Legislature(2015 - 2016)BUTROVICH 205

04/01/2016 03:30 PM Senate RESOURCES

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Audio Topic
03:30:04 PM Start
03:30:41 PM SB163
04:21:21 PM Presentation: Food Security
05:45:42 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Hearing May Go Until 5:30 p.m. --
+ Overview: State of Food Security in Alaska TELECONFERENCED
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 163 NATL. RES. WATER NOMINATION/DESIGNATION TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         April 1, 2016                                                                                          
                           3:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator John Coghill                                                                                                            
Senator Peter Micciche                                                                                                          
Senator Bert Stedman                                                                                                            
Senator Bill Stoltze                                                                                                            
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 163                                                                                                             
"An Act relating to the nomination and designation of state                                                                     
water as outstanding national resource water; and providing for                                                                 
an effective date."                                                                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PRESENTATION: FOOD SECURITY                                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 163                                                                                                                  
SHORT TITLE: NATL. RES. WATER NOMINATION/DESIGNATION                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/29/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        

01/29/16 (S) RES, FIN 02/15/16 (S) RES AT 3:30 PM BUTROVICH 205 02/15/16 (S) Heard & Held 02/15/16 (S) MINUTE(RES) 03/07/16 (S) RES AT 4:30 PM BUTROVICH 205 03/07/16 (S) Heard & Held 03/07/16 (S) MINUTE(RES) 03/14/16 (S) RES AT 3:30 PM BUTROVICH 205 03/14/16 (S) Heard & Held 03/14/16 (S) MINUTE(RES) 03/16/16 (S) RES AT 3:30 PM BUTROVICH 205 03/16/16 (S) Heard & Held 03/16/16 (S) MINUTE(RES) 04/01/16 (S) RES AT 3:30 PM BUTROVICH 205 WITNESS REGISTER MICHELLE HALE, Director Division of Water Department of Environmental Conservation (DEC) Anchorage, Alaska POSITION STATEMENT: Explained the changes in version I of SB 163. ED FOGELS, Deputy Commissioner Department of Natural Resources (DNR) Juneau, Alaska POSITION STATEMENT: Commented on SB 163. CHRIS PELOSO, Assistant Attorney General Civil Division Commercial and Fair Business Section Department of Law (DOL) Juneau, Alaska POSITION STATEMENT: Answered questions on SB 163. KEVIN BROOKS, Deputy Commissioner Alaska Department of Fish and Game (ADF&G) Anchorage, Alaska POSITION STATEMENT: Supported SB 163 and Mr. Fogels' comments. EMMIE VAN WYHEN, University of Alaska intern for Senator Giessel Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Organized the presentation on food security in Alaska. BRYCE WRIGLEY, President Alaska Farm Bureau, and CEO and Co-owner Alaska Flour Co. Delta Junction, Alaska POSITION STATEMENT: Commented on food security in Alaska. SARRA KHLIFI, Manager Alaska Food Coalition (AFC) Juneau, Alaska POSITION STATEMENT: Commented on food security in Alaska. LAUREN SILL, Subsistence Resource Specialist Division of Subsistence Alaska Department of Fish and Game (ADF&G) Juneau, Alaska POSITION STATEMENT: Commented on food security in Alaska. KEN METER, President Crossroads Resource Center Minneapolis, MN POSITION STATEMENT: Commented on food security in Alaska. ACTION NARRATIVE 3:30:04 PM CHAIR CATHY GIESSEL called the Senate Resources Standing Committee meeting to order at 3:30 p.m. Present at the call to order were Senators Costello, Stedman, Coghill, Stoltze, and Chair Giessel. SB 163-NATL. RES. WATER NOMINATION/DESIGNATION 3:30:41 PM CHAIR GIESSEL announced consideration of SB 163. She said this is the fifth hearing; the last hearing was on March 16 and public testimony had been heard and closed. 3:30:46 PM SENATOR WIELECHOWSKI joined the committee. SENATOR COSTELLO moved to adopt CSSB 163 ( ), labeled 29- GS2916\I, as the working document. CHAIR GIESSEL objected for purposes of explanation. 3:31:25 PM SENATOR MICCICHE joined the committee. 3:31:31 PM MICHELLE HALE, Director, Division of Water, Department of Environmental Conservation (DEC), Anchorage, Alaska, explained the changes in version I of SB 163 as follows: 1. Page 1, line 7: changes the name of Tier 3 waters to outstanding state resource waters instead of national waters. 2. Page 1, lines 9-10: adds that the Legislature may remove a designation. 3. Page 1, line 12 - page 3, line 7: rather than have the process for submittal of nomination information and public notice established in regulation (AS46.03.085(c) in the original bill), the CS establishes an eleven point criteria a nomination must include, and adds a fee (Section 46.03.135(b)(1) through (11)). The fee for a completeness determination of the nomination information. CHAIR GIESSEL asked for a discussion of the fee. MS. HALE replied the fee language is on page 3, line 7, and it is $1,000. It is to provide the agency with resources for making the completeness determination. That's not the analysis, but just in-taking the information, reviewing it, and making sure that it adheres to the previous 10 criteria in that section. 3:33:57 PM 4. Page 3, line 9: Adds a six month timeline for the department to determine that a nomination is complete in AS 46.03.145 5. Page 3, lines 10-25: Allows for the department to enter into an agreement with a nominator for the nominator to reimburse the department for the costs related to the analyses (not related to the completeness determination) of the nomination process including public notice, preparation of the findings, analyses and determinations related to the nomination to the legislature. The agreement that the department would enter into would also include money to reimburse the other resource agencies for the work that they do. So ADF&G and DNR would be included in that agreement and DEC would basically RSA the money to them. Alternatively, the department can prepare a cost estimate for processing a nomination and forward that to the legislature for consideration as a capital appropriation. 3:35:18 PM 6. Page 3, line 31 - through page 4, line 2: outlines that the department shall establish a process for providing public notice, including individual notice to land owners, and for prioritizing nominations in AS 46.03.155. And provides a process of prioritizing nominations. 7. Page 4, line 10 - page 5, line 16: Before transmitting nominations to the legislature, adds that the department must certify a nomination complete; in consultation with DNR and DF&G, determine that the water has exceptional characteristics; in consultation with DNR and DF&G create a report analyzing certain factors related to the nomination including analysis of risk that the water will be degraded, and the pros and cons of alternatives available to preserve the water in AS 46.03.165. 3:36:38 PM 8. Page 5, lines 17-23: Clarifies that a list of nominations from the preceding four calendar years is submitted to the legislature in the first regular session of each legislature after January 2018, while entire nomination packets for nominations certified complete in the preceding two calendar years are submitted in AS 46.03.175. 9. Page 5, lines 24-29: Requires the state resource agencies (DNR and DEC) to submit a report to the legislature every ten years beginning in 2020 on the status of designated waters and recommendations on continuation of the designations. 10. Page 5, line 30 - page 6, line 4: Provides language describing how the department shall manage a designated water to maintain its existing water quality and only allow discharges that result in temporary lowering of water quality in AS 46.03.185. 