Legislature(2019 - 2020)BARNES 124

04/26/2019 01:00 PM RESOURCES

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Audio Topic
01:03:01 PM Start
01:03:31 PM Presentation(s):|| United Fishermen of Alaska
01:39:00 PM Arctic Strategic Transportation
02:29:54 PM HR8
02:36:40 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
Arctic Strategic Transportation and Resources by
- Faith Martineau, Director, Office of Project
Management and Permitting, Dept. of Natural
Resources
- Jeff Bruno, Large Project Coordinator, Office
of Project Management and Permitting, Dept. of
Natural Resources
Alaska Commercial Fishing Industry Update by
Frances Leach, Exec. Dir., United Fisherman of
Alaska
-- Testimony <Invitation Only> --
+= HR 8 2019: INT'L YEAR OF THE SALMON TELECONFERENCED
Moved CSHR 8(RES) Out of Committee
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                       ALASKA STATE LEGISLATURE                                                                               
                  HOUSE RESOURCES STANDING COMMITTEE                                                                          
                            April 26, 2019                                                                                      
                              1:03 p.m.                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Lincoln, Co-Chair                                                                                           
Representative Geran Tarr, Co-Chair                                                                                             
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Sara Hannan                                                                                                      
Representative Ivy Spohnholz                                                                                                    
Representative Chris Tuck                                                                                                       
Representative Dave Talerico                                                                                                    
Representative George Rauscher                                                                                                  
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):                                                                                                                
                                                                                                                                
United Fisherman of Alaska                                                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
Arctic Strategic Transportation                                                                                               
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE RESOLUTION NO. 8                                                                                                          
Recognizing 2019 as the International Year of the Salmon and                                                                    
supporting an associated global initiative identifying the importance                                                           
of wild salmon.                                                                                                                 
                                                                                                                                
     - MOVED CSHR 8(RES) OUT OF COMMITTEE                                                                                       
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HR 8                                                                                                                    
SHORT TITLE: 2019: INT'L YEAR OF THE SALMON                                                                                     
SPONSOR(s): REPRESENTATIVE(s) TARR                                                                                              
                                                                                                                                
04/10/19        (H)        READ THE FIRST TIME - REFERRALS                                                                      
04/10/19        (H)        FSH, RES                                                                                             
04/16/19        (H)        FSH AT 10:00 AM GRUENBERG 120                                                                        
04/16/19        (H)        -- MEETING CANCELED --                                                                               
04/23/19        (H)        FSH AT 10:00 AM GRUENBERG 120                                                                        
04/23/19        (H)        Moved HR 8 Out of Committee                                                                          
04/23/19        (H)        MINUTE(FSH)                                                                                          
04/24/19        (H)        FSH RPT 2DP 1NR 1AM                                                                                  
04/24/19        (H)        DP: TARR, STUTES                                                                                     
04/24/19        (H)        NR: VANCE                                                                                            
04/24/19        (H)        AM: NEUMAN                                                                                           
04/24/19        (H)        RES AT 1:00 PM BARNES 124                                                                            
04/24/19        (H)        Heard & Held                                                                                         
04/24/19        (H)        MINUTE(RES)                                                                                          
04/26/19        (H)        RES AT 1:00 PM BARNES 124                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
FRANCES LEACH, Executive Director                                                                                               
United Fishermen of Alaska                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Provided a  PowerPoint  presentation  entitled,                                                       
"Commercial Fishing Industry Update," and answered questions.                                                                   
                                                                                                                                
JEFF BRUNO, ASTAR Large Project Coordinator                                                                                     
Office of Project Management and Permitting                                                                                     
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Co-provided  a PowerPoint  presentation entitled,                                                       
"2019 Arctic  Strategic Transportation  and Resources  (ASTAR) Update,"                                                         
dated 4/26/19, and answered questions.                                                                                          
                                                                                                                                
STEVEN MASTERMAN, Director                                                                                                      
Division of Geological and Geophysical Surveys                                                                                  
Department of Natural Resources                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Co-provided  a PowerPoint  presentation entitled,                                                       
"2019 Arctic  Strategic Transportation  and Resources  (ASTAR) Update,"                                                         
dated 4/26/19, and answered questions.                                                                                          
                                                                                                                                
GORDON BROWER, Director                                                                                                         
Planning and Community Services Department                                                                                      
North Slope Borough                                                                                                             
Utqiagvik, Alaska                                                                                                               
POSITION STATEMENT:  Provided comments  related to the Arctic Strategic                                                       
Transportation and Resources (ASTAR) project.                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHN LINCOLN  called the  House Resources  Standing Committee                                                       
meeting  to  order at  1:03  p.m.   Representatives  Hannan,  Rauscher,                                                         
Hopkins,  Tarr,  and  Lincoln  were  present  at  the  call  to  order.                                                         
Representatives  Rasmussen, Spohnholz,  Talerico, and  Tuck arrived  as                                                         
the meeting was in progress.                                                                                                    
                                                                                                                                
^PRESENTATION(S):                                                                                                               
^United Fishermen of Alaska                                                                                                 
                                                                                                                                
                           PRESENTATION(S):                                                                                 
                      United Fishermen of Alaska                                                                            
                                                                                                                                
1:03:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LINCOLN announced  the first  order  of business  would be  a                                                         
presentation by United Fishermen of Alaska.                                                                                     
                                                                                                                                
