02/07/2020 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Navigating the New Arctic | |
| HB197 | |
| HB230 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 197 | TELECONFERENCED | |
| += | HB 230 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 7, 2020
1:16 p.m.
MEMBERS PRESENT
Representative John Lincoln, Co-Chair
Representative Geran Tarr, Co-Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative Chris Tuck
Representative Ivy Spohnholz
Representative Dave Talerico
Representative George Rauscher
MEMBERS ABSENT
Representative Sara Rasmussen
COMMITTEE CALENDAR
PRESENTATION(S): NAVIGATING THE NEW ARCTIC
- HEARD
HOUSE BILL NO. 197
"An Act extending the Alaska Seismic Hazards Safety Commission;
and providing for an effective date."
- MOVED HB 197 OUT OF COMMITTEE
HOUSE BILL NO. 230
"An Act repealing the termination date for the intensive
management hunting license surcharge."
- MOVED HB 230 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 197
SHORT TITLE: EXTEND SEISMIC HAZARDS SAFETY COMDR. SFRAGASION
SPONSOR(s): REPRESENTATIVE(s) TUCK
01/21/20 (H) PREFILE RELEASED 1/10/20
01/21/20 (H) READ THE FIRST TIME - REFERRALS
01/21/20 (H) RES, FIN
02/05/20 (H) RES AT 1:00 PM BARNES 124
02/05/20 (H) Heard & Held
02/05/20 (H) MINUTE(RES)
02/07/20 (H) RES AT 1:00 PM BARNES 124
BILL: HB 230
SHORT TITLE: INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE
SPONSOR(s): REPRESENTATIVE(s) LINCOLN
01/29/20 (H) READ THE FIRST TIME - REFERRALS
01/29/20 (H) RES, FIN
02/05/20 (H) RES AT 1:00 PM BARNES 124
02/05/20 (H) Heard & Held
02/05/20 (H) MINUTE(RES)
02/07/20 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
MIKE SFRAGA PhD, Director
Polar Institute and Global Risk and Resilience Program
Woodrow Wilson International Center for Scholars
Washington, District of Columbia
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Navigating the New Arctic."
EDDIE GRASSER, Director
Division of Wildlife Conservation
Alaska Department of Fish and Game
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing of HB
230.
ACTION NARRATIVE
1:16:00 PM
CO-CHAIR JOHN LINCOLN called the House Resources Standing
Committee meeting to order at 1:16 p.m. Representatives Tuck,
Hannan, Talerico, Rauscher, Tarr, Hopkins, and Lincoln were
present at the call to order. Representative Spohnholz arrived
as the meeting was in progress.
^PRESENTATION(S): Navigating the New Arctic
PRESENTATION(S): Navigating the New Arctic
1:16:35 PM
CO-CHAIR LINCOLN announced the first order of business would be
a presentation entitled, "Navigating the New Arctic."
1:17:16 PM
MIKE SFRAGA PhD, Director, Polar Institute and Global Risk and
Resilience Program, Woodrow Wilson International Center for
Scholars (Wilson Center), provided a PowerPoint presentation
entitled, "Navigating the New Arctic." He said the Wilson
Center was founded by Congress in 1968 to be the nation's think
tank and inform and influence domestic and foreign policy. The
Wilson Center advises the administration, Congress, and others
on policy issues (slide 1). He directed attention to the Arctic
Ocean and Alaska's position, challenges, opportunities, and risk
related to the Arctic Ocean. Dr. Sfraga noted many Americans
are unaware of Alaska's role in energy and security for the
nation; however, other countries have discovered the resources
found in the Arctic and the Arctic Ocean. The Arctic is 1.5
times the size of the U.S. and the importance of the Arctic and
Alaska is increasing (slide 2). In fact, the importance of the
Arctic has emerged as part of the overall narrative of global
politics (slide 3). Dr. Sfraga suggested the Arctic's seven Cs
are as listed on slide 4:
• climate, driving the melting of the polar ice cap, and
resulting in
• commodities, increased
• commerce, increased
• connectivity, such as [the lack of connectivity] with the
Internet, ports, railroads, and energy
• communities, with issues of cooperation, competition, and
conflict
1:21:43 PM
DR. SFRAGA said Alaska and Russia are contemplated with the
Arctic in topics of discussion; in the Bering Strait Alaska has
resources, fisheries, and national defense issues. To address
the motives of non-Arctic states such as China, he described a
new great power competition involving Russia, the U.S., and
China using the following boardgame analogy: Russia - Survivor;
the U.S. - Twister; China - Go (slides 5 and 6). For China,
investment in other countries always means influence and
sometimes means a debt trap. China has the financial strength
to take risks and make long-term investments; if a debt is
unpaid, China will take back property and thereby gain
influence, in a manner similar to the strategic game of Go. For
example, China has long-term investments in Africa, and the
Arctic and has been gaining influence globally for decades.
