03/07/2018 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Economic Benefits of Public Lands in Alaska | |
| HB272 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 272 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 7, 2018
1:02 p.m.
MEMBERS PRESENT
Representative Andy Josephson, Co-Chair
Representative Geran Tarr, Co-Chair
Representative John Lincoln
Representative Harriet Drummond
Representative Justin Parish
Representative Chris Birch
Representative DeLena Johnson
Representative George Rauscher
Representative David Talerico
MEMBERS ABSENT
Representative Mike Chenault (alternate)
Representative Chris Tuck (alternate)
OTHER LEGISLATORS PRESENT
Representative Jonathan Kreiss-Tomkins
COMMITTEE CALENDAR
PRESENTATION(S): ECONOMIC BENEFITS OF PUBLIC LANDS IN ALASKA
- HEARD
HOUSE BILL NO. 272
"An Act establishing the Tangle Lakes State Game Refuge; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 272
SHORT TITLE: TANGLE LAKES STATE GAME REFUGE
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
01/12/18 (H) PREFILE RELEASED 1/12/18
01/16/18 (H) READ THE FIRST TIME - REFERRALS
01/16/18 (H) FSH, RES
02/13/18 (H) FSH AT 11:00 AM GRUENBERG 120
02/13/18 (H) Heard & Held
02/13/18 (H) MINUTE(FSH)
02/27/18 (H) FSH AT 10:00 AM GRUENBERG 120
02/27/18 (H) Moved HB 272 Out of Committee
02/27/18 (H) MINUTE(FSH)
02/28/18 (H) FSH RPT 4DP 2DNP 1NR
02/28/18 (H) DP: EDGMON, TARR, KREISS-TOMKINS,
STUTES
02/28/18 (H) DNP: EASTMAN, NEUMAN
02/28/18 (H) NR: CHENAULT
03/07/18 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
LEE HART, Executive Director
Valdez Adventure Alliance (VAA); Founder,
Confluence: Summit on the Outdoors
Valdez, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
THOR STACEY, Director of Government Affairs
Alaska Professional Hunters Association (APHA)
Juneau, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
ERICA CARROLL, Alaska Field Representative
National Parks Conservation Association (NPCA)
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
EJ REISER, Store Manager
The North Face
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
CHRIS BECK, AICP, Principal/Founder
Agnew::Beck Consulting
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
DAN BLANCHARD, Owner
UnCruise Adventures
Juneau, Alaska
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
CAILIN O'BRIEN-FEENEY, State and Local Policy Manager
Outdoor Industry Association (OIA)
Boulder, Colorado
POSITION STATEMENT: Participated in the presentation on the
economic benefits of public lands in Alaska.
LISA DELANEY, Staff
Representative Andy Josephson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 272 on behalf of the sponsor,
Representative Andy Josephson.
BRENT GOODRUM, Director
Central Office
Division of Mining, Land and Water
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 272.
ACTION NARRATIVE
1:02:4PM
CO-CHAIR GERAN TARR called the House Resources Standing
Committee meeting to order at 1:02 p.m. Representatives Tarr,
Josephson, Parish, Talerico, Rauscher, and Lincoln were present
at the call to order. Representatives Johnson, Drummond, and
Birch arrived as the meeting was in progress.
^PRESENTATION(S): ECONOMIC BENEFITS OF PUBLIC LANDS IN ALASKA
PRESENTATION(S): ECONOMIC BENEFITS OF PUBLIC LANDS IN ALASKA
1:03:15 PM
CO-CHAIR TARR announced that the first order of business would
be presentations related to the economic benefits of non-
extractive uses of public lands in Alaska.
CO-CHAIR TARR explained the [invited] witnesses would be talking
about developing outdoor recreation adventure in Alaska, which
would provide new economic opportunities and jobs to the state.
She said the committee has an important role to play in this
development because it has jurisdiction over the Department of
Natural Resource (DNR), Division of Parks and Recreation and
Division of Land, Mining, and Water.
1:05:02 PM
CO-CHAIR TARR introduced the first invited witness, Lee Hart,
executive director of Valdez Adventure Alliance and founder of
Confluence Alaska, two coalitions dedicated to growing Alaska's
economy through the mountain sports lifestyle. She said Ms.
Hart is chair pro tem of the Valdez Economic Diversification
Committee and chair of the newly formed recreation subcommittee
of the U.S. Bureau of Land Management (BLM) Alaska Resource
Advisory Council. For nearly 20 years, Ms. Lee has conducted
public relations outreach on behalf of leading brands in the
outdoor, snow sports, bike, and adventure travel industries.
1:06:03 PM
LEE HART, Executive Director, Valdez Adventure Alliance (VAA)
and Founder, Confluence: Summit on the Outdoors, noted she and
a delegation are in the capitol building to help illuminate
opportunities for the state to create jobs, diversify the
economy, and stimulate rural economic development all by
playing to the state's inherent and biggest strength as the last
frontier state. She said the delegation represents a cross
section of stakeholders from the outdoor recreation industry and
is present to talk about the economic value of the industry that
many call the "sleeping giant."
MS. HART explained this all started with creation of the Valdez
Adventure Alliance two years ago. The alliance's mission is to
diversify the economy in Valdez through the development and
promotion of activities and projects that support a mountain
sports lifestyle. To that end, VAA manages three different
sporting events - an ice climbing festival, a fat bike festival,
and a rock and yoga festival. The alliance also manages four
state park units, which would have been closed had VAA not
responded to a request for proposals (RFP). About 100,000
visitors a year come through the area for the three events, she
reported. This led to the creation of Confluence Alaska, which
held its first conference in June 2016. The rational was that
she and VAA could be more successful if there was more fertile
ground around the state. A gathering was hosted of diverse
voices with a stake in Alaska's great outdoors winter, summer,
motorized, nonmotorized, hunters, anglers, snowboarders,
kayakers, climbers, bikers, academia, manufacturing, government,
nonprofit, retail, military, and public health. Participants in
the meeting confirmed there was a depth and breadth of political
will to join forces to convince elected officials to empower and
enable the overlooked industry so that it could reach its full
potential. She said Alaska has an opportunity to diversify its
economy and accelerate its growth with a coordinated effort to
boost recreation activity on public lands.
MS. HART highlighted how the outdoor recreation sector fits into
the state's [2017-2022] economic development strategy plan
["Northern Opportunity: Alaska's Economic Strategy," prepared by
the Department of Commerce, Community, and Economic Development
(DCCED)]. This plan is the trail map for creating a stable and
sustainable economy, she said, yet there is no reference to
outdoor recreation.
MS. HART posited this omission is because the outdoor recreation
industry is still being recognized as its own economic sector.
She drew attention to a chart she provided the committee and
noted that this new data from the U.S. Department of Commerce
considers outdoor recreation as a satellite account and shows it
contributes $374 billion to the U.S. economy. The data further
shows that the outdoor recreation sector accounts for 2 percent
of U.S. gross domestic production (GDP) and that growth in this
sector outpaces economic growth overall.
1:11:07 PM
MS. HART noted the Business Development Goal in the Northern
Opportunity plan is to, Cultivate a resilient business climate
that supports growth and expansion of existing and emerging
industries." She said the outdoor recreation industry would be
the perfect mechanism for reaching [the goal's measurement] to
increase the total number of visitors to Alaska by 5 percent
annually, demonstrate an increase in rural community visitation,
and increase shoulder season and winter visitation by 5 percent.
