01/31/2013 11:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
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| Start | |
| HCR1 | |
| Overview (s): Department of Commerce, Community & Economic Development | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HCR 1 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE AND
TOURISM
January 31, 2013
11:17 a.m.
MEMBERS PRESENT
Representative Shelley Hughes, Chair
Representative Lynn Gattis
Representative Pete Higgins
Representative Craig Johnson
Representative Lance Pruitt
Representative Harriet Drummond
Representative Geran Tarr
MEMBERS ABSENT
Representative Bob Herron
Representative Kurt Olson
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 1
Relating to the establishment and operation of a state food
resource development working group.
- MOVED CSHCR 1(EDT) OUT OF COMMITTEE
OVERVIEW (S): DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HCR 1
SHORT TITLE: STATE FOOD RESOURCE DEVELOPMENT GROUP
SPONSOR(s): REPRESENTATIVE(s) STOLTZE
01/24/13 (H) READ THE FIRST TIME - REFERRALS
01/24/13 (H) EDT, RES
01/29/13 (H) EDT AT 11:15 AM BARNES 124
01/29/13 (H) Heard & Held
01/29/13 (H) MINUTE(EDT)
01/31/13 (H) EDT AT 11:15 AM BARNES 124
WITNESS REGISTER
REPRESENTATIVE BILL STOLTZE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor of HCR 1, answered
a question.
ROBERTA GRAHAM, Assistant Commissioner
Office of the Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Division of Economic Development," dated 1/31/13.
CATHY JEANS, Division Operations Manager
Juneau Office
Financing Section
Division of Economic Development (DED)
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Participated in the PowerPoint presentation
entitled, "Division of Economic Development," dated 1/31/13.
GLENN HAIGHT, Development Manager
Juneau Office
Development Section
Division of Economic Development (DED)
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Participated in the PowerPoint presentation
entitled, "Division of Economic Development," dated 1/31/13.
ACTION NARRATIVE
11:17:47 AM
CHAIR SHELLEY HUGHES called the House Special Committee on
Economic Development, Trade and Tourism meeting to order at
11:17 a.m. Representatives Higgins, Johnson, Pruitt, Drummond,
Tarr, and Hughes were present at the call to order.
Representative Gattis arrived as the meeting was in progress.
HCR 1-STATE FOOD RESOURCE DEVELOPMENT GROUP
11:19:05 AM
CHAIR HUGHES announced that the first order of business would be
HOUSE CONCURRENT RESOLUTION NO. 1, Relating to the establishment
and operation of a state food resource development working
group. Chair Hughes noted that the committee adopted a
conceptual amendment to HCR 1 on 1/29/13, and no additional
comments on the resolution have been received by the chair.
11:20:58 AM
REPRESENTATIVE BILL STOLTZE, Alaska State Legislature, sponsor
of HCR 1, thanked the committee for its technical amendment to
the resolution and offered to answer questions.
REPRESENTATIVE TARR, cosponsor of HCR 1, mentioned that the
average age of a farmer in Alaska is approaching 60 years old,
and underscored the importance of working to develop the next
generation of farmers. She said she has worked for 15 years
with the Alaska Organic Association and is a founding board
member of the Anchorage Farmers Market.
11:22:32 AM
REPRESENTATIVE PRUITT moved to report HCR 1, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHCR 1(EDT) was
reported from the House Special Committee on Economic
Development, Trade and Tourism.
11:23:05 AM
The committee took a brief at-ease.
11:23:25 AM
^OVERVIEW (S): Department of Commerce, Community & Economic
Development
OVERVIEW (S): Department of Commerce, Community & Economic
Development
11:26:55 AM
CHAIR HUGHES announced that the final order of business would be
a presentation by the Division of Economic Development (DED),
Department of Commerce, Community & Economic Development
(DCCED).