1:04:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  referred  to  the  Fish  Group,  Tax  Division,                                                         
Department  of Revenue,  presentation  on 4/24/19,  as  related to  the                                                         
common property fishery  assessment.  She said the  zero allocation for                                                         
fiscal  year 2018  (FY  18)  raised the  question  of  what caused  the                                                         
assessment to  drop from over  $1 million  in FY 14  to zero in  FY 18.                                                         
Representative  Hannan explained  the assessment  allows a  hatchery to                                                         
pay for its operating overhead; state  hatcheries hire fishers to catch                                                         
their  fish and  use  a portion  for their  allocation.   Hidden  Falls                                                         
Hatchery  is located  in  a  terminal area  and  the  hatchery gets  20                                                         
percent from all of the fish caught;  in FY 14, Hidden Falls Hatchery's                                                         
20 percent was  over $1 million.   Douglas Island Pink and  Chum, Inc.,                                                         
(DIPAC) hatchery is very successful and  in FY 18, DIPAC covered Hidden                                                         
Falls Hatchery's  cost  recovery so  that the fishers  at Hidden  Falls                                                         
Hatchery  did not  have  to share  their profits.    She explained  the                                                         
common  property fishery  assessment was  zero because  DIPAC paid  its                                                         
fishery  enhancement loan  and is now  paying for  other hatcheries  to                                                         
continue to operate.                                                                                                            
                                                                                                                                
1:06:49 PM                                                                                                                    
                                                                                                                                
FRANCES LEACH,  Executive Director,  United Fishermen of  Alaska (UFA),                                                         
informed  the  committee  UFA  was  founded  in  1974  by  a  group  of                                                         
commercial  fishers  who sought  a  unified  voice for  the  commercial                                                         
fishing  industry.   Its objectives  are:   promote positive  relations                                                         
between industry sectors; support all  commercial gear types and remain                                                         
neutral on  allocative issues between  commercial gear  groups; protect                                                         
industry  from  attack  through initiatives  and  legislation;  promote                                                         
industry  safety;  promote  healthy  fishery  resources  by  supporting                                                         
research and habitat  protection; support adequate funding  for fishery                                                         
research, management and enforcement;  oppose fish farming for finfish;                                                         
support the development of new  fisheries; educate industry, the public                                                         
and the government;  support efforts to increase  consumption of Alaska                                                         
seafood; promote  quality standards  from harvesters;  promote consumer                                                         
access  to  seafood  by  maintaining  a stable  supply  of  product  to                                                         
processors (slide 1).  Slide 2 listed  UFA's 36 member groups and areas                                                         
of operation  across the state  representing Alaska  commercial fishers                                                         
and  crewmembers, individual  permitholder members,  and others  (slide                                                         
2).                                                                                                                             
                                                                                                                                
1:09:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR asked whether the UFA member groups have staff.                                                                   
                                                                                                                                
MS. LEACH said all  have at least an executive director  and a board of                                                         
directors of which  members serve on  the UFA board.   She continued to                                                         
note the  Alaska State Constitution  includes a  sustainability mandate                                                         
and Alaska has  one of best managed  fisheries in the world,  which she                                                         
attributed  to  state,  federal,  and   international  agencies  and  a                                                         
science-based public process.  She  stressed the importance of seasonal                                                         
and  dynamic  fisheries  that  are  maintained  by  funding  for  their                                                         
effective  management.   The seafood  industry is  a heavily  regulated                                                         
industry:   there are  closures due to  low returns and  also due  to a                                                         
lack of data,  which cause a loss  of revenue for participants  and for                                                         
the  state.   Ms.  Leach listed  major  fishery  management bodies  and                                                         
organizations (slide 3).                                                                                                        
                                                                                                                                
REPRESENTATIVE  HOPKINS  asked whether  fisheries  management  programs                                                         
were impacted by the federal government shutdown.                                                                               
                                                                                                                                
MS.  LEACH said  there  were significant  impacts on  the  work by  the                                                         
National Oceanic and Atmospheric Administration  (NOAA), and seiners in                                                         
Southeast  were  awaiting permit  renewals.    In further  response  to                                                         
Representative  Hopkins, she  said she  did not  believe openings  were                                                         
delayed,  but  if   the  [shutdown]  had  continued,   area  management                                                         
biologists would  not have been  available at  the start of  the salmon                                                         
season.                                                                                                                         
                                                                                                                                
1:13:19 PM                                                                                                                    
                                                                                                                                
MS.  LEACH continued  to slide  4, entitled,  "Who and  What is  Alaska                                                         
Seafood?":                                                                                                                      
                                                                                                                                
   • the seafood industry is Alaska's largest private sector employer                                                           
     creating over 60,000 direct jobs including fishers, tenders,                                                               
     processors, and fishery managers                                                                                           
   • 320 commercial fisheries species/gear/area combinations permitted                                                          
     in Alaska; 80 are limited entry, and 197 of which had fishing                                                              
     activity and deliveries in 2018                                                                                            
   • commercial fisheries employed over 27,000 fishers and crew                                                                 
     including 15,000 Alaska residents                                                                                          
   • over 21,000 Alaska rural residents employed by the seafood                                                                 
     industry comprising 15 percent of rural jobs                                                                               
   • commercial fishing permitholders live in over 200 communities                                                              
   • of over 20,000 commercial fishing crewmembers, more than one-half                                                          
     are Alaska residents                                                                                                       
                                                                                                                                
