Legislature(2007 - 2008)BARNES 124

03/07/2007 08:30 AM House FISHERIES


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08:35:18 AM Start
08:35:36 AM Confirmation Hearing|| Commissioner, Alaska Department of Fish and Game
10:01:48 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Commissioner, Alaska Department of Fish &
Game - Denby Lloyd
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 7, 2007                                                                                          
                           8:35 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Alaska Department of Fish and Game                                                                                            
                                                                                                                                
     Denby Lloyd, Acting Commissioner - Juneau                                                                                  
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DENBY LLOYD, Acting Commissioner                                                                                                
Alaska Department of Fish & Game                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided background information and                                                                        
answered questions.                                                                                                             
                                                                                                                                
BEAVER NELSON, Commercial Fisherman                                                                                             
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of the confirmation of                                                                
Acting Commissioner Lloyd.                                                                                                      
                                                                                                                                
JOHN JENSEN                                                                                                                     
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:  Testified in  support of the confirmation of                                                               
Acting Commissioner Lloyd.                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order at  8:35:18  AM.    Representatives                                                             
Johnson, LeDoux,  Edgmon, and Johansen  were present at  the call                                                               
to order.   Representative Wilson  arrived as the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
^CONFIRMATION HEARING                                                                                                         
^Commissioner, Alaska Department of Fish and Game                                                                             
                                                                                                                                
8:35:36 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
the confirmation  hearing on  the appointment  of Denby  Lloyd as                                                               
commissioner of the Alaska Department  of Fish & Game (ADF&G). He                                                               
related that  the committee should  have letters of  support from                                                               
the  following:   Cordova  District  Fishermen United,  Southeast                                                               
Alaska  Fishermen's Alliance,  Alaska Dragger's  Association, Bob                                                               
Wallace, John Murray, and Bob  Thorstenson Jr.  He then explained                                                               
that the  committee is charged  with reviewing and  assessing the                                                               
qualifications  of Mr.  Lloyd.   He reminded  the committee  that                                                               
comments should be directed only  to fisheries questions as other                                                               
natural resource issues  can be addressed in  the House Resources                                                               
Standing Committee.                                                                                                             
                                                                                                                                
8:40:35 AM                                                                                                                    
                                                                                                                                
DENBY  LLOYD, Acting  Commissioner, Alaska  Department of  Fish &                                                               
Game  (ADF&G), began  by informing  the committee  that he  first                                                               
came to Alaska 35 years ago  to attend the University of Alaska -                                                               
Fairbanks from  which he received  degrees in  biological science                                                               
and biological oceanography.  He noted  that he has held a number                                                               
biology-based positions  at the  local, state, and  federal level                                                               
throughout Alaska.   Positions  were held  with the  ADF&G, North                                                               
Pacific  Fishery  Management  Council   (NPFMC),  Office  of  the                                                               
Governor,  Aleutians  East  Borough,  National  Marine  Fisheries                                                               
Service (NMFS), as  well as research time with  the University of                                                               
Alaska.   He  said  what  his experience  has  been with  habitat                                                               
issues.  Acting Commissioner Lloyd  told the committee that he is                                                               
very  heartened by  the words  and strength  of the  Alaska State                                                               
Constitution, which  provides a  number of basic  guidelines such                                                               
as management for  sustained yield, maximum benefit,  and for the                                                               
people of Alaska.  He  emphasized that without people there would                                                               
be  no need  to manage  the  resources.   Furthermore, these  are                                                               
public resources  that require management  for the  public trust.                                                               
He opined  that anyone  who is  going to  be the  commissioner of                                                               
ADF&G is  going to need to  represent a broad array  of interests                                                               
while  focusing   on  the  protection  and   development  of  the                                                               
resources  of the  state.   He  indicated  that the  commissioner                                                               
shouldn't get  involved in any  particular user  group's priority                                                               
or preference other than the  subsistence preference.  A sense of                                                               
fair play,  utilizing solid  scientific information,  and upfront                                                               
policy analysis is necessary to  represent the department and the                                                               
state.                                                                                                                          
                                                                                                                                
8:44:47 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON inquired  as to Acting Commissioner  Lloyd's view of                                                               
the relationship of  the commissioner's office with  the Board of                                                               
Fisheries  (BOF),  particularly  in relation  to  the  department                                                               
managing for  sustained yield, maximum  use, and  emergency order                                                               
authority versus BOF's regulatory policy-setting authority.                                                                     
                                                                                                                                
ACTING COMMISSIONER LLOYD  said that he views  the department and                                                               
BOF as  complimentary organizations.   The department  is charged                                                               
with providing  the scientific  and other  background information                                                               
upon  which  BOF   makes  a  number  of   policy  and  regulatory                                                               
decisions,  which the  department is  charged with  implementing.                                                               
However,  the  department  falls  largely outside  the  arena  of                                                               
making those difficult allocation  decisions amongst various user                                                               
groups.      Acting    Commissioner   Lloyd   characterized   the                                                               
department's ability to make  emergency order decisions in-season                                                               
as a  strength.   For the  most part,  the emergency  orders work                                                               
well.  The  department uses this authority routinely  to open and                                                               
close various fisheries so that  escapements fall within the goal                                                               
ranges and all  available harvestable surplus is  captured by the                                                               
various  fisheries.   The difficulty,  he opined,  is when  clear                                                               
goals  haven't   been  specified.     He  acknowledged   that  if                                                               
conflicting goals occur,  judgment calls with regard  to how best                                                               
to manage in-season can create difficulties.                                                                                    
                                                                                                                                