Russia plays the game Survivor; Russia is a huge country with
declining financial strength that has invested in Arctic oil and
gas development and in developing the Northern Sea Route, backed
by Russian, Chinese, and other foreign money. Russia is
interested enough in developing the Northern Sea Route that tax
incentives on extraction are zero percent for 10-to-15 years.
According to Russia, 20 percent of Russia's gross domestic
product (GDP) comes from the Arctic, and 30 percent of Russia's
exports come from the Arctic. The U.S. plays Twister by
reaching across the world and influencing with power, security,
and the rule of law. Dr. Sfraga opined the U.S. thinks like a
global superpower, Russia seeks to be relevant, and China seeks
to outplay competitors, and he cautioned about the
sophistication of Chinese investment in small countries or a
state such as Alaska.
1:26:57 PM
DR. SFRAGA turned attention to slide 7 which was a chart of the
membership and observer nations to the Arctic Council. Eight
Arctic nations formed the Arctic Council 20 years ago to address
mostly environmental issues in the Arctic, such as search and
rescue. China is an observer nation and thereby can influence
dialogue in support of its overall global strategy. Slide 8
pictured the president of China and the prime minister of
Norway; he noted China has invested in Iceland, Norway,
Greenland, Finland, Sweden, and others, and "has proclaimed
themselves a near Arctic state." He explained China's
perspective of the Arctic. Turning to commodities, Dr. Sfraga
pointed out China seeks Arctic resources and has invested $20
billion to $25 billion in the [liquefied natural gas plant in
Sabetta, Russia, on the Yamal Peninsula] (slide 9).
1:30:20 PM
DR. SFRAGA turned attention to commerce and said Russia cannot
develop the Northern Sea Route without Chinese investment, and
the Northern Sea Route is a viable seaway (slides 10-13). Slide
14 was a map illustrating China's polar silk road - land and sea
routes - from Russia to destinations in Europe, Asia, the Middle
East and Africa, utilizing a sea route through the Arctic Ocean.
Approximately 25 percent of China's worldwide investments are in
Africa, ranging from highways to ports; he said the situation
where a debt trap gave control of a port to China is an example
of influence by investment (slides 15 and 16). In fact, debt to
China could influence a debtor nation's vote in the United
Nations (UN). Slide 17 illustrated a cargo route from Finland
across China to Asia and Russia; slide 18 illustrated China's
vision for multiple connections from China to Finland, the
Baltics, and Russia. Slide 19 was a graph of the People's
Republic of China (PRC) investments in Arctic states; he pointed
out investment in small and large countries could result in
significant political influence. Turning to competition, Dr
Sfraga advised China is building a nuclear icebreaker with
aspirations for [a presence] from the Arctic to Antarctica and
elsewhere. He cautioned that governments should be wary of land
ownership, and of investors in their pipelines and agricultural
land, considering the geopolitical position of China.
1:35:18 PM
REPRESENTATIVE SPOHNHOLZ asked for examples where China invested
in assets and took back those assets.
DR. SFRAGA said an example of a debt trap was a port in Sri
Lanka: Sri Lanka borrowed from China to develop a port that
failed to be economic. In subsequent negotiations, Sri Lanka
asked China to manage the port and now China is in control of
the shipping in and out of the port for the next 99 years. He
suggested the original investment was unsound and China sought
default because of Sri Lanka's strategic location. On the other
hand, China's "real" investment in a Siberian pipeline now
benefits Russia and China. However, he questioned whether
Alaska should borrow money from China to build a pipeline
without a repayment plan.
1:40:02 PM
CO-CHAIR TARR has heard there have been proposals related to
foreign investment in agricultural land in Alaska; further
information in this regard will be provided to the committee.
She said she valued information related to financing Alaska's
pipeline and Alaska's role in the geopolitical sphere.
REPRESENTATIVE HANNAN recalled China has historically viewed
Alaska as an opportunity for economic growth. She directed
attention to slide 20 and asked when the U.S. will have another
icebreaker in service.
DR. SFRAGA said the first of six proposed icebreakers may be in
service within three to five years; however, that icebreaker may
be needed to replace the heavy icebreaker based in Antarctica,
because the current cutter is falling apart. He warned the U.S.
does not have the capacity to build one icebreaker, although
several are needed, and blamed "politics" for the delay. In
fact, China, Russia, Finland, Japan, and other countries are
building icebreakers. In further response to Representative
Hannan, he said there is one icebreaker in the Arctic, the U.S.
Coast Guard Cutter (USCGC) Healy, which he characterized as a
research vessel stationed [in Seattle, Washington]. He opined
two U.S. Coast Guard (USCG) cutters should be stationed in
Alaska.