11:27:26 AM
ROBERTA GRAHAM, Assistant Commissioner, Office of the
Commissioner, DCCED, provided a PowerPoint presentation
entitled, "Division of Economic Development," dated 1/31/13. As
an aside, she said that DCCED is involved in the promotion of
fisheries and agriculture, and announced that two episodes of
the Top Chef television series were filmed in Juneau. The
episodes featured local businesses and geographic locations, and
promoted local seafood and food products. This was a
promotional project through the efforts of DCCED's tourism and
seafood marketing work. Ms. Graham then began the presentation
and informed the committee that the Division of Economic
Development (DED) has a financing section and a development
section, both of which work to create a solid foundation for
Alaska's economic wellbeing through marketing, financing, and
the technical assistance program. The presentation will
describe DED's suite of financing programs and development work
in timber, fisheries, and minerals, as well as the marketing of
products. In addition, DED has programs in film and tourism,
works with the Alaska Regional Development Organization (ARDOR)
program, staffs the Alaska Minerals Commission, and facilitates
the statewide broadband task force, along with many other
functions. The division has 58 employees in offices in
Anchorage, Fairbanks, Tok, and Juneau.
11:31:08 AM
CATHY JEANS, Division Operations Manager, Juneau Office,
Financing Section, DED, DCCED, said the financing section
oversees and services eleven loan funds with a current
outstanding debt of $187 million, representing loans receivable
balances. There are five programs related to fisheries, a bulk
fuel revolving loan fund which is overseen for the Division of
Regional and Community Affairs, an alternative energy loan
program, three small business loan programs, and a Capstone
Avionics loan program. All of the loan programs are to create
economic activity and jobs for Alaskans. The core services of
the financing section are operations management consisting of
establishing policies and procedures, budget and control, fiscal
oversight of the revolving loan funds, and daily operations.
The lending, servicing, and collections section underwrites
loans, makes loan decisions by committee, collects delinquent
debt, and works with the assistant attorney general's office on
settlement and bankruptcy cases [slide 4]. As of 7/1/12, the
largest loan fund by portfolio is the commercial fishing fund
with 2,006 accounts, and the second largest is fisheries
enhancement with 308 accounts. Rural development, small
business economic development, and Capstone Avionics make up the
other accounts. A review of the loans and accounts by dollar
amount indicates total outstanding debt as follows: commercial
fishing fund - $85.4 million; fisheries enhancement - $85.5
million; rural development - [$5.3] million; small business
economic development - $6.5 million; and Capstone avionics -
just over $500,000 [slide 5].
11:33:56 AM
CHAIR HUGHES asked for the average loan amount.
MS. JEANS was unsure, but indicated that fisheries enhancement
loans can be over $1.0 million, and the average commercial
fishing loan is around $50,000 to $60,000. The division has a
new Alternative Energy Conservation Fund, which is a revolving
loan fund capitalized in Fiscal Year 2012 (FY 12) that provides
commercial business owners access to loans for energy
conservation, retrofitting projects, and installation of
alternative energy systems. In FY 13, four funds were
capitalized: the Commercial Charter Fisheries Revolving Loan
Fund, which is a $5 million fund that allows eligible Alaskans
to finance charter halibut permits; the Mariculture Fund, which
is a $5 million fund, that provides long-term loans for the
development of Alaskan-owned mariculture operations; the Alaska
Microloan Fund, which is a $2.5 million fund; and the Community
Quota Entity Fund, which is a $10 million fund that provides
long-term, low interest loans to community quota entities for
the purchase of halibut and sablefish fishing quota [slide 6].
Ms. Jeans returned attention to the Commercial Fishing Revolving
Loan Fund that was enacted in 1972, and explained that this is
one of the largest funds intended to promote the development of
resident fisheries and continued maintenance of commercial
fishing vessels and gear, thereby improving the quality of
Alaska seafood products. In FY 12, the division made 215 new
loans that totaled $15.9 million, 35 of which totaled $2.1
million and were for upgrading older engines to more fuel
efficient models. She advised that this work created or saved
706 jobs. In addition, 219 extension requests and 25 refinance
applications were processed, and she reported that the
delinquency and foreclosure rate for this loan program remains
at 1.4 percent [slide 7].
11:37:22 AM
CHAIR HUGHES asked how the delinquency and foreclosure rates
compare.
MS. JEANS indicated the rates compare favorably overall with
private lenders and banks.
REPRESENTATIVE GATTIS asked for the current interest rate.
MS. JEANS answered that the majority of rates for commercial
fishing programs are 5.25 percent, and engine fuel and
productivity loans are at 4.25 percent.
REPRESENTATIVE DRUMMOND returned attention to slide 6 and asked
for the parameters of microloans.