This is being done in Valdez, she continued, with the festivals
attracting a steady base of sports enthusiasts in otherwise
"dead" seasons for Valdez.
MS. HART related that [another measurement under the Business
Development goal] is increased capital investment and subsequent
jobs in rural Alaska. She further noted the [action item in the
strategic plan] to create new and support existing business
mentorship programs in rural Alaska. She said this could
include engaging in public relations programs that highlight the
importance and economic impact of uniquely Alaska products and
services that have been developed and exported around the world,
such as pack rafting and fat biking, and the public relations
value Alaska's homegrown Olympians.
MS. HART said the plan calls for increasing sustainable growth
in the emerging visitor industry segments of eco tourism, geo
tourism, adventure travel, and Arctic tourism, all of which fit
exactly with outdoor recreation. The plan also calls for
increasing shoulder season and winter visitor capacity and
infrastructure by promoting Alaska specific products, iconic
features, and events to target markets. The holy trinity in the
visitor industry, she continued, is northern lights, bears, and
glaciers, which Alaska has in spades along with much room for
growth in events. The Iditarod Trail Sled Dog Race is known
around the world, she continued, and with some marketing support
other things in Alaska could rise to the same level.
MS. HART addressed the strategic plan's call for continuing to
assess the unmet workforce needs through business retention and
expansion surveys and other outreach. She related that for the
Valdez ice fest, the guides who teach the climbing and heli-
skiing classes are largely from the Lower 48. There is no
reason, she opined, that those jobs shouldn't be cultivated
within Alaska's youth, so the state has homegrown guides. These
are professional careers that require much expertise,
certification, and acumen.
MS. HART spoke to the strategic plan's Finance and Investment
Goal to, "Maximize the productive use of capital for Alaska
business expansion." The plan calls for creation of a formal
report on sources and gaps in available capital for all business
investment in Alaska, she continued, and DCCED has commissioned
the University of Alaska to conduct an emerging markets study of
outdoor recreation. She said [VAA's] intent is to release the
study's findings in conjunction with the fall [2018] Confluence
conference.
1:16:20 PM
MS. HART noted [an objective of the Finance and Investment Goal]
is to maximize existing sources and seek new sources of capital
that spread out risk to multiple parties. For this the
strategic plan references [as partners] the U.S. Bureau of
Indian Affairs (BIA), U.S. Department of Agriculture (USDA), and
the Small Business Administration (SBA). She suggested that
through the lens of outdoor recreation, there could also be
coordination with USDA's Forest Service, the BLM, the National
Park Service, and Alaska's Department of Natural Resources.
Regarding the plan's action item to involve local community
foundation affiliate organizations in the facilitation of
organizational capacity building, she argued that, through the
lens of the outdoor recreation industry, community-based trails
organizations should be included in this.
MS. HART turned to the strategic plan's [Economic Development
Infrastructure Goal to "Build the transportation, energy, and
technological foundations for economic growth."] She pointed
out that infrastructure in outdoor recreation includes such
things as trails and hut-to-hut systems. The outdoor recreation
industry envisions being part of a roundtable with other Alaska
industries to mitigate the daunting challenges of exporting
innovative Alaska-made products, she continued. The outdoor
recreation industry wants to join in positioning Alaska to
thrive in a technology advanced global economy and in the plan's
objective to increase the pipeline of bankable startup companies
in Alaska by 10 percent. Alaska's environment inspires some
amazing technology, she pointed out. For example, the aviation
industry and bush pilots developed the technology for short
takeoffs and landings, a response to people demanding to get
into Alaska's backcountry. Ms. Hart addressed the plan's action
item to, "Support and expand Alaska Startups
(alaskastartups.com) a central online statewide hub of startup
information, events, resources, and partnerships." This is
something her friends who started some of these actual
industries in Alaska would have appreciated when they were
starting up, she shared.
MS. HART addressed the strategic plan's [Economic Development
Capacity Building Goal] to, "Strengthen the ability of Alaska
organizations to execute economic development initiates that
create jobs and investment." She stated that for the outdoor
recreation industry those jobs and investments would be by and
for Alaskans.
MS. HART moved to the plan's Quality of Life Goal [to, "Improve
the attractiveness and livability of Alaska communities to
attract and to retain a quality workforce and to set the
foundations for economic well-being."] She said there is no
question that outdoor recreation is the shining mechanism to
enhance quality of life in the state. Many of the sentences
[written under this goal] could be finished with outdoor
recreation. For example, she continued: improve the
attractiveness and livability of Alaska communities to attract
and retain quality workforces and set the foundations for
economic wellbeing through access to outdoor recreation;
utilize new metrics to inform and implement quality of life
programs on a local level with outdoor recreation programming;
assess options for reducing the cost of health insurance and
individual health care programs with outdoor recreation.
1:21:06 PM
MS. HART noted that [one of the action items under the Quality
of Life Goal] is the call to expand and promote recreational
access to public lands. This is right in the "wheelhouse" of
the outdoor recreation industry, she said.
MS. HART related the strategic plan further identifies existing
industries that are fast growing and likely to remain so for the
coming years, she continued. The outdoor recreation industry is
not listed here because nobody knew to consider that sector.
She challenged committee members to begin thinking about the
outdoor recreation sector and its considerable impact on the
Alaska economy - $7.3 billion in consumer spending, 72,000 jobs,
and $2.3 billion in wages and salaries generated from those
jobs. These are not minimum wage, unskilled labor, seasonal
jobs, she stressed. These are people making lifestyle decisions
as they pursue their careers, build families, and send their
kids to college.
MS. HART further noted that the strategic plan's strengths,
weaknesses, opportunities, and threats (SWOT) analysis calls out
the natural beauty that attracts visitors and new residents.
However, she pointed out, the opportunity section of the
analysis doesn't reference what might be done to channel that.
To look at something tangible in this regard, she said she
reviewed National Park Service statistics and found that Denali
National Park and Preserve provides $600 million of economic
output in Alaska. Kobuk Valley National Park, a park not on the
road system, generates $24.4 million in visitor spending. She
urged that the state market its other parks in addition to
Denali.
MS. HART said reasons to invest in the outdoor recreation sector
include that it is recession resistant, grows Alaska jobs for
Alaskans, and has some of the best building blocks in the U.S.
She drew attention to page 32 of the strategic plan which states
that Alaska has 34,000 miles of marine shoreline and 3 million
lakes, marshlands, and wetlands. The state has permafrost
[covering almost 10,000 square miles] and glaciers covering
28,000 square miles. Additionally, Alaska is home to some of
the biggest mountain ranges in the world. Therefore, she
continued, Alaska has the building blocks to do something. Ms.
Hart suggested that one way to get started doing something is to
start with preserving and sustaining funding for Alaska state
parks. The state's park division is there to help make the
state parks more self-sustaining.
MS. HART concluded by urging the committee to consider outdoor
recreation and how it might play a role as the committee plans
programs and invests in initiatives today that will pay
dividends for the economy, health, and lifestyle of the state
for generations to come.
1:25:09 PM
REPRESENTATIVE DRUMMOND offered her appreciation for the
information provided and inquired whether the strategic plan is
available to the committee.
MS. HART replied that the plan, "Northern Opportunity: Alaska's
Economic Development Strategy," is a product of the Department
of Commerce, Community, and Economic Development (DCCED).
1:26:05 PM
CO-CHAIR TARR asked about how to attract more winter visitors
and where winter visitors come from.
