip net fishery,  to the Department                                                               
of Fish  & Game.  He noted that  existing language  also requires                                                               
the  ADF&G to  work in  concert  with the  Department of  Natural                                                               
Resources  (DNR)  and  Department of  Transportation  and  Public                                                               
Facilities (DOTPF), respectively.                                                                                               
                                                                                                                                
3:36:35 PM                                                                                                                    
11. Page 13, Line 21:  Amends Section. 32 (Prior Version Section.                                                               
37) by  adding a  repeal provision  for the  Sustainable Wildlife                                                               
Account (new Section. 1).                                                                                                       
                                                                                                                                
12. Page 13, Line 22:  Amends Section. 33 (Prior Version Section.                                                               
38)  by adding  a  repeal provision  to the  Fish  and Game  Fund                                                               
statute for payment  of revenue bonds related  to hatcheries once                                                               
they have been paid.                                                                                                            
                                                                                                                                
13.  Page 14,  Lines  13-21: Amends  Section.  35 (Prior  Version                                                               
Sections. 40,  41) by making the  effects of Sections. 22  and 33                                                               
conditional  on the  Commissioner of  Fish &  Game notifying  the                                                               
revisor of statutes  in writing that the bonds,  interest and any                                                               
other applicable obligations have been met and fully discharged.                                                                
                                                                                                                                
3:37:35 PM                                                                                                                    
14. Page 14, Line 24:  Amends Section. 37 (Prior Version Section.                                                               
43)  by extending  the sunset  date of  the intensive  management                                                               
surcharge from December 31 "2020" to December 31 "2022."                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI,  referring to Section  31 on page  13, said                                                               
he  wanted  some intent  language  on  the record  to  understand                                                               
language in  item 1 that  says "maintain and  improve state-owned                                                               
land  used to  access the  Chitina  dip net  fishery." Does  that                                                               
require  DOTPF to  clear the  road past  O'Brien Creek  so people                                                               
have access into the canyon?                                                                                                    
                                                                                                                                
MR.  GIALOPSOS  said  yes;  that  is the  intent,  but  the  only                                                               
obligatory language that  he can see is for the  ADF&G to work in                                                               
conjunction with those agencies.                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI responded  that his  understanding is  that                                                               
the  department with  the cooperation  of DOTPF  and DNR  "shall"                                                               
maintain and improve state-owned land  used to access the Chitina                                                               
dip net fishery. To him  that requires all three organizations to                                                               
work together  to make  sure that the  dip netters  have drivable                                                               
access "in a car, not an ATV" past O'Brien Creek.                                                                               
                                                                                                                                
MR. GIALOPSOS answered that is his understanding, also.                                                                         
                                                                                                                                
CHAIR  GIESSEL  removed  her objection  and  finding  no  further                                                               
objections stated that  version U was adopted.  She recapped that                                                               
public  testimony  was  closed  on   March  23,  and  opened  the                                                               
committee for discussion and questions.                                                                                         
                                                                                                                                
3:39:44 PM                                                                                                                    
REPRESENTATIVE  TALERICO,   Alaska  State   Legislature,  Juneau,                                                               
Alaska, sponsor of HB 137, said he  is happy with version U of HB                                                               
137. He  appreciates all  the effort  put into  this legislation.                                                               
However, he  would like to  see a  $5 resident fee  for intensive                                                               
management.                                                                                                                     
                                                                                                                                
3:40:52 PM                                                                                                                    
KEVIN BROOKS, Deputy Commissioner,  Alaska Department of Fish and                                                               
Game (ADF&G), Juneau,  Alaska, said he would  provide the answers                                                               
to the committee's questions from the last hearing.                                                                             
                                                                                                                                
1.  How  the  department  would   use  increased  revenues?  That                                                               
resulted  in  a  document  entitled  "HB  137  Proposed  Use  for                                                               
Increased Revenue."                                                                                                             
                                                                                                                                
2. What is the impact of  the changes in the age requirements for                                                               
licensing?                                                                                                                      
                                                                                                                                
Raising the  minimum age for purchasing  a license from 16  to 18                                                               
results in an estimated loss  of revenue of approximately $70,000                                                               
per  year from  approximately  2,400 fishing  licenses and  1,000                                                               
hunting licenses. Raising  the age for a Permanent  ID (PID) card                                                               
from  60 to  62  results  in an  estimated  increased revenue  of                                                               
$105,800. An  additional $158,700  would be generated  by raising                                                               
it from 62 to 65. These  estimates are based on 3,000 PIDs issued                                                               
to individuals aged 60-61, and  15,000 PIDs issued to individuals                                                               
aged 60-64.                                                                                                                     
                                                                                                                                
3.  Several questions  came up  related to  a sockeye  stamp: Are                                                               
fish wheels included? Does it  apply to subsistence? How would it                                                               
be implemented with multiple households represented on a boat?                                                                  
                                                                                                                                
He  clarified that  the U  version sockeye  stamp applies  to the                                                               
sport  fishery   only  and  not   personal  use   or  subsistence                                                               
fisheries.                                                                                                                      
                                                                                                                                
4. What is the status of the hatchery bonds?                                                                                    
                                                                                                                                
The  Department of  Revenue (DOR)  debt  manager, Devon  Mitchel,                                                               
said he  expected those bonds would  be paid off by  2021/22. The                                                               
original  debt schedule  projected  a payoff  date  in 2026,  but                                                               
there  have  been  several early  redemptions  due  to  available                                                               
revenue from  the hatchery  surcharge. Currently,  that surcharge                                                               
generates about  $6.3 million annually:  $1.4 million of  that is                                                               
generated from  sales on licenses  to residents and  the majority                                                               
($4.9  million)  is generated  from  sales  on licenses  to  non-                                                               
residents.                                                                                                                      
                                                                                                                                