MS. JEANS responded that the lower limit is $35,000 and the
maximum is $50,000 at a 5 percent interest rate. A turn-down
letter is required if the loan is for $35,000 or over. Ms.
Jeans stated that the Fisheries Enhancement Revolving Loan Fund
is for planning, construction, and operation of fish hatchery
facilities. Last year the division made eight loans for $9.6
million, and received $5.1 million in repayments. In 2011,
hatchery-propagated salmon provided 18 percent of the ex-vessel
value of the commercial common property harvest. She noted that
the Douglas Island Pink and Chum Hatchery (DIPAC) in Juneau paid
off all of its loans in FY 12 [slide 8].
11:40:16 AM
REPRESENTATIVE PRUITT asked for the term of the DIPAC loan.
MS. JEANS estimated 30 years. In further response to
Representative Pruitt, she explained that DIPAC got a series of
loans for operating and construction purposes.
MS. GRAHAM, in response to Chair Hughes, said the division would
provide the committee further information on businesses that had
paid loans in full.
MS. JEANS turned attention to the Small Business Economic
Development Revolving Loan Fund which is owned by the Alaska
Industrial Development and Export Authority (AIDEA), and is
serviced by the division. The primary purpose of the fund is to
provide financing for start-up and expansion of businesses to
support long-term employment. Since the inception of the
program 127 loans have been made, totaling $15 million, and
1,054 jobs have been created or saved [slide 9].
REPRESENTATIVE HIGGINS asked for the definition of long-term
employment.
11:43:42 AM
MS. JEANS was unsure. In response to Chair Hughes, she said she
would identify for the committee the recipient of the one loan
made in FY 12.
REPRESENTATIVE PRUITT asked whether the loan fund was
capitalized.
MS. JEANS indicated yes, the fund has about $2.0 million
available, and seven or eight loans have been made so far this
year. The Rural Development Initiative Fund is another fund
serviced for AIDEA and was also created to provide financing for
start-up and expansion of businesses. In FY 12, eleven loans
were made totaling $1.8 million, which created or saved 58 jobs
[slide 10]. The Alaska Capstone Avionics Loan Program provides
long-term low interest loans for purchase and installation of
Next Generation Air, transportation system avionics equipment,
and facilitates infrastructure. Since its inception, eleven
loans totaling more than $746,000 have been made [slide 11]. In
FY 12 the Salmon Enhancement Tax Distribution Program provided
$4.8 million to six qualified regional aquaculture associations:
Prince William Sound, Northern Southeast, Southern Southeast,
Chignik, Cook Inlet, and Kodiak [slide 12].
CHAIR HUGHES asked how the funds are divided between the
aquaculture associations.
11:47:06 AM
GLENN HAIGHT, Development Manager, Juneau Office, Development
Section, DED, DCCED, said the tax distribution is based on the
value of the catch in each region.
MS. JEANS stated that the Volunteer Tax and Loan Program is
comprised of teams of college accounting students, professors,
tax supervisors, and employees of the Alaska Business
Development Center which provide free tax and financial
counseling. In FY 12, the program visited 71 communities,
assisted over 7,000 people, and provided $5.2 million in tax
returns [slide 13].
CHAIR HUGHES questioned whether the state pays travel costs for
the volunteers.
MS. JEANS said there is a contract for $30,000 which pays for
travel.
REPRESENTATIVE PRUITT asked how the state and the volunteers are
held harmless for incorrect tax advice.
MS. JEANS was unsure, but said she would provide that
information.
REPRESENTATIVE HIGGINS expressed his concern about the state
being in competition with small businesses that provide tax
preparation in those communities.
MS. JEANS said there are no state representatives in the field.
MR. HAIGHT stated that tax reports are not being filed in these
communities, and the genesis of the program was in response to
fishermen who were in default with the Internal Revenue Service
(IRS).
CHAIR HUGHES asked whether the program targets communities that
do not have local businesses that provide this service.
MR. HAIGHT was unsure. He added that these are communities of
between 100 and 300 people.
REPRESENTATIVE HIGGINS restated his concern.
REPRESENTATIVE GATTIS observed from her own experience that out-
of-town businesses visit smaller communities to do residents'
taxes, and "it does sound like we're competing with the private
sector."
11:52:14 AM
MS. GRAHAM said she would look into these concerns. She then
directed attention to the development section of the division,
and pointed out that the finance and development sections work
together on how to assist small business development.