MS. LEACH continued to slide 5, entitled, "Value of Alaska Seafood":                                                            
                                                                                                                                
   • seafood is a diverse industry ranging from large corporations to                                                           
     family businesses and sole proprietors                                                                                     
   • 80 different seafood species fished in Alaska                                                                              
   • five to six billion pounds of seafood are harvested per year -                                                             
     worth approximately $4 billion to $5 billion in first wholesale                                                            
     value - in Alaska state waters and in the federal exclusive                                                                
     economic zone (EEZ)                                                                                                        
   • Alaska fishers and processors contributed over $146 million in                                                             
     federal, state, and local taxes and fees.                                                                                  
   • ex-vessel revenues amounted to $1.99 billion [sic] in 2017                                                                 
   • processing companies employed nearly 25,000 workers in 2015,                                                               
     approximately 7,400 were Alaska residents                                                                                  
   • seafood processing is the largest manufacturing sector in Alaska,                                                          
     representing 72 percent                                                                                                    
   • seafood is Alaska's top export representing over $3.4 billion in                                                           
     2017, of which nearly one-third was exported to China                                                                      
                                                                                                                                
REPRESENTATIVE TALERICO  asked whether first wholesale value  refers to                                                         
the first sale from the fisher to the processor.                                                                                
                                                                                                                                
MS.  LEACH  said correct,  and  added  first  wholesale value  is  also                                                         
referred to as ex-vessel value.                                                                                                 
                                                                                                                                
CO-CHAIR LINCOLN  surmised approximately  50 percent  of those  who are                                                         
commercial fishing in Alaska are not residents.                                                                                 
                                                                                                                                
1:16:57 PM                                                                                                                    
                                                                                                                                
MS. LEACH noted  a further breakdown on commercial  fishing to indicate                                                         
[the  residents] who  are processors  and plant  workers would  follow.                                                         
Slide 6, provided  by the Alaska Seafood  Marketing Institute. compared                                                         
the harvest  volume and value  by species.   A chart of  harvest volume                                                         
indicated Alaska pollock was 57 percent  of seafood harvest; a chart of                                                         
ex-vessel  value indicated  Alaska  pollock was  22  percent of  value;                                                         
salmon makes up only  14 percent of volume but is  the most valuable at                                                         
34 percent;  crab represented  1 percent  of volume  and 12  percent of                                                         
value.  She pointed out landing taxes  are based on ex-vessel value and                                                         
not by  pound.  Continuing  to slide  7, entitled, "Markets  for Alaska                                                         
Seafood" she said:                                                                                                              
                                                                                                                                
    • seafood is Alaska's number 1 export                                                                                       
    • 75 percent of seafood production is exported annually to 100                                                              
      countries                                                                                                                 
    • U.S. is the largest market, ranging from 25 percent to 40 percent                                                         
    • China/South Korea are the largest trading partners primarily for                                                          
      reprocessing                                                                                                              
    • Japan/Europe are the largest direct foreign markets                                                                       
    • most Alaskans access seafood through the commercial fishing                                                               
      sector                                                                                                                    
                                                                                                                                
CO-CHAIR LINCOLN asked for a description of overseas processing.                                                                
                                                                                                                                
MS.  LEACH said  a large  amount of  pollock is  reprocessed into  fish                                                         
sticks  and returned  to the  U.S., which  would be  affected by  trade                                                         
tariffs.  Continuing  to slide 8 entitled, "Fishing in  Alaska-A Way of                                                         
Life for Generations" she said:                                                                                                 
                                                                                                                                
    • Alaska has many small-boat, family-style fishing operations                                                               
    • countless fishing businesses are family based                                                                             
    • families have harvested fish for generations                                                                              
    • fisheries support local economies                                                                                         
    • fisheries provide a valuable source of protein and nutrients                                                              
    • fisheries provide food security                                                                                           
                                                                                                                                
 MS.   LEACH    continued   to   slide   10    entitled,   "Independent                                                         
 fishermen=small  businesses=investment"  and  said  each  fishing  and                                                         
 processing  operation represents significant  long-term  investment in                                                         
 vessels  and/or  facilities,  permits,  equipment,  safety,  and  food                                                         
 safety  compliance;  for  example,  a  Southeast  seine  permit  costs                                                         
 $250,000.   Slide  11 listed  national impacts  of the  Alaska seafood                                                         
 industry  for 2015  and  2016,  as reported  by  the [McDowell  Group,                                                         
 Marketing  and  Management  Consultants], related  to  employment  and                                                         
 income by sectors of the seafood fishing industry.                                                                             
                                                                                                                                
1:21:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK asked whether the  "restaurants" sector reported on                                                         
only the number of workers in seafood.                                                                                          
                                                                                                                                
MS. LEACH said correct.                                                                                                         
                                                                                                                                
REPRESENTATIVE HANNAN  pointed out  the restaurants reported  they were                                                         
selling Alaska-caught seafood.                                                                                                  
                                                                                                                                
REPRESENTATIVE TUCK  asked whether  restaurants such as  McDonald's are                                                         
included.                                                                                                                       
                                                                                                                                
