Legislature(2011 - 2012)CAPITOL 120
02/17/2011 05:00 PM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| Overview(s): North Pacific Fisheries Management Council (npfmc) | |
| HB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| *+ | HB 141 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 17, 2011
5:06 p.m.
MEMBERS PRESENT
Representative Steve Thompson, Chair
Representative Craig Johnson, Vice Chair
Representative Alan Austerman
Representative Bob Herron
Representative Lance Pruitt
Representative Scott Kawasaki
MEMBERS ABSENT
Representative Bob Miller
COMMITTEE CALENDAR
OVERVIEW(S): NORTH PACIFIC FISHERIES MANAGEMENT COUNCIL (NPFMC)
- HEARD
HOUSE BILL NO. 141
"An Act relating to loans for the purchase of fishing quota
shares by certain community quota entities; and providing for an
effective date."
- MOVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 141
SHORT TITLE: LOANS TO COMMUNITY QUOTA ENTITIES/PERMITS
SPONSOR(s): REPRESENTATIVE(s) AUSTERMAN
02/04/11 (H) READ THE FIRST TIME - REFERRALS
02/04/11 (H) FSH, FIN
02/17/11 (H) FSH AT 5:00 PM CAPITOL 120
WITNESS REGISTER
CHRIS OLIVER, Executive Director
North Pacific Fishery Management Council (NPFMC)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the North Pacific
Fisheries Management Council (NPFMC).
STEFANIE MORELAND, Federal Fisheries Coordinator
Office of the Commissioner
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Responded to questions during the
presentation from the North Pacific Fisheries Management Council
(NPFMC).
DUNCAN FIELDS, Vice President
Fisheries and Economic Development
Old Harbor Native Corporation
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 141, and
responded to questions.
OLE OLSEN, Board Member
Gulf of Alaska Coastal Communities Coalition (GOAC3)
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 141.
TIM GREENE, Representative
Nanwalek IRA (Indian Reorganization Act) Village Council,
Nanwalek, Alaska
POSITION STATEMENT: Testified during the hearing on HB 141.
BILL LUCEY
Coastal Planner
City and Borough of Yakutat
Yakutat, Alaska
POSITION STATEMENT: Testified in support of HB 141.
GALE VICK
Executive Director
Gulf of Alaska Coastal Communities Coalition (GOAC3)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 141.
PATRICIA BROWN SCHWALENBERG, Executive Director
Chugach Regional Resources Commission (CRRC)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 141.
BOB HENRICKS, Board Member
Chugach Regional Resources Commission (CRRC)
Cordova, Alaska
POSITION STATEMENT: Testified in support of HB 141.
TONY GREGORIO, Fisherman
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 141.
FREDDIE CHRISTIANSEN, Fisherman
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 141.
ACTION NARRATIVE
5:06:06 PM
CHAIR STEVE THOMPSON called the House Special Committee on
Fisheries meeting to order at 5:06 p.m. Present at the call to
order were Representatives Thompson, Herron, and Austerman.
Representatives Johnson, Kawasaki, and Herron arrived while the
meeting was in progress.
5:06:18 PM
^OVERVIEW(S): North Pacific Fisheries Management Council
(NPFMC)
OVERVIEW(S): North Pacific Fisheries Management Council (NPFMC)
CHAIR THOMPSON announced that the first order of business would
be an overview from the North Pacific Fisheries Management
Council (NPFMC).
5:07:56 PM
CHRIS OLIVER, Executive Director, North Pacific Fishery
Management Council (NPFMC), presented an overview of the North
Pacific Fisheries Management Council (NPFMC) summarizing the
importance of Alaskan fisheries, and established: if Alaska
were a country, it would rank in the top ten producing
countries; it represents 50 percent of the total U.S. catch; the
catch is between three and five billion pounds of groundfish
annually, for the past 30 years; the industry is the number one
private sector employer in Alaska; the industry ranks second
only to oil in revenues to the state. He said that what
established the regional council system was the Magnuson-Stevens
Fishery Conservation and Management Act (MSA), adopted in 1976,
which established the following: a 3-200 nautical mile (nm)
exclusive economic zone, commonly referred to as the 200 mile
limit; national standards and other requirements for
conservation and management of resources; a system of eight
regional councils, composed of fishermen and government agency
representatives, to develop fishery regulations for specific
areas, subject to approval and implementation by the National
Marine Fisheries Service. Mr. Oliver described the structure of
the council, which includes the heads of the fisheries
departments for Alaska, Washington, Oregon, and the National
Marine Fisheries Service (NMFS) among the membership. The
council holds week long meetings, on five different occasions
throughout the year. An industry advisory panel, as well as
scientific and statistical committees, provides advice to the
council, and public testimony is taken at each meeting on all
issues.