5. How do Alaska's fees compare  to other states, and in response                                                               
he had  the attached  document entitled  "Western States  Comp of                                                               
Hunting License and Tag Fees."                                                                                                  
                                                                                                                                
3:43:26 PM                                                                                                                    
MR. BROOKS  said folks were working  on the change in  the fiscal                                                               
note, but some of the high points are on page and include:                                                                      
-The $5 increase on hunting  licenses generates $103,400 per year                                                               
for an additional $517,000 in revenue over five years.                                                                          
-The  additional   intensive  management  surcharge  of   $10  on                                                               
residents  and   $30  on  non-residents  generates   a  total  of                                                               
$1,535,000.                                                                                                                     
-Non-resident black bear  at a $150 reduction results  in a minus                                                               
$365,550 in revenue.                                                                                                            
-Non-resident  grizzly/brown bear  $200  reduction  results in  a                                                               
minus $369,400 in revenue.                                                                                                      
-Non-resident deer went up $25, generating a $37,800 increase.                                                                  
-Non-resident elk generates $150 for six tags.                                                                                  
-Non-resident goat at $25 generates a $4,925 increase.                                                                          
                                                                                                                                
MR. BROOKS said the hunting changes total $1,359,925.                                                                           
                                                                                                                                
3:44:49 PM                                                                                                                    
On the fishing side:                                                                                                            
-The Chitina dip  net personal use fishery based  on about 12,000                                                               
permits issued for  $15 generates about $180,000. He  said he had                                                               
reached out to DNR  and DOT to let them know this  is in the bill                                                               
and what  the expectations  are for  providing services  now that                                                               
there is ability to pay for them.                                                                                               
-They  made some  assumptions for  sockeye stamp  from state-wide                                                               
harvest data. About  140,000 anglers on the  Kenai River generate                                                               
about $125,000 and about $15,000 on the Kasilof River.                                                                          
                                                                                                                                
He explained  that since the  department does  not have a  way of                                                               
determining  what species  are targeted,  they assumed  that half                                                               
would  buy  a  sockeye  stamp.  A total  of  $71,500  comes  from                                                               
residents  and   non-residents  and   about  $68,000   from  non-                                                               
residents. They used a seven-day $45  fee, a mid-number to get to                                                               
this  estimate.  Actual  experience  would  dictate  the  correct                                                               
numbers; he just wanted to put it in a context and a ball park.                                                                 
                                                                                                                                
3:47:03 PM                                                                                                                    
SENATOR MICCICHE  said those are  watershed-related and  asked if                                                               
that included the Russian River.                                                                                                
                                                                                                                                
MR. BROOKS answered  yes; however, the Division  of Sportfish has                                                               
good numbers on the Russian River.                                                                                              
                                                                                                                                
He said the total for fishing  is $2,257,500 and that is expected                                                               
to go to  things the department is not currently  paying for. The                                                               
hatchery surcharge is not on  the fiscal note, because the impact                                                               
occurs  too  far in  the  future  (2022). However,  it  currently                                                               
generates  about $6.3  million.  The fiscal  note  would be  $3.8                                                               
million, because  a variety  of surcharges are  turned into  a $9                                                               
fee.  Similar to  sockeye,  they  have 1,  3,  7,  14 and  annual                                                               
licenses that  have different costs  and all of those  are turned                                                               
into $9.                                                                                                                        
                                                                                                                                
MR.  BROOKS said  the  permanent ID  cards  generate $158,700  in                                                               
additional revenue  for a grand total  in the first full  year of                                                               
$3.6 million on  top of the $8.6 million that  was already in the                                                               
bill - for a total of about $12.2 million.                                                                                      
                                                                                                                                
CHAIR GIESSEL thanked him for being very informative.                                                                           
                                                                                                                                
CHAIR GIESSEL, referring to the  white paper, noted that "Erosion                                                               
of  State's  Rights  to  Manage"  (on page  1)  talks  about  the                                                               
relentless  erosion of  Alaska's  rights and  that the  increased                                                               
ADF&G  revenue will  provide support  for the  Department of  Law                                                               
(DOL), ANILCA, and the access defense program.                                                                                  
                                                                                                                                
She  said on  February 18,  the  U.S. Fish  and Wildlife  Service                                                               
(USFWS) had  a hearing in  Anchorage talking about new  rules for                                                               
refuges. What  concerned her was that  ADF&G was in the  room and                                                               
was called  upon, but they  had no  response. It is  actually the                                                               
opposite of  what he  is saying  here. Did  they not  have enough                                                               
money to speak?                                                                                                                 
                                                                                                                                
MR. BROOKS  responded, "Not at  all." He actually asked  the same                                                               
question. The program lead was in  the room and hadn't been given                                                               
the clearance to  speak and didn't on his own  initiative. It was                                                               
the department's mistake, which he apologized for.                                                                              
                                                                                                                                
CHAIR GIESSEL asked  Director Dale to comment on  the February 18                                                               
incident.                                                                                                                       
                                                                                                                                
3:51:00 PM                                                                                                                    
BRUCE DALE,  Director, Division of Wildlife  Conservation, Alaska                                                               
Department of  Fish and Game  (ADF&G), Palmer,  Alaska, responded                                                               
that the failure  to respond was on  him. He was out  of town and                                                               
the representative  in attendance  had talking points,  which had                                                               
been reviewed and he was prepared  to deliver, but he was waiting                                                               
for approval. Mr. Dale didn't realize he was waiting.                                                                           
                                                                                                                                
CHAIR  GIESSEL  asked   if  there  is  an   opportunity  for  the                                                               
department to submit written comment.                                                                                           
                                                                                                                                