11. Page 6, lines 5-7: clarifies that a water cannot be managed as an outstanding state resource water until it has been designated as such. 12. Page 6, line 10-14: provides a definition of "resident" and "waters of the United States" in AS 46.03.195. 13. Page 6, lines 15-19: adds uncodified law that the department's first submittal of nominations to the legislature be after 2018. 3:38:51 PM SENATOR STOLTZE said Commissioner Hartig talked about finding the middle ground and asked if she would describe this as middle ground. MS. HALE answered yes, adding that they had worked very hard listening to comments and from the Senate Resources Committee to find that middle ground. CHAIR GIESSEL asked her to explained the error in citing the CFR on page 6, line 14. MS. HALE said the citation on line 14 is 40 CFR 230.3 and it should be 40 CFR 122.2. Both are definitions of waters of the U.S.; they just refer to different parts of the CFR and 122.2 is more appropriate to point source discharges. CHAIR GIESSEL said they would correct that after they adopt the CS. SENATOR WIELECHOWSKI asked if a tribe can apply for a designation under this bill. MS. HALE said the definition of resident of the state is defined in AS 01.10.055 and it is quite broad. It doesn't specifically call out tribes, but it does call out organizations and any person. For example, the chief of a tribe would be a person or resident of the state. SENATOR WIELECHOWSKI asked if the CS requires the legislature to formally consider a nomination after a person has paid the $1,000 fee. MS. HALE answered that nothing in the CS requires the legislature to formally consider that nomination. It just outlines the process the departments go through for their analyses and for getting that information to the legislature, and then it's up to the legislature to decide what they want to do with it. CHAIR GIESSEL said the $1000 fee is to pay for staff time used to make sure the application is complete. SENATOR WIELECHOWSKI asked how DEC will prioritize the nominations. 3:41:50 PM MS. HALE said that DEC would write regulations to clarify that, but one example of prioritizing those nominations would be the completeness of it. So, a large report with a lot of detail in it might have a higher priority than a simple letter. SENATOR WIELECHOWSKI asked if the DEC believes any waters deserve protection right now. MS. HALE said she wouldn't know how to answer that question. SENATOR WIELECHOWSKI asked if DEC has evaluated any waters and come to the conclusion that they should be protected as natural resource waters. MS. HALE answered no. 3:43:09 PM SENATOR MICCICHE asked why the administration brought this bill forward at this time. ED FOGELS, Deputy Commissioner, Department of Natural Resources (DNR), Juneau, Alaska, answered that the DEC is lead on this issue, but from DNR's perspective the Clean Water Act (CWA) requires the state to have this program. If the state doesn't develop its own program the concern is that the Environmental Protection Agency (EPA) could impose its own program. SENATOR MICCICHE said he wanted to pose that question to DEC, as well. 3:44:43 PM MS. HALE said DEC has been through the process over the last several years of actually putting its anti-degradation implementation procedures in regulation. It has been a very public process. The requirement to have a process for designating Tier 3 waters is in the CFR in the CWA and they are committed to finalizing it. This bill arose at this time as an "outgrowth of the work on those anti-degradation implementation procedures." SENATOR MICCICHE asked if it is related to the three current requests that are on the list for Tier 3 waters. MS. HALE answered the fact that they have those three requests is separate from the proposed legislation, although they are related. That is not what drove the legislation. SENATOR MICCICHE asked if Alaska had a choice in adopting an anti-degradation policy in 1997 under the CWA. MS. HALE replied that it is a requirement. SENATOR WIELECHOWSKI asked if language on page 3, lines 8-16: "Within six months after receiving a nomination the department shall determine whether the nomination meets the requirements. If after six months no determination is made...." means it automatically is concluded that the nomination meets the requirements and asked if there is some sort of penalty if the work isn't done within six months. MS. HALE replied that she didn't know the answer to that question. SENATOR WIELECHOWSKI said if the public nominates a waterway could they reasonably conclude that if six months passes and a determination hasn't been made, that it's automatically deemed to be a complete application. 3:47:48 PM MS. HALE replied that it would certainly be her intent to meet that six month deadline, but their attorney could better address that. 3:47:51 PM CHRIS PELOSO, Assistant Attorney General, Civil Division, Commercial and Fair Business Section, Department of Law (DOL), Juneau, Alaska, said he believed under state law, the nominator would be able to bring a suit or a complaint against the DEC for failure to meet its deadlines and a judge could order them to make a determination. SENATOR WIELECHOWSKI supposed that a judge did that and added that then it would still have to go to the legislature. He asked if a remedy is available if the legislature doesn't take any action. MR. PELOSO answered no; neither the DEC nor the courts can force the legislature to consider or take action on a bill. SENATOR WIELECHOWSKI asked if this legislation passes, could the citizens of Alaska designate a water body by ballot initiative. MR. PELOSO answered that a person could decide to go through the ballot initiative process. CHAIR GIESSEL added that the initiative would be submitted to the lieutenant governor who would then ask the Department of Law (DOL) if it was legal. MR. PELOSO said that was correct. SENATOR WIELECHOWSKI asked if he has an opinion about whether or not - if this passes and the determination process is turned over to the legislature - if it fails to act if the people of Alaska could legally designate a waterway through a ballot initiative. MR. PELOSO replied from his understanding of the state constitution, the legislature is a body that would designate this type of water body through a number of processes. If a bill came forward for a water body that clearly didn't meet the qualifications, it would be incumbent upon the Senate, or the voters in a ballot initiative, to make the determination that that waterway didn't deserve protection. SENATOR WIELECHOWSKI asked if it was his opinion that the people of Alaska could through a ballot initiative to nominate a waterway if this bill passes. MR. PELOSO said he believed that is the case whether or not they pass the bill. 3:51:31 PM SENATOR MICCICHE said that issue is worthy of further discussion. "Doesn't Kelso v. Rivichek in '96 define the fact that the state has the discretion in developing water quality regulations?" MR. PELOSO said he would have to look at that case law. SENATOR MICCICHE said Mr. Peloso made a statement that he believes the people have the right to designate water quality regulations and he wasn't sure that is the case. It is a valid and important question to which he wanted more information on. He added that the DEC currently has the authority to designate an NROW. MS. HALE answered that there is some real ambiguity in terms of who has that authority; either it's authority granted to the legislature by the constitution or the authority is granted to the DEC through the Water Quality statute. SENATOR MICCICHE said the governor made the policy choice to have the designation authority rest with the legislature and not with the DEC. 3:53:21 PM MS. HALE said the governor did make the choice to put this bill forward, but it is also the DEC's belief that the decision to designate a waterway more appropriately rests with the legislature. SENATOR COSTELLO said she wanted to clarify her response to Senator Wielechowski's question. She understands the way the bill is written that nominations that are forwarded to the legislature by the department would be in the form of just a report, not in the form of a bill. MS. HALE said that is correct; it would be in the form of a nomination with the backup information. SENATOR COSTELLO asked if an administration would be able to both forward a nomination in the form of a report and a bill that is introduced on behalf of the administration. MR. PELOSO answered yes. He thought a bill for nominating a water body would be simple: amending the statute by adding or subtracting waters off the list. 3:55:13 PM SENATOR COSTELLO said if this were to pass, statute would say that only the legislature could designate an Outstanding State Natural Resource Water (OSNRW) and asked if it was his opinion that a citizens' initiative could trump that state statute. MR. PELOSO replied that he would have to do more research on how ballot initiatives work. CHAIR GIESSEL said they would get an opinion from the Department of Law on that. SENATOR WIELECHOWSKI said one of the requirements is that the entirety of the water nominated is a water of the United States (page 4, line 13) and asked if that means if a river flows through Canada and comes into Alaska that it could not be nominated. MS. HALE answered that it is the "entirety of the water that is nominated" that needs to be part of the United States. Frequently one will see segments nominated in other states rather than the entire reach of the river. SENATOR WIELECHOWSKI asked when DEC submits its packet of information to the legislature can they expect a recommendation to accompany it to make the nomination or not. MS. HALE answered that it isn't called a recommendation, but rather a thorough analysis. 