8:48:03 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON highlighted  that there have been  concerns that the                                                               
specificity  of some  of the  management plans  have reached  the                                                               
point  of taking  away the  authority  for in-season  management.                                                               
For example,  the Upper Cook  Inlet has window closures  that are                                                               
date specific  rather than based on  run timing.  He  inquired as                                                               
to how the  commissioner can strike a balance  between run timing                                                               
and a  policy with specific dates  and times in order  to achieve                                                               
the maximum harvest.                                                                                                            
                                                                                                                                
ACTING COMMISSIONER LLOYD commented that  the Upper Cook Inlet is                                                               
probably  the  location  in  the state  with  the  most  apparent                                                               
conflict   or  confusion   amongst  conflicting   goals  of   the                                                               
management  plan.   He  explained  that  typically in  commercial                                                               
salmon fisheries, [the department]  is clearly mandated to manage                                                               
the harvest  within specified escapement goals.   Emergency order                                                               
authority is used to attain  those escapement goals.  However, in                                                               
the  Upper Cook  Inlet  there are  conflicting direct  management                                                               
objectives  with BOF's  management plans,  which specify  certain                                                               
closed windows.   The department  doesn't have clear  guidance on                                                               
what  it should  use its  emergency order  authority for  if, for                                                               
example,  more   harvest  pressure  is  necessary   to  keep  the                                                               
escapements below the upper range  of an escapement goal.  Acting                                                               
Commissioner  Lloyd  opined  that  the department  will  use  its                                                               
emergency order authority  to increase harvests in the  case of a                                                               
large  run  that  was  going  to exceed  the  upper  end  of  the                                                               
escapement goal, if that would  clearly damage the run.  However,                                                               
the  scientific  information  on  that matter  is  equivocal  and                                                               
requires an  unfortunate level of judgment  in the commissioner's                                                               
office.   The department  would, ideally,  prefer BOF  to address                                                               
the aforementioned question and state the overarching goal.                                                                     
                                                                                                                                
8:51:42 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON surmised  then that  prior  to the  issuance of  an                                                               
emergency order  there needs  to be  proof of  damage to  the run                                                               
even though it's above the escapement goals.                                                                                    
                                                                                                                                
ACTING  COMMISSIONER LLOYD  remarked that  [the Upper  Cook Inlet                                                               
situation] would  be an  extreme example.   He  said that  he, as                                                               
commissioner, would  be looking  for a  clear reason  to override                                                               
the BOF's judgment of two competing user groups.                                                                                
                                                                                                                                
CHAIR  SEATON  further  surmised then  that  Acting  Commissioner                                                               
Lloyd's  philosophy  would be  to  not  use the  emergency  order                                                               
authority to achieve the maximum benefit,  but rather to do so in                                                               
order   to    avoid   long-term   problems   that    damage   the                                                               
sustainability.                                                                                                                 
                                                                                                                                
ACTING  COMMISSIONER LLOYD  clarified  that he  would attempt  to                                                               
keep the department from arbitrating  what maximum benefit to the                                                               
people means.   The BOF  is making  public policy decisions.   He                                                               
explained, "One aspect  or the benefit is  certainly achieving as                                                               
much  of  the  harvestable  surplus  for  commercial  harvest  as                                                               
possible.  And  typically, everywhere else in the  state that's a                                                               
clear message,  a clear directive  to the department."   However,                                                               
in the [Upper Cook Inlet] case,  the BOF is also trying to accrue                                                               
benefits  to the  sport  fishery as  well.   Acting  Commissioner                                                               
Lloyd specified that  he didn't want ADF&G to be  in the position                                                               
of  arbitrating  the maximum  benefit  for  sport and  commercial                                                               
users and how  that equates to the maximum benefit  to the people                                                               
of the Alaska.  The  aforementioned is more appropriately the job                                                               
of the BOF.                                                                                                                     
                                                                                                                                
CHAIR  SEATON related  his understanding  that the  department is                                                               
under the management  plan, and therefore can  increase the sport                                                               
harvest  from three  to six  fish.    If,  even with  a six  fish                                                               
limit,  there are  excess fish,  is  the situation  one in  which                                                               
there is  going to be over  escapement and the department  has no                                                               
tool for  taking those  fish "or are  we talking  about different                                                               
stocks of fish at this point."   He mentioned that he's referring                                                               
to the Kenai.                                                                                                                   
                                                                                                                                
8:55:45 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER LLOYD mentioned that  he has been involved in                                                               
some of the in-season discussions  over the last couple of years.                                                               
Advice  from the  Department of  Law (DOL)  is often  sought with                                                               
regard  to  the  limits  of ADF&G's  in-season  authority.    The                                                               
department, he  said, would seek  all available  opportunities to                                                               
capture  the harvestable  surplus  within  the management  plans.                                                               
When the department has to  move outside of the stated management                                                               
plans  of  BOF  the  situation becomes  difficult,  in  terms  of                                                               
applying judgment  against the  law and  the expectations  of the                                                               
users to  not unduly  prefer one  user group  over another.   The                                                               
aforementioned is always a dilemma, but  it's more so in the Cook                                                               
Inlet  given  the intensity  of  use.    The department  will  be                                                               
participating  with the  BOF  on the  conflicts  inherent in  the                                                               
current structure  of the  management plans.   He  expressed hope                                                               
that those  discussions will result  in some guidance.   However,                                                               
he opined that currently there  is a fundamental conflict between                                                               
the two mandates of the Cook Inlet Management Plan.                                                                             
                                                                                                                                
