Legislature(2023 - 2024)GRUENBERG 120

03/14/2023 10:00 AM House FISHERIES

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Audio Topic
10:01:26 AM Start
10:02:18 AM HB92
10:29:45 AM Presentation(s): Alaska's Commercial Hatcheries by Department of Fish and Game and the Alaska Salmon Aquaculture Alliance.
11:59:26 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 92 FISHERMEN'S FUND: VESSEL OWNER CLAIMS TELECONFERENCED
Moved CSHB 92(FSH) Out of Committee
-- Public Testimony --
+ Presentation: Alaska's Commercial Hatcheries by TELECONFERENCED
Department of Fish and Game and Alaska Salmon
Aquaculture Alliance
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 14, 2023                                                                                         
                           10:01 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sarah Vance, Chair                                                                                               
Representative Kevin McCabe                                                                                                     
Representative CJ McCormick                                                                                                     
Representative Ben Carpenter                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Louise Stutes                                                                                                    
Representative Rebecca Himschoot                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 92                                                                                                               
"An Act relating to claims against protection and indemnity                                                                     
insurance policies of vessel owners."                                                                                           
                                                                                                                                
     - MOVED CSHB 92(FSH) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PRESENTATION(S): ALASKA'S COMMERCIAL HATCHERIES BY DEPARTMENT OF                                                                
FISH AND GAME And The ALASKA SALMON AQUACULTURE ALLIANCE.                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  92                                                                                                                  
SHORT TITLE: FISHERMEN'S FUND: VESSEL OWNER CLAIMS                                                                              
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
03/01/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/23       (H)       FSH, L&C                                                                                               
03/07/23       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
03/07/23       (H)       Heard & Held                                                                                           
03/07/23       (H)       MINUTE(FSH)                                                                                            
03/14/23       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
VELMA THOMAS, Administrator                                                                                                     
Fishermen's Fund Advisory and Appeals Council                                                                                   
Division of Workers' Compensation                                                                                               
Department of Labor and Workforce Development                                                                                   
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   On behalf  of the  sponsor, House  Special                                                             
Committee on Fisheries, spoke to CSHB 92, Version B.                                                                            
                                                                                                                                
CHARLES COLLINS, Director                                                                                                       
Division of Workers' Compensation                                                                                               
Department of Labor and Workforce Development                                                                                   
Anchorage, Alaska                                                                                                             
POSITION  STATEMENT:   On behalf  of the  sponsor, House  Special                                                             
Committee on Fisheries, spoke to CSHB 92, Version B.                                                                            
                                                                                                                                
JERRY MCCUNE, Lobbyist                                                                                                          
Cordova District Fishermen United                                                                                               
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Provided testimony in support of HB 92.                                                                  
                                                                                                                                
MIKE WELLS, Executive Director                                                                                                  
Valdez Fisheries Development Association                                                                                        
Valdez, Alaska                                                                                                                  
POSITION  STATEMENT:    Co-presented  a  PowerPoint  on  Alaska's                                                             
salmon hatcheries.                                                                                                              
                                                                                                                                
SCOTT WAGNER, General Manager                                                                                                   
Northern Southeast Regional Aquaculture Association                                                                             
Sitka, Alaska                                                                                                                   
POSITION  STATEMENT:    Co-presented  a  PowerPoint  on  Alaska's                                                             
salmon hatcheries.                                                                                                              
                                                                                                                                
BILL TEMPLIN, Chief Fisheries Scientist                                                                                         
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish and Game                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-presented  a PowerPoint, titled "Research                                                             
Update: Potential Hatchery Effects on Natural Systems."                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:01:26 AM                                                                                                                   
                                                                                                                                
CHAIR  SARAH   VANCE  called  the  House   Special  Committee  on                                                             
Fisheries   Committee   meeting   to    order   at   10:01   a.m.                                                               
Representatives McCabe,  Johnson, Stutes, and Vance  were present                                                               
at the call to order.   Representatives Carpenter, Himschoot, and                                                               
McCormick joined as the meeting was in progress.                                                                                
                                                                                                                                
10:02:18 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
10:03:34 AM                                                                                                                   
                                                                                                                                
          HB  92-FISHERMEN'S FUND: VESSEL OWNER CLAIMS                                                                      
                                                                                                                                
10:03:34 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE announced  that the first order of  business would be                                                               
HOUSE BILL NO. 92, "An  Act relating to claims against protection                                                               
and indemnity insurance policies of vessel owners."                                                                             
                                                                                                                                
10:03:52 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE  moved  to adopt  the  proposed  committee                                                               
substitute  (CS) for  HB 92,  Version 33-LS0520\B,  Marx, 3/9/23,                                                               
("Version B") as a working document.                                                                                            
                                                                                                                                
CHAIR VANCE objected for the purpose of discussion.                                                                             
                                                                                                                                