5:14:48 PM
MR. OLIVER provided pie charts, indicating the catch weight and
value percentages, from the groundfish, herring, salmon,
shellfish and halibut 2009 harvest report, which totaled
2,178,700 metric tons (mt) valued at $1.15 billion dollars. He
used pie charts to indicate the biomass of the major groundfish
species specific to the Bering Sea, which produced 17 million
mt, and the Gulf of Alaska (GOA), which produced 4 million mt.
The council institutes a stock abundance program that maintains
a formula for sustainable fisheries management. Vessels have
observers in place, and conservative catch limits are the norm,
along with by-catch limits. The overall optimal yield (OY)
limit for the Bering Sea and Aleutian Islands (BSAI) is two
million metric tons, and he reported that, as a result of the
management system, there are no overfished groundfish stocks;
plans are in place to rebuild the overfished crab stocks. All
catch, including discards count towards each species catch
limit; overseen by onboard observers using daily, real-time,
electronic reporting.
5:19:42 PM
MR. OLIVER said that reducing bycatch, discards, and waste is
being accomplished by instituting a program that minimizes
discards and eliminates waste. A series of slides illustrated
the progress made in this area using linear and bar graphs,
which also listed methods employed including: bycatch limits
for crab, salmon, halibut, and herring; gear restrictions such
as pelagic trawls only for BSAI Pollock, biodegradable panels in
pots, prohibition on gillnets and other gear; mandatory full
retention of all Pollock and cod, and some GOA flatfish;
voluntary industry program actions for sharing of bycatch data
to avoid hotspots. Additionally, habitat conservation is
practiced, and requires closures of large areas that are not
fished. Over 60 percent of the management area is closed to
bottom trawling, or other methods, for habitat or species
conservation. A comprehensive set of closures has been
maintained to minimize interactions between the groundfish
fisheries and the endangered Steller sea lion prey field. He
reported that the most recent NMFS study, 2011, found that the
pup counts are still decreasing and additional measures have
been imposed; a law suit, filed by the council, is pending.
5:23:28 PM
MR. OLIVER said that coastal community needs are accommodated in
various ways to provide community protection, which include:
proposed management actions with assessments of social and
community impacts based on development and maintenance of
coastal community profiles; sablefish/halibut individual fishing
quota (IFQ) programs designed with specific safeguards to
maintain coastal community fleets; sea lion protection measures
modified to ease the burden on small, local vessels; regulations
to recognize halibut subsistence fisheries; regional delivery
requirements as well as individual processing quotas (IPQs),
built into the crab rationalization program; and support of the
community development quota (CDQ) program. He elaborated on the
CDQ program to establish the following points: benefits 65
remote coastal communities in BSAI since 1992; sets aside 10
percent of Pollock, ground fish and crab total allowable catch
(TAC), and halibut set aside; since 1992, over $100 million in
wages, education, and training benefits provided to over 25,000
western Alaska residents; 2002 total revenues of the six CDQ
groups was about $70 million combined. Mr. Oliver said the new
MSA reauthorization was signed by the president on January 12,
2007, and significant new provisions included were: a mandate
for use of the annual catch limits to prevent overfishing;
establishment of guidelines for limited access privilege
programs (LAPPs); realigned environmental review process under
NEPA (National Environmental Protection Agency) with the MSA;
strengthened the role of science in decision making, and
improved the data collection methods for better management. He
reported that, when making any regulatory amendments or
allocation revisions, the council is compelled to comply with a
number of presidential Executive Orders (EOs), and he listed the
most important as: the Endangered Species Act, requiring an
assessment of impacts on listed species; the National
Environmental Policy Act, requiring an analysis of the
environmental impacts of federal actions; the Regulatory
Flexibility Act, requiring an examination of adverse impacts on
small entities; Executive Order 12866, requiring an analysis of
the costs and benefits of regulations; and special interest
legislation.
