Legislature(2017 - 2018)BARNES 124

02/07/2018 01:00 PM RESOURCES

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Audio Topic
01:46:51 PM Start
01:47:49 PM Presentation(s): Alyeska Pipeline Service Company
02:38:21 PM HB217
03:04:28 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 1:35 PM --
+ Presentation: Transition from Crowley to Edison TELECONFERENCED
Chouest Offshore for Prince William Sound &
Valdez Marine Terminal Prevention & Response by
Alyeska Pipeline Service Company Representatives
-- Testimony <Invitation Only> --
+= HB 217 RAW MILK SALES; FOOD EXEMPT FROM REGS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        February 7, 2018                                                                                        
                           1:46 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative John Lincoln                                                                                                     
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative Chris Birch                                                                                                      
Representative DeLena Johnson                                                                                                   
Representative George Rauscher                                                                                                  
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
Representative Chris Tuck (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  ALYESKA PIPELINE SERVICE COMPANY                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 217                                                                                                              
"An Act relating to the Alaska Food, Drug, and Cosmetic Act;                                                                    
relating to the sale of milk, milk products, raw milk, and raw                                                                  
milk products; and providing for an effective date."                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 217                                                                                                                  
SHORT TITLE: RAW MILK SALES; FOOD EXEMPT FROM REGS                                                                              
SPONSOR(s): REPRESENTATIVE(s) TARR                                                                                              
                                                                                                                                
04/07/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/17       (H)       RES, FIN                                                                                               
04/12/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/12/17       (H)       Scheduled but Not Heard                                                                                
04/13/17       (H)       RES AT 5:00 PM BARNES 124                                                                              
04/13/17       (H)       -- Continued from 4/12/17 --                                                                           
04/14/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/14/17       (H)       <Bill Hearing Postponed>                                                                               
04/17/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/17/17       (H)       Heard & Held                                                                                           
04/17/17       (H)       MINUTE(RES)                                                                                            
01/31/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
01/31/18       (H)       Heard & Held                                                                                           
01/31/18       (H)       MINUTE(RES)                                                                                            
02/07/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TOM BARRETT, President                                                                                                          
Alyeska Pipeline Service Company                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a PowerPoint presentation                                                                       
entitled, "Voyage Plan Marine Services Contract Transition                                                                      
Winter 2018 Update."                                                                                                            
                                                                                                                                
ANDRES MORALES, Director                                                                                                        
Ship Escort/Response Vessel System                                                                                              
Alyeska Pipeline Service Company                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during a presentation by                                                              
Alyeska Pipeline Service Company.                                                                                               
                                                                                                                                
DIANA RHOADES, Staff                                                                                                            
Representative Geran Tarr                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf of Representative Tarr, sponsor,                                                               
provided a sectional analysis of the committee substitute for HB                                                                
217, Version J.                                                                                                                 
                                                                                                                                
BRYCE WRIGLEY, President                                                                                                        
Alaska Farm Bureau, Inc.                                                                                                        
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:  Testified in support during the hearing of                                                               
HB 217.                                                                                                                         
                                                                                                                                
PATRICIA GRISWOLD                                                                                                               
Grandma's Gardens                                                                                                               
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:  Testified during the hearing of HB 217.                                                                  
                                                                                                                                
ART GRISWOLD                                                                                                                    
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:   Provided comments  on topics  not pertinent                                                             
to CSHB 217, Version J.                                                                                                         
                                                                                                                                
MATTHEW BATES                                                                                                                   
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:   Provided comments  on topics  not pertinent                                                             
to CSHB 217, Version J, and  spoke in support of one provision of                                                               
the bill.                                                                                                                       
                                                                                                                                
DANNY CONSENSTEIN, Spokesperson                                                                                                 
Alaska Food Policy Council                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Testified  in general  support during  the                                                             
hearing of HB 217.                                                                                                              
                                                                                                                                
JOHANNA HERRON, Coordinator                                                                                                     
Marketing, Alaska Grown & Farm to School                                                                                        
Division of Agriculture                                                                                                         
Department of Natural Resources                                                                                                 
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing of HB 217.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:46:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GERAN   TARR  called   the  House   Resources  Standing                                                             
Committee meeting  to order at  1:46 p.m.   Representatives Tarr,                                                               
Birch,  Parish,   Talerico,  Drummond,  Rauscher,   Lincoln,  and                                                               
Josephson  were present  at the  call to  order.   Representative                                                               
Johnson arrived as the meeting was in progress.                                                                                 
                                                                                                                                