MS. HART responded that the recently concluded ice climbing
festival is the biggest festival and one of the biggest ice
fests in the world. Most people attending the recent ice
festival were from Anchorage and Fairbanks, she said, but
visitors also came from 12 states and the countries of Mexico
and the Czech Republic. The ice climbing community is willing
to travel to enjoy the sport in other places and the Valdez area
has a reputation for iconic and ridiculous natural ice features.
1:27:25 PM
REPRESENTATIVE JOHNSON remarked that there is no question as to
the value of outdoor recreation in Alaska and that her own
daughter attended the recent ice festival.
REPRESENTATIVE RAUSCHER offered his appreciation for the
information. Outside of questions about the jobs, he said he
realizes the market needs to be improved and is already one of
the main drivers in the state.
1:28:42 PM
CO-CHAIR TARR stated that rural development is something that
should be studied and thought about more. She asked whether Ms.
Hart's group is working with smaller communities.
MS. HART answered that she and Chris Beck gave a sold-out
presentation about a year ago to a statewide convention of city
planners, and there was lots of interaction from people working
with cities and boroughs for recreation planning. She said many
of the jobs, guide services, and lodges are essentially small
businesses, but small businesses are the backbone of the
American economy. Thanks to internet technology people can more
readily choose which communities they want to live in. Access
to outdoor recreation is an important consideration for people
who are looking into starting their careers. So, there is
plenty of opportunity to talk about how some of Alaska's rural
communities and villages could benefit.
1:30:52 PM
REPRESENTATIVE LINCOLN asked whether Ms. Hart is aware of the
decrease in state spending on statewide tourism marketing as
well as aware of the bill that is being considered.
MS. HART confirmed she is aware and that when budgets are cut it
is imperative for the agencies to deliver the numbers and refine
their targets. She related that for small parks there is a
downturn in visitor spending that parallels the decline of
marketing revenues for the Alaska Travel Industry Association
(ATIA). In further response, she said she would provide a link
to where that information can be found.
1:32:45 PM
CO-CHAIR TARR introduced the next invited witness, Thor Stacey,
a lifelong Alaskan born in a cabin in Indian, Alaska. She said
Mr. Stacey has guided hunters in Alaska for 19 years and that he
grew up with a passion for hunting, fishing, and wilderness
adventure. His family made a living operating a small placer
mine in the Arctic seven miles north of Wiseman, she noted. In
1988 while serving in the U.S. Marine Corps Reserve, Mr. Stacy
was employed in the guide industry as a packer. He became a
licensed assistant guide in 2000 while still serving in the
reserve. She further noted that Mr. Stacey has also worked as a
miner, commercial fisherman, trapper, and timber feller.
Currently he has a federal hunting guide concession in the
Arctic National Wildlife Refuge (ANWR) where he guides hunts for
sheep, caribou, grizzly bear, and wolves. Additionally, he has
represented the Alaska Professional Hunters Association (APHA)
before the legislature since 2012.
1:33:47 PM
THOR STACEY, Director of Government Affairs, Alaska Professional
Hunters Association (APHA), stated he is before the committee on
behalf of the APHA and its president Mr. Sam Rohrer of Kodiak.
While much will be heard about new opportunities, he noted,
guided hunting is probably the oldest outdoor recreational
industry in the state, beginning in the 1920's or earlier.
MR. STACEY turned to his PowerPoint presentation entitled,
"Guided Hunting in Alaska," dated 3/6/18, and defined "hunting
guide" as a licensed professional in the state who conducts
guide activities. He pointed out that there is no school or
vocational program to become a licensed hunting guide; it is
only done through on-the-job training, usually coming up as a
packer. The opportunity is open to many rural Alaskans and even
some non-Alaskans, he said. Hunting guides accompany their
visiting clients in the field, provide a safe adventure,
identify the desirable animals to pursue, cook for the clients,
care for physical ailments, cheer on the clients, pack heavy
gear, answer questions, and provide logistics support, but most
importantly a solid interpretive experience. There is no
guarantee that a client will harvest an animal, he added.
MR. STACEY noted that visiting hunters wishing to hunt Dall
sheep, brown bear, or mountain goats are required [by Alaska
law] to hire a guide. However, he continued, visiting hunters
do choose to hire guides for animals such as moose, caribou, or
deer, species which do not require a guide.
MR. STACEY addressed the economics of the guide industry by
referencing two McDowell reports in the committee packet, one
finished in 2016 but based on 2015 numbers, and the other more
detailed report completed in 2012. In 2015, he related, there
was a total of $87.2 million of economic activity in the state,
of which $52.5 million was new dollars to the state economy.
There was a total of 3,240 guided trips in the state, which
represents about 3 percent of the allocation. Another way to
say it, he continued, is that 3 percent of the total hunting
effort in the state was by customers of hunting guides.
MR. STACEY said Alaska's guide businesses are small businesses.
Most contracting guides, about 80 percent, serve 15 or fewer
clients each year. Therefore, hunting guides represent a low
volume, but high margin, type of small business.
MR. STACEY pointed out that hunting guides use State of Alaska
public lands, U.S. Fish & Wildlife Service wildlife refuges,
U.S. Forest Service national forests, and National Park Service
preserves. He added that there is increasing use of Native
corporation lands as regional corporations understand the
sustainable business opportunity that guiding hunters offers.
MR. STACEY reported that 89 percent of the 575 registered guides
in the state in 2012 were Alaska residents. The rate of Alaska
ownership in Alaska hunting guide business is among the highest,
if not the highest, of the resource dependent industries in the
state. He said [APHA] has worked hard to maintain that Alaska
ownership and it isn't easy. At one time 100 percent of the
Alaska guide businesses were Alaska owned and that number
continues to slowly slip. Mr. Stacey stated that registered
hunting guides live everywhere across the state, although the
majority live in the major urban centers. Slightly more than 50
percent of the economic impact of the hunting guide industry is
felt in rural Alaska, he added, which is spending, employment,
and goods and services.
1:41:36 PM
MR. STACEY pointed out there is more than the economics as
hunting guides are using valuable food animals and guides share
much of this valuable food source. An individual guide can
provide much more meat and sustenance than he/she needs for his
family, he said. Therefore, the tradition of sharing meat and
supporting local communities and elders across the state is very
strong with the Alaska guide community. Because all game meat
is wanted and sharing it is something of value, he said he uses
the word "share" rather than the word "donate." Hunting guides
shared 230,000 pounds of game meat in 2015.
MR. STACEY recognized Representative Talerico's hard work during
the last legislature to raise the state's hunting license and
tag fees by sponsoring House Bill 137. The hunting license and
tag fee is the public/private partnership that the hunting guide
industry participates in, he said. About 72 percent of Division
of Wildlife funds for managing the state's wildlife are
attributed to non-local, visiting hunters. The hunting guide
industry's customers are almost 100 percent non-resident,
visiting hunters, so the hunting guide industry supports the
state and all the management for everyone's enjoyment of the
state's wildlife.
MR. STACEY noted there are other users, including federally
qualified rural subsistence hunters, Alaska resident hunters,
other guides, and other commercial recreation users. He said
APHA is very cognizant of the potential for conflicts with other
wildlife users. The APHA supports all types of policies, he
continued, and has many ideas on how to prevent conflicts and to
keep its industry up-to-date and in line with conflict
mitigation, whether it be state or between private parties.