1:46:20 PM
REPRESENTATIVE TUCK referred to a forthcoming resolution in
support of naming the next USCGC icebreaker the "Polar Bear."
REPRESENTATIVE HOPKINS asked Dr. Sfraga to describe the
partnerships with other Arctic countries that are conducting
international research in the Arctic, such as the
Multidisciplinary drifting Observatory for the Study of Arctic
Climate (MOSAiC) expedition.
DR. SFRAGA said the research ongoing in the Arctic is
international, cooperative, and based on decades of
relationships within the scientific community, although the
Arctic Ocean remains a mystery. The MOSAiC expedition will
float with the pack ice to do the following: measure ice
thickness and extent; study plastics in the pack ice and in the
food chain; study ocean acidification; study methane leaks;
study carbon dioxide; study the reflection of the sun off the
ice (albedo); study absorption of solar radiation (positive
feedback loop). He said the expedition involves multiple
nations that will coordinate scientific data collected over one
year of study; he surmised the study will continue annually and
follows cooperative research instigated by the [White House
Arctic Science Ministerial held in 2016] during the last U.S.
chairmanship of the Arctic Council. Participants are Arctic,
and non-Arctic nations, including China, Russia, and others,
that seek to examine common scientific questions.
1:50:59 PM
CO-CHAIR TARR stated her interest in Dr. Sfraga's comments
related to foreign ownership of Alaska's agricultural land.
DR. SFRAGA cautioned China has leased lands in Russia for
agricultural development ostensibly to provide food for China,
and economic development for Russian communities; however, the
Russian communities have not benefited. He questioned why any
country would buy Alaska agricultural land and suggested the
land may be desired for other purposes, such as surveillance of
military operations.
REPRESENTATIVE TUCK advised he has information on weather
monitoring equipment installed in Nome by China in exchange for
grants and donations to the University of Alaska; he urged Dr.
Sfraga to review this information.
REPRESENTATIVE TALERICO recalled previous negotiations between
the state and China during work on the proposed Alaska liquefied
natural gas pipeline project (Alaska LNG) and observed [Chinese
entities] submitted what appeared to be letters of interest, not
solid agreements; he opined at the end of the negotiations,
[Chinese entities] asked, "What else do you have to offer?"
1:55:55 PM
DR. SFRAGA agreed the aforementioned negotiations led to letters
of intent; although letters of intent follow standard business
practices, further detailed negotiations would be needed.
REPRESENTATIVE SPOHNHOLZ pointed out in Africa China has
negotiated in its best interests; for example, when China
invests in resource extraction in Africa, Chinese labor is
employed. She said the history of resource extraction in Alaska
parallels that almost of a banana republic and urged for more
favorable terms in future resource development projects.
Representative Spohnholz asked Dr. Sfraga to comment regarding
the development of ports and infrastructure along Russia's
northern border.
DR. SFRAGA returned attention to slide 11 and restated the
Russia Federation's future depends on access through the Arctic;
for example, the Sabetta port on the Yamal Peninsula was
originally a $40 billion to $50 billion LNG complex and Russia
- by tax incentives - is encouraging the development of
petrochemical plants, which are largescale complexes built on
Russia's Arctic slope with Chinese money. Further tax
incentives will expedite the construction of complexes from
Murmansk to the Bering Sea that include ports, cities, and oil
and gas developments, all protected by military assets. Also
shown was the Northern Sea Route, which is used as a shipping
lane within Russia, and continues west to Europe and east to
Asia. Shown on slide 13 was the Northern Sea Route and new or
renovated Russian Federation military complexes equipped with
radar and search and rescue capabilities. Dr. Sfraga stressed
a significant portion of the Northern Sea Route, which is a
future international trade route, is overlaid with Russian air
bases with radar, communications, search and radar capacity, and
for defense.
2:01:01 PM
DR. SFRAGA remarked:
This is not going to stop. We are all in here, and
this is investments from oligarchs, investments from
Russia, and investments from China, and frankly,
Total, the French oil company, [and] the Japanese.
So [Russia President Vladimir Putin] has created an
international marketplace for oil and gas development
in the Russian north, and that's just what the market
will bear. And so, he's willing to take the resources
[because] of these crippling sanctions, and they've
moved on. And by the way, this is an unholy alliance
here, these are not two countries that really get
along all that well, but they are tolerating each
other [because] they have mutual interests and ... a
common foe, us ....
HB 197-EXTEND SEISMIC HAZARDS SAFETY COMMISSION
2:02:27 PM
CO-CHAIR LINCOLN announced the next order of business would be
HOUSE BILL NO. 197, "An Act extending the Alaska Seismic Hazards
Safety Commission; and providing for an effective date."
