01/27/2015 10:15 AM House ECON. DEV., TOURISM, & ARCTIC POLICY
| Audio | Topic |
|---|---|
| Start | |
| HB1 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 1 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TOURISM, AND
ARCTIC POLICY
January 27, 2015
10:17 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Craig Johnson
Representative Charisse Millett
Representative Louise Stutes
Representative Cathy Tilton
Representative Dan Ortiz
Representative Adam Wool
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 1
"An Act declaring the Arctic policy of the state."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 1
SHORT TITLE: STATE ARCTIC POLICY
SPONSOR(s): REPRESENTATIVE(s) HERRON
01/21/15 (H) PREFILE RELEASED 1/9/15
01/21/15 (H) READ THE FIRST TIME - REFERRALS
01/21/15 (H) EDA, STA
01/27/15 (H) EDA AT 10:15 AM BARNES 124
WITNESS REGISTER
ROB EARL, Staff
Representative Bob Herron
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 1 on behalf of Representative
Herron, sponsor.
NIKOOSH CARLO, Executive Director
Alaska Arctic Policy Commission
Seattle, Washington
POSITION STATEMENT: Testified in support of HB 1.
NILS ANDREASSEN, Executive Director
Institute of the North;
Commissioner, Alaska Arctic Policy Commission
Anchorage, Alaska
POSITION STATEMENT: Provided remarks on the Alaska Arctic
Policy Commission and testified in support of HB 1.
ELIZABETH CRAVALHO, Senior Director
Community and Government Affairs
NANA Regional Corporation;
Commissioner, Alaska Arctic Policy Commission
Kotzebue, Alaska
POSITION STATEMENT: Testified in support of HB 1.
REPRESENTATIVE DAVID GUTTENBERG
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Described his work as a commissioner of the
Alaska Arctic Policy Commission and testified in support of
HB 1.
REPRESENTATIVE BRYCE EDGMON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Described his work as a commissioner of the
Alaska Arctic Policy Commission and testified in support of
HB 1.
MIKE SFRAGA PhD, Vice-Chancellor for University and Student
Advancement
University of Alaska Fairbanks
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Discussed Arctic issues and testified in
support of HB 1.
ACTION NARRATIVE
10:17:01 AM
CHAIR BOB HERRON called the House Special Committee on Economic
Development, Tourism, and Arctic Policy meeting to order at
10:17 a.m. Representatives Wool, Stutes, Tilton, Ortiz, and
Herron were present at the call to order. Representatives
Johnson and Millett arrived as the meeting was in progress.
Representatives Guttenberg and Edgmon were also present.
HB 1-STATE ARCTIC POLICY
10:18:42 AM
CHAIR HERRON announced that the only order of business would be
HOUSE BILL NO. 1, "An Act declaring the Arctic policy of the
state."
10:18:53 AM
CHAIR HERRON informed the committee the legislature commissioned
the Alaska Arctic Policy Commission (AAPC) two years ago, and
the Alaska Northern Waters Task Force (ANWTF) four years ago.
Both of these organizations were tasked to inform the
legislature about the Arctic and what it means to Alaska. On
1/30/15 the AAPC will deliver its final report, implementation
plan, and executive summary to the legislature. On 2/2/15 there
will be a press conference by the ten legislators who are
members of the commission to explain the work done by AAPC over
the past two years. One recommendation of AAPC was that the
legislature consider introducing legislation to create an act
declaring the Arctic policy of the state. Chair Herron stressed
that the legislature needs to think about the Arctic on a daily
basis because the U.S. is assuming the chair of the Arctic
Council - an organization consisting of the eight countries of
the circumpolar north - which will give Alaska a stage upon
which world leaders will gather. During the two years the U.S
chairs the Arctic Council, there will be approximately 20
meetings held in the U.S. for working groups of senior officials
from each country; about 15 meetings will be held in Alaska,
thus Alaska will be on the "world stage." He advised that HB 1
is the start of an Arctic dialogue in which the legislature must
be involved in support of the executive branch. Although not
all legislators represent the Arctic part of Alaska, the Arctic
affects all of Alaska, and is affected by all of Alaska.