3:57:49 PM SENATOR STOLTZE asked how the $1000 completeness review fee was determined and if it actually covers the cost of the review. MS. HALE answered that the department has a lot of fees for services and is accustomed to the extent of work that can be done with a fee. The fee is a rough estimate based on how similar to other work it is. SENATOR STOLTZE said it's easy to get waiver variances for things like septic or discharge systems and asked if the fee is to discourage frivolous applications or does it come anywhere near covering staff cost for the review. MS. HALE said she is familiar with the kind of analysis the engineers do for those types of waivers and this work is very different in nature - a completeness determination and not an engineering analysis. The workload is similar, though. SENATOR STOLTZE asked if it is a similar staff commitment to review a septic system for a small lot as to analyze and review a river application that is permanent. Would $1000 cover all staff time and public process required or was it just a nominal fee to have some skin in the game? He was trying to develop an understanding. MS. HALE pointed to Section AS 46.03.145 on page 3, lines 8-25, that says the analysis and public notice costs he is describing would not be covered by the $1000 fee. The purpose of the $1,000-fee is simply to determine if the 11 criteria in the original section are met. Other costs for public notice and in- depth analysis would be covered in a negotiated agreement that the department would negotiate with the nominator. CHAIR GIESSEL said that was helpful and added that the final sentence says a capital appropriation would be needed and that would be the fiscal note. MS. HALE added that the fiscal note does not contain a capital appropriation. It is a multi-year operating appropriation for statutorily designated program receipts. So, it's essentially an empty appropriation until the negotiation is agreed to and signed. The program receipts would then be used to fund the DEC work or to RSA to DNR and ADF&G. CHAIR GIESSEL said although that is true, this certainly leaves a potential for future fiscal notes related to this kind of legislation. It appears that one can negotiate, because line 13 says the "resident shall reimburse the department for the costs or a portion of the costs incurred by the department or another state agency related to the nomination process." MS. HALE said further on they will talk about this potential capital appropriation, but right now they are in the situation of not knowing what the budget is going to be forever or how each negotiation will work out. So, there is an attempt to provide some flexibility. 4:04:38 PM SENATOR WIELECHOWSKI said it appears that the bill's whole focus is on nominations from residents and asked if it is possible for the governor, the legislature, a legislator, or a committee to nominate a waterway. Could a community such as Juneau or Haines nominate a water way? MS. HALE answered that she didn't have the definitions in AS

01.10.060 with her, but "resident" is defined quite broadly in that section. "Resident of the state" in the definition section means "an individual who establishes residency under AS

01.10.055," and .060 has the actual definition of resident that includes, for example, organizations. SENATOR WIELECHOWSKI asked if the governor or a legislator has to write a check for $1,000 if they want to nominate a waterway. He said the whole bill seems geared towards private citizens as opposed to "sort of the normal legislative process." MS. HALE answered that it has been DEC's understanding that if the legislature wanted to designate a water body as a Tier 3 or an ONRW water, they could do that themselves without this process. The governor could probably introduce a bill. 4:06:28 PM SENATOR MICCICHE asked DNR Deputy Commissioner Fogels if he could recall a 2014 ballot initiative on Bristol Bay watershed and what it asked about that watershed. MR. FOGELS answered that he remembered it requiring legislative approval of any large mining development in the Bristol Bay watershed after all the permits are issued. SENATOR MICCICHE said a similar effort is sort of going on here. MR. FOGELS responded that it is similar in that a significant decision is being deferred to the legislature, but he didn't know the thinking of the folks who put that initiative forward. SENATOR MICCICHE said he would try to contact them and find out. SENATOR COSTELLO said language on page 1, lines 7-10, say that only the legislature can designate, but page 11 talks about a nomination and its requirements and asked if the legislature were to designate a water body would the requirements apply to a bill. Common sense says that it would, but the language of the bill doesn't really cover that. 4:09:40 PM MS. HALE answered the requirements for the nomination are just that; the purpose is to make sure there is sufficient analysis and that information gets presented to the legislature. Then it is up to the legislature to do what they want; they could include the information in the designation or they might do something else. For example, Commissioner Hartig has spoken of the fact that the legislature has broad powers, so they may designate something that is slightly less protected than a Tier 3 water but very protected still. SENATOR COSTELLO thanked her, but said it didn't get to the point of her question which is if the designation were entirely generated from the legislative branch absent a nomination with all of the information, could the legislature designate a Tier 3 without meeting the requirements set out, for example, on page 2, line 14, that it has exceptional ecological, economic, or recreational significance. MS. HALE replied that it is her understanding that the legislature can do whatever it wants to. The Tier 3 definition is very broad and talks about these exceptional characteristics, but they have also talked about a very high level of water quality or something that is unique, for example, Mono Lake in California. SENATOR STOLTZE said given ADF&G's constitutional and legal responsibilities of sustainability and habitat protection and DNR's constitutional responsibility under Article 8, he wanted to know if either department has any concerns about this legislation compromising their mission. 4:12:39 PM MR. FOGELS answered that the department supports SB 163 and it will be able to continue fulfilling its mission of managing Alaska's water and other natural resources for the good of the people if it passes. They want to make sure if they are going to designate Tier 3 waters that the legislature and the people understand what that means and what restrictions might be placed on that water, so that that decision can be made very carefully, because it could have implications down the road. KEVIN BROOKS, Deputy Commissioner, Alaska Department of Fish and Game (ADF&G), said he also supported SB 163 and Mr. Fogels' comments. They feel the bill provides the department an opportunity to bring its valuable expertise on water bodies to the table. SENATOR STOLTZE asked if any provisions of this legislation would be deleterious or harmful to their ability to manage fish resources. MR. BROOKS replied that although a compromised water body would certainly affect fish, this bill provides a process for dealing with that. 4:15:11 PM CHAIR GIESSEL noted an incorrect CFR citation on page 6, line 14 that was a drafting error brought to their attention by DEC. SENATOR STEDMAN moved conceptual Amendment 1 on page 6, line 14, of CSSB 168, version I, to delete "230.3" and inserting "122.2". So it would read "2. Waters of the United States has the meaning given in 40 CFR 122.2, as that section read on the effective date of this act". 