CHAIR SEATON opined  that the desire is to have  the best managed                                                               
fisheries while  allowing the department  to have  flexibility to                                                               
manage the  fisheries in a  manner that achieves the  best return                                                               
for everyone in the state, whether sport or commercial fishers.                                                                 
                                                                                                                                
8:57:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX inquired  as  to  the department's  vision                                                               
with regard to a rationalization plan for ground fish.                                                                          
                                                                                                                                
ACTING  COMMISSIONER  LLOYD  reminded   the  committee  that  the                                                               
rationalization effort  is largely  in the federal  arena through                                                               
NPFMC.   He further reminded  the committee that the governor has                                                               
requested  that NPFMC  stand-down  from proceeding  with Gulf  of                                                               
Alaska  ground fish  rationalization through  October 2007  while                                                               
the  administration prepares  a vision  for rationalization.   In                                                               
response to Chair Seaton, Acting  Commissioner Lloyd related that                                                               
to  many   rationalization  of  fisheries  means   some  form  of                                                               
limitation and  control over the  number of participants.   Under                                                               
that definition, the salmon license  limitation program is a form                                                               
of rationalization.   However, for some  rationalization has come                                                               
to  mean  a  share  program  in  which  people  are  granted  the                                                               
privilege of a certain share  of the harvestable surplus of fish.                                                               
The aforementioned, individual fishery  quota (IFQ) programs, are                                                               
controversial as they limit participation  and are often based on                                                               
one's  history of  participation in  the fishery  and from  there                                                               
forward  [the  IFQs] are  sold.    This administration  has  some                                                               
concern with the aforementioned  aspect of rationalization, which                                                               
is referred to as privatization.   The effect of privatization is                                                               
to take  the future stream of  benefits of a public  resource and                                                               
vest  them  into  private  hands,   to  which,  he  opined,  this                                                               
administration will object.   He then pointed out  that there are                                                               
ways to  achieve the benefits  of rationalization,  which results                                                               
in longer  seasons and more flexibility  for individual operators                                                               
to harvest  in some  instances.   Some of  those benefits  can be                                                               
achieved without privatizing  the resource, he opined.   He noted                                                               
that  [the  department] is  keeping  an  eye  on looking  at  the                                                               
possibility  of   deriving  such  benefits   without  privatizing                                                               
resources.                                                                                                                      
                                                                                                                                
9:02:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN   noted  his  appreciation   for  Acting                                                               
Commissioner  Lloyd's public  service.   He  then  turned to  the                                                               
Pacific Salmon  Treaty (PST),  which is  being renegotiated.   He                                                               
inquired  as  to Acting  Commissioner  Lloyd's  thoughts on  that                                                               
process.                                                                                                                        
                                                                                                                                
ACTING COMMISSIONER LLOYD informed the  committee that the PST is                                                               
due  to  expire  at  the  end  of  2008,  and  thus  renegotiated                                                               
positions  need to  be  in place  by  2009.   He  noted that  the                                                               
negotiating  sessions have  already begun.   The  PST is  between                                                               
Canada and  the United  States, but it  still places  the various                                                               
participating states against each  other.  For instance, Alaska's                                                               
interests aren't necessarily the same  as those of Washington and                                                               
Oregon for  access to harvestable surpluses  of chinook, sockeye,                                                               
and coho.   The  team in  place consists  largely of  members who                                                               
have  successfully  represented  the  state  in  the  past.    He                                                               
informed  the  committee  that David  Bedford  would  remain  the                                                               
deputy commissioner  of ADF&G  and his  focus is  mainly oriented                                                               
toward the PST and the  Pacific Salmon Commission process.  Gordy                                                               
Williams, also very  experienced in the PST, is on  staff.  There                                                               
are also  a number  of technical  assistants, both  full-time and                                                               
part-time, as  well as  contract employees.   Some of  the issues                                                               
include harvest  sharing between  Lower 48  states and  Canada as                                                               
well  as  the federal  administration's  push  to address  salmon                                                               
recovery  in the  Pacific  Northwest  through harvest  reductions                                                               
rather than  through habitat mitigation  and amelioration  of the                                                               
effects of dam  programs [in the Pacific Northwest].   Alaska, he                                                               
opined, must  be vigilant in  providing the science  that defends                                                               
Alaska's harvest  regimes while remaining familiar  with those of                                                               
the Lower 48 and Canada.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHANSEN noted his  appreciation for keeping staff                                                               
with experience  in this area  as it's important to  fishermen in                                                               
Southeast Alaska.                                                                                                               
                                                                                                                                
9:05:47 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON then  turned the  discussion  to the  International                                                               
Pacific  Halibut  Commission  (IPHC).   He  inquired  as  to  the                                                               
state's philosophy in  relation to halibut issues as  well as the                                                               
captain and crews who fish  during the commercial operations of a                                                               
charter vessel.                                                                                                                 
                                                                                                                                