10:21:53 AM
ROB EARL, Staff, Representative Bob Herron, Alaska State
Legislature, on behalf of the sponsor, Representative Herron,
introduced HB 1. He then noted that a sponsor statement,
sectional analysis, a zero fiscal note [HB1-LEG-SESS-01-22-15]
from the Legislative Affairs Agency, two non-zero fiscal notes
from the Department of Environmental Conservation [HB1-DEC-SPAR-
01-20-15; HB1-DEC-FC-01-23-15], and the AAPC executive summary
were provided in the committee packet. He explained that
Section 1 of the bill covers nine findings and pointed out the
importance of the following four findings: 1) Alaska makes the
U.S. an Arctic nation; 6) Respect for indigenous peoples is
critical to understanding the Arctic; 7) Other regions and
nations are rapidly developing Arctic policies & strategies, so
Alaska must effectively communicate its Arctic vison for safety,
security & prosperity; 9) Alaska should create and maintain an
official body to further develop Arctic strategies and policies.
Section 1, subsection (b) refers to legislative intent that
Arctic policy should guide legislation resulting from the AAPC
implementation plan. Proposed Section AS 44.99.105 Declares a
state Arctic policy, includes the following paragraphs: 1)
Uphold the state's commitment to economically vibrant
communities while maintaining a healthy environment; 2)
Collaborate with all appropriate entities to achieve transparent
and inclusive Arctic decision-making; 3) Enhance Alaska's
security by strengthening Arctic safety; 4) Strengthen
resilience of Arctic communities and integrate local knowledge.
Mr. Earl further explained that legislative intent as indicated
in proposed AS 44.99.105 contains four priorities of effort
including promoting economic development, addressing the
infrastructure gap in the Arctic, supporting healthy
communities, and strengthening science and research. Lastly,
subsection (c) aligns the state's definition of the Arctic with
the federal definition, and states that for international
purposes, "Arctic" means the entirety of the state.
10:26:34 AM
CHAIR HERRON clarified that section 1 would be intent and
section 2 would be the codified section of the proposed
legislation. He opened public testimony on HB 1.
10:27:00 AM
NIKOOSH CARLO, Executive Director, Alaska Arctic Policy
Commission (AAPC), opined that the proposed Arctic policy
legislation acknowledges that Alaskans are at the forefront of
new exploration, the use of Arctic resources, and of new
circumpolar cooperation. The bill recognizes Alaska's
responsibility to provide information about the Arctic as well
as promote understanding and the communication of relevant
critical issues. Furthermore, HB 1 is a product of the
commission and was informed by the public and expert testimony
during listening sessions and work sessions. She highlighted
three main goals of the policy: to address community needs in
the region and to strengthen the state's economy; to provide a
framework and guidance for the future; and to demonstrate the
state's intention about policies and to encourage efforts and
priorities. Ms. Carlos concluded that HB 1 is designed to guide
state initiatives and inform Arctic policy to best serve the
interests of Alaskans and the nation.
10:31:13 AM
CHAIR HERRON observed that as executive director Ms. Carlos has
had frequent contact with the White House and the U.S.
Department of State (state department) during hearings held by
AAPC. He asked for the federal administration's opinion on
Alaska having its own Arctic policy.
MS. CARLO opined that the federal administration in general has
been supportive of the state's effort to create an Arctic
policy, gather information, and assess the social and economic
priorities throughout the state. In addition, the commission
was valued as a contact point for issues related to Arctic
policies.
10:32:58 AM
NILS ANDREASSEN, Executive Director, Institute of the North;
commissioner, AAPC, said he would speak on the concept "What is
Arctic?" The state's motto of "North to the Future" has been a
source of pride and today explorers look to what have been
previous aspirations of opportunities in the Arctic that are now
a reality. However, opportunities in the Arctic are
challenging, complex, and confusing. The peoples of this
increasing busy region need to fully understand the issues
ahead. The AAPC has provided the first steps in approaching
Alaska's role in the Arctic region and its commissioners have
represented varied interests, ranging from conservation, oil and
gas, fishing, and mining, and illustrated the urgency of issues
such as risk and responsibility. He expressed his belief that
Alaska is playing "catch-up" in evaluating the changing forces
of globalization, climate change, and economic challenges, thus
the importance of participatory governance and the informed
management of resources to face these challenges. Mr.