MS. LEACH said yes.                                                                                                             
                                                                                                                                
REPRESENTATIVE  TUCK  recalled  70  percent   of  the  fish  served  by                                                         
McDonald's is caught in Alaska.                                                                                                 
                                                                                                                                
MS. LEACH continued to slide 12, entitled, "Nationwide Impacts":                                                                
                                                                                                                                
   • people from every U.S. state are permitholders in Alaska                                                                   
     fisheries; over 69 percent of active permitholders and over 50                                                             
     percent of crewmembers are Alaska residents                                                                                
   • the Alaska seafood industry creates 99,000 jobs, $5.2 billion in                                                           
     annual labor income, and $12.8 billion in economic output                                                                  
   • catches and processes enough seafood each year to feed everyone                                                            
     in the world one serving of Alaska seafood (12.9 billion                                                                   
     servings)                                                                                                                  
                                                                                                                                
MS.  LEACH continued  to slide  13 which  listed the  top U.S.  seafood                                                         
ports by volume:  1). Dutch Harbor, 2.) Aleutian Islands, 3.) Kodiak.                                                           
                                                                                                                                
1:24:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  recalled Dutch Harbor  and Boston are  the highest                                                         
ports in the U.S. for exports.                                                                                                  
                                                                                                                                
MS. LEACH continued to slide 14  entitled, "Lowering the cost of living                                                         
in Alaska - ":                                                                                                                  
                                                                                                                                
   • shipping seafood on southbound routes provides backhaul revenue                                                            
     for shippers, which allows for more competitive rates on                                                                   
     northbound freight                                                                                                         
   • the seafood industry ships approximately 1 billion pounds of                                                               
     finished product southbound                                                                                                
                                                                                                                                
REPRESENTATIVE HOPKINS  asked where  to find information  on individual                                                         
fisheries  such  as  pounds  caught  by  commercial,  sportfishing,  or                                                         
subsistence users.                                                                                                              
                                                                                                                                
MS.  LEACH  said   to  contact  ADFG  and  offered   to  provide  UFA's                                                         
publication "Fish Facts Sheet."                                                                                                 
                                                                                                                                
REPRESENTATIVE TUCK returned attention to  slide 13 and asked Ms. Leach                                                         
to  explain  the difference  between  the  fisheries of  Anchorage  and                                                         
Yakutat.                                                                                                                        
                                                                                                                                
MS. LEACH  suggested Yakutat exports  salmon, crab, and  halibut, which                                                         
are not as prevalent in Anchorage.                                                                                              
                                                                                                                                
REPRESENTATIVE HANNAN advised  Yakutat exports king salmon  which has a                                                         
higher  value than  coho.   She  related a  personal  story of  Captain                                                         
Leach.                                                                                                                          
                                                                                                                                
1:29:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ questioned  whether  the processing  industry                                                         
needs to recruit employees from overseas.                                                                                       
                                                                                                                                
MS. LEACH was  unsure, although communities in rural areas  do not have                                                         
enough local workers to support the  industry.  She suggested there are                                                         
other options for youth who have traditionally held processing jobs.                                                            
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ expressed  interest  in an  opinion from  the                                                         
Department of Labor & Workforce Development in this regard.                                                                     
                                                                                                                                
REPRESENTATIVE RAUSCHER related his experience working in a cannery.                                                            
                                                                                                                                
REPRESENTATIVE  HANNAN  opined  Alaska's  growth  in  other  industries                                                         
provides more choices  for employment that do not involve  housing in a                                                         
bunkhouse  or an  uncertain income.   For  example, tourism  is a  more                                                         
reliable  choice.   She  said processers  do  not successfully  recruit                                                         
college-age workers,  but hire groups  from overseas communities.   She                                                         
described working conditions in processing facilities.                                                                          
                                                                                                                                
1:35:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  recalled pirate fishing vessels  were illegally                                                         
harvesting Alaska fish.                                                                                                         
                                                                                                                                
MS.  LEACH  said  it  is  still an  issue.    In  further  response  to                                                         
Representative Hopkins, she  advised enforcement is by  the Division of                                                         
Alaska Wildlife  Troopers, Department  of Public  Safety, and  the U.S.                                                         
Coast Guard.  Also, the [Marine Exchange of Alaska] tracks vessels.                                                             
                                                                                                                                
1:38:01 PM                                                                                                                  
                                                                                                                                
The committee took an at-ease from 1:38 p.m. to 1:39 p.m.                                                                       
                                                                                                                                
^Arctic Strategic Transportation                                                                                              
                   Arctic Strategic Transportation                                                                          
                                                                                                                              
1:39:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LINCOLN announced  the  next  order of  business  would be  a                                                         
presentation  by the  Department  of Natural  Resources  on the  Arctic                                                         
Strategic Transportation and Resources plan.                                                                                    
                                                                                                                                