10:04:24 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE stated  that  Version B  would change  the                                                               
amount  [of insurance  reimbursements from  the Fishermen's  Fund                                                               
("fund")] from $10,000 to $15,000.                                                                                              
                                                                                                                                
CHAIR VANCE  added that changes  in Version B would  increase the                                                               
claims  by the  vessel owners  and crewmembers  to $15,000.   She                                                               
requested that a representative from  the Department of Labor and                                                               
Workforce Development (DOLWD) speak to the proposed changes.                                                                    
                                                                                                                                
10:06:26 AM                                                                                                                   
                                                                                                                                
VELMA  THOMAS,  Administrator,   Fishermen's  Fund  Advisory  and                                                               
Appeals  Council, Division  of Workers'  Compensation, Department                                                               
of Labor  and Workforce  Development, presented  a graph  [from a                                                               
previous  presentation, copy  included in  the committee  packet]                                                               
which showed  the worse-case scenario  [for the  Fishermen's Fund                                                               
if the reimbursement amount was  changed to $15,000].  She stated                                                               
that the  graph is based  on the  recent nine-year average.   She                                                               
mentioned the direct effect from  the three years of the COVID-19                                                               
pandemic  on  the number  of  claims  received.   Concerning  the                                                               
proposed legislation, she expressed  uncertainty whether it would                                                               
present a risk of spending down the fund.                                                                                       
                                                                                                                                
10:07:43 AM                                                                                                                   
                                                                                                                                
CHARLES  COLLINS, Director,  Division  of Workers'  Compensation,                                                               
Department  of  Labor  and Workforce  Development,  reminded  the                                                               
committee that in  all financial markets past  performance is not                                                               
indicative of  future growth  or loss.   On  behalf of  DOLWD, he                                                               
stated  that  the  department  has no  opinion  on  the  proposed                                                               
legislation.   He added  that the  Fishermen's Fund  Advisory and                                                               
Appeals  Council ("council")  has expressed  the desire  to raise                                                               
the vessel owner's  reimbursement to $10,000.  He  added that the                                                               
crewmember reimbursement has  been capped at $10,000  for quite a                                                               
few years,  so there  is a  historical view on  this.   He stated                                                               
that claims have  fallen over the past couple  of years; however,                                                               
there has also been less fishing activity.                                                                                      
                                                                                                                                
10:08:45 AM                                                                                                                   
                                                                                                                                
MS.  THOMAS,  in  response  to  a  question  from  Representative                                                               
Himschoot, noted that  in 2010 when the council  raised the limit                                                               
to  $10,000, there  was a  concern  [the fund  would be  effected                                                               
negatively];  however,  she  expressed  the  belief  there  is  a                                                               
correlation between the advent of  the Affordable Health Care Act                                                               
and the  decrease in claims.   She  reiterated that this  is just                                                               
her observation and there has been  no study.  She discussed this                                                               
idea further.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT questioned  whether  it  would be  easy                                                               
legislatively  to reduce  the reimbursement  amount  if the  fund                                                               
drops too low.                                                                                                                  
                                                                                                                                
CHAIR  VANCE clarified  that this  would be  a statutory  change.                                                               
She explained  the historical changes  of insurance  premiums for                                                               
the fund.   She expressed the  purpose of the fund  is to support                                                               
the fishermen,  and the idea  behind the proposed  legislation is                                                               
that costs  and premiums  have increased.   As  long as  the fund                                                               
remains stable,  she suggested,  the idea  of raising  the amount                                                               
would be proactive.                                                                                                             
                                                                                                                                
MS. THOMAS, in response to  a follow-up question, stated that the                                                               
vessel owner reimbursement was changed to $5,000 in 2018.                                                                       
                                                                                                                                
REPRESENTATIVE  STUTES voiced  trepidation  about the  additional                                                               
$5,000.  She  pointed out that there were not  many claims during                                                               
the  pandemic, along  with less  participation in  the fisheries.                                                               
She  argued that  the fund  should remain  static, as  opposed to                                                               
destabilizing the fund by increasing amounts too much.                                                                          
                                                                                                                                
10:12:48 AM                                                                                                                   
                                                                                                                                
CHAIR  VANCE,  per the  chart,  expressed  the opinion  that  the                                                               
health of the  fund remains stable.  She  questioned the historic                                                               
number of claims that created the chart's projection.                                                                           
                                                                                                                                
MS. THOMAS responded that this  reflects around 300 claims a year                                                               
over the  past nine years.   She continued that before  2014, the                                                               
claims were  smaller, but there  were more,  around 400 to  600 a                                                               
year; however,  she pointed out  that at  that time the  fund was                                                               
worth  less.   She  stated  that  because  of the  changes,  this                                                               
comparison would be difficult to make.                                                                                          
                                                                                                                                