4:16:44 PM CHAIR GIESSEL said they needed to adopt the CS first and asked if there was objection to adopting CSSB 168, version \I. There were no objections and it was so ordered. SENATOR STEDMAN moved to conceptually amend the previous amendment. There were no objections and it was so ordered. SENATOR WIELECHOWSKI asked if there is a different definition of waters of the United States that 40 CFR 230.3 didn't cover. CHAIR GIESSEL objected for discussion and invited Ms. Hale to clarify. MS. HALE said the waters of the US rule, which is currently stayed because of litigation, has a definition of "waters of the US" at 230.3, but there are numerous other definitions of "waters of the US" throughout the CFR. The definition at 122.2 is the more appropriate definition of the purposes here: point source discharges, for example, and discharges under the National Pollutant Discharge Elimination System Program. SENATOR WIELECHOWSKI asked what 40 CFR 230 deals with. MS. HALE answered that 40 CFR 230.3 deals with the Dredge and Fill Program. 4:19:00 PM SENATOR COSTELLO asked if the committee could get both definitions in 40 CFR 122.2 and 230.3 just to see them side by side at some point. CHAIR GIESSEL said absolutely and asked Ms. Hale to get them. She removed her objection and asked if there was further objection to adopting the amendment. SENATOR WIELECHOWSKI asked if it would be possible to wait until they get the two definitions side-by-side. CHAIR GIESSEL replied that she was planning to set the bill aside as soon as they determine what to do with the amendment and tomorrow Ms. Hale can get the definitions for them. SENATOR WIELECHOWSKI reiterated it seems that the committee should wait to make the decision on the amendment until they had the definitions. CHAIR GIESSEL said the committee could amend it tomorrow if he found the definition is incorrect. Finding no further objections and said the amendment was adopted. She held SB 163 in committee awaiting the definitions from Ms. Hale. ^Presentation: Food Security Presentation: Food Security 4:21:21 PM CHAIR GIESSEL announced the committee would next hear an overview on Food Security, a project conducted by her University of Alaska Fairbanks intern. 4:21:27 PM EMMIE VAN WYHEN, University of Alaska intern for Senator Giessel, Alaska State Legislature, Juneau, Alaska, thanked her for the opportunity to bring a number of speakers on the topic of food security in Alaska and the various aspects of it including the vulnerability of the food system, food production, hunger in Alaska, subsistence, and the economic potential for Alaska to start producing more. ALASKANS FEEDING ALASKA BRYCE WRIGLEY, President, Alaska Farm Bureau, and CEO and Co- owner Alaska Flour Co., Delta Junction, Alaska, said he had been farming in Delta for a little over 30 years. In 2011 he started the Alaska Flour Co., because there was no flour mill in Alaska nor in northern Canada, the primary purpose being to address food insecurity in Alaska. Alaska Flour grinds its barley that it has raised on the farm and makes cereal and couscous, which are available on the market in Alaska. MR. WRIGLEY said he is also president of the Alaska Farm Bureau and a number of years ago the bureau started a project called the Alaska Food Independence Project to raise awareness of food security in Alaska, an effort that morphed into the Alaska Food Policy Council. MR. WRIGLEY said the bureau represents the interests of over 1,000 farm families throughout the state. He also represents the interests of Alaskans who desire to source local, healthy, food products. 4:25:08 PM He is aware the legislature is involved in closing the fiscal gap, but noted that "we are also free to agonize over those fiscal matters because we have full bellies." Alaska's food system is subject to a number of threats that at any time could become urgent. He believes in preparing for that possibility rather than hoping it will never happen. 4:26:26 PM MR. WRIGLEY said that Alaska has a number challenges; one is that its transportation line is very extended; another is that it has few redundancies. For example, a broke-down barge resulted in a week's delay in getting groceries to some Interior places; ice has blocked the Port of Anchorage before, and volcanos have erupted. These, as well as strikes on the West Coast, bad weather, and road washouts in Canada are all influences that impact Alaska's food system. Alaskans have already experienced these things, but once everything is up and running again people tend to forget until the next time. MR. WRIGLEY said these incidents should serve as a wakeup call and it is incumbent on everyone to put a solution in place while there is time. It can happen anywhere in the transportation chain. Alaska has 3-5 day supply of food on its shelves. Something that disrupts transportation for a week would be felt immediately. If a disruption happened for a couple of weeks, people would be in a world of hurt. The possibility of an earthquake in Alaska or the Pacific Northwest where all of our stuff is sourced from could put us in even more dire straits. What would it take to achieve a significant measure of food security in Alaska? Mr. Wrigley said he believes the state should set a goal of achieving a 90-day supply of food that will provide a balanced diet. They recommend about 25 percent of the food system be locally sourced and that that local food move through a normal distribution chain that is part of what is currently being used. That way it doesn't have to be warehoused or rotated and it doesn't cost the state any money to have people there to make sure it's not outdated - just the normal ebb and flow of commerce moves it through the distribution chain and takes care of the rotation. Rather than have the food squirreled away in a warehouse someplace at huge expense, the food is stored on the farms, in the flocks and the herds, and barns and silos in Alaska. That becomes Alaska's food storage system. MR. WRIGLEY said food doesn't have to be held all in one place to provide food security; it just has to be available. It can be on the hoof or growing as part of that system. It needs to be continually used and continually replenished. Setting a goal focuses the state's attention on that goal. Without a goal everyone goes off in different directions and nothing gets accomplished. 4:30:53 PM How much does Alaska need for a 90-day supply of food? Mr. Wrigley said Alaska has close to half of what it needs in potatoes and close to what it needs in number of carrots, but for milk, grains, meat, and poultry its way off the mark. He elaborated that the food needs to be part of the state's food system. In most cases the amounts are achievable within a few years. It isn't so much a problem of producing the food at this level as it is of being able to access the food system. His graph showed a leaky bucket representing the economy and said there are two ways of strengthening Alaska's economy. You either put more money in it or you plug up some of the leaks. He proposed plugging one of the leaks and that being the amount of food dollars that immediately leave the state. Doing that would also add revenue to the economy. MR. WRIGLEY said Alaskans spend billions of dollars on food each year, less than 5 percent of which is produced in Alaska. Increasing that to 25 percent could represent over $700 million. Compare that with the Department of Revenue's 2016 estimate of $800 million in oil production and that is a pretty significant leak. Applying a modest multiplier of 2.13 to those direct sales would result in $1.6 billion in economic activity for the state. This does not account for any of the socio-economic benefits of agriculture on communities and rural areas and the stability in those communities that agriculture typically provides. MR. WRIGLEY said Alaska has a number of opportunities that a strong local food system provides beyond the economic activity. It has strong possibilities for markets if it is branded correctly: for example: a relative lack of disease for seed production and the whole perception of pristine and wild. 4:34:24 PM MR. WRIGLEY said it should be clear that increasing food security is talking about the important-but-much-maligned sector of Alaska's economy called agriculture. He asked if they had ever wondered why people farm, and "It's not to make them rich." Most farmers work another job. They have a "character flaw" that drives them to spend their time trying to feed their local communities. 