1:39:13 PM                                                                                                                    
                                                                                                                                
JEFF  BRUNO,  ASTAR  Large  Project   Coordinator,  Office  of  Project                                                         
Management  and  Permitting  (OPMP), Department  of  Natural  Resources                                                         
(DNR), informed the  committee the Arctic Strategic  Transportation and                                                         
Resource  (ASTAR) plan  began in  2017  in conjunction  with the  North                                                         
Slope Borough (NSB).   At that time, there was  renewed interest in the                                                         
National Petroleum  Reserve-Alaska (NPR-A),  related to  its integrated                                                         
activity  plan,  and  the  Department   of  Transportation  and  Public                                                         
Facilities (DOTPF)  was working  on transportation  plans in  the area.                                                         
In response, leadership at DNR  and DOTPF re-appropriated approximately                                                         
$7.3 million to develop ASTAR.  Mr.  Bruno said the foundation of ASTAR                                                         
is   found  in   its  mission:     identify,   evaluate,  and   advance                                                         
opportunities   to   enhance  the   quality   of   life  and   economic                                                         
opportunities   in   North  Slope   communities   through   responsible                                                         
infrastructure development.   He advised the presentation  would inform                                                         
the committee  on ASTAR's  mission and how  ASTAR projects  are chosen,                                                         
the creation  of a database,  and how projects  are advanced.   He said                                                         
DNR seeks to identify gaps in  data throughout the region by conducting                                                         
gravel surveys, light  detection and ranging (LIDAR)  surveys, and lake                                                         
surveys.  To do so the ASTAR  goal is to prioritize community needs and                                                         
identify  projects  that have  the  most  cumulative benefit  and  best                                                         
enhance the quality  of life and economic opportunity.   Mr. Bruno read                                                         
the  criteria for  cumulative benefit  [listed  on slide  2] that  were                                                         
developed  by NSB.   Assessing how  each project  impacts the  criteria                                                         
will lead to  a conclusion on the cumulative benefit  to a community or                                                         
region.   He said DNR  is currently in  contact with each  community to                                                         
evaluate  community support  and  to collect  local  information.   The                                                         
[ASTAR]  project is  a collaboration  between  NSB and  DNR, state  and                                                         
federal agencies, and  communities within NSB:  Point  Hope, Point Lay,                                                         
Utqiagvik, Kaktovik,  Nuiqsut Wainwright, Atqasuk, and  Anaktuvik Pass.                                                         
The boundary of  the plan follows that of NSB  while crossing political                                                         
boundaries  over  state  land,  NPR-A, private  land,  and  the  Arctic                                                         
National  Wildlife  Refuge  (ANWR),  to  the  Canadian  border.    Core                                                         
partners  include the  Division of  Geological and  Geophysical Surveys                                                         
(DGGS), the  Division of Mining,  Land and  Water, the Division  of Oil                                                         
and Gas,  and OPMP.  Additional  partners are the Department  of Health                                                         
and Social  Services (DHSS) and  the Department of  Commerce, Community                                                         
and  Economic  Development (DCCED).    He  stressed  all of  the  ASTAR                                                         
partners are  essential to  creating a database  with which  to analyze                                                         
the projects (slide 3).                                                                                                         
                                                                                                                                
1:46:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked for clarification as to the role of DHSS.                                                           
                                                                                                                                
MR. BRUNO explained  DHSS compiled relevant regional  health statistics                                                         
to  ensure  accurate and  current  information.    He returned  to  the                                                         
presentation, noting ASTAR's  first task is to develop  a process built                                                         
on  community  values and  influence  by  visiting each  community  and                                                         
gleaning  information  from  residents,  which he  characterized  as  a                                                         
robust stakeholder  engagement process.   Further,  the plan  will make                                                         
detailed  digital  mapping  of  North Slope  terrain  by  a  geospatial                                                         
information  system (GIS)  in order  to  analyze the  projects.   After                                                         
completing the stakeholder engagement to  create a project library, DNR                                                         
will continue  detailed mapping, and  will develop a database  to house                                                         
mapping, community projects,  and future resource development  in order                                                         
to  help communities  make informed  decisions.   For  the purposes  of                                                         
ASTAR, projects that have the  greatest positive impacts on communities                                                         
will  have the  greatest potential  benefit  to the  region.   Further,                                                         
ASTAR seeks to identify gaps in data;  for example, gravel is scarce in                                                         
NPR-A, so surveys  will be conducted  to locate sources of gravel.   He                                                         
observed this type of data will be  useful to communities in the future                                                         
(slide 4).                                                                                                                      
                                                                                                                                
CO-CHAIR  LINCOLN  asked  how  the   infrastructure  required  to  make                                                         
resources more  accessible is  factored into  the benefit  analysis for                                                         
affected communities.                                                                                                           
                                                                                                                                
MR.  BRUNO said,  on a  regional scale,  resource development  projects                                                         
"factor  in more."   The  ASTAR  plan will  identify opportunities  for                                                         
community  infrastructure and  resource  development infrastructure  to                                                         
benefit communities.  He continued:                                                                                             
                                                                                                                                
     ...  we're not having  the communities  score and rate  those                                                              
     projects,  but we  are assessing,  you know,  do they  enable                                                              
     other  community  projects  and trying  to  make  connections                                                              
     that  allow us to see where  projects can potentially add  to                                                              
     regional infrastructure for communities and other things.                                                                  
                                                                                                                                
1:51:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  for  a  history  and  sources  of  ASTAR                                                         
funding.                                                                                                                        
                                                                                                                                
MR. BRUNO recalled the original funds  were re-appropriated in 2017 and                                                         
in 2018,  DNR closed out some  capital projects to move  funds; funding                                                         
ends in June of fiscal year 2020 (FY 20).                                                                                       
                                                                                                                                