5:27:07 PM
MR. OLIVER addressed a series of six slides to illustrate how
the council receives and processes proposals, highlighting that
input is received from the public and stakeholders, as well as
governmental agencies. A flow chart indicated that changes to
fishery regulations require a number of steps including
proposal, development of alternatives, analysis and review,
decision, and rulemaking. There are opportunities for public
input into the process at each step. When the regulatory
package of council action is completed it is submitted to the
U.S. Secretary of Commerce, where it undergoes another review
and approval process, which also allows for public comment. The
vast majority of proposals are approved, published with a
summary of comments and NMFS' response, and become effective
within 30 days of the publication date. A proposal for council
action can take one year to three years from inception to
implementation. Coordination with the state of Alaska occurs
through four means, which are: the ADF&G commissioner holds a
voting seat on the council; annual meetings occur between the
council and the Board of Fish (BOF); a joint protocol committee
meets as necessary, comprised of council and BOF members; and
there is ongoing council/NMFS/ADF&G staff coordination.
5:32:00 PM
MR. OLIVER reviewed recent and pending council issues and the
actions being taken. The salmon bycatch, in the Pollock
fisheries, has proven to be significant, and a cap was
established, along with a series of cooperatives to help the
Pollack fishermen manage the catch better. The high,
disproportionate, bycatch numbers seen in 2006 and 2007 have
been reduced; however, the Bering Sea chum salmon bycatch is now
receiving specific focus. Additionally, Chinook salmon bycatch
measures are being taken in the GOA, on an expedited timeframe
with enactment to occur sometime next year. He reported that,
this year, a change will be made in the halibut bycatch caps.
Also, annual catch limits (ACLs) for groundfish, crab, and
scallops are being established to align with the recent MSA
reauthorization, which requires the establishment of annual
catch limits for crab and scallop; management guidelines are
deferred to ADF&G. Regarding the halibut charter sector
allocations, he said the council has developed a catch share
plan, which is scheduled to take effect next year. The catch
share plan will provide a solid allocation level and cement what
was previously in place; a harvest level guideline. In place
this year is a moratorium on the licensing for halibut charters,
which has proven to be a controversial issue. A fishery
management plan (FMP) was recently approved for the Arctic
region, which established a moratorium as a precautionary
procedure until sustainable fishing limits can be researched and
adopted. To a question from the committee, he said the
moratorium was a proactive measure to allow time for scientific
review of the potential for fisheries, as the ice recedes.
5:40:29 PM
MR. OLIVER said that, although salmon are not managed directly
by the council, there is a salmon fisheries management plan
(FMP) in place. Recently litigation has been brought to
scrutinize the jurisdiction authorization, that the FMP provides
the state, regarding salmon in federal waters. Finally, Mr.
Oliver reported that the 2010 U.S. Ocean Policy Task Force
recommendation for a National Ocean Council (NOC) was supported
by a presidential EO, which also envisions the establishment of
several regional planning teams, including in Alaska, to create
a comprehensive marine spatial planning initiative. The council
is not opposed to this type of concept, but there is concern
that the NOC may be means for circumventing the management
authority already in place. He pointed out that the committee
packet includes information regarding the council's attention to
the Arctic, a booklet titled, "The North Pacific Council
Process," as well as a brochure specific to the current issues
being dealt with by the council.
5:45:03 PM
REPRESENTATIVE HERRON asked if a council seat should be reserved
specifically for a subsistence member.
MR. OLIVER responded that council membership is dictated under
the MSA.
REPRESENTATIVE HERRON said:
You mean a person that's truly just a subsistence
user, ... they can't get on the council.
MR. OLIVER said the governor could make an appointment
recommendation to the U.S. Secretary of Commerce, for a three
year term; three names are submitted.
REPRESENTATIVE HERRON queried whether a subsistence person has
ever served on the council.
MR. OLIVER answered not to his knowledge.
REPRESENTATIVE HERRON described the makeup of his district and
the conflicts that continue to occur, particularly regarding
bycatch.
MR. OLIVER indicated that relief should become apparent based on
the measures that have been taken to reduce the bycatch in the
area.
5:50:10 PM
REPRESENTATIVE AUSTERMAN noted that the halibut bycatch caps in
the GOA are based upon the biomass, and asked whether the cap is
a set poundage level or if it fluctuates with the biomass.
MR. OLIVER responded that it is set poundage.
REPRESENTATIVE AUSTERMAN inquired if a fluctuating cap is under
discussion.
MR. OLIVER said not at the council level.