MR. HAIGHT outlined his presentation of programs focused on
minerals, fisheries, and timber, saying that a development
specialist completes a lot of formal and informal analyses
involving dialogue with industries in order to determine the
challenges of each industry and create solutions. Core services
provided by the division include marketing, research, and
technical assistance. In FY 12, the development section
researched marine trade services such as ship repair, machine
shops, hydraulics, painters, and welders. An expansion survey
was conducted to determine whether there is an interest in
growth or obstacles to growth. The section also fields phone
inquiries for technical assistance. He recalled this year the
section spent time assisting with the low Chinook salmon returns
on the Yukon River and the Kuskokwim River, Cook Inlet, and in
the Matanuska-Susitna valley. Mr. Haight relayed that by
statute the development section works in collaboration with
other state agencies; for example, on strategic minerals with
the Department of Natural Resources (DNR) [slide 14].
11:56:34 AM
CHAIR HUGHES asked how many inquiries are related to regulatory
or policy problems.
MR. HAIGHT recalled during his experience as a fisheries
development specialist a lot of the questions were on that.
Development specialists serve as a source to help businesses
with regulators, and provide guidance on a confidential manner,
but he did not have an exact number.
CHAIR HUGHES asked whether records are available.
MR. HAIGHT advised consistent problems are captured during the
specialists' survey work and in conversations with businesses.
CHAIR HUGHES urged the division to keep records and make this
information available to the committee.
MS. GRAHAM said her division will report back to the committee.
MR. HAIGHT returned to the section's work last year and noted it
conducted an in-depth analysis to determine timber demand in
Southeast, helped staff the Alaska Minerals Commission, and
examined the economic impacts of the Endangered Species Act
(ESA) in partnership with the Alaska Department of Fish & Game
(ADFG) and the Department of Law (DOL) [slide 14].
CHAIR HUGHES asked whether the Alaska Minerals Commission is
compiling recommendations on policy.
12:00:19 PM
MR. HAIGHT said yes. This year the commission has five
recommendations dealing with education, federal involvement,
staffing concerns, transportation, and taxation issues.
CHAIR HUGHES asked if the commission is required to report to
the legislature on an annual basis.
MS. GRAHAM stated that the report is required and available to
the committee.
MR. HAIGHT advised that the section approaches each sector
looking for opportunities in development. Right now there are
positive activities in the minerals industry; in fact, $365
million has been spent in exploration activity, $270 million has
been spent in development expenditures, and the estimated
production value for minerals in Alaska is over $3.5 billion.
The development section seeks to help continue this growth to
the extent possible. Another sector of interest is rare-earth
elements (REE) because China has threatened to restrict exports
of these elements that are essential for high-tech products.
Alaska has 70 potential sites for the production of REE
according to DNR. Small mining also holds opportunities for
Alaska, with almost 300 small mines producing over $100 million
in production value. Mr. Haight said development specialists
are looking to help with constraints on mining [slide 15].
12:03:32 PM
REPRESENTATIVE PRUITT agreed that mining for REE is a great
opportunity. He asked how DED is working with DNR, and whether
there has been a response from outside the state regarding
investments in this sector.
MR. HAIGHT said minerals development specialists work very
closely with the Division of Geological & Geophysical Surveys
(DGGS), DNR. He pointed out that minerals development entails
three main focus areas: research efforts, marketing projects,
and collaboration, although there is crossover between these
areas. Regarding strategic minerals resource assessment, work
is underway with DNR and the industry to develop a recommended
long-term strategy to develop minerals in Alaska, including REE.
One aspect of research regarding REE is understanding the
permitting system. In addition, DED is overseeing a grant with
the University of Alaska Fairbanks (UAF) to collect core samples
from Bokan Mountain and to research the specialized processing
methods necessary for REE. Other research efforts include
devoting staff to work with DGGS to put together the Alaska
Minerals Industry Report, which is a survey of small mining
activities, and an informal survey of small mine businesses to
find out constraints on business retention and expansion.
12:07:18 PM
REPRESENTATIVE HIGGINS said the Mine Safety and Health
Administration (MSHA), U.S. Department of Labor, is a problem
for small miners because MSHA considers all mines to be big and
under the same regulations and constraints. This causes a small
miner to do unnecessary things such as maintain an office.