ACTING COMMISSIONER  LLOYD characterized the matter  as a complex                                                               
issue that is driven by  an international treaty between the U.S.                                                               
and Canada.   He highlighted  that halibut have been  managed for                                                               
over  100 years  by  the  IPHC.   However,  through the  Northern                                                               
Pacific  Halibut Act  the allocation  decisions  within the  U.S.                                                               
have been  delegated to the  respective councils, which  is NPFMC                                                               
for  Alaska.   The  council  for  Washington  and Oregon  is  the                                                               
Pacific Management  Council (PMC).   He related that he  has come                                                               
to understand that the IPHC  addresses the overarching biological                                                               
decisions  each  year  and  sets  the  allowable  harvest  levels                                                               
leaving  the  allocation  of  those  to  NPFMC  and  the  federal                                                               
government  through  NMFS.   The  commercial  harvest is  managed                                                               
under the  IFQ program while  the sport harvest is  controlled by                                                               
the  long-standing two  fish  per  day bag  limit.   The  growing                                                               
halibut charter sector increased its  catch to the point that the                                                               
commercial  harvesters  were concerned  that  in  the future  the                                                               
aforementioned would  cut into the  allowable take  by commercial                                                               
interests.    Therefore,  the commercial  harvester  brought  the                                                               
issue  to NPFMC  and requested  a regulatory  program that  would                                                               
place a  cap on halibut charter  take.  From that  request, there                                                               
was discussion  regarding how the halibut  charter industry would                                                               
be regulated.                                                                                                                   
                                                                                                                                
ACTING COMMISSIONER  LLOYD reminded the committee  that last year                                                               
the halibut  charter sector exceeded  what NPFMC had laid  out as                                                               
its  target guideline  harvest level  (GHL).   Various commercial                                                               
interests  went  to  the  IPHC charging  that  NPFMC  hadn't  yet                                                               
constrained   the   charter   harvest   within   the   guideline.                                                               
Therefore,  they requested  that the  IPHC place  a limit  on the                                                               
halibut charter  harvest.  The  IPHC chose  to do so  and reduced                                                               
the daily bag  limit for Area 2C, Southeast Alaska,  and Area 3A,                                                               
South  Central Alaska,  from  two  fish to  one  for a  specified                                                               
period in the  summer.  The department sent a  letter to the NMFS                                                               
expressing concern  with the  bag limit  reduction.   The concern                                                               
was  based  on  the  notion that  IPHC  shouldn't  make  domestic                                                               
allocation  decisions  but rather  NPFMC  should.   However,  the                                                               
[department] realizes  that NPFMC  didn't take  sufficient action                                                               
to constrain the  harvest.  Therefore, ADF&G  requested that NMFS                                                               
review    IPHC's    decision    and   look    for    alternatives                                                               
administratively  to achieve  the harvest  limits in  the charter                                                               
sector  while  providing NPFMC  the  opportunity  to address  the                                                               
issue internally.   Recently, the federal Secretary  of State and                                                               
Secretary of Commerce have denied  the IPHC reduced bag limit and                                                               
NMFS  is  involved in  developing  an  alternative for  Southeast                                                               
Alaska  to achieve  the same  level of  harvest reduction  in the                                                               
charter sector.   He  pointed out that  NMFS has  recognized that                                                               
ADF&G's  efforts  by emergency  order  to  prohibit retention  of                                                               
halibut by skipper and crew  of charter vessels would achieve the                                                               
necessary  harvest reduction  in Area  3A, South  Central Alaska.                                                               
Therefore, no further action is necessary  this year by NMFS.  In                                                               
South Central Alaska the bag limit  will remain at two fish as it                                                               
has for many years.  For 2007, the  focus is an effort to find an                                                               
alternative to  reduce to a one  fish bag limit that  would still                                                               
provide  some  harvest  reduction.   The  long-term  solution  to                                                               
determine  how best  to constrain  the  charter sector's  harvest                                                               
still remains  with NPFMC.  In  fact, [ADF&G] is involved  in the                                                               
final  action on  a moratorium  for new  entrants to  the charter                                                               
fishery.  There  are also discussions with regard  to a long-term                                                               
solution, including  IFQs, a limit  on angler days, or  a license                                                               
limitation scheme.                                                                                                              
                                                                                                                                
9:13:14 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER   LLOYD,  in   response  to   Chair  Seaton,                                                               
confirmed that the  skipper and crew restriction  is an emergency                                                               
order by the state in both areas.                                                                                               
                                                                                                                                
CHAIR  SEATON asked  if there  has been  any question  or problem                                                               
about  the  applicability  of the  state  regulation  of  charter                                                               
vessels when fishing for halibut.                                                                                               
                                                                                                                                
ACTING  COMMISSIONER LLOYD  highlighted that  because halibut  is                                                               
managed  by  an  international  treaty and  through  the  federal                                                               
government,  the  state  doesn't  have the  direct  authority  to                                                               
manage halibut.   Therefore, the emergency  order restricting the                                                               
skipper and crew  on charter vessels from  retaining fish applies                                                               
to  all sport  fish.   In a  related effort,  the department  has                                                               
requested  from the  state's  congressional delegation  statutory                                                               
language that  would allow NPFMC  to delegate  certain management                                                               
authority for halibut through NPFMC  to the state.  However, that                                                               
hasn't been successful.                                                                                                         
                                                                                                                                
9:14:40 AM                                                                                                                    
                                                                                                                                
ACTING   COMMISSIONER  LLOYD,   in  response   to  Representative                                                               
Johansen, clarified  that the decision  to ban skippers  and crew                                                               
from retaining fish  was based on the need to  reduce the harvest                                                               
of  halibut.   He related  that there  was concern  regarding the                                                               
retention  of fish  by skippers  and  crew when  clients were  on                                                               
board.    Therefore,   the  department  viewed  the   ban  as  an                                                               
acceptable  mechanism,  although  it applied  to  species  beyond                                                               
halibut.                                                                                                                        
                                                                                                                                