MR. STACEY addressed the future. He said the hunting guide
industry relies on the opportunity to harvest animals and
charges a fee to do so. The APHA realizes those are loaded
things in the discussion over wildlife and people's values of
wildlife. The APHA's priority, he stated, is a sustainable
harvest through the support of wildlife conservation and
stepping forward to support things like paying more for hunting
licenses and APHA customers' nonresident tags. These are
important, he continued, because without the wildlife resource
and a sustainable management strategy, [hunting guides] don't
exist. He pointed out that [professional hunting guides] have
the lowest priority to allocation of any of the users that rely
on wildlife.
MR. STACEY, regarding the social perceptions of hunting, said
APHA realizes it must stay up-to-date and must be sensitive to
the perception of wildlife take by other groups, both hunters
and nonhunters alike. The APHA works on that, he noted, and
hopes to interact with the legislature and other policy makers
to keep policy up-to-date with society's expectations.
MR. STACEY, regarding land management policy, said the APHA
works hard with federal land managers and attempts to work with
Alaska's Department of Natural Resources on wise land management
policies that are good for APHA members as well as other users
and ensures a future for guides in the state.
1:46:25 PM
CO-CHAIR TARR introduced the next invited witness, Ms. Erica
Carroll of the National Parks Conservation Association (NPCA).
She related that Ms. Carroll moved to Alaska with the U.S. Air
Force where she was the program administrator for the Nordic Ski
Club of Fairbanks. She said Ms. Carroll is now a member of the
National Guard, lives in Anchorage, and advocates for Alaska's
16 national parks and the $1.7 billion in economic benefits
contributed by visitors to the national parks.
1:47:21 PM
ERICA CARROLL, Alaska Field Representative, National Parks
Conservation Association (NPCA), stated that NPCA is nationwide
nonprofit with members across the U.S., including 2,000 within
the state of Alaska. She said NPCA was established in 1919 as a
nonpartisan independent voice to protect and enhance the natural
resources and cultural areas in the U.S. for future generations.
MS. CARROLL said public lands are plentiful in Alaska, with the
state's 16 national parks containing 54 million acres of
unparalleled wilderness, fish, and wildlife. This acreage
comprises 60 percent of the national park acreage in the U.S.,
she continued. While access to some of Alaska's national parks
is difficult, it is also an opportunity for recreation. In 2016
Alaska's national parks attracted 2.7 million visitors and this
number is expected to be higher in 2017. The national parks in
Alaska contribute $1.7 billion in economic benefits to the
state's economy. Additionally, they have created over 17,600
jobs within the local communities, many of which are not on the
road system and are small gateway communities.
MS. CARROLL stated she came to Alaska on active U.S. Air Force
duty in 2009. When she separated from active duty she became
the director of the Nordic Ski Club of Fairbanks where she lived
for five years. Winter recreation is a huge opportunity, she
said, and the Olympics show that Nordic skiing is a big part of
Alaska's outdoor recreation; visitors come to Alaska to enjoy
the snow. She added that she and her husband joined the Alaska
Air National Guard and moved to Anchorage where he works in
aerial search and rescue.
MS. CARROLL advised that access into Alaska's national parks is
where local businesses come in. Her first trip to Gates of the
Arctic National Park and Preserve, a park not on the road
system, entailed a long drive, a stay at a hotel, eating at a
restaurant, and bush transportation. These local businesses
support hunters as well as outdoor recreationists in getting
into the state's national parks.
MS. CARROLL related that with its partners, NPCA has a national
constituency of 1.3 million members nationwide. With these
partners, NPCA markets the visiting of Alaska. She noted the
states of Colorado and Utah have offices of outdoor recreation
programs, which is a place for having a common voice and for
outdoor recreation advocates and businesses. While advocating
for visiting Alaska is happening, she said, it is hard to get
everyone together, and [a state program] would provide one solid
voice and representation at the state level, especially for the
national parks side of it.
1:54:35 PM
CO-CHAIR TARR introduced the next invited witness, EJ Reiser,
store manager for The North Face in Anchorage. She noted that
Mr. Reiser is on the corporate steering committee with The North
Face, the premier leader in outdoor products; is a member of the
Alaska Mountain Rescue Group where he chairs the public search
and rescue; and serves on the health subcommittee of the
Anchorage Trails Initiative.
1:55:04 PM
EJ REISER, Store Manager, The North Face, introduced what he
called a "hidden element" to the idea of outdoor recreation and
its economic impact. He said the straight-line idea of this
money driving force is guides, lodging, and flights in and out,
and North Face represents the outfitting and enabling thereof.
He related that his company has been in its Anchorage location
for three years and a big question was, Why is North Face going
to Alaska? But, he continued, the more appropriate question
was, Why did it take North Face so long to get to Alaska?
MR. REISER said other stores are now opening in Anchorage. The
outdoor recreation retail specialty alone, excluding hunting and
fishing, represents about $50 million a year and employs over
200 people. Adding hunting and fishing, he continued, would
easily double both these numbers.
MR. REISER said [his industry] makes it easier for people to
participate in outdoor recreation. There is the duality of what
outdoor recreation can do for the state and that it improves
quality of life and health, making Alaska a more marketable
place for people to live and raise family. By living in Alaska,
he continued, Alaskans become engrained with outdoor recreation
or outdoor activities. These are common every day activities to
Alaskans and are what visitors are doing and his business is
fully promoting exactly this. Anything that increases activity,
participation, or visitation is going to expand and benefit his
business, he said, and allow an increase in hiring staff and
driving the economy.
MR. REISER said the people in outdoor recreation are energetic,
passionate, and driven. It is a very communal feeling. He
stressed it is a family of outdoor recreationists, and whether
winter or summer recreationists, everyone is beneficial to the
others. [People in the outdoor recreation industry] are
striving to make Alaska marketable, accessible, and finding how
to extend trips one more day.
1:58:48 PM
REPRESENTATIVE BIRCH requested Mr. Reiser's perspective on a
brick-and-mortar retailer versus a retailer that uses a post
office box to deliver goods.
MR. REISER replied that e-commerce is an undeniable force and
some people say brick-and-mortar is a dying art. The nuances of
e-commerce are clear, and it is a competitor, he allowed, but
the ability of his shop or any shop is the uniqueness of being
local and of being the tour guide and the concierge to Alaska.
Anecdotes and personalities still win, and brick-and-mortar is
still a large market that can exist.
2:00:13 PM
CO-CHAIR TARR asked whether Mr. Reiser is working with any
Alaska manufacturers and whether Mr. Reiser sees opportunities
for local folks for new product development.
MR. REISER responded, "Absolutely." As far as product
manufacturing, he said his company is 90 percent North Face
only, but that it is always open to outside vendors. From a
corporate perspective, he said it's easy to look at the powerful
big red logo, but that as the operator he runs an Anchorage,
Alaska, North Face.
REPRESENTATIVE RAUSCHER quipped that as a wearer of outdoor
apparel he knows all larges are not large and all mediums are
not medium, and unless a person goes in to try them on, it is
unknown what will be received in the mail.
