Legislature(2021 - 2022)BARNES 124
05/03/2021 01:00 PM House RESOURCES
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| HCR2 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HCR 2 | TELECONFERENCED | |
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ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
May 3, 2021
1:16 p.m.
MEMBERS PRESENT
Representative Josiah Patkotak, Chair
Representative Calvin Schrage
Representative Sara Hannan
Representative George Rauscher
Representative Mike Cronk
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
Representative Grier Hopkins, Vice Chair
Representative Zack Fields
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 2
Supporting the Alaska Ocean Cluster in its mission, efforts, and
vision for a vibrant coastal economy in the state, its promotion
of a diversified and resilient state economy that creates value
from ocean resources, and its building of a statewide integrated
ecosystem of innovation and entrepreneurship relating to the
state's ocean economy.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HCR 2
SHORT TITLE: SUPPORTING ALASKA OCEAN CLUSTER
SPONSOR(s): REPRESENTATIVE(s) STUTES
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) FSH, RES
04/08/21 (H) FSH AT 10:00 AM GRUENBERG 120
04/08/21 (H) Heard & Held
04/08/21 (H) MINUTE(FSH)
04/13/21 (H) FSH AT 10:00 AM GRUENBERG 120
04/13/21 (H) Moved HCR 2 Out of Committee
04/13/21 (H) MINUTE(FSH)
04/14/21 (H) FSH RPT 4DP 2NR
04/14/21 (H) DP: STORY, KREISS-TOMKINS, ORTIZ, TARR
04/14/21 (H) NR: MCCABE, VANCE
05/03/21 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE LOUISE STUTES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HCR 2.
SARA PERMAN, Staff
Representative Louise Stutes
Juneau, Alaska
POSITION STATEMENT: Presented HCR 2 on behalf of Representative
Stutes, prime sponsor.
JUSTIN STERNBERG, Program Director
Alaska Ocean Cluster
Anchorage, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HCR 2.
ACTION NARRATIVE
1:16:12 PM
CHAIR JOSIAH PATKOTAK called the House Resources Standing
Committee meeting to order at 1:16 p.m. Representatives McKay,
Cronk, Schrage, Gillham, Hannan, and Patkotak were present at
the call to order. Representative Rauscher arrived as the
meeting was in progress.
HCR 2-SUPPORTING ALASKA OCEAN CLUSTER
1:17:01 PM
CHAIR PATKOTAK announced that the only order of business would
be HOUSE CONCURRENT RESOLUTION NO. 2, "Supporting the Alaska
Ocean Cluster in its mission, efforts, and vision for a vibrant
coastal economy in the state, its promotion of a diversified and
resilient state economy that creates value from ocean resources,
and its building of a statewide integrated ecosystem of
innovation and entrepreneurship relating to the state's ocean
economy."
1:17:43 PM
REPRESENTATIVE LOUISE STUTES, Alaska State Legislature, as prime
sponsor, introduced HCR 2. She described the Alaska Ocean
Cluster (AOC) and its work developing Alaska's ocean resources,
characterizing it as an economic incubator focusing on
innovation in commercialization in ocean products-related
industries. She said that supporting HCR 2 would send a clear
message acknowledging Alaska's strategic position in the ocean
industry.
1:19:24 PM
SARA PERMAN, Staff, Representative Louise Stutes, paraphrased
the Sponsor Statement on behalf of Representative Stutes, prime
sponsor, which read as follows [original punctuation provided]:
Alaska is poised to be the nation's leader in
mariculture and ocean-based business development. Our
state is home to half of the nation's coastline and
approximately one-third of the nation's exclusive
economic zone. Major marine and inland aquatic Alaskan
industries include offshore oil and gas exploration,
fisheries, shipping, and tourism. Alaska's substantial
ocean economy its "blue economy" will continue to
grow as significant climate and political shifts open
the state for more opportunities. Globally, the blue
economy is expected to double to an estimated 3
trillion dollars by 2030. Alaska's importance is
undeniable, with the state producing 60% of the United
States' seafood and possessing well over half of the
nation's coastline and potential ocean energy
resources.
In 2017, the Bering Sea Fisherman's Association
launched the Alaska Ocean Cluster to enhance maritime
growth and development in the state. The Alaska Ocean
Cluster actively promotes Alaska's blue economy by
leveraging our current strengths while bolstering new
and emerging innovative opportunities to diversify our
economy. The Alaska Ocean Cluster focuses on expanding
ocean energy production, mariculture, and
transportation opportunities. Modeled after similar
successful similar ventures from around the world, the
Alaska Ocean Cluster brings together a coalition of
private, public, and academic shareholders to support
each other through cooperative research and a shared
vision.
The recent decline in financial resources in Alaska
warrants a renewed effort to develop a diversified and
resilient economy and workforce in the state. In this
regard, Alaska Ocean Cluster will help position the
state to grow Alaska's blue economy into the future.
This resolution proclaims the 32nd Alaska State
Legislature's support for the efforts of the Alaska
Ocean Cluster in developing a sustainable,
collaborative ocean economy in our state.
MS. PERMAN noted that AOC receives funding from several sources
including large federal grants like those from the U.S. Economic
Development Administration (EDA), and that AOC is working with
Alaska's congressional delegation to increase federal
appropriation opportunities. She said that passage of HCR 2
would send a message to federal agencies that the Alaska State
Legislature supports Alaska's maritime economy. She emphasized
that Alaska leads the nation in maritime access and industries.
1:23:04 PM
JUSTIN STERNBERG, Program Director, Alaska Ocean Cluster,
provided information and answered questions during the hearing
on HCR 2. He described the background of AOC, which is in its
third year, and noted that it receives fiscal sponsorship from
the Bering Sea Fishermen's Association (BSFA), with additional
funds being developed through fee-for-service and memberships.