^PRESENTATION(S):  Alyeska Pipeline Service Company                                                                             
       PRESENTATION(S):  Alyeska Pipeline Service Company                                                                   
                                                                                                                              
1:47:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  announced that the  first order of  business would                                                               
be  a  presentation  by  the  Alyeska  Pipeline  Service  Company                                                               
related  to  the  transition  from   Crowley  to  Edison  Chouest                                                               
Offshore  for Prince  William Sound  and  Valdez Marine  Terminal                                                               
Prevention and Response.                                                                                                        
                                                                                                                                
1:48:29 PM                                                                                                                    
                                                                                                                                
TOM BARRETT, President, Alyeska  Pipeline Service Company (APSC),                                                               
provided a PowerPoint presentation  entitled, "Voyage Plan Marine                                                               
Services Contract  Transition Winter 2018 Update,"  dated 2/7/18,                                                               
and brief background information on  the presenters.  Mr. Barrett                                                               
informed  the committee  APSC seeks  to position  its systems  of                                                               
pipeline, terminal,  and the  Ship Escort/Response  Vessel System                                                               
(SERVS), with new  and more capable equipment with  the intent to                                                               
create  durable assets  for the  next  20-40 years.   Since  last                                                               
year, APSC is continuing the  process of transition and wishes to                                                               
relate to the committee a sense  of the upcoming activity.  As an                                                               
aside, he  advised [on  2/3/18] there  was a  small spill  at the                                                               
terminal  due  to an  ice  plug  with approximately  150  gallons                                                               
spilled into a  concrete deck and spread by high  winds.  He said                                                               
valves  may  need  to  be  replaced,  but  replacements  are  not                                                               
available currently, and further  described the possible cause of                                                               
the  spill  and  the  difficult  weather  conditions  during  the                                                               
response.    Mr. Barrett  directed  attention  to the  PowerPoint                                                               
presentation which  discussed the  transition of  marine services                                                               
from  Crowley Maritime  Corporation (Crowley)  to Edison  Chouest                                                               
Offshore (ECO).   Slide 2 displayed a new barge  that will be one                                                               
of the  largest oil spill barges  in the world.   [APSC] provides                                                               
escort   and  response   services   in   accordance  with   spill                                                               
agreements, and contingency  plans, filed with the  state and the                                                               
U.S. Coast Guard (USCG).  Slide  3 displayed a tanker escort that                                                               
escorts laden tankers.  The  tanker escorts are regulated by USCG                                                               
and  the  Department  of  Environmental  Conservation  (DEC)  and                                                               
demonstrate  their capabilities  through approximately  75 drills                                                               
per year to  ensure the readiness of equipment and  staff.  Slide                                                               
4 illustrated an approximate transition  schedule, and he pointed                                                               
out  the   transition  process  began  in   2016,  including  the                                                               
construction  of  vessels  and  the recruiting  and  training  of                                                               
personnel.  Mr. Barrett noted  Crowley has been very cooperative,                                                               
and  ECO personnel  have begun  observing operations,  which will                                                               
continue.  He spoke highly  of ECO equipment and capabilities and                                                               
further described  training procedures.  The  regulatory approval                                                               
process is ongoing  with an amended terminal  contingency plan, a                                                               
filed  tanker  contingency plan,  and  responses  to comments  or                                                               
concerns  from the  public and  the state.   All  parties have  a                                                               
common goal  to facilitate  a smooth  transition and  to maintain                                                               
and improve  the best  escort and response  system in  the world,                                                               
which is prepared to deal  with a contingency or response ranging                                                               
from  fishing vessel  traffic to  a tanker  that has  lost power.                                                               
Mr. Barrett  advised the system  is safer  than it has  ever been                                                               
due to fewer tankers transiting  and that tankers now have double                                                               
hulls.                                                                                                                          
                                                                                                                                