4:36:11 PM He said that Ken Meter had estimated that if every Alaskan spent $5 a week on locally grown food, it would add up to $187 million annually. This has become known as the five-dollar challenge. Last year a legislative audit revealed that the state purchased $41.6 million in food through its contracts and 1.2 percent of that was sourced locally. The state can do better than 1.2 percent, especially when it is investing in Alaska's security. MR. WRIGLEY had several inexpensive recommendations for developing a local food industry in Alaska. One was for the state to review policies and regulations to encourage the development of a local food system. An example of a policy that can be detrimental is the Wild Sheep Foundation that attempted to pass Proposition 90, which would place costly burdens on domestic sheep and goat ranchers in Alaska even though there is virtually no interaction between the domestic and the wild herds. The result would have been to force many of those farmers to get rid of their flocks. Another regulation that seems counter to encouraging production is FDA's requirement that irrigation water be tested before it can be applied to crops when many generations in Alaska have irrigated with river water. Involving farmers in the regulatory review of these policies will help agencies see things from a different perspective. The incentive to compel agencies to undertake such a review will have to come from the top, either legislative or administrative. 4:39:03 PM Secondly, Alaska should mount a focused public relations campaign to encourage Alaskans to purchase locally grown food. A number of states already aggressively do this. Having a market is essential to increasing food production and the state could do much to open those doors. Legislative and administrative support are great influencers. Put something in newsletters, mention it to constituencies at speaking engagements, and lead by example by using locally grown food yourselves. He said the state has the ability to open new and larger markets for local food by purchasing it directly from farmers or by requiring a certain percentage of local items be sourced locally in their contracts. The wording in food contracts could greatly increase the market share of state purchased food in its institutions, food service establishments and receptions. He mentioned the Governor's Alaskan Grown Dinner sponsored by the Alaska Farm Bureau that many attended this year. He hoped it opened their eyes to the variety of food and quality that can be raised in Alaska and the possibility of a stronger food system that keeps more Alaskan dollars in the state. MR. WRIGLEY closed saying: Many Alaskans think that their food comes from the grocery stores, and just for the record, the stores do not grow food. When it doesn't come in on the barge or the truck, the stores run out of it. Ignorance about the relationship between farms, food, and stores is no excuse, nor will it make us more secure. This is something we can immediately begin working on and at very little cost to the state. And even if there is never another disaster or strike or breakdown in transportation, it's still something that will benefit Alaska forever.... 4:41:24 PM SENATOR STOLTZE remembered that in 2013 Governor Parnell responded to HCR 1 with an administrative order by creating a subcabinet Food Policy Council and the DEC was mentioned as a participant because of their regulatory policies that could be forestalling opportunities to do things in a short growing season. The Department of Corrections is a major customer, as is the Department of Education, and many others. However, the council has not met during this administration. He asked Mr. Wrigley if he followed or participated in any of those meetings. MR. WRIGLEY answered yes; he was aware of them meeting twice. The first was a get-to-know-you meeting and the second was a follow-up. He hoped that council could be reactivated with a much more directed purpose. SENATOR COSTELLO said she is interested in seeing more Alaska grown food in Alaskan schools. She is concerned that there are children who will spend their entire education years in the Alaska school system never having once eaten Alaska salmon at lunch. Schools tend to have frozen meals that are in a bag. This is a missed opportunity and the legislature has a responsibility to provide those opportunities. She asked him to contact the Anchorage School District to discuss how to bring more Alaska grown food to school children. MR. WRIGLEY said he would be happy to do that, adding that his company has sold flour to the Anchorage School District and currently sells flour and couscous to the Mat-Su School District. A number of Bush school districts, also, are using some of their products. He knows there is a lot of interest on their part, because another effort was a $3 million grant to the schools to use locally grown food and that made a significant contribution to getting the school doors open. After two years of running, they are still getting calls and orders from that program. SENATOR MICCICHE mentioned the positive effects 4H programs have on families. In his area, the difference between the success rates is "astounding." Something went wrong that brought the 50 percent of home grown food in the '50s and '60s down to the 4 percent that is raised today. CHAIR GIESSEL thanked Mr. Wrigley for his presentation and invited Ms. Khlifi to provide her presentation. 4:50:01 PM SARRA KHLIFI, Manager, Alaska Food Coalition (AFC), Juneau, Alaska, said she would talk about food security in a little different context. She said the AFC is a statewide group of roughly 120 non-profit, faith-based, and state agencies. They convene to discuss issues of food security and issues people are facing throughout the state. Today she wanted to focus attention on who is hungry in Alaska and why there are gaps in food security for some people. MS. KHLIFI said she will cover food insecurity definitions and data, causes and correlations, the changing face of hunger, client demographics, programs available to address hunger in Alaska, and health factors. She said one of the issues in food security that they generally work with is making sure a household has access by all members of the family to enough food for an active, healthy lifestyle, to be contributing members of society and making sure that that food is also nutritionally adequate and safe to consume. In contrast, food insecurity is limited or uncertain availability of nutritionally adequate and safe foods. She said the USDA describes food security in a range: high food security is not having any food access issues or limitations and on the other end of that spectrum is very low food security, which is disrupted eating patterns, reduced food intake. Low food security is an issue in other parts of the state where there is a variety in access to food, but a lot of the times it's just not adequate for the family and individual needs. 4:52:39 PM Who is hungry in Alaska? Ms. Khlifi said an estimated 104,750 of Alaskans (14.2 percent) are hungry or food insecure. Of that, about 20 percent of the children (37,590 children) live in homes without enough food or are food insecure. A relatively high percentage of boroughs in Alaska have extreme barriers to food security. The Northwest Arctic and Bethel are at about 21 percent and the Yukon Koyukuk region is at 20.8 percent. Anchorage is at 12.3 percent (36,000 Alaskans) and the Kenai is at about 13 percent (3,710 Alaskans); 11,370 Alaskans in the Mat-Su Borough, and 13,050 in Fairbanks have extreme barriers to food security. In Southeast, Ketchikan has 13.8 percent food insecure Alaskans. Ms. Khlifi said there is a total of 37,590 food insecure children in Alaska. 