He said that in 2020 AOC was awarded the $2 million Build to
Scale Industry Challenge Grant from EDA and used it to fund the
Blue Pipeline Venture Studio, which scales early-stage ocean-
based businesses. He noted AOC's key management Taylor
Holshouser, Director of Business Development, and Garrett
Evridge, who had previously been the chief fisheries economist
at McKinley Research Group. He described the targets of AOC's
entrepreneurship program, including mariculture and a research
and development program focused on using 100 percent of each
fish caught.
1:27:39 PM
REPRESENTATIVE RAUSCHER asked for more information on clusters.
MR. STERNBERG explained that there's a need and opportunity for
investment in ocean-based businesses, especially in rural
Alaska, with opportunities in innovation, job creation, and
engagement with existing industries. He said that the work in
the Blue Pipeline Venture Studio differs from a regular business
incubator in that AOC staff actively work alongside the
fledgling businesses instead of simply providing support. He
noted that AOC has been working with the University of Alaska
(UA) in developing the Alaska Blue Economy Center and, in
cooperation with established ocean clusters in Seattle,
Washington, San Diego, California, and Iceland, is learning from
their successes and "borrowing their best practices" to apply in
Alaska.
REPRESENTATIVE RAUSCHER asked about AOC's organizational
structure.
MR. STERNBERG replied that AOC currently has three full-time
staff and some contractors, with each person tasked with the
responsibility of their specific area of expertise. He said
that the organization is run as a nonprofit with support from
BSFA, which has functioned as a business incubator in the past.
1:34:19 PM
REPRESENTATIVE GILLHAM asked, "What is a blue pipeline?"
MR. STERNBERG described "blue pipeline" as the branding name
representing the ocean and its associated stream of
opportunities and development. He said the branding imagery
represents "creating a pipeline" of jobs and new businesses.
REPRESENTATIVE GILLHAM expressed that "maritime partnerships"
seem to be partnerships between commercial fishermen, crabbers,
and shrimpers.
MR. STERNBERG said that a maritime partnership could encompass
many areas of the economy including commercial and sport
fishing, coastal tourism, ocean energy, mariculture development,
industry academia, entrepreneurs, and investors. He noted the
amount of capital flowing into the "blue economy" and said that
at the current pace, the worldwide ocean economy will grow from
$1.5 trillion in 2016 to $3 trillion by 2030. He said
technology is developing rapidly and in need of locations in
which to operate.
1:37:53 PM
MS. PERMAN interjected to describe the concept of a "startup
incubator" as an organization working with a business that has
the technology, or an idea for a business innovation, but they
don't know how to get capital or the means to develop their
organization. Through working with groups like the AOC, she
explained, a business may develop internal leadership structures
and funding sources to grow the business from a conceptual idea
to a contributing member of the economy.
1:39:29 PM
REPRESENTATIVE HANNAN asked Mr. Sternberg whether ocean clusters
could have a relationship with the U.S. Department of Defense,
especially considering Alaska's strategic location, or whether
that would be outside the scope of development.
MR. STERNBERG replied that AOC is involved in collaborating with
government agencies and noted that the Build to Scale Grant
included a partnership with the Arctic Domain Awareness Center,
which is part of the U.S. Department of Homeland Security and
hosted through UA. He said that many technologies, such as
those used for monitoring for vessels or submarines, could be
applied in other areas. He said that one of the companies in
the Blue Pipeline Venture Studio is using artificial
intelligence to map present and future sea ice locations.
1:41:42 PM
REPRESENTATIVE MCKAY asked how AOC could work with the oil and
gas industry, and what oil and gas entities are currently part
of the cluster.
MR. STERNBERG replied that oil and gas exploration has
traditionally been a part of discussions of the ocean economy;
however, with a staff of only three people, AOC has not engaged
in that area. He noted efforts and technological innovations in
oil cleanup, and said that Alaska's economy has been so focused
on oil that AOC is working towards diversifying into other
offshore businesses such as seaweed farming, which would have a
net benefit to the environment because it's cleaning the ocean
as well as providing the resource. He stressed the desire to
develop industries that could grow a sustainable ocean economy
with renewable resources.
REPRESENTATIVE MCKAY said that since AOC isn't advocating for
oil and gas exploration, it should be removed from the
documentation. He said, "I think this is a little misleading,
if you're not even working on oil and gas exploration or
development in the Alaska offshore."
MS. PERMAN interjected and said that the sponsor statement
simply said that major maritime industries include oil and gas
exploration, rather than specifically referring to the work done
by AOC.
1:47:04 PM
CHAIR PATKOTAK opened public testimony on HCR 2. After
ascertaining that no one wished to testify, he closed public
testimony.
1:47:55 PM
CHAIR PATKOTAK announced that HCR 2 was held over.
1:49:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HCR 2 Letter of Support Alaska Research Consortium 5.3.2021.pdf |
HRES 5/3/2021 1:00:00 PM |
HCR 2 |
| HCR 2 Letter of Support Bering Sea Fishermen's Association 5.3.2021.pdf |
HRES 5/3/2021 1:00:00 PM SRES 2/21/2022 3:30:00 PM |
HCR 2 |
| HCR 2 Letter of Support SWAMC 5.3.2021.pdf |
HRES 5/3/2021 1:00:00 PM SRES 2/21/2022 3:30:00 PM |
HCR 2 |
| HCR 2 Sponsor Statement 5.3.2021.pdf |
HRES 5/3/2021 1:00:00 PM |
HCR 2 |
| HCR 2 Supplemental Document Alaska Ocean Cluster Overview 5.3.2021.pdf |
HRES 5/3/2021 1:00:00 PM |
HCR 2 |