1:56:55 PM                                                                                                                    
                                                                                                                                
MR.  BARRETT continued  to slide  5, noting  that the  transition                                                               
team is  working seven days  per week, twenty-four hours  per day                                                               
along with a  full staff managing operations:   vessels are under                                                               
construction; training  is underway; ECO is  participating; there                                                               
is stakeholder  engagement with various contractors  and vendors.                                                               
Transition   guiding   principles   were   listed   as   follows:                                                               
obligations to  protect the environment, resources,  and culture;                                                               
move oil  safely with  zero incidents  and immediate  response if                                                               
necessary (slide 6).   He described the  recent events associated                                                               
with a  tsunami alert.  The  final principle is APSC's  value for                                                               
transparent partnerships  with regulators and  stakeholders, many                                                               
of  whom live  in Prince  William  Sound (slide  6).   Transition                                                               
objectives  were  listed as  follows:    flawless operation;  ECO                                                               
vessels will  exceed the current fleet;  maintain full compliance                                                               
with regulatory  requirements (slide 7).   Slide 8  displayed new                                                               
escort tugs  that have 20  percent more power  and that are  of a                                                               
standard design to enhance flexibility  for crews and operations.                                                               
He pointed  out improved  equipment that is  provided on  the new                                                               
escort tugs.                                                                                                                    
                                                                                                                                
2:00:55 PM                                                                                                                    
                                                                                                                                
ANDRES  MORALES, Director,  SERVS,  APSC,  advised more  powerful                                                               
escort  tugs  are  important  when tugs  are  towing  tankers  or                                                               
stopping vessels.  Also, modern  equipment allows a vessel master                                                               
to focus on operating the vessel.                                                                                               
                                                                                                                                
2:01:41 PM                                                                                                                    
                                                                                                                                
MR. BARRETT noted one existing APSC barge is 50 years old.                                                                      
                                                                                                                                
REPRESENTATIVE  BIRCH  asked  for  the methods  that  connect  an                                                               
escort tug to a tanker.                                                                                                         
                                                                                                                                
MR.  MORALES said  a tether  line from  a constant-tension  wench                                                               
connects to  the stern  of the  tanker; the  tether is  large and                                                               
stronger  than  steel  cable.    The  escort  and  tanker  remain                                                               
tethered when  close to  shore, and the  tanker is  released when                                                               
further out at sea.                                                                                                             
                                                                                                                                
There  followed  brief  questions  and  answers  related  to  the                                                               
vessels pictured on slides 8, 9, and 10.                                                                                        
                                                                                                                                
CO-CHAIR  JOSEPHSON related  the  Prince  William Sound  Regional                                                               
Citizens' Advisory  Council (RCAC) believes the  transition is an                                                               
overall  improvement in  equipment, but  expressed concern  about                                                               
training and  operations.  Further,  a naval  architect suggested                                                               
bow thrusters  would aid in  the maneuverability of  escort tugs.                                                               
He asked whether Crowley or ECO tugs have bow thrusters.                                                                        
                                                                                                                                
MR.  BARRETT said  [ECO] tugs  do not.   He  opined ECO  tugs are                                                               
designed to  function at  the speed of  the escorted  tankers and                                                               
the "bow  thruster approach could  interfere with the  ability of                                                               
the skeg ... and you'd lose power."                                                                                             
                                                                                                                                
2:06:47 PM                                                                                                                    
                                                                                                                                
MR. MORALES  related bow  thrusters are useful  at 0-2  knots but                                                               
the  lowest speed  during  an  escort is  6  knots; other  marine                                                               
architects advised  "it would  actually, probably,  diminish your                                                               
ability to effectively respond."                                                                                                
                                                                                                                                
CO-CHAIR  JOSEPHSON  further  related  Prince  William  Citizens'                                                               
Regional  RCAC's   core  concern  about  testing   during  winter                                                               
conditions  such as  high seas  and  high winds.   He  questioned                                                               
whether DEC also  maintains concerns and asked for  a response in                                                               
this regard.                                                                                                                    
                                                                                                                                