Andreassen opined AAPC has done a good job reflecting the
aforementioned in HB 1. He pointed out the Arctic region of the
state has different needs and opportunities than the rest of the
state, but it is still interrelated to all of Alaska. In
defining the Arctic, the commission has been very public and has
involved Alaskans in its discussions, which is a change from
policies made at the federal level. Further, commissioners
represented many constituencies well. He said it is important
that the U.S. regards the Arctic domestically and
internationally, and Alaska needs to have its prospective and
priorities represented at each level. He referred to the Arctic
Council chairmanship and noted Alaska has two years to inform
the members on northern development, environmental protection,
cultural assets and economic prosperity. Although AAPC has
completed its deliverables, public outreach and education must
continue. Mr. Andreassen said HB 1 allows Alaskans to be
confident in the processes that have been developed, to engage
in Arctic issues, and to use the opportunity for leadership.
Alaska's leadership is based on place, need, and opportunity
because the Arctic is home. The work has been ongoing for
decades and the bill has captured past efforts and set in place
steps for the future.
10:38:53 AM
CHAIR HERRON asked Mr. Andreassen for the reaction of his peers
and colleagues to the AAPC preliminary report.
MR. ANDREASSEN responded that the international community is
paying attention to Alaska and its role as a subnational
jurisdiction similar to that of other states, territories, and
regions within the Arctic represented by national governments.
The preliminary report was well received, and HB 1 and the final
AAPC report and implementation plan are significant components
to the future of national perspectives in the Arctic.
10:40:32 AM
ELIZABETH CRAVALHO, Senior Director, Community and Government
Affairs, NANA Regional Corporation; commissioner, AAPC, informed
the committee NANA is one of 13 regional Alaska Native
corporations created pursuant to the Alaska Native Claims
Settlement Act of 1971. The NANA Regional Corporation owns the
land upon which the Red Dog Mine is situated, and the wholly-
owned subsidiary NANA Development Corporation, which operates
over 30 companies throughout the U.S. The NANA Regional
Corporation is owned by more than 13,600 Inupiat shareholders
and is familiar with the challenges of balancing the risks of
resource development with the opportunities provided thereby; in
fact, the Red Dog Mine took years to achieve support for
development from the villages in the region. Consultation to
achieve this support was by hearings, sharing information, and
providing opportunities for meaningful influence on decisions.
Today, subsistence management and shareholder employment and
training committees continue to be active to ensure responsible
management of the mine after 25 years of responsible operations
that account for caribou migration and whaling activities. The
mine profits shareholders and other corporations, and benefits
residents through employment, payments in lieu of taxes to the
Northwest Arctic Borough, dividends to shareholders,
scholarships, payments to the elders' trust fund, and technical
and first responder training for employees. The Inupiat people
rely on the continued harvest of caribou, sheefish, and berries
and, like hunters and gatherers, the state and must adapt and
take advantage of opportunities in the Arctic. There are
barriers to economic growth in Northwest Alaska, such as a
changing climate, and communities face high energy prices and a
high cost of living. Ms. Cravalho said infrastructure to
support further resource development, defense activities,
maritime traffic, future oil and gas development, and food
security is necessary. Untapped human and natural resources of
the region can play a significant role in diversifying the
state's economy and the Arctic communities wish to work with the
state and others to develop resources for a future in the Arctic
that involves its residents; for example, understanding plans
that are already vetted and established, and traveling to Arctic
communities when necessary. Responsible resource development
holds benefits and is most successful when public, private, and
government entities work together and address local concerns.
She concluded that HB 1 and the recommendations of AAPC bring
the state closer to addressing the opportunities and challenges
of the future.
10:45:54 AM
CHAIR HERRON invited comments from Representatives who served on
the commission.
10:46:40 AM
REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature, noted
that he served during the second year of the commission as the
chair of the security and defense component. In this capacity,
he and other members met on security issues with the military
and the U.S. Coast Guard, taking an international focus on the
needs of the Arctic. He referred to the work of Dr. Harry Bader
of the University of Alaska Fairbanks (UAF) who is based in
Washington D.C. Representative Guttenberg said the recent work
on Arctic policy is a topic of discussion internationally and
all the world is interested in the Arctic when planning for the
economic outlook of the future. During discussions on defense
policy, it became clear that the U.S. military is focused on the
Arctic and a key question is where a port will be located. The
military and the Coast Guard have a huge interest, and economic
development will drive the location of a military presence,
unless a military response of some kind becomes necessary.