CHAIR SEATON  inquired as to  whether there's a restriction  on a                                                               
commercial fishing vessel  that has any commercial  fish on board                                                               
such that it can't participate in any sport fishery.                                                                            
                                                                                                                                
ACTING COMMISSIONER  LLOYD answered  that he believes  that's the                                                               
case.                                                                                                                           
                                                                                                                                
9:15:49 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  returned to  questions related to  NPFMC.   He then                                                               
highlighted  the  conflict  in  the  allocation  schemes  of  the                                                               
federal government, which  is based on the  allocation of fishing                                                               
privileges/rights  to  investors  versus the  state's  allocation                                                               
scheme that's  based on participation  by the  individual holding                                                               
the  permit.   Chair  Seaton inquired  as  to the  commissioner's                                                               
philosophy  as related  to the  NPFMC process,  specifically with                                                               
regard to fisheries that cross the state and federal line.                                                                      
                                                                                                                                
ACTING  COMMISSIONER  LLOYD  said  that both  the  investors  and                                                               
participants should be recognized.   For the most part, NPFMC has                                                               
recognized  the   investors  more   so  than   the  participants.                                                               
However, in  the halibut program  some efforts have been  made to                                                               
require   that  eligible   participants   have  some   background                                                               
operating  vessels and  being at  sea.   He  commented that  it's                                                               
arguable  whether  the aforementioned  is  sufficient.   He  also                                                               
noted that there  are some leasing provisions for  those who were                                                               
initially  issued quota  that bear  review.   Acting Commissioner                                                               
Lloyd  opined  that  this   administration  will  scrutinize  the                                                               
existing and  any future rationalization  programs to  bring more                                                               
aggregate   benefits   to   communities  versus   to   individual                                                               
harvesting or processing groups.                                                                                                
                                                                                                                                
CHAIR SEATON,  noting that  six of the  eleven voting  members of                                                               
NPFMC  were  selected  by  the state,  expressed  hope  that  the                                                               
state's philosophy would  prevail in any fishery  that takes fish                                                               
in state waters.                                                                                                                
                                                                                                                                
9:20:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX highlighted that  the next meeting of NPFMC                                                               
will be  to review the  crab rationalization program.   She asked                                                               
if Acting  Commissioner Lloyd or the  administration believes the                                                               
crab  rationalization program  should  be changed.    If so,  she                                                               
asked how should it be changed.                                                                                                 
                                                                                                                                
ACTING  COMMISSIONER  LLOYD  answered   that  at  this  time  the                                                               
department doesn't have specific  recommendations for change.  He                                                               
informed the committee that at  the upcoming April NPFMC meeting,                                                               
the 18-month review  of the crab rationalization  program will be                                                               
provided.    He estimated  that  by  June,  ADF&G will  begin  to                                                               
articulate what, if  any, changes should be promoted  in order to                                                               
address the items identified in the discussion paper.                                                                           
                                                                                                                                
9:21:34 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON turned  to the  bycatch and  waste problems  in the                                                               
fisheries.    He  asked if  Acting  Commissioner  Lloyd  supports                                                               
mandating changes  of gear  if that  accomplishes a  reduction of                                                               
bycatch and waste or should the primary species be reallocated.                                                                 
                                                                                                                                
ACTING COMMISSIONER LLOYD confirmed  the goal of reducing bycatch                                                               
to  the extent  that  bycatch is  unutilized.   Although  forcing                                                               
people to  change gear types  is too simplistic a  solution, that                                                               
doesn't  mean  such  shouldn't  be reviewed.    Still,  one  must                                                               
consider what gear  types are most useful  for harvesting certain                                                               
resources.   Therefore,  he  said  he would  be  happy to  review                                                               
possibilities to achieve the overall goal of bycatch reduction.                                                                 
                                                                                                                                
9:23:16 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON highlighted  the state  water Pacific  cod fishery,                                                               
which in  1993 changed its  trawl and  longline gear to  pot gear                                                               
and saved  about 2.5 million pounds  of halibut per year.   There                                                               
hasn't been any further move toward such a change.                                                                              
                                                                                                                                
ACTING COMMISSIONER  LLOYD noted  that during  his time  with the                                                               
Aleutians East  Borough he participated  heavily in  creating the                                                               
state water  Pacific cod fishery in  the mid to late  1990s.  The                                                               
gear types  were limited to those  with de minimis bycatch.   The                                                               
aforementioned  made it  easier  for the  BOF  to create  fishery                                                               
opportunities  while  setting a  standard  for  bycatch.   Acting                                                               
Commissioner  Lloyd  clarified  that   he  would  look  for  such                                                               
opportunities, but he wanted to stop  short of mandating it.  For                                                               
example,  there  are some  fisheries  for  which that  gear  type                                                               
wouldn't work well.                                                                                                             
                                                                                                                                
CHAIR  SEATON  turned  to  the  sable  fish  industry,  which  is                                                               
experiencing a  50-70 percent loss  of the  catch to whales.   He                                                               
then related  his understanding that  at this point  although the                                                               
sable fish fishery is a  quota fishery, those losses aren't being                                                               
subtracted from  the quotas.   He recalled  that [the  sable fish                                                               
fishery] switched  from longline pot  fisheries gear a  number of                                                               
years  ago  due  to  competition, although  they  were  extremely                                                               
effective.   He asked if  the [department] would assign  the loss                                                               
bycatch as  a reduction in  the quota or provide  the alternative                                                               
of switching gear.                                                                                                              
                                                                                                                                