2:01:38 PM
CO-CHAIR TARR introduced the next invited witness, Chris Beck,
principal and founding partner of Agnew::Beck Consulting. She
said Mr. Beck has over 30 years of planning experience and
specializes in the areas of community planning, economic
development, and tourism and recreation. He came to Alaska in
1979 to work for the Department of Natural Resources setting up
DNR's regional land planning process. In 1993, she continued,
Mr. Beck started his own consulting business focusing on tourism
and small Alaska towns. Mr. Beck's 20 employees are currently
working on projects that include helping the City of Aspen
expand winter recreation and tourism activities, developing
master plans for recreation combined with residential
development in Anchorage and the Matanuska-Susitna Valley, and
land use economic development plans for the Denali and Kenai
Peninsula boroughs.
2:02:27 PM
CHRIS BECK, AICP, Principal/Founder, Agnew::Beck Consulting,
drew attention to the two-page document he provided in the
committee packet and said the heart of it is that Alaska has a
long way to go. The opportunities for outdoor recreation in
Alaska have barely been tapped, he advised, and Alaska's
competition - other states - are making the investment while
Alaska is not. Other places have partnerships embracing outdoor
recreation by business and agencies in a way that Alaska hasn't
fully gotten traction on. Much of what [his company] is about
is how to create those partnerships, how to start to invest in
Alaska in a way that makes it competitive and provides the many
benefits listed at the top of his document.
MR. BECK said one of the methods to reach those goals is trails.
There are three subsets of kinds of trails. One is world-class
destination adventure - things that cause people to say, "I
won't stay in California, Sierra's, or in the Cascades, I'll go
to Alaska because that thing is so unique." It is a small
market and not many people go off to those adventures. The
second kind, he said, is much more likely to get people using
them are destination towns places that are a great place to
stay and a great place to get out of town easily. The third
kind, he continued, is the missing middle. The big category
lacking in Alaska is not extreme adventure of which there is a
vast quantity. Alaska does a really good job at the larger
volume tourism, with Juneau being an example of a town that
handles over 1 million people a year. What people are looking
for, he advised, is the kind of adventure that gives a great day
and at the end of the day there are the comforts of bed, beer,
shower, and good internet. That is where the market is these
days less people are going out less often on nine-day trips.
This middle market is where Alaska could really invest.
MR. BECK reviewed examples on how to reach those goals, one
being the beautiful walk between Girdwood and Eagle River
through the heart of the Chugach. The trail is very hard to
follow, people must pick their way through the rocks, and the
culmination is wading through a deep icy river, making the trail
sketchy. Lots of people would love to do that trip, he
continued, and maybe there could be a bridge, which is a costly
thing. Perhaps local engineers from the two military bases
could partner with Chugach State Park to find a way to build a
bridge so people could enjoy this spectacular hike that is close
to the road system and to Anchorage. Another example, he said,
is the Alaska Mountain and Wilderness Huts Association (Alaska
Huts), which has proposed a Whistle Stop System up the Spencer
Glacier and is a project that has been making slow progress for
20 years. For many people, he advised, the difference between
having a great time in Alaska or not is a cabin. When looking
to attract more people, say kayaking through Kodiak or Prince
William Sound, the ability to go cabin to cabin means the market
goes from a handful of folks to a whole lot. Many places around
the world have [hut systems] and people [people wanting huts]
will choose to go to those other places instead of Alaska.
2:07:14 PM
MR. BECK said Alaska Long Trails is another concept that has
caught fire. Examples include the proposed 800-mile-long Trans-
Alaska Pipeline Long Trail, Iditarod Long Trail, Cross-Kenai
Long Trail, and Copper River Long Trail along the former path of
the copper railroad. Regional snow machine trails are another
idea being discussed where many communities would receive
spending by the travelers.
MR. BECK stated Bend, Oregon, is a successful example of
destination town. The formula, he explained, is a concentrated
downtown where brew pubs, lodging, restaurants, and rentals are
located. There must be trails that seamlessly link to places
nearby, and there needs to be a state that markets that
destination and businesses. Southeast Alaska does a pretty good
job of that with concentrated and walkable towns, but the rest
of Alaska is less so. Mr. Beck pointed out that, in the end,
convenience is what drives much of the decisions people make
about where to spend their time and money. A wonderful place
where a person can have a job and get out of town easily, or a
place that can be visited without having to haggle with friends
over whose car to use. In Bend a visitor can get out of bed and
walk a few feet to eat breakfast or go to a brew pub or walk a
little further to a trail leading out of town. Another concept,
he added, is more activities on the edge of a park and less
inside, Denali National Park and Preserve being an example.
MR. BECK noted that a huge number of folks are investing lots of
time and energy in doing all of this. He said the document he
provided to the committee addresses how to create a better
outdoor infrastructure and experiences, how to build a stronger
outdoor recreation industry. Alaska has competition and is
under-investing in the outdoor recreation industry. Other
places are investing a lot of time and effort developing towns
that are good places to live, great places to start a business,
and great places to visit while Alaska has lagged. Spending 2-3
percent of what Alaska spent on other major economic development
processes, such as grain, bridges, and fish processing, would
have had much impact. But the state has chosen not to do so,
and the hope is to begin changing that tide.
MR. BECK said three things could specifically be done to harness
Alaska's undeveloped outdoor recreation opportunities, generate
new jobs, and encourage new business to stay and move to Alaska.
The first is strategic state investments in trails and related
outdoor recreation resources. The second is thoughtful
evaluation of comparative benefits of the different things. It
cannot be said that if something is built they are going to
come, it must be strategic and smart. The third, he continued,
is stronger state leadership the notion of a state level
designated outdoor recreation advocate to help get things from
stuck to unstuck and moving forward.
2:12:29 PM
CO-CHAIR JOSEPHSON noted he has backpacked the Crow Pass trail
discussed by Mr. Beck and said the river crossing is something
that some people look forward to because it is an adventure.
The Seven Falls area in Eagle River, he continued, is a classic
place where more infrastructure is needed. Regarding Bend,
Oregon, he recalled seeing signs in Walla Walla, Washington,
stating, "Don't Bend Walla Walla," meaning don't make Walla
Walla too trendy. He suggested that some people want the rugged
experience without a bridge and asked how to go about addressing
those disparate interests.
MR. BECK replied Alaska has a long way before it encounters that
as a problem and he is willing to risk that downside because
Alaska is in first grade and Bend is in graduate school. For
Alaskans, he said, being outside is not a special thing, it is
what Alaskans do and with that comes a little bit of
"snobbishness," such as saying there is no need for signs on the
trails. While he personally is comfortable with the Crow Pass
trail and river as they are, improvement of some areas would be
a good decision to harness the potential of Alaska's natural
resources environment for the large percentage of people who are
uncomfortable due to fears of bears or getting lost. Where
those should be is a good question, he continued, but with 365
million acres of land he is not worried. California has 100
million acres. He said [his company] has done marketing plans
for Cordova, Sitka, and Homer and only some of the bays are
marketed while the others aren't mentioned, which keeps it nice
for Alaskans and attractive for visitors.
2:15:40 PM
REPRESENTATIVE BIRCH remarked that the Treadwell Ditch Trail of
Juneau is phenomenal. He said the presentation's ideas are
wonderful and he has discussed with others how a hut-to-hut
system in the Chugach would be a great opportunity. He
complimented the effort to increase the opportunity in Alaska.
He presumed the "old school" marketing method of sending
packages of brochures to prospective visitors has been replaced
by the internet and inquired how Mr. Beck would do marketing.