MR.  DALE answered  that  April 7  is the  due  date for  written                                                               
comments  and the  department  is in  the  process of  finalizing                                                               
them. In addition, the Association  of Fish and Wildlife Agencies                                                               
representing  all  50  states, Canadian  provinces,  the  Western                                                               
Association  of Fish  and Wildlife  Agencies, numerous  NGOs, and                                                               
the Board  of Game are writing  letters of objection to  the Fish                                                               
and Wildlife Services proposed rule.                                                                                            
                                                                                                                                
CHAIR GIESSEL  asked to be copied  on those letters so  she could                                                               
pass them to the committee,  since it has significant interest in                                                               
the defense of Alaska's right to manage its lands.                                                                              
                                                                                                                                
MR. DALE replied that he would be glad to do that.                                                                              
                                                                                                                                
SENATOR COSTELLO asked  if the governor considers  this a revenue                                                               
generating bill.                                                                                                                
                                                                                                                                
MR. BROOKS answered yes.                                                                                                        
                                                                                                                                
CHAIR  GIESSEL  said  she  appreciated   that  question  and  was                                                               
actually looking at another bill  the committee had heard related                                                               
to increasing  the mining  license tax and  noted that  this bill                                                               
will  generate  $2 million  more  annually  than the  mining  tax                                                               
license bill.                                                                                                                   
                                                                                                                                
3:54:23 PM                                                                                                                    
SENATOR MICCICHE asked  if the deputy commissioner  had applied a                                                               
test  on  the  $15  sockeye   stamp  to  evaluate  how  it  might                                                               
discourage folks who  are in for a  day or so that  might be non-                                                               
residents,  from fishing  for  sockeye on  the  Kasilof or  Kenai                                                               
watersheds.                                                                                                                     
                                                                                                                                
MR. BROOKS answered that the  department's analysis factors in an                                                               
amount for a negative reaction to  a price increase and used a 5-                                                               
10 percent  drop in sales in  this case that would  build back up                                                               
over the course of five years or so.                                                                                            
                                                                                                                                
3:55:27 PM                                                                                                                    
TOM   BROOKOVER,   Director,   Division  of   Sportfish,   Alaska                                                               
Department  of Fish  and Game  (ADF&G), Anchorage,  Alaska, added                                                               
that it is common for sales  to drop after an increase in license                                                               
fees or  a new fee is  implemented. Beyond that, after  the first                                                               
year or two,  sales begin to rebound.   They don't have  a lot of                                                               
information specific  to any case like  this on the Kenai  or the                                                               
Kasilof Rivers  where they  can actually  predict how  much sales                                                               
will drop or increase afterwards.                                                                                               
                                                                                                                                
SENATOR  MICCICHE said  he  didn't think  raising  the fee  would                                                               
impact lodges  and guides in  his area,  but it might  impact the                                                               
self-service folks, such as people  driving down from cities like                                                               
Anchorage. He asked  how the department would  analyze this after                                                               
the first  year to determine if  they have the right  price point                                                               
on a stamp.                                                                                                                     
                                                                                                                                
MR. BROOKS answered they would  "absolutely be keeping track," as                                                               
they  do with  the king  salmon  stamp sales.  They would  survey                                                               
angler participation  and try to match  that up with the  sale of                                                               
the  stamps.  However, one  year  would  not  be enough  to  make                                                               
meaningful comparisons.                                                                                                         
                                                                                                                                
SENATOR MICCICHE  said he didn't  think there would be  an impact                                                               
on folks' dream trip to Alaska,  but the potential impacts are on                                                               
the shorter term visitor.                                                                                                       
                                                                                                                                
3:57:56 PM                                                                                                                    
SENATOR STOLTZE asked if these  are all unrestricted revenues and                                                               
which portion of them are tied to a measure.                                                                                    
                                                                                                                                
MR. BROOKS  answered that all  of these funds would  be deposited                                                               
into  the  Fish  and  Game Fund,  and  the  intensive  management                                                               
surcharge  would be  subaccount account  within the  fund, so  it                                                               
could be tracked separately.                                                                                                    
                                                                                                                                
SENATOR STOLTZE  asked if he  could be  provided a list  of taxes                                                               
paid  by the  sportfishing  industry, because  he  wanted to  see                                                               
"what kind of parity there was in this whole process."                                                                          
                                                                                                                                
MR.  BROOKS  answered  that  currently the  Fish  and  Game  Fund                                                               
revenue consists of  a fee for a  license, not a true  tax, as it                                                               
is for  the privilege to fish.  It generates about $25  million a                                                               
year.  It could  generate  another $12  million  if this  measure                                                               
passes.                                                                                                                         
                                                                                                                                
SENATOR  MICCICHE  remarked that  the  only  thing that  sort  of                                                               
alludes to  dedicated funds is  the Chitina dip net  fishery that                                                               
has  a couple  of suggestions.  Two  were added,  but that  still                                                               
doesn't dedicate funds. He likes people  who pay for a tag to see                                                               
the direct benefit,  and asked if he planned to  account for what                                                               
is spent  in the Chitina  fishery so  that folks paying  that $15                                                               
can understand that they're getting direct value.                                                                               
                                                                                                                                
MR. BROOKS  clarified that all  license revenue is  dedicated for                                                               
fish and wildlife purposes; the Fish  and Game Fund is one of the                                                               
few dedicated  funds. They will  absolutely use that  Chitina dip                                                               
net  revenue ($150,000-$180,000)  for  the  purposes stated:  the                                                               
latrines,  the trash,  the road  maintenance and  those kinds  of                                                               
things. And it will be accounted for separately.                                                                                
                                                                                                                                
4:01:22 PM                                                                                                                    
SENATOR STOLTZE  said most people  travelling to the  Chitina dip                                                               
net  fishery  expect  a  road they  could  drive  their  off-road                                                               
vehicle on and  not have a bank  collapse on them. It  might be a                                                               
mistake to assume the expectation  of the committee is that these                                                               
funds will  be used for  creating a road  that is drivable  for a                                                               
traditional vehicle.                                                                                                            
                                                                                                                                