10:14:25 AM                                                                                                                   
                                                                                                                                
CHAIR  VANCE suggested  that if  reimbursements are  increased to                                                               
$15,000, with these projections, the  fund appears stable, and it                                                               
would be helpful to the fishermen.   She questioned, if it had to                                                               
be reduced statutorily,  what the effects on  the fishermen would                                                               
be.                                                                                                                             
                                                                                                                                
MS. THOMAS  expressed uncertainty  because the  information would                                                               
be difficult to gather.                                                                                                         
                                                                                                                                
MR. COLLINS  pointed out  that DOLWD  and all  other stakeholders                                                               
closely watch  the fund.  He  suggested if there were  a problem,                                                               
it would  be addressed  quickly.   He said the  fund is  a unique                                                               
program within  the state, and  it is  taken very seriously.   He                                                               
pointed out  that the  drop in claims,  less participants  in the                                                               
fishery, and the  rise in the costs are all  factors to consider.                                                               
He expressed support for the  projections and the idea that there                                                               
would not be a  major impact on the growth of the  fund.  He then                                                               
suggested, "It only takes one bad claim."                                                                                       
                                                                                                                                
10:17:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  questioned   whether  the  legislature                                                               
would receive  an annual update  on the growth and  management of                                                               
the fund.                                                                                                                       
                                                                                                                                
MR. COLLINS said there is nothing  in statute to create an annual                                                               
report; the only updates would be to the council.                                                                               
                                                                                                                                
REPRESENTATIVE CARPENTER,  from conversations with  fishermen, he                                                               
expressed  the  understanding  that   there  is  support  for  an                                                               
increase in  the reimbursement amounts  if the fund's  balance is                                                               
maintained.   Per  the projection,  he weighed  the value  of the                                                               
fund  for   current  fishermen  versus   the  value   for  future                                                               
generations.  He  questioned the amount of money  the fund needs.                                                               
He argued that  if the fund grows exponentially,  it would become                                                               
a target for other uses.   He suggested that the fund be balanced                                                               
per the needs  of the current generation along with  the needs of                                                               
the future generation,  while reducing the risk  that the balance                                                               
becomes  a target.   He  advised  that, in  consideration of  the                                                               
rising cost  of health care, this  would be prudent.   He further                                                               
explained his opinion  of why the proposed  legislation would not                                                               
put the fund in jeopardy.                                                                                                       
                                                                                                                                
10:21:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE STUTES  expressed the opinion that  it is critical                                                               
fishermen be the  recipient of these funds, as  opposed to others                                                               
looking to use the fund because  of its size.  She also expressed                                                               
the understanding that  if the fund were in  jeopardy, this would                                                               
be quickly addressed.                                                                                                           
                                                                                                                                
10:22:09 AM                                                                                                                   
                                                                                                                                
CHAIR  VANCE  removed her  objection.    There being  no  further                                                               
objection, Version B was before the committee.                                                                                  
                                                                                                                                
10:22:24 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE opened public testimony.                                                                                            
                                                                                                                                
10:23:02 AM                                                                                                                   
                                                                                                                                
JERRY  MCCUNE,  Lobbyist,   Cordova  District  Fishermen  United,                                                               
expressed support for the proposed  legislation.  He related that                                                               
in the  past when the  reimbursement amount was raised,  this was                                                               
the result  of high cost for  fishermen.  He noted  that there is                                                               
no way  to know the number  of fishing injuries that  will happen                                                               
in a year.  He expressed the  opinion that the fund would be able                                                               
to sustain the  rise in reimbursements, and on  behalf of Cordova                                                               
District Fishermen United, he expressed support.                                                                                
                                                                                                                                
10:23:50 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
10:24:07 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE,  after ascertaining that  there was no one  else who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
10:24:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE  moved  to  report CSHB  92,  Version  33-                                                               
LS0520\B,  Marx,  3/9/23,  out   of  committee  [with  individual                                                               
recommendations  and  the   accompanying  fiscal  notes],  giving                                                               
Legislative Legal  Services the  authority to make  all technical                                                               
and conforming changes.   There being no  objection, CSHB 92(FSH)                                                               
was reported out of the House Special Committee on Fisheries.                                                                   
                                                                                                                                
10:25:11 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:25 a.m. to 10:29 a.m.                                                                     
                                                                                                                                
^PRESENTATION(S):  Alaska's Commercial  Hatcheries by  Department                                                               
of Fish and Game and the Alaska Salmon Aquaculture Alliance.                                                                    
        PRESENTATION(S): ALASKA'S COMMERICAL HATCHERIES                                                                     
                                                                                                                                
10:29:45 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE announced  that the final order of  business would be                                                               
presentations  on Alaska's  commercial hatcheries  by the  Alaska                                                               
Department of  Fish and  Game and  the Alaska  Salmon Aquaculture                                                               
Alliance.                                                                                                                       
                                                                                                                                