REPRESENTATIVE TUCK indicated additional letters of support for
HB 197 are forthcoming.
2:03:03 PM
CO-CHAIR TARR moved to report HB 197 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 197 was reported out of the House
Resources Standing Committee.
2:03:36 PM
The committee took an at-ease from 2:03 p.m. to 2:06 p.m.
HB 230-INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE
2:06:30 PM
CO-CHAIR LINCOLN announced the final order of business would be
HOUSE BILL NO. 230, "An Act repealing the termination date for
the intensive management hunting license surcharge."
CO-CHAIR LINCOLN directed attention to documents found in the
committee packet including letters of support from Resident
Hunters of Alaska and the Alaska Professional Hunters
Association, and a pie chart provided by the Division of
Wildlife Conservation, Alaska Department of Fish and Game
(ADFG), that illustrated the distribution of spending [on
intensive management activities] in fiscal year 2019 (FY 19),
dated 2/6/20.
REPRESENTATIVE HOPKINS directed attention to the pie chart that
indicated 1 percent of the $3.4 million earned by the surcharge
was spent on predator control; he asked what the 1 percent is
being spent on this year and for the historic highs and lows of
predator control expenditures.
2:07:59 PM
EDDIE GRASSER, Director, Division of Wildlife Conservation,
ADFG, explained expenditures for predator management are not
very high because most of the funds are directed at survey and
inventory to determine species' population and the amount of
harvestable surplus. To reduce costs in some game management
units (GMUs), ADFG uses private citizens to facilitate predator
prey management programs. He opined 1 percent is an accurate
average and offered to provide further research in this regard.
In further response to Representative Hopkins, he confirmed the
cost for survey and inventory is included in research and
management.
REPRESENTATIVE HOPKINS inquired as to where residents
participate in predator control.
MR. GRASSER said GMUs 13, 20, and 19.
REPRESENTATIVE HOPKINS further asked whether out-of-state
hunters participate in predator control programs.
MR. GRASSER was unsure and offered to provide the requested
information.
REPRESENTATIVE RAUSCHER related funds requested by the Division
of Forestry, Department of Natural Resources, for prescribed
burns come from the [Federal Aid in Wildlife Restoration Act,
also known as the Pittman-Robertson Wildlife Restoration Program
(PR)].
2:11:42 PM
MR. GRASSER advised PR funds require a 1:3 match of state and
federal funds, thus a portion of said funds are state intensive
management funds.
CO-CHAIR LINCOLN clarified IM programs, through the Division of
Wildlife Conservation, fund Division of Forestry controlled
burns, that provide firebreaks to protect from wildland fires,
and also provide better habitat for game populations.
2:12:35 PM
MR. GRASSER said correct; in fact, prescribed burns benefit many
animals and birds.
2:13:07 PM
REPRESENTATIVE TALERICO moved to report HB 230 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 230 was reported out of the
House Resources Standing Committee.
2:14:02 PM
ADJOURNMENT
[There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:14 p.m.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| Land Ownership in Alaska 2.7.20.pdf |
HRES 2/7/2020 1:00:00 PM |
Presentation |
| HB 230 Fiscal Note DFG-DWC 1.31.20.pdf |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 230 Sponsor Statement 1.31.2020.pdf |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 230 v. A 1.29.20.PDF |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 230 IM Species Determinations 12.17.2019.jpg |
HFIN 3/5/2020 9:00:00 AM HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 230 Hunting License Surcharge Revenue CY17-CY19 2.4.2020 2.5.20.pdf |
HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 230 Testimony - Support as of 2.5.20.pdf |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB197 Additional Documents-2019 Alaska Seismicity Summary 2.01.20.pdf |
HFIN 3/5/2020 9:00:00 AM HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB197 Sponsor Statement 1.22.20.pdf |
HFIN 3/5/2020 9:00:00 AM HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB197 ver A 1.22.20.pdf |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB197 Fiscal Note DNR-DGGS 2.01.20.pdf |
HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB197 Supporting Document-Alaska Seismic Hazards Safety Commission Audit.pdf |
HFIN 3/5/2020 9:00:00 AM HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB197 Supporting Document-ASHSC 2018 Annual Report.pdf |
HFIN 3/5/2020 9:00:00 AM HRES 2/5/2020 1:00:00 PM HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB 230 Letter of Support - RHAK 2.7.20.pdf |
HRES 2/7/2020 1:00:00 PM |
HB 230 |
| HB 197 State Farm letter of support 2.7.2020.PDF |
HRES 2/7/2020 1:00:00 PM |
HB 197 |
| HB 230 IM FY 19 Activities and Spending 2.7.2020.pdf |
HFIN 3/5/2020 9:00:00 AM HRES 2/7/2020 1:00:00 PM |
HB 230 |