REPRESENTATIVE HANNAN restated her question.                                                                                    
                                                                                                                                
MR. BRUNO added  ASTAR state funding is in the amount  of $7.3 million;                                                         
in addition,  the Bureau  of Land Management  (BLM), Department  of the                                                         
Interior, contributed funds for field studies.                                                                                  
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ asked  for  the original  source  of the  re-                                                         
appropriation.                                                                                                                  
                                                                                                                                
MR. BRUNO  clarified the funds  were re-appropriated from  the Division                                                         
of Oil and Gas,  DNR, and DOTPF.  He returned  attention to the project                                                         
library.  The  project library locates in a  database information about                                                         
community  and regional  projects  for analysis;  ASTAR has  identified                                                         
over 250 community specific and  regional projects - including resource                                                         
development  projects  -  through  review of  literature  such  as  NSB                                                         
comprehensive  plans   or  NPR-A  impact  applications,  to   see  what                                                         
communities have proposed.  Another  method is through surveys obtained                                                         
by community outreach during Round  1 of ASTAR's stakeholder engagement                                                         
meetings.   After information  is collected in  the database,  DNR will                                                         
return  to communities  to  discuss, analyze,  and prioritize  specific                                                         
projects (slides 5 and 6).                                                                                                      
                                                                                                                                
REPRESENTATIVE  HANNAN  questioned  whether NSB  contributes  money  to                                                         
ASTAR.                                                                                                                          
                                                                                                                                
1:55:43 PM                                                                                                                    
                                                                                                                                
MR. BRUNO said yes; NSB also participates in community engagement.                                                              
                                                                                                                                
REPRESENTATIVE HANNAN  asked if, after  the data library  is completed,                                                         
NSB would  have rights to use  the data or  if the state and  NSB would                                                         
share ownership of the intellectual property.                                                                                   
                                                                                                                                
MR.  BRUNO stated  the intent  is for  the information  to be  publicly                                                         
available  in  perpetuity.     He  stressed  ASTAR   will  assure  each                                                         
individual community's perspective is  represented on specific projects                                                         
as benefits  to communities vary.   Currently, ASTAR  is in Round  2 of                                                         
stakeholder engagement  which includes  a Pairwise Survey  to determine                                                         
the importance of projects.  After  the Round 2 data is compiled, Round                                                         
3  will be  conducted to  verify information  and present  the data  to                                                         
communities.   Mr.  Bruno advised  ASTAR and  the affected  communities                                                         
interpret cumulative  benefits to be  the basis  of the analysis.   The                                                         
department  and its  contractors  are now  working on  how  to use  the                                                         
cumulative   benefits  tool   to  incorporate   the  project   library,                                                         
stakeholder values  and benefits,  and connections  between communities                                                         
and projects,  and to  develop an analytic  hierarchy process  model in                                                         
coordination  with  the Pairwise  Survey.    He read  information  from                                                         
slides 5 and 6.                                                                                                                 
                                                                                                                                
2:01:09 PM                                                                                                                    
                                                                                                                                
STEVEN  MASTERMAN, Director,  Division  of  Geological and  Geophysical                                                         
Surveys (DGGS), DNR, informed the committee  DGGS is working to support                                                         
ASTAR  by  collecting  and  compiling   data  for  a  sand  and  gravel                                                         
inventory.   Sand and gravel resources  on the western North  Slope are                                                         
sparse are  and are needed for  communities, as has been  identified by                                                         
ASTAR and  BLM.  Therefore, DGGS  has compiled existing  information to                                                         
understand  the geology  of the  area;  in addition,  a contractor  has                                                         
conducted terrain  unit mapping  on the surface  of the  coastal plain.                                                         
Field work  this summer will  complete the  mapping.  Further,  DGGS is                                                         
reviewing shot hole samples at the  Geologic Materials Center that were                                                         
collected from  the region, and he  described the process.   The review                                                         
of samples  has revealed 5  percent to 10  percent of the  samples show                                                         
sand and gravel.  After further review  of the mapping, DGGS will begin                                                         
field exploration which will include  drilling in NPR-A.  Mr. Masterman                                                         
said  DGGS  will  compile  all  of   the  data  and  will  provide  the                                                         
information to ASTAR  and will also publish the  information for public                                                         
access (slide 7).                                                                                                               
                                                                                                                                
2:06:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked for a description of shot hole mapping.                                                             
                                                                                                                                
MR. MASTERMAN  explained at the  time two-dimensional seismic  data was                                                         
taken  a  drill  rig  set  off  explosives  that  created  the  seismic                                                         
recordings and provided  physical samples that are now  at the Geologic                                                         
Materials Center  in Anchorage.   Slide  8 illustrated  terrain mapping                                                         
that divided the coastal plain into  three geologic units and that will                                                         
support DGGS and others'  field studies.  He pointed out  units 1 and 2                                                         
are complete.                                                                                                                   
                                                                                                                                