10:30:30 AM                                                                                                                   
                                                                                                                                
MIKE  WELLS,  Executive  Director, Valdez  Fisheries  Development                                                               
Association,  co-presented   a  PowerPoint  on   Alaska's  salmon                                                               
hatcheries  [hard copy  included in  the committee  packet].   He                                                               
began  by addressing  the history  of Alaska's  hatchery program,                                                               
regional   hatchery   production,   and  the   economic   impacts                                                               
hatcheries make  in the state.   He moved to slide  2 and pointed                                                               
out the eight private  nonprofit aquaculture associations (PNPs).                                                               
He  added that  including  the Sitka  Sound  Science Center  this                                                               
would make  nine PNPs.   He noted  that only some  of PNPs  are a                                                               
part of  the Alaska  Salmon Aquaculture  Alliance.   He explained                                                               
that   the  alliance   works   to   increase  the   legislature's                                                               
understanding  of  hatchery programs.    He  continued that  PNPs                                                               
operate 26  hatcheries in the  state, which  collectively address                                                               
all  five species  of  Pacific  salmon.   He  explained that  the                                                               
hatcheries  were  created in  response  to  the depressed  salmon                                                               
fisheries in the state.                                                                                                         
                                                                                                                                
MR. WELLS read from Slide  3, titled "Alaska's Salmon Hatcheries:                                                               
A History."  He stated that  Alaska's hatchery program will be 50                                                               
years  old  next year,  and  there  is still  sustainable  salmon                                                               
reproduction, as this  was set as the  program's original intent.                                                               
He  moved to  slide  4  and addressed  the  core  mission of  the                                                               
hatchery  program,  which  is  to  sustainably  enhance  all  the                                                               
fisheries while  protecting wild  stocks.  He  moved to  slide 5,                                                               
which  shows a  graph of  the recorded  statewide salmon  harvest                                                               
beginning  in 1900  and going  to 1975.   He  referenced the  low                                                               
abundance years, and  the increase with the  advent of hatcheries                                                               
in the 1970s.  He added  that the wild stocks have also increased                                                               
since this time.                                                                                                                
                                                                                                                                
10:35:41 AM                                                                                                                   
                                                                                                                                
MR. WELLS moved  to slide 6, which showed the  percentage of each                                                               
species produced by  hatcheries statewide for the past  year.  He                                                               
explained why the  majority of salmon produced  by hatcheries are                                                               
pink  and  chum  salmon,  which  in  part  is  driven  by  fiscal                                                               
stability.   In response to  a committee question  concerning the                                                               
high number of  pink salmon released as opposed  to more valuable                                                               
species,  he  stated that  biologists  have  reviewed this.    He                                                               
pointed out the stability of  pink salmon production; however, he                                                               
observed that recently  there has been decreases in  numbers.  He                                                               
suggested that  this species, like  all species, is  subjected to                                                               
the environment.  He continued  that hatchery operators might not                                                               
be  able   to  answer   this  question   fully  because   of  the                                                               
complexities of the issue.                                                                                                      
                                                                                                                                
10:39:16 AM                                                                                                                   
                                                                                                                                
SCOTT  WAGNER,  General   Manager,  Northern  Southeast  Regional                                                               
Aquaculture  Association, in  response  to  a committee  question                                                               
concerning the effect  Russia and Asia has had on  the returns in                                                               
the Yukon River,  deferred the question to  the Alaska Department                                                               
of Fish  and Game (ADF&G), as  the state is forming  a task force                                                               
to  do additional  research  on  the issue.    He recognized  the                                                               
decrease  in  wild salmon  stocks;  however,  he added  that  the                                                               
hatchery production, especially  for pink and chum  salmon in the                                                               
northern  part  of the  Pacific  Ocean,  has remained  relatively                                                               
stable since the 1990s.  In  response to a follow-up question, he                                                               
stated that this includes international hatchery fish.                                                                          
                                                                                                                                
10:42:46 AM                                                                                                                   
                                                                                                                                
MR. COLLINS continued  the presentation on Slide  6, stating that                                                               
subsistence and  personal use comprise most  of the noncommercial                                                               
harvest of hatchery  produced sockeye salmon.  He  noted the high                                                               
numbers of hatchery  coho salmon harvested.  He moved  to Slide 7                                                               
and  expressed  the  opinion  that   the  PNP  hatchery  programs                                                               
represent  one  of the  most  consistent  and successful  public-                                                               
private  partnership models  in the  state's history.   He  added                                                               
that these programs  produce salmon for every type  of harvest at                                                               
no cost  to the state.   He added that the  revenues generated by                                                               
the  commercial  harvest [of  hatchery  fish]  go back  into  the                                                               
communities,  making it  a  good return  on  the state's  initial                                                               
investment.                                                                                                                     
                                                                                                                                