4:54:29 PM MS. KHLIFI said this data was collected from a hunger study conducted in 2014, which is the best source they have on the details of who is hungry in Alaska. About 619 Alaskans were surveyed and 77 program visits were done by 194 Food Bank of Alaska partner agencies in every borough of the state. She said this study really helped them understand who is hungry and that 1 in 5 Alaskans seek food assistance very year. The Food Bank serves 155,000 Alaskans annually including repeat clients; 23 percent of those households include at least one veteran and 3 percent are currently serving in the military. MS. KHLIFI said many hungry people are part of the "working poor:" 60 percent have worked for pay in the last 12 months. Of those not working, 21 percent are retired and 9 percent cannot work due to disability (the slide saying 69 percent was wrong she noted). She said food banks want in the long run to work themselves out of the job. But now they are realizing they used to be emergency food providers but frequently they are chronic food providers. People are continuously coming to them. Hunger and poverty often go hand in hand: 53 percent of their clients served have incomes that are at or below the federal poverty level ($15,510 or less for a household of two). 4:56:58 PM MS. KHLIFI said hunger impacts public health. There is a big correlation between obesity and hunger, which seems contradictory; about 26 percent of households have at least one member with diabetes in the houses they surveyed. The rising costs in health care often create hardship and sometimes people have to make tough choices between paying their medical bills and putting food on the table. Alaskans have tough choices due to the rising cost of housing, transportation costs, utilities, and medical care. Food comes last and that is where a lot of emergency food providers come in. Eventually they hope Alaskans don't have to make that choice. 4:58:00 PM Families in need adopt coping strategies, such as eating cheap, processed, unhealthy foods that are not Alaska grown and past the expiration date (81 percent), purchasing food in dented or damaged packages (57 percent), and receiving help from family or friends (54 percent). The Food Bank of Alaska served 6.8 million pounds of food in FY15, she said. As the charitable end of the hunger system, they look to federal, state, and community funds for help. 4:59:33 PM MS. KHLIFI said that 19.5 percent of the agencies in their network are meal programs, and about 80.5 percent are shopping programs; many are faith based and about 64 percent of them have staff. The rest are mostly volunteer-run. She added that about 61 percent of the food comes from donations from farmers, fishermen, and food retailers; 26 percent comes from federal commodity foods; 13 percent is actually purchased with grants. Some of the food assistance programs that help serve Alaska's hungry are the Supplemental Nutrition Assistance Program (SNAP), the Women Infants and Children Program (WIC), the free introduced school lunch or breakfast program (NSLP), the Child Adult Care Food Program (CACFP), and the Expanded Nutrition Education Program (ENEP). About 50 percent of all school children in Alaska qualify for free or reduced price meals; 115,000 children are enrolled. A lot of rural communities depend on the National School Lunch Program to get meals to their kids. One gap is in the summer and that's why the Food Bank of Alaska administers the Summer Food Service Program. She said the Food Distribution Program on Indian Reservations (FDPIR) is administered by the Alaska Native Tribal Health Consortium and has 19 distribution agencies in rural Alaska. She explained that it is a little more complex, because a lot of those communities can't also qualify for food stamps if they are receive FDPIR; some villages have clients and folks that cannot receive food stamps, so they are supplemented in other ways. 5:02:19 PM MS. KHLIFI noted the chart labeled "Cycle of Food Insecurity and Chronic Disease: Diabetes" and explained that they try to give the best food they can afford to their clients to make sure they aren't making the situation worse. A lot of times folks come to food banks or emergency food providers because they are faced with medical bills and can't access the food they need for optimal health. A lot of times that results in diabetes and obesity and things like that. Again, lack of access to healthy, affordable foods creates this problem, as well as a lack of transportation to grocery stores that have affordable foods for them can all result in not being able to provide for their families. She presented a chart of how food insecurity can lead to increased health care expenditures and limited dietary options which leads to obesity, hypertension and diabetes, which perpetuates the cycle of food insecurity. Another chart graphed the correlation between food insecurity and overweight and obese Alaskans. This data was collected from the Behavioral Risk Factor Surveillance System in 2013. She noted a large correlation between those who are suffering chronic diseases as a result of food insecurity and those who are considered food secure. About 34 percent are obese which presents them with the problem of why so many Alaskans are obese when they are also hungry. 5:04:25 PM Consumption of fruits and vegetables and sugary drinks by secure and food insecure people as well as socio-economic categories of school children were on other graphs. Education is not the whole issue, she said. People want to access fresh and local foods, but it is expensive. Not being able to afford to buy Alaska grown food results in things like consuming less fruits and vegetables and supplementing that with cheap calories. The UAF Cooperative Extension Service Nutrition Education Program is crucially important for people to understand where to maximize their food dollars and eat healthfully on a budget, but it's not doing the full job. Why is this important to this hearing and to future legislation? Ms. Khlifi said they, as emergency food providers, want to work themselves out of a job by working collectively with other sectors of the food system to build food security, especially for those who don't currently have resources. They also want to shed light on some misconceptions about who is hungry. A lot of people use emergency food if they live paycheck to paycheck and want to continue paying for their house and car for transportation to their jobs. MS. KHLIFI closed saying they don't think charity will end hunger in Alaska and want to create some cross sector policies and solutions to making sure that Alaskans have consistent access to healthy food. 5:07:24 PM CHAIR GIESSEL noted that Representative Spohnholz was in attendance and invited Ms. Sill to give her presentation. FOOD SECURITY AND WILD RESOURCE HARVESTS IN ALASKA 5:08:12 PM LAUREN SILL, Subsistence Resource Specialist, Division of Subsistence, Alaska Department of Fish and Game (ADF&G), Juneau, Alaska, said they are a small resource division composed primarily of anthropologists and other social scientists. The division's mission is to research the customary and traditional uses of wild resources by Alaska residents and provide this information to the Board of Fisheries and Game. MS. SILL said she was asked to focus on food security of those residents who are especially dependent on subsistence resources. She clarified that she would talk about food security, and in this case it is defined as access by all people at all times to enough food for an active healthy life. In addition, she would discuss the harvest and use of wild foods regardless of the regulations under which they were harvested. 