MR. BROOKS responded that he had  not been to Chitina himself and                                                               
was not personally familiar with  that road, but Mr. Derrick from                                                               
the  Chitina  Dip  Net Association  talked  about  four  wheelers                                                               
having trouble, and that was his general understanding.                                                                         
                                                                                                                                
CHAIR GIESSEL  said she had  talked with DOTPF herself  and found                                                               
that it  is not an  expectation that one  would be able  to drive                                                               
vehicles  on it.  That bank  sloughs significantly  every winter,                                                               
and every spring  it can be cleared to some  degree, but it's not                                                               
going  to  be a  paved  road  or even  a  nice  gravel road.  The                                                               
legislature could  follow up next year  on how the road  has been                                                               
maintained.                                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  commented that sport fishing  fees going up                                                               
from $15 to  $20 is a 33  percent increase and then  the king fee                                                               
goes up $5,  another 33 percent increase, and  then you're adding                                                               
in the  Kenai fees of $15,  the Chitina dip netting  fee which is                                                               
$15,  and by  the time  that is  all added  up, an  average sport                                                               
fisherman  is looking  at  a couple  hundred  percent increase  -                                                               
without the  hunting fees.  He thought maybe  they were  going "a                                                               
little bit overboard."                                                                                                          
                                                                                                                                
SENATOR MICCICHE clarified that the  increase in the stamp is not                                                               
related   to  dip   netting  and   looked  to   Mr.  Brooks   for                                                               
clarification.                                                                                                                  
                                                                                                                                
MR. BROOKS answered  that the increase to a king  salmon stamp is                                                               
not. It's just tied to the  general increase. The creation of the                                                               
sockeye  stamp  for  sportfishing  is not  a  personal  use.  The                                                               
Chitina  dip net  permit fee  is new  now, along  with the  other                                                               
general increases.                                                                                                              
                                                                                                                                
CHAIR GIESSEL  clarified that  at an  earlier hearing,  Mr. Ricky                                                               
Geese spoke to the committee and  he meant to say he was speaking                                                               
on behalf  of the  Kenai River Special  Management Area,  not the                                                               
Kenai River Sportfishing Association  (KRSA), which has not taken                                                               
a position on the sockeye stamp.                                                                                                
                                                                                                                                
SENATOR  COGHILL said  he thought  the [Chitina]  association was                                                               
willing to  pay for the  fee, but  bringing up personal  use over                                                               
subsistence that  same area is  used to get into  the subsistence                                                               
area, too,  even though it's just  yards away. He asked  if there                                                               
had been discussion on some  of the subsistence access provisions                                                               
under the same conditions with the Chitina dip net fishery.                                                                     
                                                                                                                                
MR. BROOKS deferred  that answer to Mr. Brookover.  He works most                                                               
closely with Tom Tobey, his deputy, on this topic.                                                                              
                                                                                                                                
MR. BROOKOVER  responded that  the dip net  fee in  statute would                                                               
apply  strictly to  the  Chitina dip  net  personal use  fishery,                                                               
which takes  place from  O'Brien Creek down  to Haley  Creek. The                                                               
Glennallen subdistrict  would largely  be unaffected  except from                                                               
folks  that might  be launching  from O'Brien  Creek and  driving                                                               
upstream.  The Glennallen  subdistrict subsistence  fishery takes                                                               
place primarily  upstream of  the Chitina/McCarthy  Bridge, which                                                               
is  a ways  away. He  doesn't view  that as  being "predominantly                                                               
affected" by the legislation.                                                                                                   
                                                                                                                                
4:07:35 PM                                                                                                                    
SENATOR  STOLTZE said  the higher  threshold  of age  to buy  the                                                               
fishing license isn't clear and  asked if an eight-year old needs                                                               
to buy a sockeye stamp?                                                                                                         
                                                                                                                                
MR.  BROOKS  answered  the  lack of  a  license  requirement  for                                                               
someone under 18 extends to stamps, as well.                                                                                    
                                                                                                                                
SENATOR STOLTZE asked if that is a rigid department policy.                                                                     
                                                                                                                                
MR. BROOKS answered that it has  been their policy since the king                                                               
salmon stamp was instituted.                                                                                                    
                                                                                                                                
4:08:51 PM                                                                                                                    
SENATOR  MICCICHE found  a correction  to Section  21 on  page 8,                                                               
lines  24-29,  and page  9,  line  1, about  resident  anadromous                                                               
sockeye  stamp tag  for  the Kenai/Kasilof  Rivers.  It says,  "A                                                               
resident may not engage unless that  person is under 18 years old                                                             
(b)."                                                                                                                           
                                                                                                                                
CHAIR GIESSEL thanked him for spotting that.                                                                                    
                                                                                                                                
CHAIR GIESSEL asked for an updated fiscal note.                                                                                 
                                                                                                                                
MR.  BROOKS  replied that  they  were  waiting  for the  dust  to                                                               
settle, but they would have one by tomorrow.                                                                                    
                                                                                                                                
CHAIR GIESSEL  mentioned that  a letter of  intent came  with the                                                               
bill from  the House and  that needs  some drafting work  and she                                                               
intended to let the next committee, Senate Finance, do that.                                                                    
                                                                                                                                
4:10:21 PM                                                                                                                    
SENATOR  STOLTZE said  he thought  the intentions  in the  letter                                                               
were good, but he was concerned  about fleshing out the sheep and                                                               
livestock recommendations for the agriculture community.                                                                        
                                                                                                                                
4:11:03 PM                                                                                                                    
SENATOR COSTELLO moved  to report SCS CSHB  137(RES), version 29-                                                               
LS0625\U,  from  committee  with individual  recommendations  and                                                               
forthcoming fiscal note(s).  There were no objections  and it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
4:11:26 PM                                                                                                                    
At ease                                                                                                                         
^Confirmation Hearing                                                                                                       
                      CONFIRMATION HEARING                                                                                  
             Alaska Gasline Development Corporation                                                                         
                                                                                                                                