MR.   BARRETT   said   APSC    works   closely   with   citizens'                                                               
organizations, but  he would seriously question  the rationale on                                                               
this  issue with  citizens  and  with DEC;  in  fact, the  Prince                                                               
William Sound  RCAC is misinformed about  "how emergency response                                                               
training works."   He noted his  35 years of experience  in USCG,                                                               
which  is one  of  the premier  lifesaving  organizations in  the                                                               
world in  difficult conditions.   However, USCG doesn't  train in                                                               
dangerous  conditions  but   builds  capability  and  proficiency                                                               
training  in controlled  conditions.   He  cautioned training  in                                                               
uncontrollable conditions presents a higher  risk to life, and he                                                               
gave  several  examples  of  risks  to  personnel  under  various                                                               
scenarios.  The fundamental training  construct is to "train your                                                               
people, you have them practice ...  and then you trust them."  He                                                               
acknowledged the  public bears adverse consequences  of increased                                                               
risk;  however,  APSC  crews  are  working  every  day  and  will                                                               
respond.   Training in  the varied  conditions of  Prince William                                                               
Sound with  large vessels  holds inherent  dangers.   Mr. Barrett                                                               
pointed  out  national  firefighter training  standards  prohibit                                                               
firefighters  from  training  in  uncontrolled  conditions.    He                                                               
opined the  highest value is in  crews and APSC must  measure the                                                               
risks and consequences of training.                                                                                             
                                                                                                                                
MR.  MORALES  agreed, adding  his  experience  is that  a  tanker                                                               
losing power, or shut down, creates a tremendous risk.                                                                          
                                                                                                                                
MR.  BARRETT restated  he  did not  understand  the rationale  of                                                               
opposing organizations and further  explained using simulators as                                                               
training is a well-known science.                                                                                               
                                                                                                                                
2:17:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  related 10 months ago,  DEC expressed concern                                                               
about substantial design  deficiencies in the Chouest  fleet.  He                                                               
remarked:                                                                                                                       
                                                                                                                                
     Specifically,  DEC reported  that  Alyeska  may not  be                                                                    
     conducting  model   testing,  simulator   testing,  and                                                                    
     numerical  testing,  or  full-scale  testing  based  on                                                                    
     Prince  William Sound  or  Gulf  of Alaska  conditions.                                                                    
     They also expressed desire to  see proof that there was                                                                    
     satisfactory demonstration of system performance.                                                                          
                                                                                                                                
MR.  BARRETT explained  tugs use  computer-based design  which is                                                               
more accurate  than model  testing.  Based  on reports  from DEC,                                                               
APSC ordered model  testing on the tugs in order  to validate the                                                               
accuracy  of  the  computer  program;  tests  are  complete,  and                                                               
results  will be  available  soon.   Further,  all  tugs must  be                                                               
classified for  escort service by USCG  which requires additional                                                               
testing  and standards;  in fact,  APSC will  not accept  vessels                                                               
without escort certifications and  certifications by the American                                                               
Bureau  of Shipping  (ABS).   After sea  trials, tug  performance                                                               
will be  demonstrated in  Prince William Sound.   He  assured the                                                               
committee  "the computer-based  design  is actually  the way  the                                                               
industry is headed ...."                                                                                                        
                                                                                                                                
CO-CHAIR JOSEPHSON continued:                                                                                                   
                                                                                                                                
     The  press report  from [DEC's]  press person  was that                                                                    
     without   a   demonstration  of   satisfactory   system                                                                    
     performance   they  wouldn't   let  you   pass  through                                                                    
     Hinchinbrook, fully laden.                                                                                                 
                                                                                                                                
MR. BARRETT  said the contingency plan  requires APSC demonstrate                                                               
a stop by the  escorts of the largest tanker, which  will be of a                                                               
BP vessel.   He advised when  the tugs arrive in  March and June,                                                               
APSC will provide the demonstration of "practice slows."                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON asked for the  source of the report quoted                                                               
by Co-Chair Josephson.                                                                                                          
                                                                                                                                
CO-CHAIR JOSEPHSON said the article  was from the Alaska Dispatch                                                               
News, March 2017, and offered to provide a copy.                                                                                
                                                                                                                                
2:22:07 PM                                                                                                                    
                                                                                                                                
MR. BARRETT  clarified the source of  the article was a  report -                                                               
written by Robert  Allen, a marine design  consultant - chartered                                                               
by the  Prince William  Sound RCAC.   [APSC] reviewed  the report                                                               
and  found  useful  aspects.     He  noted  when  industry  makes                                                               
improvements,  sometimes  laws  and  regulations  do  not  manage                                                               
changes  easily.   For  example,  computer-based  design is  more                                                               
accurate and reliable than tank  tests, and the [marine] industry                                                               
is  transitioning to  performance-based standards;  technology is                                                               
moving fast, and it is hard to keep up.                                                                                         
                                                                                                                                