MR. BRUNO directed  attention to the  ASTAR budget.  He said  ASTAR has                                                         
spent approximately  $1.4 million  for community  stakeholder outreach,                                                         
identifying  250 community  projects, capturing  and mapping  projects,                                                         
creating a  database, terrain  unit mapping,  logging data,  creating a                                                         
transportation plan,  and coordinating  with NSB and  federal agencies.                                                         
Funds  obligated  in  the  amount   of  $5.5  million  are  related  to                                                         
contractual services  for data  analysis and  field work,  terrain unit                                                         
mapping,  Rounds  2  and  3   stakeholder  engagement,  and  the  ASTAR                                                         
Strategic Plan  final document  (slide 9).   The  next steps  for ASTAR                                                         
are:  complete  Round 2 stakeholder engagement;  finish the "cumulative                                                         
benefit tool";  terrain unit mapping;  finish database;  continue field                                                         
work;  conduct final  round of  community outreach;  deliver the  final                                                         
product (slide 10).                                                                                                             
                                                                                                                                
2:12:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LINCOLN asked when the final product is expected.                                                                      
                                                                                                                                
MR. BRUNO said June 2020.                                                                                                       
                                                                                                                                
REPRESENTATIVE HOPKINS  asked whether the projects considered  by ASTAR                                                         
include how to provide broadband and internet access to the region.                                                             
                                                                                                                                
MR. BRUNO said ASTAR looks at  all projects and [broadband and internet                                                         
access] projects have community value and benefit across the region.                                                            
                                                                                                                                
REPRESENTATIVE HANNAN  returned attention to  the budget and  asked for                                                         
more information on the money that is obligated.                                                                                
                                                                                                                                
MR. BRUNO clarified most of the  funds are obligated for upcoming field                                                         
work; he added, "... there were some  delays in moving the money around                                                         
too, so, we had to kind of back load some of that."                                                                             
                                                                                                                                
2:14:28 PM                                                                                                                    
                                                                                                                                
GORDON BROWER,  Director, Planning  and Community  Services Department,                                                         
NSB, said  he has  28 years  of experience  in the  planning department                                                         
related   to  infrastructure,   large   projects,  and   oil  and   gas                                                         
development.    He  informed  the  committee  NSB  is  responsible  for                                                         
providing  community services  to  all  of the  villages  on the  North                                                         
Slope.  The  region has no connectivity and it is  important to realize                                                         
the  needs and  concerns of  the  villages, such  as the  high cost  of                                                         
living and an economy  based solely upon oil and gas.   There have been                                                         
projects to demonstrate that other  economies could flourish except for                                                         
the  lack of  infrastructure.   In  addition,  NSB  is responsible  for                                                         
infrastructure needs  and seeks to address  the high cost of  living in                                                         
many communities and he provided examples.   Mr. Brower said 80 percent                                                         
of the regional  activities are subsistence and the  schools and public                                                         
works contribute to the economy.                                                                                                
                                                                                                                                
2:19:31 PM                                                                                                                    
                                                                                                                                
MR.  BROWER  referred to  a  community  project, the  Community  Winter                                                         
Access  Trail,   which  originated   with  ASTAR  and   other  planning                                                         
initiatives.   He said many  large-scale resource  development projects                                                         
require  infrastructure   like  roads,   and  roads  cannot   be  built                                                         
independently  but  need  foundation  projects.   In  the  region,  NSB                                                         
subsidizes  approximately   $20  million   in  energy  needs   for  the                                                         
communities,  which  is  unsustainable.   He  urged  entities  to  work                                                         
together to  accomplish large projects  such as connectivity.   Ongoing                                                         
planning initiatives  in the  region include  the DOTPF  Northwest area                                                         
Transportation Plan, of which NSB's  comprehensive plan is a component.                                                         
He  pointed out  there have  been large  oil discoveries,  such as  the                                                         
oilfield discovered at Smith Bay in  nearshore state water, that cannot                                                         
be  reached.     However,   entities   working  together   can  provide                                                         
communities  a  path  forward  and improve  the  climate  for  resource                                                         
development with  infrastructure projects based  on the oil,  gas, coal                                                         
and minerals industries.  He stressed  the importance of finding common                                                         
ground in responsible development  and expressed confidence development                                                         
can be  balanced with subsistence activities,  as has been shown  by 40                                                         
years  of oil  and gas  development.   Lastly, Mr.  Brower pointed  out                                                         
Congress passed  the Barrow  Gas Transfer Act  of 1984,  which required                                                         
NSB  work with  industry  and BLM  to make  natural  gas accessible  to                                                         
communities, and he  surmised the state should use all  of the tools at                                                         
hand to  facilitate energy security  in the Arctic and  expand in-state                                                         
use of  resources.   He mentioned  failed initiatives  and noted  ASTAR                                                         
makes a concerted effort to plan for communities and energy resources.                                                          
                                                                                                                                
2:25:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR asked  if there are small-scale  energy projects underway                                                         
in the region  that may have been  funded by the federal  government in                                                         
2008-2009.                                                                                                                      
                                                                                                                                
MR.  BROWER  said  there  are smaller  independent  operators  who  are                                                         
developing  more cost-efficient  projects such  as the  Mustang project                                                         
through  the   Alaska  Industrial  Development  and   Export  Authority                                                         
(AIDEA), Department of Commerce, Community  & Economic Development.  In                                                         
addition, there is a [DGGS]  coalbed methane demonstration project near                                                         
Wainwright  that seeks  ways to  generate energy  from local  resources                                                         
other than oil  and gas.  He  noted NSB has directed  funds to evaluate                                                         
alternative ways to develop energy and  benefit the region.  Mr. Brower                                                         
restated NSB's support for ASTAR and for joint planning exercises.                                                              
                                                                                                                                