MR.  COLLINS moved  to Slide  8, which  addressed the  regulatory                                                               
requirements for  obtaining a  hatchery permit.   He  stated that                                                               
this is  under the control of  ADF&G.  He added  that the species                                                               
and amount produced  is under this control, along  with all other                                                               
aspects of  hatchery operations.   He stated that  operations are                                                               
reviewed annually along with an opportunity for public comment.                                                                 
                                                                                                                                
MR.  COLLINS moved  to  Slide  9, which  showed  a  graph of  the                                                               
statistics  on  the  releases  from   the  four  associations  in                                                               
Southcentral Alaska.   In  response to  a committee  question, he                                                               
addressed the fry  mortality in hatcheries.  He  gave the example                                                               
that the  Solomon Gulch Hatchery  in Valdez is permitted  to take                                                               
around   270   million  pink   salmon   eggs,   of  which   after                                                               
fertilization,  there is  an expected  95 percent  survival rate.                                                               
The marine survival  rate is the number of fish  that return, and                                                               
this average is  around 6 percent.  He stated  that this would be                                                               
around 15  to 16 million  fish for  this facility.   He explained                                                               
that around  95 percent  of the  fish do  not survive  because of                                                               
variabilities which exist in the natural environment.                                                                           
                                                                                                                                
10:48:39 AM                                                                                                                   
                                                                                                                                
MR.  COLLINS continued  to slide  10 and  addressed the  positive                                                               
economic impacts  that hatcheries have  on Alaska's economy.   He                                                               
pointed to a report that gave  the estimate that annually all PNP                                                               
programs  generate around  $600  million in  economic output  and                                                               
provide  around 4,700  jobs.   Highlighting  the associations  in                                                               
Southcentral  Alaska, he  moved from  slide  11 to  slide 14  and                                                               
discussed  the  Valdez  Fisheries  Development  Association,  the                                                               
Prince  William Sound  Aquaculture  Corporation,  the Cook  Inlet                                                               
Aquaculture  Association,  and  the Kodiak  Regional  Aquaculture                                                               
Association.    He discussed  in  detail  the various  hatcheries                                                               
these  entities operate,  the communities  they support,  and the                                                               
specifics of the salmon returns.                                                                                                
                                                                                                                                
10:55:05 AM                                                                                                                   
                                                                                                                                
MR.  WAGNER  addressed  the  production   of  the  hatcheries  in                                                               
Southeast Alaska,  as seen on Slide  15.  He pointed  out that in                                                               
Southeast  Alaska  there  are two  regional  associations,  three                                                               
regional   nonprofit  hatcheries,   and   one  federal   research                                                               
hatchery.  He stated that  in contrast to Southcentral Alaska the                                                               
primary  species  of  production  in  Southeast  Alaska  is  chum                                                               
salmon.  He  added that the cost effectiveness  of producing chum                                                               
salmon supports  the more  costly species  of sockeye,  coho, and                                                               
king salmon.   He discussed the importance of  the Pacific Salmon                                                               
Treaty  in relation  to hatchery  salmon production  in Southeast                                                               
Alaska.  He moved to slide  17 and stated that these associations                                                               
annually produce  an economic output  of around $237  million and                                                               
they create around  2,000 jobs.  He moved from  slide 18 to slide                                                               
21 and reviewed  the associations in the  Southeast region, which                                                               
include  Northern  Southeast  Regional  Aquaculture  Association,                                                               
Southern Southeast Regional  Aquaculture Association, and Douglas                                                               
Island Pink  and Chum, Inc.   He discussed in detail  the various                                                               
hatcheries these entities operate,  the communities they support,                                                               
and the specifics of the salmon returns.                                                                                        
                                                                                                                                
MR. WAGNER addressed the up coming  year and stated that the best                                                               
way to support the fisheries  is for hatcheries to maintain their                                                               
cost  recovery goals  and  maintain healthy  strong  salmon.   He                                                               
stated that  the associations  support ADF&G's  ongoing research.                                                               
In closing,  he stated  that Alaska's  hatchery program  would be                                                               
celebrating a  50-year anniversary  next year.   He  advised that                                                               
the  hatchery program  was created  to  enhance wild  production,                                                               
which has increased since the  program's inception.  He discussed                                                               
the  value the  program has  added and  the contributions  it has                                                               
made to the salmon fisheries in the state.                                                                                      
                                                                                                                                
11:03:23 AM                                                                                                                   
                                                                                                                                
MR. COLLINS, in response to  a committee question, stated that in                                                               
pink  salmon production,  these  fry have  a short-term  rearing.                                                               
They  are  fed  approximately  four  to  five  weeks,  with  food                                                               
manufactured in  Washington State and  Canada.  In the  six weeks                                                               
of rearing  time, the hatchery  in Valdez will use  around 17,000                                                               
pounds of  feed.  He stated  that there are some  variables, such                                                               
as  the  water  temperature.     In  response  to  two  follow-up                                                               
questions, he stated that more  information about each species of                                                               
salmon  and about  the  amount  of food  being  consumed will  be                                                               
reported  back  to  the  committee,  along  with  the  statistics                                                               
concerning the commercial harvest, in relation to slide 6.                                                                      
                                                                                                                                