ACTING  COMMISSIONER  LLOYD  said  that  he  would  be  happy  to                                                               
entertain such a discussion.                                                                                                    
                                                                                                                                
9:26:27 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  asked  if  there   were  any  questions  regarding                                                               
subsistence,  sport,  and  personal   use  fisheries.    He  then                                                               
requested that  Acting Commissioner Lloyd address  the sport fish                                                               
hatcheries, and whether those will be effective and affordable.                                                                 
                                                                                                                                
ACTING  COMMISSIONER LLOYD  answered  that the  department is  on                                                               
track  with  the  ground  work and  future  construction  of  the                                                               
hatchery in Fairbanks.   Ground will be broken  for the Fairbanks                                                               
hatchery this  summer.   He noted that  there are  some increased                                                               
costs associated with the Fairbanks  hatchery that the department                                                               
can  cover  under  the  current   bonding  structure.    For  the                                                               
Anchorage hatchery,  the department  needs to determine  how best                                                               
to backfill the funding in order  to construct it.  He emphasized                                                               
that the department  fully intends to build  both hatcheries, for                                                               
which he hasn't heard of any fatal flaws for either.                                                                            
                                                                                                                                
9:28:06 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON moved on to the  personal use dip net fishery on the                                                               
Kenai River  where there is  no constraint for fish  waste, which                                                               
is dumped on  the beaches.  He inquired as  to whose concern this                                                               
would be.                                                                                                                       
                                                                                                                                
ACTING  COMMISSIONER   LLOYD  stated   that  the   department  is                                                               
concerned,  but it's  not  within its  authority  to address  the                                                               
disposition of  the waste.   He characterized it as  a Department                                                               
of  Environmental   Conservation  (DEC)  or  a   local  municipal                                                               
problem.   Perhaps, he suggested, the  aforementioned authorities                                                               
should be engaged about this problem.                                                                                           
                                                                                                                                
9:29:09 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON then highlighted that  there are a number of efforts                                                               
for rehabilitation  enhancement of various aquaculture  stocks in                                                               
the  Cook Inlet  area  as well  as in  Prince  William Sound  and                                                               
Cordova.  He inquired as  to Acting Commissioner Lloyd's stand on                                                               
those enhancement projects.                                                                                                     
                                                                                                                                
ACTING  COMMISSIONER  LLOYD said  he  isn't  familiar with  those                                                               
permits.                                                                                                                        
                                                                                                                                
9:30:11 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  directed attention  to the committee  packet, which                                                               
includes  a  booklet  produced   by  ADF&G  titled,  "Success  in                                                               
achieving  salmon escapement  goals  in monitored  systems."   He                                                               
pointed out  that the chart on  page 1 specifies that  55 percent                                                               
of  monitored streams  were above  their  escapement goal,  which                                                               
isn't  the  course  desired.    However,  the  chart  on  page  3                                                               
illustrates  that  51  percent   of  the  salmon  escapements  in                                                               
Southeast Alaska  are within the  escapement goal range  and that                                                               
from  2001-2006 those  stocks below  the minimum  escapement goal                                                               
have been reduced.   On page 6 the chart  relates that the stocks                                                               
above the escapement  goal in South Central Alaska  have risen to                                                               
55 percent.  The stocks above  the escapement goal in the Arctic-                                                               
Yukon-Kuskokwim region  have risen  to 71  percent as  related on                                                               
the chart  on page  9.   The chart  on page  12 relates  that the                                                               
Westward region seems  to be "holding its own."   It appears from                                                               
these charts  that there is a  large economic loss to  the state,                                                               
which he  requested Acting Commissioner  Lloyd discuss  in regard                                                               
to  whether  the  department  needs more  tools  to  address  the                                                               
problem.                                                                                                                        
                                                                                                                                
9:33:58 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  LLOYD specified that the  department's first                                                               
goal is to  meet the minimum escapement goal in  order that there                                                               
are sufficient fish in the  creeks so that the spawning objective                                                               
is achieved.   More  recently, the  department has  realized that                                                               
there  are upper  bounds to  the desirable  biological number  of                                                               
fish desired  in any of these  systems.  Placing up  river users'                                                               
concerns aside, it appears that  Chair Seaton is focusing on what                                                               
he views  as a significant  number of  fish, in some  cases, that                                                               
are foregone harvest opportunities.   However, these instances of                                                               
foregone harvest occur for a number  of reasons.  For example, in                                                               
the Arctic-Yukon-Kuskokwim  region there are many  areas in which                                                               
the market wasn't available to  take advantage of the harvestable                                                               
surplus.  He said he didn't  believe it's a regulatory problem in                                                               
terms  of  fishery  harvest  control but  rather  it's  a  market                                                               
problem.  He  suggested that perhaps the  aforementioned could be                                                               
addressed by  the Department of  Commerce, Community,  & Economic                                                               
Development (DCCED).   However, there are  other situations which                                                               
may be a  fishery regulatory matter, such as  in situations where                                                               
there are conflicting  objectives.  For instance,  in Bristol Bay                                                               
where the  department is  attempting to  ensure that  the minimum                                                               
escapement goal is being achieved  in the Kvichak sockeye system,                                                               
many  sockeye  have been  allowed  in  the branch  river  system.                                                               
Although the department  hasn't determined how to  parse that out                                                               
in order to  take full advantage of that  harvest opportunity, it                                                               
has taken some  steps with the BOF to create  an in-river fishery                                                               
in the  branch to  capture some  of it.   Furthermore,  there are                                                               
less  precise difficulties  such as  in Southeast  where in  some                                                               
instances  the  escapement  threshold   is  achieved,  but  fleet                                                               
movements  and other  aspects  of the  fishery  contributed to  a                                                               
higher escapement.   He said  that he  would be happy  to further                                                               
investigate the specifics of this report.                                                                                       
                                                                                                                                