MR. BECK answered that Oregon's website has something like the
"seven wonders of Oregon" that direct people to a handful of
places. The key thing done well by Oregon but not done by
Alaska, is to market destinations and experiences more so than
businesses. There is an evolution towards businesses through
mechanisms like TripAdvisor and Facebook. Alaska doesn't make
it easy and inviting to know why it is exceptional to spend time
in different destinations, such as Healy or King Salmon. In
that model the marketing logic is that people go to an area and
spend money, and individual businesses don't have to be marketed
as much as is currently done. The ATIA and Visit Anchorage tend
to market their businesses and for-pay activities and tend less
to market going to Anchorage. Few visitors know the Chugach
Mountains are there with hikes to be had. There are different
flavors of marketing, Mr. Beck added. There are ways to take
advantage of the new technologies and not send out a fat package
of brochures that never get read. Someone going to Facebook or
other media also sets up word of mouth. Alaska has gone from
49 in the U.S. to 47 in its state marketing budget, and this
invites the state to be left behind.
2:18:38 PM
REPRESENTATIVE DRUMMOND stated she is fascinated by the proposed
Trans-Alaska Pipeline Long Trail that Representative Kreiss-
Tomkins is working on, but the no trespassing signs along the
pipeline are off-putting. She asked how the trail promoters are
getting around that.
MR. BECK replied it is seen as an opportunity with questions to
be answered. He noted that [former legislator] Pat Pourchot and
[former governor] Tony Knowles are actively promoting the Alaska
Long Trails Initiative and the Trans-Alaska Pipeline Long Trail
is one of the three trails being championed. He offered his
understanding that they have discussed the proposal with Alyeska
Pipeline Service Company and there are questions and concerns.
In the rest of the U.S. there are trails along railroads and
railroads don't often like that, citing liability issues. But,
he continued, it has worked out fine in many places. It seems
that the potential benefits are great enough to make it worth
investing the time to see if solutions are there.
2:20:40 PM
CO-CHAIR TARR introduced the next invited witness, Captain Dan
Blanchard of Juneau. She related that Mr. Blanchard earned his
shipmaster's license at age 18 and worked in many roles as
captain of sightseeing vessels in Alaska. Today he is the owner
of UnCruise Adventures, a company that operates eight small
adventure ships in Alaska and along the U.S. West Coast.
2:21:13 PM
DAN BLANCHARD, Owner, UnCruise Adventures, first shared how
UnCruise Adventures has grown over its 22 years because this
fits into the discussion. The concept of the "un" is right-on
with who the customer is today, he said. The company started
out tiny with a leased boat and he gave up everything he could
to get this boat from Seattle to Alaska. In 2005 the company
had four boats for small-ship cruising and it wasn't yet
adventure cruising. In 2007 the company dramatically changed
its model to where today it isn't in the cruise industry, it is
in the adventure industry. He explained his company is called
"UnCruise" because it is the antithesis of what happens on a big
ship in the cruise industry. UnCruise uses state and national
public lands and trails, as well as Native and other private
lands. He pointed out that UnCruise is the largest day-use
permit holder in the Tongass National Forest and wants to add
more of those permits.
MR. BLANCHARD said he thinks what has happened is that once the
World War II generation stopped traveling, [the next generation]
came into play and wasn't happy with standing on the bow of one
of his boats and looking at a glacier. Now people must get on
the glacier, feel the cold of it, and that is the adventure or
outdoor travel industry today. It is the largest growing sector
in travel. A massively growing piece of the industry, it grew
16 percent over a period of three years and that likely will be
topped out in the next three-year survey.
MR. BLANCHARD described the person visiting Alaska today as
being aged somewhere between his/her mid-30's and kicking the
bucket and coming to Alaska because he/she wants to be active.
This person has downsized from a big home to a condominium and
is spending a lot of money traveling. This person is coming to
Alaska because of [legislatively designated] Wilderness and
[undesignated] wilderness - those are the things that make
Alaska world class and important to the U.S. It is the last
frontier in many ways.
MR. BLANCHARD reported that his small company had $72 million in
sales last year, of which $45 million were earned in Southeast
Alaska. Of that $45 million, about $14-15 million was dropped
in Southeast Alaska communities. The difference between his
small boats, or the adventure travel business in the outdoors,
is that the money stays Alaska. From his experience speaking at
the Innovation Summit, he related, he can say there are young
Alaskans hot to get going on this. But, he continued, his
question to legislators is whether Alaska is going to stay a
sleeping giant or going to be hardly sleeping and that is why he
is before the committee. Alaska has a massive business that can
be taken advantage of. He said if Alaska were to lead the path
through some official position, which he thinks is warranted,
the sleeping giant could be made not sleeping.
2:25:35 PM
MR. BLANCHARD said he thinks there is a great opportunity in
Alaska for winter business. In Southeast Alaska UnCruise is out
hiking, snorkeling, standup paddle boarding, kayaking, and
bushwhacking. His company is expanding its season, he said, and
many businesses are starting to operate from April 14-October 1.
Alaska is seeing an expanding summertime business and is also
seeing an opportunity, particularly in northern Alaska, for
wintertime businesses to take place as well.
MR. BLANCHARD noted that hut-to-hut is what the rest of the
world knows as trekking and tea huts and is what he does every
October and November. Alaska is way behind on this, he said.
He offered his belief that this is where the growth will be, and
that Alaska needs to have something great.
MR. BLANCHARD discussed why he thinks [an official state]
position is needed. He said the ATIA has two goals marketing
and getting a Tourism Improvement District (TID) through. He
explained ATIA isn't specific enough to take on a project like
this, rather ATIA is marketing the whole state. The Juneau
Economic Development Council (JEDC) is working to find a way
through the path of regulation. The outdoor industry and the
adventure travel industry need to partake in that, he said. The
JEDC is looking at how to get things through, such as a trail
and more access to state or federal lands. If the state decided
to support this upcoming industry and get it fired up, a lot
more dollars would be seen in the state and the state would
diversify. Currently the state is quite heavy on commercial
tourism, which is wonderful, and he lives off the marketing that
they provide as well as the state's marketing. But, Mr.
Blanchard continued, if Alaska had an outdoor active adventure
industry like is being seen in other states, it would bring to
the state a variety of people - from the 20-year-old backpacker
to the person his company is bringing today. He pointed out
that most of the people he is bringing to Alaska traveled as
kids to Europe on $5-$25 a day, but now they want to adventure
and play hard all day with a Tempur-Pedic mattress at night. He
reiterated his question of Alaska choosing whether to stay a
sleeping giant or to hardly sleep.
2:29:10 PM
REPRESENTATIVE BIRCH quipped he would prefer to characterize it
as a hibernating giant. The potential is there, he agreed, and
Anchorage and Southcentral Alaska have seen explosive growth in
hotel rooms. He recalled snorkeling during the winter many
years ago and how clear the water was in January with no glacial
[river's] running.
MR. BLANCHARD pointed out most of that business is surrounding
major hubs that do well on cruise passenger traffic. Being
missed is the smaller businesses in places that aren't traveled
now but that could be if the outdoor adventure traveler could be
drawn in. He shared that he goes to India and does the trail
between India and Nepal and he does the Machu Picchu trail.
Those are the world-class things that Alaska has the mojo for
but doesn't yet have.
2:30:46 PM
A video was shown from 2:30 p.m. to 2:33 p.m.
2:33:45 PM
CO-CHAIR TARR introduced the final invited witness, Cailin
O'Brien-Feeney, state and local policy manager for the Outdoor
Industry Association (OIA) based in Boulder, Colorado. She
explained that OIA unites and serves over 1,200 manufacturers,
suppliers, sales representatives, and retailer members through
its focus on trade and recreation policy and industry trends.