4:13:34 PM                                                                                                                    
CHAIR  GIESSEL announced  the confirmation  hearing  of Mr.  Luke                                                               
Hopkins  to the  Alaska  Gasline  Development Corporation  (AGDC)                                                               
Board.  She invited  Mr. Hopkins  to  tell the  committee why  he                                                               
wants to serve on the board.                                                                                                    
                                                                                                                                
4:14:04 PM                                                                                                                    
LUKE  HOPKINS, representing  himself,  Fairbanks, Alaska,  Alaska                                                               
Gasline Development  Corporation (AGDC) nominee, said  he came to                                                               
Alaska  in  1966, straight  out  of  high  school to  attend  the                                                               
University of  Alaska, Fairbanks, (UAF)  and just stayed.  He has                                                               
been  involved with  major projects  at the  UAF for  his 35-year                                                               
career  there and  has held  public office  in appointed  elected                                                               
positions for  almost 19 years;  six of  those years as  mayor of                                                               
the  Fairbanks North  Star Borough,  where he  brought forward  a                                                               
number  of economic  development  issues.  More development  will                                                               
happen in the very near future around Eielson Air Force Base.                                                                   
                                                                                                                                
MR. HOPKINS  said he had  been involved with getting  natural gas                                                               
to  Alaskans since  2006, when  he  was appointed  to the  Alaska                                                               
Gasline  Port  Authority  (AGPA),  one of  the  state's  multiple                                                               
chances to  develop a  gasline. He  now sits  on the  AGDC Board,                                                               
which is  the best project the  state has have ever  put forward,                                                               
because the  partners and  the state are  100 percent  behind it.                                                               
This is  the hat  he pulls down  on his head  the strongest  - so                                                               
that all Alaskans  can benefit both from the natural  gas and its                                                               
revenue  stream, and  possible  alternative  energy sources  from                                                               
that revenue stream.                                                                                                            
                                                                                                                                
4:17:28 PM                                                                                                                    
SENATOR  COGHILL commended  him, as  mayor, for  the work  he did                                                               
with Eielson Air Force Base.  However, he struggles with the Port                                                               
Authority  in many  ways. Some  of his  criticisms have  been the                                                               
fact  that they  frequently go  into executive  session and  that                                                               
will be  one of the  criticisms he  will probably face  with this                                                               
board. He  asked what he had  done to make sure  more information                                                               
gets out into the public in a better way.                                                                                       
                                                                                                                                
MR. HOPKINS  answered he resigned  from the Port  Authority Board                                                               
so  he could  bring actions  forward  as mayor  of the  Fairbanks                                                               
North Star Borough. Now SB  138 gave special opportunities to the                                                               
AGDC  that  are  not  strictly  in the  public  venue.  When  the                                                               
Assembly  went into  an executive  session it  had long  standing                                                               
guidelines  that  included five  days  of  public notice  so  the                                                               
public  has  a  clear  understanding  of what  will  be  in  that                                                               
executive  session. He  has talked  to board  members about  this                                                               
issue,  and they  are talking  about how  the agenda  is produced                                                               
even though  they are exempt  from many  of the actions  and have                                                               
different standards than the Assembly, which is a public body.                                                                  
                                                                                                                                
4:19:35 PM                                                                                                                    
CHAIR  GIESSEL  said  in  2006  he  was  appointed  to  the  Port                                                               
Authority and asked why he  would describe the Port Authority and                                                               
other efforts  as not  going forward  and that  this is  the best                                                               
effort yet.                                                                                                                     
                                                                                                                                
MR. HOPKINS replied that  a lot it has to do  with the market for                                                               
the projects  that have been  brought forward so  far. Obviously,                                                               
the  TransAlaska Pipeline  System (TAPS),  separate from  the gas                                                               
TAPS, had quite the push behind  it. They had one of the briefest                                                               
construction  periods ever  and many  of permitting  requirements                                                               
were waived.  The market  just didn't develop  enough to  pay for                                                               
the other gas line projects.                                                                                                    
                                                                                                                                
He knows the  AKLNG project has the same questions,  but it isn't                                                               
getting built  right now.  It has  opportunities to  advance with                                                               
the  stage gate  structure  in  place. The  traction  he sees  is                                                               
having all three  major producers on the North  Slope, the Alaska                                                               
Legislature and the Governor behind it.                                                                                         
                                                                                                                                
4:21:46 PM                                                                                                                    
CHAIR GIESSEL said  she thinks Alaskans need to  be reminded that                                                               
ten  years ago,  even  five years  ago, that  gas  was even  more                                                               
valuable in  bringing oil  out of  the ground  and, in  fact, the                                                               
Alaska Oil and  Gas Conservation Commission (AOGCC)  had not even                                                               
given permission  to remove  gas. So, the  state would  have lost                                                               
significant value  in oil, a  higher priced commodity, if  it had                                                               
pulled gas off the North Slope earlier.                                                                                         
                                                                                                                                
She said  AGDC also  has jurisdiction  over the  smaller in-state                                                               
ASAP line and asked what his assessment is of that project.                                                                     
                                                                                                                                
MR. HOPKINS apologized  that he forgot to say the  Alaska Oil and                                                               
Gas  Conservation Commission  (AOGCC)  did not  allow  gas to  be                                                               
taken off  North Slope. He is  aware of that. The  board's action                                                               
around the mid-2015  put the ASAP project to go  to a non-binding                                                               
open season  on hold, because  AKLNG is the project  everyone was                                                               
working  towards.  He said  they  are  still working  on  certain                                                               
components   of   ASAP:   bringing   forward   the   supplemental                                                               
Environmental  Impact Statement  for  certain parts  of the  ASAP                                                               
project. Putting that on hold could  cause it to "get stale," and                                                               
then the  information has  to be brought  current, which  takes a                                                               
lot  of  work.  He said  that  ASAP  is  a  very robust  class  3                                                               
estimate; it has "a huge amount of information."                                                                                
                                                                                                                                