11:07:29 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:07 a.m. to 11:08 a.m.                                                                     
                                                                                                                                
11:08:57 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE introduced the next presentation.                                                                                   
                                                                                                                                
11:09:39 AM                                                                                                                   
                                                                                                                                
BILL TEMPLIN,  Chief Fisheries Scientist, Division  of Commercial                                                               
Fisheries, Alaska  Department of  Fish and  Game (ADF&G),  gave a                                                               
PowerPoint  presentation,  titled   "Research  Update:  Potential                                                               
Hatchery Effects on  Natural Systems" [hard copy  included in the                                                               
committee  packet.]     He  advised  that  the   vast  amount  of                                                               
information on the subjects of  hatchery research and pink salmon                                                               
competition  have  been  condensed   in  the  presentation.    He                                                               
provided  an  overview,  as  seen  on  slide  2.    He  began  by                                                               
addressing  how the  fisheries resources  contribute to  Alaska's                                                               
identity, as  its preservation is  written into  the constitution                                                               
and  creates the  mission for  ADF&G,  as seen  on Slide  4.   He                                                               
stated that  ADF&G's four  main tasks  are to  protect, maintain,                                                               
improve, and manage  the fish, game, and  aquatic plant resources                                                               
in the state.   He added that  these four must be  balanced in an                                                               
effective manner, with  protection being the most  important.  He                                                               
moved  to the  next slide  to  point out  that Alaska's  hatchery                                                               
program  must  be  managed  as  a balancing  act  as  well.    He                                                               
discussed the history  of the fisheries in the  state and pointed                                                               
out  the contributing  factors  to the  changes  that have  taken                                                               
place.   He noted that much  of the information had  already been                                                               
presented to the  committee in the previous  presentation, and he                                                               
moved to  slide 7.  He  pointed out the period  of low production                                                               
in  the salmon  fisheries, followed  by increases,  and then  the                                                               
long stable decades of production.                                                                                              
                                                                                                                                
11:16:21 AM                                                                                                                   
                                                                                                                                
MR.  TEMPLIN pointed  out the  beginning of  the Alaska  Hatchery                                                               
Research Program  (AHRP), which involves  the two regions  in the                                                               
state with  the largest hatchery production:  Southcentral Alaska                                                               
for  pink  salmon and  Southeast  Alaska  for  chum salmon.    He                                                               
discussed the numbers  of pink and chum salmon  fry released over                                                               
the  past four  decades.   On slide  8, he  stated that  Alaska's                                                               
hatchery  program is  structured by  policies, processes,  plans,                                                               
and permits  and the  three elements  for monitoring  the program                                                               
are management,  fish health, and  genetics.  Moving to  the next                                                               
slide, he  stated that even  with this structure, there  has been                                                               
the fear that what has  occurred in other hatchery projects would                                                               
occur in  Alaska.   He stated  that it has  been reported  that a                                                               
large number of hatchery pink and  chum salmon have been found in                                                               
wild streams, which raises the  question of whether hatchery fish                                                               
have a negative effect on wild stocks in Alaska.                                                                                
                                                                                                                                
MR.  TEMPLIN continued  that because  the studies  were performed                                                               
outside  of the  state,  a  possible range  of  impacts has  been                                                               
reported; however,  he suggested  that there are  difficulties in                                                               
applying these  studies to Alaska's  situation.  On slide  10, he                                                               
pointed  out that  most of  these studies  were not  performed on                                                               
pink and  chum salmon,  as these species  are difficult  to study                                                               
because they  spend very  little time in  hatcheries or  in fresh                                                               
water.   He suggested that the  science in Alaska should  be used                                                               
to study this  because these other studies  have used compromised                                                               
habitats  with nonlocal  and small  brood stock  populations, and                                                               
these  factors effect  genetics.   He continued  that Alaska  has                                                               
different  hatchery   objectives  and  practices;   therefore,  a                                                               
different,  comprehensive set  of research  was recognized  to be                                                               
needed.                                                                                                                         
                                                                                                                                
11:20:54 AM                                                                                                                   
                                                                                                                                
MR. TEMPLIN  noted that the  hatchery operators  approached ADF&G                                                               
about developing  a plan, as described  on slide 11.   He pointed                                                               
out that a  panel was assembled to address three  questions.  The                                                               
first  question concerned  the genetic  background  of the  stock                                                               
structure  and  whether these  genes  have  moved into  the  wild                                                               
populations, as  seen on slide  12.   He pointed out  the results                                                               
and explained that  the result for pink salmon  is more "shallow"                                                               
than the  result for chum  salmon.   He explained the  effects in                                                               
the  different  spawning  years.   He  pointed  out  the  genetic                                                               
differences in chum salmon populations from all over the state.                                                                 
                                                                                                                                