5:09:21 PM She said Alaskans harvest a diverse array of resources for home use totaling approximately 50 million pounds of wild foods each year. In 2012, rural residents harvested almost 37 million pounds of wild food. This harvest consisted of a majority of fish (salmon, halibut, white fish, and such) followed by large land mammals such as deer, caribou, or moose. The harvest was rounded out by marine mammals, shellfish, wild plants, and birds and eggs. In 2012, urban residents harvested just over 13 million pounds of wild foods of similar composition in that it was dominated by fish and land mammals. These 50 million pounds of wild foods are harvested under a variety of regulatory systems, not just subsistence regulations. For example, the harvest of salmon for home use by urban residents reveals that three main sources comprise the harvest: personal use fisheries, sport fisheries, and subsistence fisheries. The majority of harvest by rural residents are subsistence fisheries, but sport, personal use, and commercial fisheries all provide important sources of salmon for some communities. SENATOR STOLTZE asked what percentage sport, personal use, subsistence, and commercial fisheries is of all salmon harvested. MS. SILL said she didn't have that number, but would get it for him. 5:11:15 PM Slide 4 graphed per capita harvest of all wild foods harvested for home use by region. It was calculated by dividing the total harvest by the population for a region. There are regional patterns and in general there is a lower per capita harvest by urban residents than rural. The average urban harvest is 22 pounds per person per year while the average rural harvest is 295 pounds per person per year. Within the rural regions there are differences in per capita harvest, as well, with the highest harvests observed in Arctic communities with an average of 438 pounds per person. Wild foods are nutritionally significant in Alaskan diets (slide 5 graphed it per region). 5:12:26 PM MS. SILL said wild foods fulfill a substantial portion of the nutritional requirements for rural residents as well as urban. For urban areas, wild foods contribute approximately 15 percent of residents' daily protein needs while in rural areas, wild foods contribute anywhere from 100 percent to more than 250 percent. The contribution to caloric requirements is smaller, but still significant ranging from 2 percent in urban areas to nearly 40 percent in the western and Arctic regions. MS. SILL stated that the contribution of wild foods to the nutritional needs of Alaskans is unique. It cannot be replaced by store bought foods. Slide 6 graphed the percentage daily value of protein in the top graph and the fats in the bottom graph found in one serving of a variety of foods. A serving of the wild foods (caribou and salmon) have greater amounts of protein than store bought foods such as beef/pot roast or hot dogs. The lower graph shows that a serving of ground beef contains greater amounts of both overall fats and saturated fats than a serving of sockeye salmon. She noted that while ground beef is high in these fats, it significantly lacks the healthy fats (omega 3 fatty acids) that are abundant in salmon and other wild food. Beyond meat examples, there is still a difference in the nutrition of store bought and wild foods. For example, a serving of wild berries has two to four times the anti-oxidants found in store bought berries. The nutrition value of wild foods is clear, Ms. Sill said, but they also have economic value. If communities didn't have access to wild foods, what would it cost to replace those 50 million pounds with store bought foods? Wild subsistence foods don't circulate in markets, so it's difficult to place a monetary value on them, but they know the average cost of replacement foods like ground beef or salmon. 5:14:30 PM For slide 7 they took the amount of wild foods harvested and applied a range of per pound cost to the harvests. For urban areas, based on data summarized by the Alaska Department of Labor and Workforce Development (DOLWD), they used a range of $5-8 per pound for replacement foods, which leads to an overall value of nearly $100 million. In rural areas where store foods generally cost more, they used a range of $10-15 per pound for a total of nearly $475 million. Replacing the 50 million pounds of wild foods harvested by Alaska residents with store bought food would cost something like a half billion dollars. This is just the monetary value; it doesn't address the cultural value of harvesting wild foods. MS. SILL pointed out that harvesting wild foods is a central activity in many Alaska communities. It's pursued using small- scale, efficient technologies with the aim of meeting the needs of families in small communities. It is not intended for profit. Subsistence is considered a part of a community's mixed economy. Subsistence activities are supported through wage activity. Cash income is needed to buy equipment, the supplies and gas necessary for subsistence harvesting. The relationship between income and subsistence production is complex and varied. In general, one sees that the high producing households in a community usually have a stable cash income that can be used for subsistence activities. The harvest from these households provide for cash poor households who can't fish or hunt, such as elders, the disabled, or single parents of young children. They documented through social network analysis that sharing of subsistence resources is a central characteristic of subsistence communities. Subsistence activities contribute to sustainable and resilient communities where activities are organized around family groups for harvesting, processing, and sharing both of labor and of harvests. High levels of sharing among and between communities reinforce relationships. The acts of harvesting and processing and sharing transmit values and skills to younger generations. 5:16:16 PM In addition to the work the division does in assessing food security through collecting knowledge and information on harvest and use practices across the state, Ms. Sill said, it also administers a modified version of the US Department of Agriculture's Food Security Module (Slide 10), producing comparable results to the national and state food security scores produced yearly by the USDA. Because of the importance of subsistence to community food security and with help from the USDA, she said they have modified their module to include questions on store-bought and wild foods and questions to assess the seasonality of a household's food security. Respondents of their surveys are asked a short series of questions about their household's food security, and based upon their responses, households are designated as having high, marginal, low, or very low food security (slide 11). They did not make assumptions or claims for small communities due to the sample sizes involved, but they make regional comparisons that can provide insight into patterns and trends. During the household surveys they conduct in a community, after asking about the harvest and use of a resource category, Ms. Sill said they ask if the household used less, the same, or more, of that resource category and whether or not the household got enough. Getting enough of a resource to fulfill a household's requirements may depend on such factors as the amount of other food sources, like wild resources, store-bought foods, or garden-grown foods, and they also depend on the household's size, their nutritional needs, food preferences, and many other factors. 5:18:58 PM Twenty-two communities were used for the 2014 study year and the graph on slide 12 showed that 26 percent of the households that responded didn't get enough salmon; 57 percent of households did and 17 percent of households don't usually use salmon. Whether or not a household got enough other resource, the household may still have used less or more of that resource. There are a variety of reasons that a household might report using less: resources was less available that year, a lack of effort, less sharing, the household was too busy working or couldn't find the time to hunt or fish, or because of family/personal reasons (health and new babies). 