REPRESENTATIVE  JOHNSON  stated  APSC  has  an  exemplary  record                                                               
regarding environmental concerns.                                                                                               
                                                                                                                                
MR.   BARRETT  said   under  difficult   conditions  APSC   seeks                                                               
operational excellence.                                                                                                         
                                                                                                                                
REPRESENTATIVE  BIRCH asked  whether  tipping tests  are used  on                                                               
large vessels.                                                                                                                  
                                                                                                                                
MR.  BARRETT explained  stability is  tested as  part of  the ABS                                                               
certification process.                                                                                                          
                                                                                                                                
MR. MORALES  added there are  large tanks that simulate  an ocean                                                               
and use models.                                                                                                                 
                                                                                                                                
MR. BARRETT  continued to slide  10 which pictured  and described                                                               
general  purpose tugs.    Slide 12  pictured  oil spill  response                                                               
barges  and he  described safety  features such  as skimmers  and                                                               
deluge pumps  for snow  removal.  Slide  13 pictured  escort work                                                               
boats that are built by Bayweld  in Homer.  Slides 14-15 pictured                                                               
training highlights.  He advised  the average experience level of                                                               
incoming   captains  is   over  20   years,  and   related  their                                                               
observations   of  the   transition.     Slides  17-19   pictured                                                               
stakeholders, fishing  vessel training, and  a large barge.   Mr.                                                               
Barrett offered to respond to questions anytime.                                                                                
                                                                                                                                
2:30:57 PM                                                                                                                    
                                                                                                                                
MR.  MORALES, in  response to  Representative Drummond,  said the                                                               
barge shown on slide 19 is  used for near shore response and will                                                               
be part of the fleet.                                                                                                           
                                                                                                                                
MR. BARRETT,  in response  to Representative  Rauscher, explained                                                               
the cycle time of a ship varies from 9-16 days.                                                                                 
                                                                                                                                
REPRESENTATIVE JOHNSON asked for an  opinion on [proposed bill HB                                                               
322].                                                                                                                           
                                                                                                                                
MR. BARRETT said  he will review the bill,  especially as related                                                               
to some  of the  definitions.  [APSC]  handles ballast  water and                                                               
saltwater  and he  questioned whether  the bill  includes ballast                                                               
water and saltwater in the definition of produced water.                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON requested a response from APSC on HB 322.                                                                
                                                                                                                                
MR. BARRETT,  in response to  Co-Chair Josephson,  clarified APSC                                                               
flushes some  of its  lines with  saltwater.   Flushed saltwater,                                                               
storm  water, and  ballast  water are  processed  by a  treatment                                                               
facility  in large  volumes; ballast  water incorporates  a small                                                               
amount of oil.                                                                                                                  
                                                                                                                                
CO-CHAIR JOSEPHSON asked:                                                                                                       
                                                                                                                                
     If the  statute refers  to a  fine of  say, $500  for x                                                                    
     number of  gallons, and that statute  was written close                                                                    
     to  30 years  ago or  more, can  you see  the merit  in                                                                    
     maybe updating the statute ...?                                                                                            
                                                                                                                                
MR. BARRETT gave an example of  a small spill that cost APSC $2.5                                                               
million  and said  his  answer  is that  [APSC]  is motivated  by                                                               
prevention and the  cost of cleanup.  In further  response to Co-                                                               
Chair Josephson,  he clarified  $2.5 million  was APSC's  cost to                                                               
clean up the spill.                                                                                                             
                                                                                                                                
          HB 217-RAW MILK SALES; FOOD EXEMPT FROM REGS                                                                      
                                                                                                                                
2:38:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  announced that the  final order of  business would                                                               
be  HOUSE BILL  NO. 217,  "An Act  relating to  the Alaska  Food,                                                               
Drug,  and Cosmetic  Act;  relating  to the  sale  of milk,  milk                                                               
products, raw milk,  and raw milk products; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
2:39:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  moved to adopt the  committee substitute (CS)                                                               
for HB 217, 30-LS0593\J, Wayne, 2/6/18, as the working document.                                                                
                                                                                                                                