She noted Mr. O'Brien-Feeney has over 15 years' experience in
the outdoor industry serving in leadership positions for the
Winter Wildlands Alliance, the Outdoor Alliance, and the Idaho
Outdoor Business Council, and has worked as an outdoor educator
and guide across the West. She also noted he holds a Master's
in natural resource management from the University of Idaho.
2:34:35 PM
CAILIN O'BRIEN-FEENEY, State and Local Policy Manager, Outdoor
Industry Association (OIA), said he will provide a recipe for
what he has seen work in other states that have endeavored to
support their outdoor recreation economy to grow opportunities
for residents, for visitors, for businesses. Five years ago, he
noted, there wasn't anyone in any state whose job it was to
think about how to improve opportunities or jobs for outdoor
recreation. While there are land managers who do that in part,
economic development folks who do that in part, people engaged
in public health and wellness, and conservation advocates,
states weren't yet thinking about turning outdoor recreation
from a nice-to-have [to need-to-have]. Alaska wins in terms of
outdoor recreation participation, he continued. It has more
residents by percent who participate in outdoor recreation - 81
percent of Alaskans as compared to 49 percent of Americans.
But, there is more to be done in intentionally nurturing and
growing this sector of the economy.
MR. O'BRIEN-FEENEY discussed the recipe. He said 10 states now
have a construct where the governor has set up a commission and
established a formal stakeholder group to think about this topic
or has hired someone to think about how to grow this industry
and bring folks together. The first piece is simply a
recognition that outdoor recreation is a need-to-have that is
part of the core economic future of the state. That can be as
simple as putting it into the state's economic plan to ensure
the state invests appropriately and engages in conversations
alongside those other industries that make up a state. What is
being talked about here is additive, he noted, and not trying to
take the place of anything else. There are many ways to do
that, whether it is official or not. The hope for today is to
share information in that spirit to help build awareness about
the economic impact and other benefits of outdoor recreation so
that when legislators are working there is a shared agreement or
official declaration that outdoor recreation is as important as
anything else and really matters.
2:39:07 PM
MR. O'BRIEN-FEENEY said the second piece is convening the many
stakeholders in Alaska - figuring out where that shared common
ground is. All of Alaska's communities are different and all
the different stakeholders are different, whether they own
outfitting companies or are retailers or land managers. These
stakeholders don't talk to each other enough.
MR. O'BRIEN-FEENEY said the third piece has to do with removing
barriers. While good work is happening with existing programs,
small business innovation funds, workforce development training,
and existing marketing materials, much of that needs to get
together and have an outdoor recreation focus. For example, he
continued, in the 10 states the outfitter communities have
worked together to make some real changes with the U.S. Forest
Service (USFS) about how the agency approaches and implements
outfitter and guide permitting. Outfitters and guides are a
huge part of this economy and it doesn't make sense for an
outfitter not to have the opportunity to provide facilitated
access simply because the expertise or the person to process
that permit application doesn't exist within the relevant land
management agency. They have collaborated to figure out a
better process for doing that work in a way that still protects
the environment but is cheaper and easier with the goal of
getting more people outside.
MR. O'BRIEN-FEENEY stated the last piece is that the outdoors
themselves, the landscapes, are the infrastructure itself. The
baseline underwriting all of this is a need to invest in the
toilets, roads, and campgrounds so that people continue to have
high quality visitor experiences. Budgets are tough, he
allowed, but clever ideas are out there and there are people in
Alaska with great ideas, as well as people trying ideas across
the country. He said he is willing to share many of the things
he has seen that are clever.
2:42:40 PM
REPRESENTATIVE RAUSCHER thanked all the witnesses and offered
his appreciation for the ideas, vision, and information that
they shared.
2:43:11 PM
REPRESENTATIVE DRUMMOND extended her thanks and asked what Mr.
O'Brien-Feeney's experience has been in other states. She
further asked what his suggestion would be to the committee
regarding how it could help implement, hold hands with, and move
forward in opening Alaska's outdoor resources to the world and
to Alaskans.
MR. O'BRIEN-FEENEY replied there is some pending legislation
that is probably relevant to today's conversation. He suggested
that a good first step would be for the committee to ask
[today's group of witnesses] for help, ideas, and support for
the good ideas that the committee works on. There is no perfect
"silver bullet" policy prescription, he continued, so he won't
pretend to know what that answer is for the committee. He urged
the committee to think of today's witnesses as allies in getting
towards this vision.
REPRESENTATIVE DRUMMOND pointed out the challenge of Alaska's
great geographic scale even for people living in the state, and
that the state's small population makes it difficult to provide
the infrastructure.
MR. O'BRIEN-FEENEY responded that the way this industry has
coalesced most successfully is by holding two significant
meetings a year, one in the capital and the other roving around
to rural communities that have direct connections to the
outdoors. In some ways, he continued, this is how Lee has set
up the Confluence effort from which there has been a lot of
benefit. Modern technology makes it easy to stay in close
relevant communication and enables people to work from wherever
they are. Overall spending in terms of outdoor recreation
across the country mostly happens close to home, he advised, it
happens in a person's backyard. About two-thirds of the total
spending in the entire country happens within 30 minutes of
someone's home. Thinking about those opportunities in one's own
backyard is a great place to start and it is easy to get people
excited about projects that they can see from their porch.
2:47:30 PM
CO-CHAIR TARR thanked the witnesses for their time and effort in
providing the presentations. She suggested that one area [the
committee] might like to spend time talking is public lands
access, which might be the next follow-up for this because that
is a big part of the limitation in terms of what we can do right
now - thinking about how we might open some of Alaska's vast
areas to more people.
2:48:23 PM
CO-CHAIR TARR passed the gavel to Co-Chair Josephson.
HB 272-TANGLE LAKES STATE GAME REFUGE
2:48:48 PM
CO-CHAIR JOSEPHSON announced that the final order of business
would be HOUSE BILL NO. 272, "An Act establishing the Tangle
Lakes State Game Refuge; and providing for an effective date."
2:50:56 PM
LISA DELANEY, Staff, Representative Andy Josephson, Alaska State
Legislature, presented HB 272 on behalf of Representative Andy
Josephson, sponsor. Turning to her PowerPoint presentation
entitled, "HB 272, Tangle Lakes Game Refuge," she noted the
importance of outdoor recreation, marketing, and protecting the
state's renewable resources, and said she hopes to demonstrate
the value in establishing protected areas like game refuges. A
perk of refuge designation, she explained, means that effort
goes into accommodating the users of the area, which is done
through trail maintenance, outhouses, and so forth. She moved
to slide 2 and said the motivation for refuge designation is
that the Tangle Lakes area is very important to Alaskans for
recreation, hunting, and fishing.
MS. DELANEY addressed slides 3-4. She said Alaska has four main
categories of places of note: state range areas; anadromous
waters; controlled use areas, one of which already exists within
the proposed refuge boundaries; and state refuges, sanctuaries,
and critical habitat areas. The sponsor chose a refuge because
this category doesn't restrict recreation, hunting, or access,
whereas some of the other categories have certain restrictions.
The Board of Game and the Board of Fisheries regulate hunting
and fishing, she explained, so there would be no impact by the
establishment of a refuge. Refuge management plans go through
public comment, which provides the public with say in what goes
on within a refuge area.