4:24:59 PM                                                                                                                    
SENATOR STOLTZE  said he asked  Mr. Rigdon Boykin when  he worked                                                               
for AGDC  about AGPA and  he said it  had been dissolved.  But he                                                               
was wondering  if it  had really just  been reconstituted  in the                                                               
Governor's  Office.  He asked  him  to  describe the  dissolution                                                               
process of  AGPA since  a lot of  former AGPA  members (including                                                               
their well-paid consultant,  former-Senator Halford) crossed over                                                               
and describe their influence on the current board.                                                                              
                                                                                                                                
MR.  HOPKINS asked  if he  was  referring to  the Port  Authority                                                               
Board or the AGDC Board.                                                                                                        
                                                                                                                                
SENATOR STOLTZE  replied whatever the lineage,  values, hopes and                                                               
aspirations  were and  how they  manifest themselves  on the  new                                                               
board   that   includes  some   of   the   past  Port   Authority                                                               
participants.                                                                                                                   
                                                                                                                                
MR. HOPKINS replied that he is  one of those participants and his                                                               
opinion  is he  didn't know  what the  Port Authority's  projects                                                               
were now. He speculated that there  could be a routing to Valdez,                                                               
but that is a  very old project and would have  to be started all                                                               
over again.  He is not on  the AGDC Board to concern himself with                                                               
AGPA; he  is working  on the  AKLNG line. That  is what  has been                                                               
submitted to the Federal Energy  Regulatory Commission (FERC) and                                                               
what is  moving forward with  the Environmental  Impact Statement                                                               
(EIS). The easements are almost all 100 percent on state land.                                                                  
                                                                                                                                
SENATOR STOLTZE asked if he expected to chair the corporation.                                                                  
                                                                                                                                
MR. HOPKINS replied  that he heard some discussion  about it, but                                                               
his name wasn't moved forward.                                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI  said his background is  very impressive and                                                               
asked which  attributes he thinks will  help him get the  state a                                                               
gasline.                                                                                                                        
                                                                                                                                
4:33:37 PM                                                                                                                    
MR. HOPKINS  answered that as  mayor working  with a team  is the                                                               
best  way  to  get  things   accomplished.  The  Eielson  project                                                               
involved a "tiger team" with  repetitive continual action staying                                                               
on  point about  what they  were trying  to accomplish.  The AGDC                                                               
board    members   are    strongly    committed    to   a    team                                                               
effortConfirmation Hearings.                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI remarked that  stopping the base closure was                                                               
"pretty amazing."  He asked him  if Fairbanks has a  strong mayor                                                               
and if it has prepared him for  the big decisions that have to be                                                               
made. He also asked him to talk  his effort to get natural gas to                                                               
Fairbanks.                                                                                                                      
                                                                                                                                
MR. HOPKINS  answered that Fairbanks  has a strong mayor  form of                                                               
government.  He  is basically  CEO  of  the government  with  400                                                               
employees  and an  annual budget  of close  to $155  million. So,                                                               
over  the six  years that  amounts to  $900 million  of financial                                                               
activities that  he didn't  have to go  back for  a supplemental,                                                               
and he  was very proud of  having anywhere from 1-3  percent left                                                               
over at the  end of the year. Trying to  bring gas into Fairbanks                                                               
was a team  effort and he has always thanked  Senator Parnell and                                                               
the  legislature  for  bringing  SB  23  forward  that  allocated                                                               
authority and granted  funds to be utilized through  AIDEA by the                                                               
community for bringing much larger  volumes of natural gas to the                                                               
Interior  when there  were incredibly  high  energy prices.  That                                                               
project continues and  he has been involved all the  way up until                                                               
November. Developing  natural gas for  those in the state  off of                                                               
the North  Slope and out  of Cook Inlet  to some degree  has been                                                               
the aim of how  to get natural gas to Fairbanks  and that is also                                                               
very possible with AKLNG actions.                                                                                               
                                                                                                                                
4:37:19 PM                                                                                                                    
SENATOR COSTELLO asked if he was in Fairbanks for the flood.                                                                    
                                                                                                                                
MR. HOPKINS  answered that  he was  there as  a student  when the                                                               
rivers were rising, and then he  drove an old rickety car back to                                                               
Maine. So, he didn't  stand in the water, but as  soon as he came                                                               
back, days  after the water  went down, Fairbanks had  the clean-                                                               
up, and "it was incredible."                                                                                                    
                                                                                                                                
SENATOR COSTELLO  asked him  to respond to  an Alaska  Journal of                                                               
Commerce article saying there is  an appearance that the governor                                                               
is trying  "to put the  band back  together" by loading  the AGDC                                                               
Board  with  former  associates  from  the  Alaska  Gasline  Port                                                               
Authority and asked him to respond.                                                                                             
                                                                                                                                
4:39:17 PM                                                                                                                    
MR. HOPKINS  responded that  he agreed that  it looks  like that,                                                               
but he  had not been involved  in any discussions about  going in                                                               
the  AGPA direction.  When the  Board was  about to  vote on  the                                                               
TransCanada  buyout  that  was   his  first  board  meeting.  His                                                               
conversations with the governor is  that the project is AKLNG. If                                                               
that project modifies  to some extent, AGDC has  the ASAP sitting                                                               
there. All  evidence points to  the efforts to  monetize Alaska's                                                               
gas. He  is very  proud to  have been involved  in some  of those                                                               
projects.                                                                                                                       
                                                                                                                                