9:38:05 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  noted that  several  attempts  have been  made  to                                                               
remedy some  of these issues,  such as the direct  market ability                                                               
and transporters.  However, concern  still remains with regard to                                                               
the openers when there aren't  enough boats/fishermen around.  He                                                               
suggested  that  the  department  scrutinize  the  situation  and                                                               
offered to entertain necessary changes  in statute to provide the                                                               
department the ability to better manage these escapements.                                                                      
                                                                                                                                
9:40:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHANSEN   turned    to   dive   fisheries   and                                                               
mariculture.   He  recalled that  in 1994  there were  efforts to                                                               
start mariculture  in Southeast Alaska.   However, since  then it                                                               
has been  a band-aid approach  to these  fisheries.  He  asked if                                                               
Acting Commissioner Lloyd or the  department has any intention of                                                               
creating a statewide  management plan for the  expansion of these                                                               
fisheries.                                                                                                                      
                                                                                                                                
ACTING  COMMISSIONER  LLOYD said  that  there  isn't a  statewide                                                               
management  policy or  plan to  expand the  dive and  mariculture                                                               
fisheries.  These fisheries provide  an opportunity for the state                                                               
to invest in  fish and wildlife management that  would yield some                                                               
identifiable  returns.   In fact,  past  efforts to  have a  cost                                                               
assessment  and  cost  recovery  program  with  Southeast  Alaska                                                               
Regional  Dive   Fisheries  Association  (SARDFA)  has   been  an                                                               
innovative  effort to  provide base  level funding  for inventory                                                               
and quota-setting processes.  However,  part of the difficulty is                                                               
the  department's long-standing  core  program  that was  derived                                                               
from salmon and expanded into  shellfish and groundfish.  To move                                                               
into  the  dive  fishery  requires  additional  funding  and  re-                                                               
programming.   He remarked  that there are  probably a  number of                                                               
opportunities in the  state in which more  investment could yield                                                               
some  attractive identifiable  returns.   Those discussions  will                                                               
occur within the administration through the budget process.                                                                     
                                                                                                                                
REPRESENTATIVE  JOHANSEN encouraged  the  department  to work  on                                                               
[the  dive  and  mariculture  fisheries]  and  come  forward  and                                                               
request necessary funding.                                                                                                      
                                                                                                                                
9:45:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON requested  that Acting  Commissioner Lloyd                                                               
speak to his vision with regard to genetic stock identification.                                                                
                                                                                                                                
ACTING COMMISSIONER LLOYD said  that genetic stock identification                                                               
holds a tremendous degree of promise.   For salmon there are many                                                               
questions, including exactly which  stocks are being harvested in                                                               
which areas.  The answers  to the aforementioned would be helpful                                                               
in  biological terms  as well  as for  allocation decisions.   He                                                               
recalled  the rudimentary  tool  developed in  the  mid 1990s  to                                                               
identify  chum   salmon  from  major   geographic  areas.     The                                                               
aforementioned was very  helpful in halting the  practice of high                                                               
seas gillnetting  of salmon.   Although such a tool  was utilized                                                               
locally,  the  department  would   like  to  know  more  specific                                                               
information  to do  run reconstruction  for major  rivers out  of                                                               
Bristol Bay,  for instance.   He informed the committee  that the                                                               
department has developed a statewide  baseline study for sockeye,                                                               
king,  and chum  using DNA  analysis, which  is one  of the  best                                                               
means to accomplish this task.   However, it's a fairly expensive                                                               
endeavor, he noted.                                                                                                             
                                                                                                                                
9:49:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON related  his  understanding that  [genetic                                                               
stock  identification] could  be  utilized in  a broader  context                                                               
beyond its  use as a  management tool to include  the development                                                               
of other fisheries outside of salmon.                                                                                           
                                                                                                                                
ACTING COMMISSIONER LLOYD said  that genetic stock identification                                                               
techniques  may   be  utilized  to  track   animals  utilized  in                                                               
enhancement  efforts  in order  to  gauge  the success  of  those                                                               
efforts.  Therefore,  if it's found that the  enhancement of king                                                               
crab can  be done and those  transplants can be monitored  in the                                                               
wild, it could lead to enhanced fishery opportunities.                                                                          
                                                                                                                                
REPRESENTATIVE EDGMON recalled that  this committee and the House                                                               
Resources  Standing Committee  had discussions  on geoducks  from                                                               
which  he understood  the department  to say  that there  isn't a                                                               
good  enough understanding  of geoducks  to  place it  in a  non-                                                               
native  area.   However,  he  further  recalled information  that                                                               
British Columbia,  Washington, and Oregon utilized  genetic stock                                                               
identification efforts for geoducks.                                                                                            
                                                                                                                                
ACTING COMMISSIONER LLOYD  said that he doesn't  know how genetic                                                               
stock identification pertains  to the transplant of  an animal to                                                               
an area  to which  it isn't  indigenous.   Even if  the technique                                                               
could  distinguish  between  geoducks from  various  regions,  it                                                               
doesn't  address whether  these species  should be  introduced in                                                               
locations where they don't normally occur.                                                                                      
                                                                                                                                