CO-CHAIR TARR objected for discussion purposes.                                                                                 
                                                                                                                                
2:39:31 PM                                                                                                                    
                                                                                                                                
DIANA  RHOADES, Staff,  Representative Geran  Tarr, Alaska  State                                                               
Legislature,  informed the  committee CSHB  217 [Version  J] adds                                                               
provisions from  HB 46 - which  moved out of the  House Resources                                                               
Standing Committee [3/22/17] - ,  would allow the commissioner of                                                               
the  Department of  Natural Resources  (DNR) to  sell promotional                                                               
merchandise related to the Alaska  Grown logo, and encourages the                                                               
state,  schools,  and  municipalities to  purchase  Alaska  Grown                                                               
agricultural  and  fisheries products  at  a  required 7  percent                                                               
preference and up to a 15  percent preference.  Another change in                                                               
HB 217 brought by the committee  substitute is the removal of the                                                               
section related  to raw milk  sales; however, CSHB  217 maintains                                                               
the provisions  to increase farmers' direct-to-consumer  sales by                                                               
implementing the food freedom movement.                                                                                         
                                                                                                                                
MS.  RHOADES paraphrased  from  the  following sponsor  statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section  1    Establishes  Short Title  as Alaska  Food                                                                    
     Freedom Act                                                                                                                
     Concerns  about  states   enforcing  the  federal  Food                                                                    
     Safety  Modernization Act  prompted farmers  across the                                                                    
     country, including  Alaska, to  pass laws  to guarantee                                                                    
     the  freedom  of  farmers  to   sell  directly  to  end                                                                    
     consumers without overwhelming government regulations.                                                                     
     Section 2  Amends powers  of Commissioner of Department                                                                    
     of  Natural Resources  to sell  promotional merchandise                                                                    
     related to the Alaska Grown logo                                                                                           
     Allows   the  Division   of   Agriculture  within   the                                                                    
     Department of Natural Resources  to issue a license and                                                                    
     charge  a  license  fee for  the  sale  of  promotional                                                                    
     merchandise  related  to  the Alaska  Grown  logo.  The                                                                    
     commissioner shall  price the  merchandise in  a manner                                                                    
     that  ensures  a  reasonable  monetary  return  to  the                                                                    
     state.  It  is  encouraged   that  the  merchandise  be                                                                    
     manufactured in the  US and is procured  from either an                                                                    
     Alaska bidder  or a person  that employs  Alaska prison                                                                    
     inmates.                                                                                                                   
     Section  3    Amends  Food,  Drugs  and Cosmetic  Act's                                                                    
     Prohibited  Acts  Section,  to  allow  exemptions  from                                                                    
     licensing for some in-state food production                                                                                
     Allows  direct  sales  from farmers  to  consumers  for                                                                    
     certain  Alaska  Grown  food  and  food  products  with                                                                    
     appropriate  labeling; allows  online  sales of  value-                                                                    
     added food products; defines farmers' markets.                                                                             
     Section  4      Rewrites  municipal   procurement  code                                                                    
     preference for Alaska Grown agricultural products                                                                          
     If receiving  state money, a municipality  is currently                                                                    
     required to purchase  Alaska Grown agriculture products                                                                    
     if they are priced not  more than seven percent above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     would  give  flexibility  to purchase  the  product  if                                                                    
     priced  not  more  than  15  percent  above  a  similar                                                                    
     product harvested outside the state.                                                                                       
     Section  5   -  Rewrites  municipal   procurement  code                                                                    
     preference for Alaska-grown fisheries products                                                                             
     If receiving  state money, a municipality  is currently                                                                    
     required to  purchase Alaska Grown seafood  products if                                                                    
     they are  priced not  more than  seven percent  above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     would  give  flexibility  to purchase  the  product  if                                                                    
     priced  not  more  than  15  percent  above  a  similar                                                                    
     product harvested outside the state.                                                                                       
     CSHB217 (J) Alaska Food  Freedom Act Sectional Analysis                                                                    
     2.7.18                                    Page 2                                                                           
     Section  6    Amends  municipal solicitation  procedure                                                                    
     for  procurement   code  preference   for  Alaska-grown                                                                    
     agricultural and fisheries products                                                                                        
     If  receiving   state  money,   a  solicitation   by  a                                                                    
     municipality   for  the   purchase   of  Alaska   Grown                                                                    
     agriculture and  seafood products must  include written                                                                    
     notice  that these  products must  follow the  rules of                                                                    
     Section  4  and  5.  Further, if  they  don't  purchase                                                                    
     Alaska  Grown  products,  the municipal  officer  shall                                                                    
     certify  in  writing  the   reasons  why  Alaska  Grown                                                                    
     products were not purchased.                                                                                               
     Section 7  - Amends state preferences  for Alaska Grown                                                                    
     agricultural products                                                                                                      
     When agricultural  products are purchased by  the state                                                                    
     or  by a  school  district that  receives state  money,                                                                    
     they are  currently required  to purchase  Alaska Grown                                                                    
     products  if  they  are  priced  not  more  than  seven                                                                    
     percent above  a similar product harvested  outside the                                                                    
     state;  this would  give  flexibility  to purchase  the                                                                    
     product  if priced  not more  than 15  percent above  a                                                                    
     similar product harvested outside the state.                                                                               
     Section 8  - Amends state preferences  for Alaska Grown                                                                    
     fisheries products                                                                                                         
     If fisheries products are purchased  by the state or by                                                                    
     a school  district that receives state  money, they are                                                                    
     currently  required to  purchase Alaska  Grown products                                                                    
     if they are priced not  more than seven percent above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     gives  flexibility to  purchase the  product if  priced                                                                    
     not  more  than  15  percent above  a  similar  product                                                                    
     harvested outside the state.                                                                                               
     Section  9 -  Amends state  solicitation procedure  for                                                                    
     procurement preferences for  Alaska Grown fisheries and                                                                    
     agricultural products                                                                                                      
     If receiving state money, a  solicitation by a state or                                                                    
     school  district  for  the  purchase  of  Alaska  Grown                                                                    
     agriculture and  seafood products must  include written                                                                    
     notice  that these  products must  follow the  rules of                                                                    
     Sections  7  and 8.  Further,  if  they don't  purchase                                                                    
     Alaska  Grown products,  the officer  responsible shall                                                                    
     certify  in  writing  the   reasons  why  Alaska  Grown                                                                    
     products were not purchased.                                                                                               
     Section 10    Amends  Public Finance  Fiscal Procedures                                                                    
     Act to collect fees                                                                                                        
     Allows the  commissioner of  the Department  of Natural                                                                    
     Resources to collect fees  for Alaska Grown promotional                                                                    
     merchandise.                                                                                                               
     Section 11  Effective date                                                                                                 
                                                                                                                                