2:53:31 PM
MS. DELANEY displayed slide 5 depicting a map of the proposed
refuge area, which encompasses about 156,000 acres. She said no
mining claims currently exist in the area, but that the map
shows where mines have been in the past and where areas of
interest have been but added that there hasn't been enough
interest to warrant pursuing these. She noted the deposits
include nickel, copper, cobalt, and platinum, but as far as she
knows they are low grade and generate a lot of waste, which is
probably why the metals haven't been pursued.
CO-CHAIR JOSEPHSON stated he has a better map provided by the
Department of Natural Resources (DNR). He pointed out that the
Alpha Claims Block, depicted in purple, has a lot of interest,
but the proposed refuge is south of this block.
MS. DELANEY confirmed the majority of [mining] interest is north
of the proposed refuge boundary.
MS. DELANEY turned to slide 7 and reviewed the four special and
managed areas existing within the proposed refuge boundaries.
She said Game Management Unit (GMU) [13B] is popular for
subsistence hunting. Clearwater Creek Controlled Use Area is
currently closed to motorized vehicles, although the Board of
Game is revisiting that. Moose and caribou are abundant in this
area, she continued, and it is popular for the walk-in hunters.
The Delta National Wild and Scenic River corridor is managed by
the U.S. Bureau of Land Management (BLM) and is focused on bird
species. The Tangle Lakes Archaeological District Special Use
Area takes up a sizeable portion of the proposed refuge area,
with many valuable cultural resources having been found there.
These four areas will keep doing what they do with or without
the refuge designation, she explained, and refuge designation
will help to regulate more destructive development on otherwise
renewable hunting and fishing grounds.
2:56:08 PM
MS. DELANEY moved to the map on slide 8 depicting the locations
of Alaska's caribou herds. She said [the proposed Tangle Lakes
Refuge] is home to the Nelchina Caribou Herd, the sixth largest
herd in Alaska. She noted 5,000 caribou tags were issued in the
GMU 13 Nelchina herd subsistence hunt.
MS. DELANEY displayed slide 9 and reported the proposed refuge
designation has overwhelming support, including support from 713
individuals and 108 organizations that have signed a letter to
the legislature. She pointed out that this proposal has been an
ongoing process for over a decade.
CO-CHAIR JOSEPHSON offered his understanding that Robert Tobey,
a supporter listed on the slide, worked for who was then newly
elected Governor Murkowski, whose administration supported the
creation of a refuge. He further noted that Cliff Judkins,
another supporter listed on slide 9, was chairman of the Board
of Game in the Palin Administration and the Board of Game
recommended the same thing.
MS. DELANEY confirmed the aforementioned is correct.
2:57:51 PM
REPRESENTATIVE BIRCH stated he struggles with this as being
another land grab. As a mining person he is looking at this
with concerns about the initiative behind the proposal and the
timing. He urged there be opportunity for public engagement and
recognition that there can be shared use within the area. He
ascertained that committee members were familiar with the Denali
Highway and this area.
2:58:45 PM
MS. DELANEY provided a brief section-by-section analysis of the
bill. She said Section 1(a) [slide 11] describes the proposed
refuge boundaries which mostly follow the geography, but that
parcel boundaries are used in the legal description for purposes
of easy mapping. She noted Section 1(b) [slide 12] describes
the purpose of the refuge, which is to protect subsistence uses,
hunting, fishing, and recreational, scientific, aesthetic, and
educational purposes, all of which utilize the area's renewable
resources, ecology, and land upon which these resources depend.
The designation would benefit all Alaskans, she added. She said
Section 1 (c-f) [slide 13]: provides land use restrictions on
mining and potentially oil and gas development, unless the
commissioner deems it compatible with the refuge; addresses
access corridors to this land; gives DNR and Alaska Department
of Fish & Game (ADF&G) authority to enter into leases, provided
the leases/uses are compatible with the refuge; and prohibits
the sale of [state] land within the refuge boundary. Section 3
[slide 14], she stated, provides an effective date of 1/1/19.
3:00:32 PM
CO-CHAIR JOSEPHSON asked whether Ms. Delaney has spoken with the
Division of Mining, Land and Water about currently active
interests in mining.
MS. DELANEY confirmed she spoke with the division and learned
there are no mining claims within the proposed refuge boundary
at this time.
CO-CHAIR JOSEPHSON further asked whether claims are being
actively explored and pursued, or whether they are technically
claims but dormant.
MS. DELANEY offered her understanding that there are no claims
and currently nothing is being actively pursued in the area.
3:01:14 PM
REPRESENTATIVE JOHNSON expressed her concern about [the large
amount of] public land in Alaska and prohibiting the sale of
these lands. She asked how much state land is in this area and
how much would potentially not be sold into private ownership.
She noted private landowners pay property taxes to boroughs and
said that as state revenues decline, private land ownership and
property taxes are important. She asked what the potential
revenue decrease would be if a refuge was designated. She noted
that at statehood the state land was intended to be transferred
into private ownership
MS. DELANEY replied she is unsure and will get that information
to the representative.
3:03:07 PM
REPRESENTATIVE RAUSCHER pointed out that the Matanuska-Susitna
Borough encompasses only a small part [of the proposed refuge]
and the rest is unorganized borough. He offered his belief that
there are nonoperational mining claims [in the proposed refuge
area] that have been returned to the state. But, he added, this
doesn't mean they cannot be sold again; it just means they are
presently not being mined and controlled by a lease agreement.
CO-CHAIR JOSEPHSON stated that most of the claims are in the
southeast corner of the [proposed] area and are located close to
the Denali Highway. He requested Mr. Brent Goodrum of DNR to
address the status of these claims.
3:05:07 PM
BRENT GOODRUM, Director, Central Office, Division of Mining,
Land and Water, Department of Natural Resources (DNR), offered
his understanding that the last time the division checked there
weren't any active state mining claims within the proposed
refuge boundary. Previously there may have been claims that may
have been active that miners had let expire or essentially
abandoned the claims. However, he continued, the staking of
mining claims is such that a miner, upon discovery, can stake it
and record it and it is a self-actuating right. Thus, an
individual can stake claims and then the division may find out
after the fact that this has happened.
3:06:11 PM
REPRESENTATIVE RAUSCHER asked whether the state could lease
previously active mining claims to someone else in the future.
MR. GOODRUM answered that an individual, party, or group could
come into acquiring rights to minerals in those areas through
staking or through some type of lease with the state. That
could happen in the future and is not prohibited at this time.
All Alaska state lands are open to mineral entry unless they are
otherwise closed, he continued. There has been exploration in
this area previously and so that could happen yet in the future
unless there were something else that prohibited it.
REPRESENTATIVE RAUSCHER asked whether HB 272 would stop that.
CO-CHAIR JOSEPHSON responded that HB 272 would prohibit future
mining claims. He asked Mr. Goodrum whether, under this bill,
someone could re-invigorate what had been a claim.
MR. GOODRUM answered that a miner could stake a mining claim and
then record that mining claim and at that time the miner would
secure rights to those minerals. Section 1(c) of the bill
states, "Except for valid rights and interests in mineral claims
existing on January 1, 2019," he noted. So, theoretically, if
the bill was signed into law and someone had staked a mining
claim prior to that date, they would acquire that right and be
able to utilize that right going into the future.
3:09:21 PM
CO-CHAIR JOSEPHSON held over HB 272.
3:10:19 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:10 p.m.