4:41:54 PM                                                                                                                    
SENATOR COSTELLO  said one  of his responses  today was  that his                                                               
prime interest  was to see  that a gasline benefits  Alaskans and                                                               
asked if he thought an export line would benefit Alaskans.                                                                      
                                                                                                                                
MR. HOPKINS answered  yes, because it has five  offtakes. He said                                                               
the board  was evaluating commercial  available gas  issues right                                                               
now and  how to pay  for it once  the valve  is hit on  the AKLNG                                                               
line. AS  31.25 says  they are  to develop  what is  required for                                                               
that, but they don't have the funds as part of the project.                                                                     
                                                                                                                                
4:43:34 PM                                                                                                                    
SENATOR COSTELLO said  he also mentioned that the  board works as                                                               
a team  and asked  if he  considered the  legislature as  part of                                                               
that team.                                                                                                                      
                                                                                                                                
MR. HOPKINS answered  yes. The AGDC must  fulfill project updates                                                               
per  SB 138  and  get  a budget  approved  annually. It  requires                                                               
everyone  working together  to move  the gasline  all the  way to                                                               
export. It  will require the  legislature continuing to  fund the                                                               
project in order for it to continue.                                                                                            
                                                                                                                                
4:45:00 PM                                                                                                                    
CHAIR GIESSEL said some would call  her picky, but this is a very                                                               
important  board.  The  statute  provides a  description  of  the                                                               
public members: expertise and experience  in natural gas pipeline                                                               
construction,  operation,   marketing,  finance,   large  project                                                               
management, and  other expertise and experience  that is relevant                                                               
to the purpose, powers and duties of the corporation.                                                                           
                                                                                                                                
She said Mr.  Hopkins has talked about  his political experience,                                                               
which is  laudable, but  three folks were  removed two  years ago                                                               
who had more  than 100 years of hands-on  technical experience in                                                               
integrated natural  gas pipeline projects,  not just a  pipe: gas                                                               
treatment  plants,  and LNG  plants.  They  were, in  fact,  just                                                               
beginning to dig into the  technical aspects of the gas treatment                                                               
plant on the North Slope  since there are two different qualities                                                               
of gas that would  be going into it. She wanted  to know which of                                                               
the descriptive roles he feels that he brings to the AGDC.                                                                      
                                                                                                                                
MR.  HOPKINS  answered  primarily  the financial  aspect  of  it;                                                               
however, he  has not built  a pipeline.  He has been  involved in                                                               
different financing packages in getting  natural gas to a market,                                                               
whether  it's  the Interior  of  Alaska  or Anchorage,  and  when                                                               
Golden Valley, the Port Authority  and Pentax continually refined                                                               
how to  build a North  Slope project and an  LNG plant. He  led a                                                               
team  for   the  municipal  utility   that  worked   with  Alaska                                                               
Industrial Development and Export  Authority (AIDEA) to establish                                                               
pipe in  the ground  and coordinated  major University  of Alaska                                                               
projects for his 35 years there.                                                                                                
                                                                                                                                
4:49:35 PM                                                                                                                    
CHAIR GIESSEL asked  if he can be unbiased in  decision making on                                                               
a statewide  basis if it  came down  to making some  choices that                                                               
might involve the community of Fairbanks.                                                                                       
                                                                                                                                
MR. HOPKINS  answered yes. Fairbanks  is a vibrant  community and                                                               
has many  opinions, which  they have expressed  to him  before he                                                               
took up this position with AGDC,  and he waited until his mayoral                                                               
term had  expired before  taking up  this position.  All Alaskans                                                               
will benefit from this.                                                                                                         
                                                                                                                                
SENATOR MICCICHE some  might say that AGPA took  a direction more                                                               
than once  that perhaps demonstrated missing  certain segments of                                                               
applicable experience, and he agrees.  One is the philosophy of a                                                               
customer-funded  project, a  direction  in which  SB  138 is  not                                                               
going.  While   Mr.  Hopkins  has  some   financing  and  project                                                               
experience  and many  years of  dedicated  public service  (which                                                               
Senator Micciche thanked him for),  he was a little bit concerned                                                               
that the  current AGDC  board makeup  doesn't have  a diversified                                                               
skill set  that has  any background  in the  kind of  project the                                                               
AKLNG is.                                                                                                                       
                                                                                                                                
4:52:40 PM                                                                                                                    
SENATOR MICCICHE  explained that  he worries  that at  some point                                                               
someone  has to  be  on  the board  that  can  call "hogwash"  on                                                               
something  when it  comes to  operational, marketing,  and direct                                                               
natural gas  and LNG experience.  He didn't worry with  the first                                                               
couple of  new board members,  but it  looks like they  are going                                                               
that way  almost exclusively. What  is his response to  this fair                                                               
non-political concern?                                                                                                          
                                                                                                                                
MR.  HOPKINS answered  that some  on  the corporation  management                                                               
team sit  as board members. They  have 40 years of  experience in                                                               
working with  LNG and 20 years  working on pipelines. There  is a                                                               
presidential  search  right  now  for   a  person  that  has  the                                                               
requisite  LNG and  pipeline experience.  It's true;  he was  not                                                               
aware of anyone  on the board that has built  a pipeline, but the                                                               
board's fiduciary responsibility is being represented.                                                                          
                                                                                                                                
4:55:52 PM                                                                                                                    
SENATOR  MICCICHE agreed,  but added  that he  worries about  the                                                               
board  becoming a  victim  of staff.  He didn't  mean  this as  a                                                               
negative  -  he  respects  the  Interior  energy  projects  early                                                               
efforts -  but he  worries that  some may want  a project  so bad                                                               
that they  may tend  to want  to put the  cart before  the horse.                                                               
Maybe a  different approach would  have been more  successful. He                                                               
wants to  know that this board  is only willing to  go forward if                                                               
this is a great deal for Alaskans,  not just to get a natural gas                                                               
pipeline. He almost wishes Mr.  Hopkins was an earlier applicant.                                                               
He  was  worried  that  the  state could  be  a  victim  of  very                                                               
significant poor  decisions for a very  long time due to  lack of                                                               
expertise.                                                                                                                      
                                                                                                                                