2:43:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR removed  her objection.   There  being no  further                                                               
objection, Version J was before the committee.                                                                                  
                                                                                                                                
CO-CHAIR TARR opened public testimony.                                                                                          
                                                                                                                                
2:44:12 PM                                                                                                                    
                                                                                                                                
BRYCE  WRIGLEY, President,  Alaska  Farm Bureau,  Inc., said  the                                                               
Alaska  Farm  Bureau  strongly supports  all  efforts  to  expand                                                               
agricultural opportunities  in Alaska  because as a  young state,                                                               
Alaska has  not had  the opportunity  to build  an infrastructure                                                               
and  establish policies  to help  farmers grow  their businesses.                                                               
In fact,  Alaska imports  approximately 95  percent of  its food,                                                               
and residents only  have a 3- to 5-day supply  of most food items                                                               
in grocery stores.  Bills  like HB 217 would improve agricultural                                                               
policies  and  increase  access and  options  for  consumers  and                                                               
farmers.    Mr.  Wrigley  reported the  Alaska  $5  Alaska  Grown                                                               
Challenge is  a tool to  increase the visibility of  Alaska Grown                                                               
products, and  the bill would  strengthen the  product preference                                                               
program  which would  allow farmers  to  increase production  and                                                               
serve additional markets.  [CSHB  217] provides receipt authority                                                               
for  a  revenue  stream  in support  of  Alaska  Grown  marketing                                                               
materials.   Further,  good agricultural  policies are  important                                                               
because they  will increase opportunities  to get  local products                                                               
to market,  will build the  agricultural industry,  will increase                                                               
food  security,  and  will  create  jobs  in  the  rural  farming                                                               
industry.                                                                                                                       
                                                                                                                                