12:07:52 PM
MR. HAIGHT said a big part of minerals development is the
marketing element and explained that the marketing programs, in
a manner similar to seafood and tourism, seek to capture a very
big base, down to the end consumer. Fortunately for the
minerals industry, target companies can be reached at the two
major trade shows annually held in Vancouver and Toronto, and
DED and DNR work together to have a presence at both of the
trade shows each year. He assured the committee that Alaska has
a very favorable business environment for the minerals industry
[slide 16].
MS. GRAHAM stated that the director of DED is attending an
important trade show this week with representatives from DNR,
DOTPF, and other agencies. In response to Representative
Pruitt, she said the division is deeply involved in the work to
be done to map the state for REE resources, understand
processing, and invest in this industry to promote its growth.
12:11:14 PM
MR. HAIGHT turned to Fisheries Development, noting that the
wholesale value earned by first-buyers was $4.5 billion in 2011.
In addition, the salmon industry has grown to a value of between
$500 million and $600 million, and there are 1,300 new permits
supporting jobs. In order to make improvements, the section
looks for opportunities in commercial fisheries, seafood
processing, marine trades businesses, and mariculture [slide
17]. He clarified the information on slide 17, stating that
about 38 percent of the value of the state's total commercial
fisheries is owned in rural Alaska communities. The section
also has a role to increase the value of underutilized and
undervalued fisheries. Returning to the processing sector, he
cautioned that the increase in pink and chum salmon exports to
China may have an impact on the capacity of Alaska processors.
REPRESENTATIVE DRUMMOND asked for an example of an underutilized
and undervalued fishery.
MR. HAIGHT responded that octopus has potential and the herring
industry has not held its value from the '90s. An area of
growth is in the dive fishery - with products such as geoduck -
although the division did not have a direct role there.
MR. HAIGHT, in response to Representative Higgins, further
clarified that 60 percent of the commercial fishing permits are
owned in rural Alaska.
12:15:58 PM
CHAIR HUGHES asked whether DED targets opportunities for
Alaskans in fisheries development, or supports all economic
development benefits, even for those based out-of-state.
MR. HAIGHT opined it is very important to maintain open access
to businesses, which may involve outside investment, because it
is needed. The role of DED is to increase ownership by Alaskans
and he said he is hoping there will be a shift from outside
ownership as the next generation purchases permits from
retirees. Expanding on the section's work on commercial
fisheries, he said it supports the University of Alaska's
Fisheries, Seafood, and Maritime Initiative for structured
training and education for Alaskans; reviews undervalued and
underutilized fisheries; supports the Regional Seafood
Development Association program; provided research and analysis
for the 2012 Chinook disaster declarations; and conducted a
business retention and expansion survey for seafood processors
[slide 18]. In the timber industry, the problem is access to
resources. In the early 1990s the gross value of wood products
manufacturing was bigger than that of oil; in 2010, it was 1
percent of oil. The role of his section is to identify new
products for timber - such as woody biomass - by having
development specialists survey the timber industry and trade
missions to open new markets [slide 19]. Special activities in
timber development were: supporting the governor's timber jobs
task force; identifying demand for products; development of wood
grading; development of a wood suppliers directory; and
participation in trade shows such as the Anchorage home show
with a booth constructed of Alaska-built and Alaska-manufactured
materials called The Alaska Home. Technical assistance includes
support of value-added products, manufacturers, the Working
Forest Group effort by the timber and other industries to work
together with a focus on healthy communities, and advising DNR
on issues with the Tongass National Forest Land & Resource
Management reviews [slide 20].
12:22:50 PM
MR. HAIGHT said his final subject was on marketing products from
Alaska's manufacturing sector. About 3 percent of Alaska's
gross state product is manufacturing, thus there is room for
growth. Eighty percent of the products are from food production
- mostly seafood - and oil. Other products are arts and crafts,
construction materials, and outdoor gear [slide 21].
REPRESENTATIVE TARR asked for more information on the Working
Forest Group.
MR. HAIGHT explained the group is organized by Sealaska
Corporation and is similar to a public relations campaign to
"brand the message." In further response to Representative
Tarr, he said he will provide more information.
CHAIR HUGHES heard that the timber industry seeks social
license.