Representative Guttenberg stressed that Alaska makes the U.S. an
Arctic nation and thus must influence the direction of
activities in the future. The worldwide economy - based on the
current price of oil - is a hindrance, but without putting
infrastructure in place, there will be lost opportunities. In
fact, in discussions with other nations and entities there is a
lack of understanding about the fact there is no infrastructure
and very limited facilities along the northern coast. He
restated that there is a lost opportunity cost to not taking
advantage of Alaska's positioning in the Arctic. The state must
take advantage of its international positioning and the
commission's recognition of this is reflected in the bill.
10:52:12 AM
REPRESENTATIVE BRYCE EDGMON, Alaska State Legislature, said HB 1
underscores the importance of the opening of the Arctic and the
growing roles that Alaska and the U.S. will play. In 2010,
previous to the formation of AAPC, the Alaska Northern Waters
Task Force (ANWTF) heard extensive testimony on activities in
the Arctic of which state government and the legislature were
largely unaware. Since then, legislators and others have
traveled along the coast of Alaska and have seen the diversity
and the needs of coast communities from Unalaska to Wales, where
the community feels trepidation due to increasing shipping
traffic through the Bering Strait. At Wainwright, there is
resolve in the community that its future is tied to both a cash
and a subsistence way of life that needs resource development to
survive. Representative Edgmon and others have seen a shift to
resource development as an important component to rural
communities. There has also been an opportunity to look at what
opening the Arctic region means to Alaska from a strategic point
of view. He observed that even today, Alaska remains a junior
partner to the federal government, despite efforts to provide
expert local knowledge about the region. However, since ANWTF
in 2010, the "Arctic IQ" in the legislature has risen to the
mainstream, along with an awareness of the limitations of the
Coast Guard and the state's responsibilities in an international
arena. An Arctic policy is an opportunity for Alaska to work in
the circumpolar arena, and perhaps to strengthen its partnership
with federal counterparts that continue to act without
consultation with the state. In addition, a lot of improvements
are still needed in rural Alaska - coastal and Arctic -
communities.
10:58:19 AM
REPRESENTATIVE EDGMON then expressed his support of HB 1. He
suggested condensing the bill, and encouraged further committee
discussion on ancillary issues such as coastal erosion in
Western Alaska, permafrost and the changing climate, fisheries,
and ocean acidification, and concluded that this is a weighty
topic.
11:00:24 AM
CHAIR HERRON said a committee substitute for HB 1 will be
available on 2/5/15 for debate. He described agencies of the
federal government not as partners or counterparts, but as
"counterpartners". Chair Herron told a story of the use of
social media by residents of the Arctic region.
11:02:09 AM
MIKE SFRAGA PhD, Vice-Chancellor for University and Student
Advancement, University of Alaska Fairbanks, informed the
committee that he and Dartmouth College co-lead the University
of the Arctic (UArctic) Institute for Arctic Policy and the
Fulbright Arctic Initiative at the state department. He pointed
out that UAF and its colleagues in the university system engage
significantly in policy-related white papers and forums
informing and influencing Arctic policy, which is why UAF is
supportive of the work done by the committee, by AAPC, and by
the governor's Arctic transition team. The state has invested
in the university for 100 years and the Arctic research
institution located in Fairbanks serves Alaska and the nation.
The role of UAF is to support the work of the committee, the
bill, and the state with research from the R/V Sikuliaq and the
international Arctic research center; in fact, UAF is positioned
to enable, inform, and influence the global discussion and
debate about the Arctic. Since 2008, UAF, Dartmouth and
[Carnegie Institution] have been holding institutes around the
world on Arctic policy, most recently in Washington D.C. The
purpose of the institutes is to inform and influence activities
in the Arctic and Alaska, and the institutes are held in
coordination with the state department and the White House.
Recent institutes were related to the upcoming U.S. chairmanship
of the Arctic Council and involved the other seven Arctic
nations. The Institute of the North also partners with UAF and
they will continue to work together to serve the committee.