9:52:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN expressed  concern  with discrete  stock                                                               
management  practices versus  mixed  stock management  practices.                                                               
He  recalled that  in the  1990s legislation  addressing discrete                                                               
stock management was  introduced.  In Southeast  Alaska there are                                                               
hundreds  of streams  with various  runs.   He opined  that in  a                                                               
situation in  which a stock  identified to a specific  stream has                                                               
problems  can  impact  the  entire   mixed  stock.    In  such  a                                                               
situation, a  fleet may be  restricted from harvesting  when only                                                               
one stream is having problems.                                                                                                  
                                                                                                                                
ACTING COMMISSIONER LLOYD characterized  the aforementioned as an                                                               
important public  policy question.   He then  stated that  all of                                                               
the commercial  salmon fisheries are  mixed stock fisheries.   In                                                               
fact, although  the Bristol Bay  sockeye fishery is  considered a                                                               
terminal fishery, fish  bound for other areas to  spawn are being                                                               
harvested.  He  emphasized that in any  discrete stock management                                                               
discussion, one  must keep in  mind the maximum benefit  tenet of                                                               
the Alaska State Constitution.   Therefore, the protection of one                                                               
stock shouldn't  necessarily require  the elimination  of fishing                                                               
of other stocks.  The  aforementioned means that opportunities to                                                               
protect that  stock biologically while taking  advantage of other                                                               
harvestable surpluses should occur.                                                                                             
                                                                                                                                
9:54:59 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  reminded the committee  of testimony it  heard from                                                               
high-level  staff from  the prior  administration who  questioned                                                               
whether  shellfish  mariculture  would  best  fall  under  ADF&G,                                                               
DCCED,  or the  Division of  Agriculture.   He expressed  concern                                                               
with  testimony  from  a  mariculture  specialist  that  read  as                                                               
follows:  "Unfortunately we don't  have a mandate for this, doing                                                               
research for shellfish.   Most of the monies are  going for other                                                               
commercial  endeavors.   We have  to  do it  on an  opportunistic                                                               
basis."   Chair Seaton asked if  mariculture is going to  be part                                                               
of ADF&G's mission or should it  be transferred to an agency such                                                               
as the Division of Agriculture.                                                                                                 
                                                                                                                                
ACTING COMMISSIONER  LLOYD stated that  to the extent  that there                                                               
are  biological  concerns  with what  happens  with  mariculture,                                                               
ADF&G should  maintain some  authority.  "If  it's a  question of                                                               
promoting further opportunities,  shy of biological difficulties,                                                               
I'm not  sure I would mind  having the Department of  Commerce of                                                               
some  other department  be the  permitting agent,"  he said.   He                                                               
likened  the  aforementioned to  how  the  Department of  Natural                                                               
Resources (DNR)  is responsible  for permitting  the use  of tide                                                               
lands  for  some  of  these  [mariculture]  activities.    Acting                                                               
Commissioner Lloyd  specified, "It's  not a zero  priority within                                                               
the department, and I would hope  that's obvious.  But, it is the                                                               
new  kid on  the block  and so,  is suffering  growing pains  and                                                               
that's something we have to deal with."                                                                                         
                                                                                                                                
9:57:43 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the committee would  now take public                                                               
testimony.                                                                                                                      
                                                                                                                                
9:57:59 AM                                                                                                                    
                                                                                                                                
BEAVER NELSON, commercial  fisherman, began by noting  that he is                                                               
a past  ADF&G employee.   Mr. Nelson characterized himself  as an                                                               
avid sport  fisher and hunter who  is fairly involved in  the BOF                                                               
process.    Drawing  upon his  various  experiences  with  Acting                                                               
Commissioner Lloyd, Mr. Nelson  reported that Acting Commissioner                                                               
Lloyd's depth  of experience is very  valuable and he is  easy to                                                               
work with.  Mr. Nelson said  that what he likes most about Acting                                                               
Commissioner Lloyd  is that he  listens before speaking and  is a                                                               
thoughtful, analytical  individual who  maintains a  good working                                                               
relationship with his  fellow employees.  Mr.  Nelson opined that                                                               
Acting   Commissioner   Lloyd   is   the   best   candidate   for                                                               
commissioner.                                                                                                                   
                                                                                                                                
9:59:19 AM                                                                                                                    
                                                                                                                                
JOHN JENSEN related  that he has known  Acting Commissioner Lloyd                                                               
for  a number  of years,  both as  a commercial  fisherman and  a                                                               
member of  the BOF.   Mr. Jensen  said that he  highly recommends                                                               
Acting Commissioner Lloyd for the position of commissioner.                                                                     
                                                                                                                                
9:59:53 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON,  upon determining  no one  else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
10:00:19 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX  made a motion to  advance the confirmation                                                               
of Denby Lloyd  as Commissioner of the Alaska  Department of Fish                                                               
& Game to the joint session for consideration.                                                                                  
                                                                                                                                
10:00:37 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE WILSON objected to comment.   She related that she                                                               
hasn't received  any negative comments about  Acting Commissioner                                                               
Lloyd.    She  further  related  her  understanding  that  Acting                                                               
Commissioner Lloyd is known for  his fairness and accountability.                                                               
She then removed her objection.                                                                                                 
                                                                                                                                
10:01:23 AM                                                                                                                   
                                                                                                                                
There being no further objections, the confirmation of Acting                                                                   
Commissioner Lloyd was advanced.                                                                                                
                                                                                                                                
10:01:38 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 10:01:48                                                              
AM.                                                                                                                           

Document Name Date/Time Subjects