MR. TEMPLIN addressed  the second question of  the variability of                                                               
straying in  the two  regions and  districts within  the regions.                                                               
Like  other studies,  he  stated that  hatchery  fish were  found                                                               
mingling with  wild salmon in Alaska.   He explained the  maps on                                                               
slide 13  and noted that in  the Prince William Sound  region the                                                               
hatchery pink  and chum  salmon were  only found  in some  of the                                                               
districts.    He noted  that  the  proportion  of strays  in  the                                                               
Southeast region  was more consistent  across the region  and low                                                               
across districts.                                                                                                               
MR. TEMPLIN  stated that the  last question concerned  the impact                                                               
on salmon fitness.  He added  that this question is more complex.                                                               
He  pointed  out the  plots  on  the  graph  on slide  14,  which                                                               
represent a set  of samples, with different strains  denoted.  He                                                               
further  explained  the plotting  system.    He stated  that  the                                                               
takeaway from  this is that  hatchery fish have a  lower fitness,                                                               
or productivity, in natural streams  where they are about half as                                                               
productive.  He  stated that the results on chum  salmon would be                                                               
available in  2024, as  no analysis  has been done  yet.   On the                                                               
next  slide, he  explained the  validity and  reliability of  the                                                               
results, and where the results have been published.                                                                             
                                                                                                                                
11:29:09 AM                                                                                                                   
                                                                                                                                
MR. TEMPLIN, in  response to a committee  question concerning why                                                               
hatcheries mostly rear  pink and chum salmon, stated  that one of                                                               
the most common  explanations is these salmon have  a short fresh                                                               
water life cycle;  therefore, they require less  maintenance.  He                                                               
added that  Prince William  Sound is not  as productive  for chum                                                               
salmon,  while the  opposite is  true for  Southeast Alaska.   In                                                               
addition, he stated that the  Southeast Alaska pink salmon run is                                                               
large enough to not need a  hatchery for support.  In response to                                                               
a follow-up question  on whether there is a  difference in salmon                                                               
returning to mainland or island  streams, he stated that patterns                                                               
found  had more  to  do  with which  streams  were  chosen to  be                                                               
represented and  the proximity of the  stream to a hatchery.   He                                                               
stated that he would note the question for future study.                                                                        
                                                                                                                                
MR. TEMPLIN, in  response to a question concerning  the effect of                                                               
straying on  wild stocks, pointed  out the  different proportions                                                               
of straying.  He stated that  there are several reasons for this.                                                               
One  of the  reasons is  where streams  are located  in terms  of                                                               
where the  fish are  coming in  from the ocean.   In  addition, a                                                               
factor is  the size of the  return in the particular  stream.  He                                                               
stated that the effects are  beginning to be understood, and this                                                               
would  determine   the  management  of  fisheries   in  terms  of                                                               
escapement.  He stated that the  question of the effects is still                                                               
being studied.                                                                                                                  
                                                                                                                                
11:34:15 AM                                                                                                                   
                                                                                                                                
MR. TEMPLIN continued  to Slide 16 and  addressed the application                                                               
of the science,  of which he advised is complex.   He stated that                                                               
AHRP  is supplying  scientifically  credible  information on  the                                                               
interactions between  hatchery and wild salmon;  however, because                                                               
of  the  complexities,  more  than  biology  is  needed  to  make                                                               
decisions.    He  pointed  out that  the  social,  economic,  and                                                               
cultural aspects  need to be  considered when using  the science,                                                               
as  there would  need to  be a  bridge between  these aspects  in                                                               
order to make  decisions.  To address this, he  moved to slide 17                                                               
and pointed  out questions not looked  at by AHRP.   He addressed                                                               
the department's assessment of risks  concerning what was learned                                                               
from the  study, and he pointed  out the next steps  to be taken,                                                               
as seen  on slide 18.   He explained that this  research has been                                                               
done in order  to use the analyses to  inform resource management                                                               
decisions.                                                                                                                      
                                                                                                                                
MR. TEMPLIN moved to slide 19  and pointed out the questions that                                                               
would need to be asked in  order to have an appropriate decision-                                                               
making process.   He stated  that these questions would  help the                                                               
department move  from the science  learned to the  policy needed.                                                               
He  stated  that  the  first  question  concerns  observation  of                                                               
whether an  event is occurring.   The next question  concerns how                                                               
often  and to  what extent  the event  is occurring.   These  two                                                               
questions  are answered  using scientific  measurement, with  the                                                               
end user defining  the effect, as this is not  always obvious, he                                                               
advised.  He stated that the  next question is whether there is a                                                               
harmful effect,  and this would  need to  be answered by  a human                                                               
derived standard;  in other words,  the definition of  harm would                                                               
need to  be determined.  He  stated that the next  question is in                                                               
relation to whether addressing the  harm would cost more than the                                                               
benefit.    He stated  that  this  question  is not  informed  by                                                               
scientific  results,  but  rather  by  human  activity,  such  as                                                               
values, definitions, negotiations, and risk assessments.                                                                        
                                                                                                                                