2:28:53 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:28 p.m. to 2:29 p.m.                                                                       
                                                                                                                                
                 HR 8-2019: INT'L YEAR OF THE SALMON                                                                        
                                                                                                                              
2:29:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LINCOLN  announced that the  final order of business  would be                                                         
HOUSE RESOLUTION NO.  8, Recognizing 2019 as the  International Year of                                                         
the Salmon and  supporting an associated global  initiative identifying                                                         
the importance of wild salmon.                                                                                                  
                                                                                                                                
2:30:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR  moved  to adopt  Amendment  1,  labeled  31-LS0667\U.3,                                                         
Bullard, 4/25/19 which read:                                                                                                    
                                                                                                                                
     Page 2, following line 24:                                                                                                 
           Insert new material to read:                                                                                         
           "WHEREAS resource  managers have identified  watersheds                                                              
     across  the state in which the  salmon stocks are "stocks  of                                                              
     concern,"  and these  managers recognize  the  need for  more                                                              
     research  to  better  understand the  measures  necessary  to                                                              
     improve the health of the salmon runs; and"                                                                                
                                                                                                                                
     Page 3, line 27, following "Alaska;":                                                                                      
            Insert "the Honorable Jay Inslee, Governor of                                                                       
     Washington; the Honorable Kate Brown, Governor of Oregon;"                                                                 
                                                                                                                                
2:30:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN objected for discussion purposes.                                                                      
                                                                                                                                
CO-CHAIR TARR explained Amendment 1  adds a WHEREAS clause to integrate                                                         
"stocks of  concern" into  HR 8.   In  addition, the  amendment directs                                                         
that  copies of  the  resolution  would be  sent  to  the governors  of                                                         
Washington and Oregon.                                                                                                          
                                                                                                                                
REPRESENTATIVE RASMUSSEN removed her objection.                                                                                 
                                                                                                                                
REPRESENTATIVE RAUSCHER  objected for  discussion purposes,  noting his                                                         
understanding  that in  the  amendment  stocks of  concern  were to  be                                                         
identified as a priority.                                                                                                       
                                                                                                                                
CO-CHAIR TARR  said the first  version of  the amendment may  have been                                                         
interpreted as a policy statement, and so the amendment was changed.                                                            
                                                                                                                                
2:34:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER removed  his  objection,  and without  further                                                         
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
2:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  moved  to  adopt  Amendment  2,  labeled  31-                                                         
LS0667\U.2, Bullard, 4/25/19, which read:                                                                                       
                                                                                                                                
     Page 3, line 25, following "States":                                                                                       
           Insert "and the international community"                                                                             
                                                                                                                                
CO-CHAIR TARR objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE  RAUSCHER   said  Amendment   2  seeks  to   denote  the                                                         
international significance of Alaska's fishery.                                                                                 
                                                                                                                                
CO-CHAIR  TARR removed  her objection,  and without  further objection,                                                         
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
2:35:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR moved  to report HR 8, as amended,  out of committee with                                                         
individual recommendations  and the  accompanying fiscal notes.   There                                                         
being no objection,  CSHR 8(RES) was reported from  the House Resources                                                         
Standing Committee.                                                                                                             
                                                                                                                                
2:36:40 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:36 p.m.                                                                 

Document Name Date/Time Subjects
HRES DNR ASTAR Update 4.26.19.pdf HRES 4/26/2019 1:00:00 PM
DNR ASTAR Update
Alaska Statewide Commercial Fish Facts 2018 v9.1.pdf HRES 4/26/2019 1:00:00 PM
HRES ComFish Update
ComFish Update House Resources 4.26.19.pdf HRES 4/26/2019 1:00:00 PM
HRES ComFish Update
HR08 Supporting Document - Letter of Support Alaska Trollers Association 4.12.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Email in Support McPhee 4.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Letter of Support from Salmon Beyond Borders 4.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Letter of Support from Salmon State 4.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Letter of Support from Territorial Sportsmen 4.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Letter of Support NOAA, NMFS Alaska Region 4.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Summary from the International Year of the Salmon Website 4.10.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document- HCR35 - Year of the Salmon - Oregon State.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HCR 35
HR 8
HR08 Version A 4.10.19.PDF HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Fiscal Note-LEG 05.15.19.pdf HFSH 4/16/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Sponsor Statement 04.10.19.pdf HFSH 4/23/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Docuemnt- HJM4012-Year of the Salmon - Washington State.pdf HFSH 4/23/2019 10:00:00 AM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - KTOO Article 3.29.19.pdf HRES 4/24/2019 1:00:00 PM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Doucment - Email in Support Sisk 4.23.19.pdf HRES 4/24/2019 1:00:00 PM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - Email in Support Wills 4.23.19.pdf HRES 4/24/2019 1:00:00 PM
HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Supporting Document - ASMI Letter of Support 4.24.19.pdf HRES 4/26/2019 1:00:00 PM
HR 8
HR08 Amendment Two - Rep. Tarr 4.25.19.pdf HRES 4/26/2019 1:00:00 PM
HR 8
HR8 ver U amendment U.2.pdf HRES 4/26/2019 1:00:00 PM
HR 8