5:52:20 PM
STEFANIE MORELAND, Federal Fisheries Coordinator, Office of the
Commissioner, Alaska Department of Fish & Game (ADF&G), added
that the council is interested in learning how the bycatch and
the cap interact with the halibut stock assessment received from
the halibut commission. One step taken has been to request
further information from the halibut commission.
5:52:57 PM
REPRESENTATIVE AUSTERMAN noted the reduction in discards, and
asked if the percentage has been reduced because more catch is
retained.
MR. OLIVER said it primarily reflects the groundfish retention
program. A requirement was implemented that retention versus
discard be instituted, which is reflected in the reported
percentage.
5:54:37 PM
MS. MORELAND explained the structure of the ADF&G staff that is
organized to work specifically with the council and interact on
the previously mentioned issues and coordination points.
HB 141-LOANS TO COMMUNITY QUOTA ENTITIES/PERMITS
The committee took an at-ease from 5:56 p.m. to 5:57 p.m.
5:57:36 PM
CHAIR THOMPSON announced that the final order of business would
be HOUSE BILL NO. 141, "An Act relating to loans for the
purchase of fishing quota shares by certain community quota
entities; and providing for an effective date."
5:57:51 PM
REPRESENTATIVE AUSTERMAN, introduced HB 141, paraphrasing from
the sponsor statement, which read as follows [original
punctuation provided]:
The Community Quota Entity (CQE) program was developed
in 2004 by the federal North Pacific Fishery
Management Council to help communities maintain and
build involvement in the halibut and black cod
longline fisheries. The CQE program provided the
legal opportunity for communities to form non-profit
organizations to purchase individual fishing quota
(IFQ), anchoring fishery participation in these
coastal communities. In response, the 23rd
Legislature modified the Commercial Fishing Revolving
Loan Fund to provide authorization to finance fishing
quota for CQEs.
Despite the Alaska Legislature's initial efforts to
provide financing to the communities, only two of 42
eligible communities have procured quota share to
date. In fact, small coastal communities continue to
see a significant out-migration of fisherman and quota
shares, leaving them with limited or no access to
fisheries occurring just off their shores.
House Bill 141 will modify the financial instruments
the state has previously provided, to assist
communities to participate in the program and bolster
their economies. By establishing an independent
revolving loan fund modeled upon the existing
Commercial Fishing Revolving Loan Fund, HB 141 will
enable the state to structure a successful loan
program that supports rural community development and
strengthens Alaska's coastal regions.
An active commercial fishing fleet in a rural
community employs residents, provides tax revenues,
and spends income locally, which has a substantial
multiplier effect in small communities. This piece of
legislation is an important tool to support rural
coastal communities and develop sustainable economies
throughout the state.
6:02:23 PM
DUNCAN FIELDS, Vice President, Fisheries and Economic
Development, Old Harbor Native Corporation, introduced himself
as a fisheries advocate and active fisheries consultant.
6:03:08 PM
OLE OLSEN, Board Member, Gulf of Alaska Coastal Communities
Coalition (GOAC3), stated that, being born into a Kodiak fishing
family, he has a lifelong history with Alaskan fisheries, and
has been involved with the Gulf of Alaska Coastal Communities
Coalition (GOAC3) since it was formed.
6:03:44 PM
MR. FIELDS stated support for HB 141, and pointed out that the
committee packet includes [five] pages of written testimony and
supplemental material, which he submitted. He underscored that
HB 141 is a culmination of six years of work; not a new concept.
6:04:49 PM
MR. OLSEN directed attention to the committee packet handouts
titled "Community Quota Entities (CQEs)," dated 2/17-18/09,
prepared by the Restricted Access Management (RAM) division of
the National Oceanic & Atmospheric Administration (NOAA), which
contain a history of CQEs and supporting statistical
information. He described the development of individual fishing
quotas (IFQs), beginning with the inception of limited entry and
the effect it has had on the coastal community fishing fleets,
as a continual erosion of fishery access to these areas. In
1998 CQE's were created under federal law to address the
situation and assist coastal communities to rebuild the local
industry.
6:07:46 PM
MR. OLSEN provided an example of what occurred in Old Harbor and
the effect that the IFQ has had through the rationalization
program. The fleet has been significantly reduced, and every
coastal community has felt similar effects. The CQE was seen as
a means to level the playing field and regenerate opportunities.