MR. HOPKINS responded  that he wanted to  have more conversations                                                               
with  Senator Micciche  to help  him feel  more secure  about the                                                               
board. He takes the fiduciary responsibility very seriously.                                                                    
                                                                                                                                
5:00:58 PM                                                                                                                    
SENATOR MICCICHE said  he was trying to be  transparent about his                                                               
concerns  and had  received  a letter  from  the governor  fairly                                                               
recently  that talked  about  this project  possibly  going in  a                                                               
different  direction. When  he  knew the  state  had a  technical                                                               
partnership  with people  who have  built  many similar  projects                                                               
around the world,  he felt fairly comfortable, and  perhaps had a                                                               
different view  of what the  AGDC board makeup should  look like.                                                               
With that letter  about the state possibly moving  in a different                                                               
direction, he  has become more  concerned about the  expertise on                                                               
the AGDC board.                                                                                                                 
                                                                                                                                
5:02:23 PM                                                                                                                    
SENATOR   WIELECHOWSKI   remarked   that   the   Alaska   Gasline                                                               
Development Corporation board and commission fact sheet says:                                                                   
                                                                                                                                
     The board  manages the  assets of  and business  of the                                                                    
     corporation  and may  adopt, amend  and repeal  by-laws                                                                    
     and  regulations  governing  the manner  in  which  the                                                                    
     business  of  the  corporation  is  conducted  and  the                                                                    
     manner in which its powers are exercised.                                                                                  
                                                                                                                                
It  is a  policy making  board, he  stated. The  prior board  was                                                               
stacked with  oil company  executives, some  of whom  didn't even                                                               
live in  Alaska. For several years  there has been the  debate of                                                               
having  a  board stacked  with  oil  company executives  who  are                                                               
making  decisions, possibly  that are  going to  favor their  old                                                               
employers or  having a board  making decisions that are  going to                                                               
favor Alaskans.  Mr. Hopkins  is a 49-year  resident with  a long                                                               
history of fighting for his city,  which is one of the largest in                                                               
the state; he  has a successful track record of  fighting for his                                                               
community and his state; he has  proven where his heart is. There                                                               
is no doubt  that his decisions will be in  the best interests of                                                               
the  State of  Alaska. He  finds it  very disturbing  that people                                                               
would allude to  him having some ulterior motives  when they were                                                               
perfectly content with having the  board stacked with oil company                                                               
executives.  He thanked Mr. Hopkins for standing up for Alaska.                                                                 
                                                                                                                                
CHAIR  GIESSEL  asked  about  his  experience  on  the  Municipal                                                               
Advisory  Board that  he most  recently  served on  and how  that                                                               
might influence or inform his work on AGDC.                                                                                     
                                                                                                                                
5:04:52 PM                                                                                                                    
MR. HOPKINS replied  that he appeared before  this committee with                                                               
the other mayors  when SB 138 was moving through.  It was a great                                                               
forum in which to grapple  with municipal government issues as it                                                               
related to any  gas project. They heard a great  detail about the                                                               
projects, both ASAP and AKLNG, and  the role of property taxes in                                                               
that viability. There  may be different opinions now,  but at the                                                               
time fiscal certainty and the payment  in lieu of taxes issue had                                                               
to be  resolved in order  for this  project to move  forward. The                                                               
Fairbanks North Star Borough was  in court many times and finally                                                               
reached a  settlement to  pause for  five years  on the  issue of                                                               
taxation. The other issue was impact aid.                                                                                       
                                                                                                                                
5:08:10 PM                                                                                                                    
SENATOR  MICCICHE said  Mr. Hopkins'  public  service has  proven                                                               
what  is  in his  heart,  but  his concern  is  that  he has  the                                                               
experience to  know the difference.  That is the only  reason for                                                               
his concern.                                                                                                                    
                                                                                                                                
CHAIR GIESSEL  said she  shared the same  concern. She  asked for                                                               
public comment on the appointment and finding none, closed it.                                                                  
                                                                                                                                
CHAIR GIESSEL  stated that in  accordance with AS  39.05.080, the                                                               
Resources  Committee reviewed  the following  and recommends  the                                                               
appointment be  forwarded to a  joint session  for consideration:                                                               
Alaska Gasline Development Corporation,  Board of Directors, Luke                                                               
Hopkins,   Fairbanks:   appointed    11/20/2015.   Term   expires                                                               
9/13/2018. This does not reflect an  intent by any of the members                                                               
to  vote for  or against  confirmation of  the individual  during                                                               
further sessions.                                                                                                               
                                                                                                                                
5:10:26 PM                                                                                                                    
CHAIR GIESSEL,  finding no  further business  to come  before the                                                               
committee, adjourned  the Senate  Resources Committee  meeting at                                                               
5:10 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB137-Version U.pdf SRES 3/28/2016 3:30:00 PM
HB 137
HB137-Explanation of Changes-Version U.pdf SRES 3/28/2016 3:30:00 PM
HB 137
AGDC Board Factsheet.pdf SRES 3/28/2016 3:30:00 PM
Board Appointments-AGDC
AGDC-Resume-Luke Hopkins.pdf SRES 3/28/2016 3:30:00 PM
Board Appointments-AGDC
HB137 Responses to Questions for Senate Resources 3-28-16.pdf SRES 3/28/2016 3:30:00 PM
HB 137
HB137-Revenue Analysis-DFG-3-28-2016.pdf SRES 3/28/2016 3:30:00 PM
HB 137