MR. HAIGHT agreed, and said the campaign is intended to show how
industries can work together to create a sustainable economy for
healthy communities.
12:26:17 PM
REPRESENTATIVE DRUMMOND learned that Yummy Chummies Dog Treats
has moved its production facilities outside Alaska, although it
continues to use Alaska salmon.
MR. HAIGHT opined businesses relocate to Puget Sound for several
reasons. He restated the importance of building a positive
business environment, and noted that other factors are cost,
labor, and the market.
REPRESENTATIVE DRUMMOND said Yummy Chummies moved to Arizona
because of shipping issues. She expressed her belief that 90
percent of Alaska's goods come into the Port of Anchorage, and
now some vans are going south empty since that product is no
longer being shipped outside.
MS. GRAHAM agreed this is a concern. She said the division will
pursue the circumstances and report back to the committee.
REPRESENTATIVE HIGGINS urged DED to explore connecting with the
rail system in Canada in order to help commerce with
transportation in and out of Alaska.
CHAIR HUGHES relayed that in the Matanuska-Susitna Borough the
tax on inventory was removed to provide tax relief for
manufacturing.
12:30:05 PM
REPRESENTATIVE DRUMMOND recalled that Walmart ships containers
to the Port of Anchorage and then trucks merchandise through
Canada to its Midwest markets due to congestion at other West
Coast ports. She suggested Yummy Chummies may not have been
aware of all of its options.
CHAIR HUGHES asked whether the state was doing all it can to
remove barriers to value-added production by industry.
MR. HAIGHT observed that is the focus of the marketing work done
for the timber industry. The industry has advised that the
regulatory issue is access to wood; in fact, a survey of
Southeast businesses revealed that to grow the industry they
need access to 350 million metric board feet. Mr. Haight then
turned attention to a new "buy local" campaign being developed
to support Alaska businesses statewide. Existing buy local
campaigns are in Anchorage, Fairbanks, and Juneau, and besides
encouraging residents to keep their dollars local, selling
products to neighbors and home markets creates excellence in
manufacturing [slide 22]. Other programs are: Made in Alaska
mother and cub logo with sales estimated at $134 million;
product preference program for state procurements; a new buy
Alaska campaign to market and promote sales of Alaska products
[slide 23].
12:35:05 PM
MS. GRAHAM restated that the trade booth at the Anchorage Home,
Garden, and Remodeling Show in March will be stocked with home
construction products manufactured and available in Alaska. In
addition, there will be a web site with product purchasing
information [slide 24].
REPRESENTATIVE PRUITT asked how the price of local lumber
compares with that of lumber that is shipped up.
MS. GRAHAM was unsure of the exact price comparison, but the
quality of local lumber is high and DED's primary concern is to
support local business.
REPRESENTATIVE PRUITT cautioned that buyers do not look for the
logo, but the price needs to be competitive so the products are
stocked at Home Depot and Lowes.
MS. GRAHAM opined that depends on the product and awareness of
the product, similar to Alaska Grown produce that is available
at local restaurants.
REPRESENTATIVE TARR returned attention to the Community Quota
Entity Fund and asked for an update on these loans.
12:39:35 PM
MS. JEANS said there is one application. The program was
modified last year to better fit the Community Quota Entity
(CQE) economic model. Volatility in the Individual Fishing
Quota (IFQ) market has created hesitancy for the CQEs. She
offered to provide more information.
CHAIR HUGHES asked Ms. Graham if the legislature needs to be
aware of any needed changes in policy. She also inquired as to
regulatory or statutory problems for businesses, and businesses
that are having problems due to a lack of affordable energy.
MS. GRAHAM advised that DED is involved in trying to reduce the
cost of energy in rural and urban areas of Alaska. Within
DCCED, the Alaska Energy Authority (AEA) and AIDEA are working
on the governor's initiatives to bring LNG to Fairbanks and to
tidewater. She assured the committee she will review all of the
inquiries the division has received and report back.
12:42:58 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, Trade and Tourism
meeting was adjourned at [12:42] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DED January 31 2013 Presentation to House EDTT.pdf |
HEDT 1/31/2013 11:15:00 AM |
|
| CSHCR1(EDT)-LEG-01-31-2013.pdf |
HEDT 1/31/2013 11:15:00 AM |
HCR 1 |