Forty-five coastal communities, with less than 1,500
inhabitants, and not connected to the road system were
identified as eligible to organize into CQE's. He further
explained how the CQEs were formed using a point system to
distribute an equitable quota, and allow community governance.
MR. FIELDS interjected that the issue has been funding.
6:12:17 PM
MR. OLSEN stated that, in 2004, the opportunity to purchase CQEs
was extended, but immediately met with the lack of a funding
mechanism. Lending institutions could not be approached,
federal sources were not a fit, and the state loan package
requirements were prohibitive. In the case of Old Harbor, a
fisherman was able to provide backing, and of the 20 CQE's that
have formed, it is the only one operating, due to the funding
issue.
6:15:03 PM
MR. FIELDS reviewed the provisions of the bill, stating that a
long term loan is important for a CQE, as it is about quota
share, in the community, in perpetuity. The second provision
requires a down payment of five percent, which should be
possible; a higher rate would be a barrier. The third provision
is the interest rate of prime plus two percent, which is
standard; however, he suggested, an incentive would be created
if it were lowered to prime plus one percent. Finally, he said
an essential provision is the ability, as stated in the bill,
for a CQE to ask for postponement or deferment of the interest
on the principle, for up to ten years. The deferment would
eventually be paid back, but allowing this on the front end of
the loan, is critical to enable the CQE to build up reserves;
necessary in a fluctuating fishery industry.
6:17:26 PM
TIM GREENE, Representative, Nanwalek IRA (Indian Reorganization
Act) Village Council, stated support for HB 141, and said that
the CQE has been a total failure, noting that only one is
operational. He reported that the North Pacific Fisheries
Management Council (NPFMC) has been unwilling to meet with the
village council claiming exemption from EO 13175, which states
that all federal agencies are to provide government to
government consultation to tribal entities. Finally, he said:
I support HB 141. It gives a chance for a CQE to
possibly make a purchase. ... But there's nothing to
purchase. So that can be the next thing that can be
resolved.
6:21:14 PM
BILL LUCEY, Coastal Planner, City and Borough of Yakutat, stated
support for HB 141, and said there has been an active CQE in
Yakutat for about four years. Periodically the cost is
evaluated and the numbers do not pencil out. He predicted that
HB 141 could help with the financial situation, and the program
could be a huge benefit to the area, generating upwards of
$600,000 through the CQE non-profit. The infusion of the
revenues would provide the community with a great deal of
infrastructure security.
6:23:45 PM
GALE VICK, Executive Director, Gulf of Alaska Coastal
Communities Coalition (GOAC3), stated support for HB 141, and
said the CQE would be a viable, sustainable program, if provided
with a financial mechanism. The bill will provide a positive
economic stimulus.
6:26:04 PM
PATRICIA BROWN SCHWALENBERG, Executive Director, Chugach
Regional Resources Commission (CRRC), stated support for HB 141,
and indicated that the commission has been involved in the
evolution of the CQE program. Two years ago a workshop was held
on forming CQE's, but obtaining financing has not been possible.
Funding options are essential to get this program up and
running.
6:28:28 PM
BOB HENRICKS, Board Member, Chugach Regional Resources
Commission (CRRC), stated support for HB 141, and said this loan
program is desperately needed to get the CQE groups off the
ground. He said:
We're almost back to the days before statehood, when
all of the fishermen, and all the processors, were
from the south forty-eight, and controlled our
resources.
6:29:29 PM
TONY GREGORIO, Fisherman, stated support for HB 141, and said
that it will help the villagers to help themselves, and create
an economic base.
6:31:22 PM
FREDDIE CHRISTIANSEN, Fisherman, stated support for HB 141, and
said this would make CQE's plausible, and stressed that the
program is needed in coastal communities.
CHAIR THOMPSON closed public testimony.
6:35:42 PM
REPRESENTATIVE JOHNSON stated support for HB 141, and said it is
the type of legislation that provides people a means to help
themselves.
REPRESENTATIVE PRUITT concurred and stated support for HB 141.
6:36:59 PM
REPRESENTATIVE JOHNSON moved to report HB 141 27-LS0158\I, out
of committee, with individual recommendations and the
accompanying fiscal notes. There being no objection, HB 141 was
moved from the House Special Committee on Fisheries.
6:37:25 PM
CHAIR THOMPSON announced the agenda for the next meeting.
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 6:37
p.m.