2:47:16 PM                                                                                                                    
                                                                                                                                
PATRICIA  GRISWOLD,  Grandma's  Gardens, informed  the  committee                                                               
Grandma's  Gardens is  a  greenhouse and  garden  business.   She                                                               
related she  is familiar with  state regulations on  the labeling                                                               
of  products such  as jams  and fresh  produce, and  commented on                                                               
items not on the agenda.                                                                                                        
                                                                                                                                
2:49:55 PM                                                                                                                    
                                                                                                                                
ART GRISWOLD  provided comments on  topics not pertinent  to CSHB                                                               
217.                                                                                                                            
                                                                                                                                
2:51:28 PM                                                                                                                    
                                                                                                                                
There  followed a  brief discussion  of topics  not pertinent  to                                                               
CSHB 217.                                                                                                                       
                                                                                                                                
2:54:43 PM                                                                                                                    
                                                                                                                                
MATTHEW BATES provided  comments on topics not  pertinent to CSHB                                                               
217, and  spoke in support of  the provision in CSHB  217 related                                                               
to Alaska Grown.                                                                                                                
                                                                                                                                
2:56:32 PM                                                                                                                    
                                                                                                                                
DANNY  CONSENSTEIN, Representative,  Alaska  Food Policy  Council                                                               
(AFPC), said AFPC  is a coalition of Alaskans  striving to create                                                               
a  healthier,  more  secure,  and  more  self-reliant  Alaska  by                                                               
improving   its  food   system.     [AFPC]  represents   farmers,                                                               
fishermen,   food  businesses,   schools,  government   agencies,                                                               
nonprofits, subsistence users, and consumers  in Alaska.  He said                                                               
AFPC  is pleased  that the  legislature is  now recognizing  food                                                               
issues  are a  priority.   HB  217 recognizes  the critical  role                                                               
played by farmers  markets - and other direct  sales to consumers                                                               
- to  create a  market for  agricultural and  fishing businesses.                                                               
In fact, AFPC sees opportunities  to create jobs and to diversify                                                               
the  economy  by  supporting food-related  small  businesses  and                                                               
retain some of  the $1.9 billion that is spent  on imported food.                                                               
In  2014, AFPC  published a  report that  revealed $1  out of  $5                                                               
earned by Alaska farmers is  earned through direct sales, and the                                                               
direct sales market is growing;  at this time annual direct sales                                                               
are  $2.2  million annually.    Mr.  Constantine explained  large                                                               
industrial-scale  agribusiness is  not necessary  to achieve  the                                                               
goal of more  Alaskans eating Alaska Grown food,  and he provided                                                               
an example.   He also expressed support for  state procurement of                                                               
local products.                                                                                                                 
                                                                                                                                
3:03:02 PM                                                                                                                    
                                                                                                                                
JOHANNA HERRON,  Coordinator, Marketing,  Alaska Grown &  Farm to                                                               
School,  Division  of  Agriculture, DNR,  regarding  the  receipt                                                               
authority  [provision in  CSHB 217],  informed the  committee the                                                               
division has historically had to  find federal funding to provide                                                               
marketing supplies  to farmers;  however, farmers  have expressed                                                               
interest in buying supplies wholesale from the division.                                                                        
                                                                                                                                
3:03:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR announced  public  testimony for  HB 217  remained                                                               
open.                                                                                                                           
                                                                                                                                
HB 217 was held over.                                                                                                           
                                                                                                                                
3:04:28 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:04 p.m.                                                                 

Document Name Date/Time Subjects
HB217 Version A 4.16.17.PDF HRES 4/17/2017 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Sponsor Presentation - Alaska Food Freedom 1-31-18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Benefits of Farmers Markets 2017 1.30.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Article Natural News 4.16.17.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Alaska Chamber Endorses Food Freedom 10.12.17.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EH 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EHL 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 New Sponsor Statement - Alaska Food Freedom 1.30.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Building Food Security in Alaska 7.28.14.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - 2017+AFPC-infographic 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HRES Alyeska Barrett Remarks 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
Alyeska
HB217 (CS) Version J 2.6.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 CS Version J - Sectional Analysis 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HRES Alyeska - Barrett Slide Presentation 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
Alyeska