11:40:49 AM                                                                                                                   
                                                                                                                                
MR.  TEMPLIN  moved to  the  final  slides which  addressed  pink                                                               
salmon  and  competition at  sea.    He explained  the  different                                                               
effects of  this type of study  and continued to an  example.  He                                                               
suggested  four  explanations  for the  correlation  between  two                                                               
example  pink  salmon  runs;   unfortunately,  he  explained  the                                                               
correlation  cannot  be determined  from  a  data set  alone,  as                                                               
establishing  causal  relationships is  difficult.    As seen  on                                                               
slide  21, he  advised  that  the best  results  would come  from                                                               
controlled  studies;  however,   biological  situations  are  not                                                               
amenable to controlled  studies.  To be able  to determine causal                                                               
relationships better, he stated  that the correlation between the                                                               
two  example  runs must  have  high  evidence found  consistently                                                               
across multiple  situations with  no competing explanations.   He                                                               
concluded that the  correlation would need to  be consistent with                                                               
strong explanation  supported by  experiment.  To  understand the                                                               
correlation  between  the  two  example  pink  salmon  runs,  the                                                               
following would need  to be determined: diet  overlap and shifts,                                                               
the comparison of  each run's survival trends,  the comparison of                                                               
competitor abundance with growth  patterns, and the comparison of                                                               
competitor abundance  with age and  maturity.  He moved  to slide                                                               
23 and slide 24 and  addressed how the previous four correlations                                                               
are debated in scientific communities.   He discussed the details                                                               
of the arguments and related  these to international debates.  He                                                               
suggested that  the question  of pink  salmon competition  at sea                                                               
has not  been settled  and making changes  based on  uncertain or                                                               
preliminary assertions  can be harmful  to the resource,  as well                                                               
as to  Alaska.  He  advised that  the department acts  within the                                                               
scope of  available resources and  in a manner that  supports its                                                               
mission.   On  slide  25, he  pointed  to the  list  of the  five                                                               
activities  and  approaches,  which   are  being  implemented  to                                                               
advance the science around competition  and the marine ecology of                                                               
salmon.  He discussed each of  these.  He concluded with an offer                                                               
to receive any questions at any time.                                                                                           
                                                                                                                                
11:53:14 AM                                                                                                                   
                                                                                                                                
MR. TEMPLIN, in  response to a committee  question concerning the                                                               
past data  which has informed  the past policy  decisions, stated                                                               
when   speaking  about   "productivity,"   he  was   specifically                                                               
referring to the productivity of  natural systems in the presence                                                               
of hatchery and wild fish.   He continued that ADF&G's assessment                                                               
of productivity is taken into  account over long periods of time,                                                               
by  multiple  brood years,  within  the  escapement goal  system.                                                               
This helps  the department understand  whether targets  are being                                                               
met.    On   a  larger  scope,  productivity   uses  harvest  and                                                               
escapement   information,  and   other  similar   information  to                                                               
understand escapement.                                                                                                          
                                                                                                                                
MR. TEMPLIN,  in response  to a question  concerning the  food in                                                               
the  sea necessary  to  feed  one pink  salmon,  deferred to  the                                                               
upcoming committee meeting, where Dr.  Katie Howard would be able                                                               
to answer.  He explained that  the food web and ecosystem is very                                                               
complex in  the North Pacific  and Bristol  Bay.  He  stated that                                                               
salmon are  a small  consumer compared  to pollack,  herring, and                                                               
other species.   He  said it  would be  difficult to  measure how                                                               
much food is necessary to feed fish  in the ocean, as it needs to                                                               
be  in context  of other  consumers.   He  suggested that  trends                                                               
could reveal some answers.                                                                                                      
                                                                                                                                
11:58:25 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE summed  up the discussion and stated  that, as policy                                                               
makers,  the  committee is  concerned  with  what could  be  done                                                               
today, and here lies the problem.  She explained the purpose of                                                                 
a scientist is very different from that of a legislator.                                                                        
                                                                                                                                
11:59:26 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 11:59                                                                   
a.m.                                                                                                                            

Document Name Date/Time Subjects
HB 92 - (Proposed CS) v.B.pdf HFSH 3/14/2023 10:00:00 AM
HB 92
HB 92 - Vessel Owner Benefit AS 23.35.145 -10Yr Payout Projection_REVISED.pdf HFSH 3/14/2023 10:00:00 AM
HB 92
HFSH ADF&G Hatcheries Research Presentation 03.14.23.pdf HFSH 3/14/2023 10:00:00 AM
HB 92 - DOL Workers Comp Fiscal Note.pdf HFSH 3/14/2023 10:00:00 AM
HB 92