Last year, Dr. Sfragas attended a meeting of the Joint Ocean
Commission Initiative in Washington D.C., and the co-chairs of
the initiative agreed to hold its April meeting in Fairbanks,
which will bring another policy-setting body to Alaska thereby
furthering the understanding of the region. Recently, UA
approved the creation of the Center for Arctic Policy Studies,
which will be housed at UAF and inclusive for all of the
University of Alaska (UA). The center will serve to coalesce
all of the university's efforts in Arctic policy, such as white
papers and position papers, so that the state and others in the
circumpolar north can benefit from its research. Dr. Sfragas
closed, noting that Dr. Bader is working in Washington D.C. to
address security issues and Dr. Lawson Brigham is a colleague
working on Arctic shipping and infrastructure, both of whom are
adding to the progress in Arctic policy that has been made in
the past eight to ten years. He concluded that UAF is prepared
to extend to the committee its expertise, research,
partnerships, and strategies.
11:08:19 AM
REPRESENTATIVE WOOL asked about the importance of ratifying the
[U.N. Conventions on the Law of the Sea] treaty.
DR. SFRAGA opined ratification is a priority in a number of
areas. He questioned how the U.S. can be actively engaged to
inform and influence activities in the Arctic without
participation in the treaty.
11:09:20 AM
CHAIR HERRON inquired as to how the state's current financial
situation is being addressed at UAF.
DR. SFRAGA said UAF Chancellor Rogers and the four UAF vice-
chancellors met and recalibrated the work for the future to
focus on the Arctic. The university will make strategic
investments in the Arctic and science, technology, engineering
and math disciplines (STEM), and some areas will have reduced
budgets. On the policy side, UAF has been leveraging resources
for a long time, but work will slow. Although hiring is not
needed, resources are needed to complete the studies; however,
one of the university's priorities was to enable the Center for
Arctic Policy Studies to complete its work. Arctic policy
remains a priority for UAF and for the UA system.
11:11:20 AM
REPRESENTATIVE GUTTENBERG asked for more information about a
recent meeting on Arctic research with the Secretary of the
Navy.
DR. SFRAGA answered that the extensive ocean research by the RV
Sikuliaq is known. However, Admiral Papp requested a briefing
wherein UAF provided information on Arctic research ranging from
unmanned aerial vehicles (UAVs) and the R/V Sikuliaq ocean
research to rocket ranges. The Secretary of the Navy also
requested a briefing that was held at UAF and which involved a
close look at the science of ocean acidification and feedback
loops, and then at how science and research inform policy. The
Admiral and the Secretary were very complimentary and were
subsequently invited by UAF to participate in the Arctic Science
Summit Week in Fairbanks in 2016. The summit week is the
largest Arctic-related meeting and is scheduled for Tokyo this
year. Further, the new U.S. Coast Guard Center for Arctic
Studies and Policy is interested as well.
11:13:49 AM
CHAIR HERRON related his understanding there will be further
action from the Obama Administration that affects the Arctic and
Alaska. He asked when U.S. Secretary of the Interior Sally
Jewell will visit Alaska.
DR. SFRAGA said he did not know.
11:15:00 AM
CHAIR HERRON noted that world-wide publications that report on
the Arctic have commented about "the federal government versus
Alaska - the subnational on Arctic issues - and how the
legislature and the Alaska Arctic Policy Commission [have]
openly questioned some of the decisions, because we are not
being fully consulted on a lot of the decisions that were made."
He closed saying that HB 1 has three targets: the federal
government, the state legislature, and the state executive
branch. The AAPC implementation plan is to take on initiatives
that are relative to the aforementioned three entities and
projects. Chair Herron stated his intent to hear testimony on
the committee substitute for HB 1 on 2/5/15. As an aside, he
said Senator McGuire's staff is available to provide information
on the bill, and reminded the committee of a press conference
scheduled for 2/2/15.
[HB 1 was held over.]
11:17:59 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, Tourism, and Arctic
Policy meeting was adjourned at 11:17 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB1 Fiscal Note LEG-SESS-01-22-15.php.pdf |
HEDA 1/27/2015 10:15:00 AM |
HB 1 |
| HB1 Sectional Analysis.pdf |
HEDA 1/27/2015 10:15:00 AM |
HB 1 |
| HB1 Supporting Documents - 2014 AAPC Preliminary Report Exec Summary.pdf |
HEDA 1/27/2015 10:15:00 AM |
HB 1 |
| HB1 ver E.PDF |
HEDA 1/27/2015 10:15:00 AM |
HB 1 |
| HB1 Sponsor Statement.pdf |
HEDA 1/27/2015 10:15:00 AM |
HB 1 |