5:20:33 PM In conclusion, Ms. Sill said, subsistence harvests are an important component of food security of Alaskans. A wild diversity of resources are harvested throughout the state for home use and the sources of harvest are varied. Fisheries and hunts considered subsistence are not the only important sources of wild foods for most households. Subsistence harvest and consumption of wild foods is part of the overall fabric of life in many communities and can't be adequately replaced through store-bought foods. The nutritional value and cultural importance are not fulfilled through store replacements. While Alaska overall has higher food security than the national as a whole, there are regional and seasonal variations seen throughout the state. Subsistence activities play an important role in the food security of communities statewide. While there are some factors such as the cost of heating during winter months which clearly contribute to these variations and trends, there is no simple correlation that can predict how food secure a community is. MS. SILL said the division has more information including an online database of community level harvests or wild resources that contains every community in every year there have been surveys. This is called the Community Subsistence Information System and can be found on the ADF&G website. Another database found there is of all the technical papers and reports they have produced on the surveys and ethnographic work conducted in over 250 communities. They have also produced a four-page document entitled "Subsistence in Alaska: A Year 2012 Update," which can be found on the Division of Subsistence home page. 5:21:35 PM SENATOR STOLTZE asked her to take a few items back to the commissioner and the governor on food security. Thirty-six Alaskan households have personal use salmon permits on the Kenai and Kasilof Rivers. Nearly 13,000 Alaskan households have permits to access the Copper River fishery, known as Chitina. And the Matanuska Susitna Borough, now the second largest borough in the state of Alaska, has an Alaska Native population in excess of 10 percent, which is about 10-11,000 Alaska Natives with a subsistence and personal use oriented nutritional background. He wanted to make sure that the commissioner and governor get this information on resource issues in case they are not watching it now. 5:22:21 PM SENATOR MICCICHE commented that looking at the Alaska and especially the US average on slide 11, except for Port Graham that is below the US average, the rest in Alaska have a relatively high level of food security. MS. SILL responded that these are just a few of the communities where they have done these surveys. They only started the food security question in 2013, so they haven't been administered to a lot of communities. The data is just from the year 2014 and it varies pretty significantly. SENATOR MICCICHE said the data indicates that 88 percent of Alaska folks live in high or marginal food security status and the US average is 86 percent. MS. SILL said that was true. FOOD SECURITY IN ALASKA 5:23:48 PM CHAIR GIESSEL announced the next speaker, Ken Meter, who co- wrote a report on food security in Alaska and would provide an executive summary. KEN METER, President, Crossroads Resource Center, Minneapolis, MN, said he works in about 40 states around the US doing studies of local food economies and helping various states and regions address issues of food security and access. 5:25:51 PM MR. METER said he found that Alaska spends $1.9 billion per year buying food that is sourced outside of the state. So, it's a really an economic leakage that is comparable to what some of the budget shortfalls the state is facing. It's a little bit more of a quiet crisis, but it is equally important in the sense that Alaska is especially challenged both by climate and changing weather conditions, and the fact that Alaska is further from some of the food sources than most of the Lower 48 is. That gives Alaska special vulnerability in looking at food. Living in Minnesota he shares that vulnerability, because a lot of the produce he eats comes from California and Mexico. This is a condition he sees happening in most of the states of the country. So, the economic shortfalls that he tracked are not unique to Alaska. He has done studies of the Minnesota food system and found that they import at least 90 percent of the food they eat. South Carolina, a state that has four growing seasons, was still importing 95 percent of what the people actually eat. He assumes that Alaska is in a very similar place, but Alaska clearly has less farm land, less growing season, fewer people who know farming, and fewer farms. To him this is a big concern for the future of the state given that oil prices are low now, but they may rebound making it more expensive to import food from Mexico or California. He believes importing food into Alaska will become increasingly difficult over the next few years. MR. METER said he also found that Alaska has some very solid strengths to work from. In the 1980's he visited Alaska and at that time there was a stronger agriculture tradition - dairy farming, milk processing, and some of the other industries - Alaska had counted on and in the last few years there has been a real emergence of farmers selling direct to household consumers, which to him, reflects the idea that people who live in Alaska that really want to reach out to connect with the farmer really realize some of the vulnerabilities they have and want to find some ways of assuring themselves of having better access to food. It turns out that 32 percent of Alaska farmers sell direct to a household consumer, a rate equally high in states like Vermont and New Hampshire, which have been devoted to local food sales for about 40 years. It is surprising to find that Alaska is actually one of the overachieving states in the country in terms of how farmers are connecting with household consumers. SENATOR STOLTZE remarked that in 2011 President Obama signed the Food Safety Modernization Act (FMSA) that put a pretty big administrative and regulatory barrier that some direct sellers are talking about and asked Mr. Meter if he found that a challenge in the other markets he has talked about. MR. METER replied that there has been quite a bit of concern all over the country, more than for real health issues, so far. His sense is that some of the outbreaks that have occurred have been traced in many cases to larger farms, and in many cases the specific practices in the field were not up to standards. Also, the FMSA offers exemptions to some very small farms selling direct to households on the understanding that if you are selling direct, the consumer has some ability to visit the farm or to know the practices of a farmer. Also the risks are inherently less, simply because the sales are smaller. Many farms are saying the new safety requirements are going to make them less interested in growing food. Many aging farmers say that they will simply get out of farming rather than submit to increased regulation. The younger farmers are reporting that the costs of getting certification or getting safety training are often prohibitive because their sales are fairly small in the first place. He also sees a nationwide effort for extension agencies to train farmers in good agriculture practices. 5:32:42 PM In many states most of the farmers are primarily producing commodities for export, but not in Alaska Mr. Meter said. Something like 20 percent of the food that farmers sell for human consumption in the state is sold directly. So, these direct sales are not only big nationally but also very important sources for the farmers who sell directly even though at this point it is a relatively small flow of money. It gives the state a very solid foundation from which to build up step-by-step more farms, more winter green houses, more efforts to extend the season, and in some cases for Alaskans to adapt their diets more closely to what farms in the state can actually produce. As the previous speaker mentioned, Mr. Meter said, the subsistence harvesting and personal use harvesting has a tremendous economic as well as cultural import. The story that most moved him about subsistence gathering was the sense that in some villages a person who has been a strong subsistence hunter has either retired or decided to opt out of that, and what happens in some of those cases is the family loses the ability to speak the language - often because the family doesn't work together if they aren't subsistence gathering as they would have done with that option. The terms they use while gathering food are very special and important to the culture. Sometimes when those practices fall apart, the very culture itself is threatened. 5:34:49 PM MR. METER said another strength of Alaska in some ways is the distance from the Lower 48. In the 50s some people decided to produce more food in the Matanuska Valley and some other areas, because the distance created some reason to be careful and to produce food at home because it's harder to bring it in from far away. In the Lower 48 he has found that many of the more remote places are the most creative about learning how to work together as a community to grow food, to process food, to trade it within the community, and to make better provisions for themselves to really have the skills and the capacities to raise food for themselves over the long term. His overall conclusion of the study would be that there is a significant financial leakage from the state just like other states of the country, but Alaska has a peculiar vulnerability that is both a threat and an opportunity. If Alaska wants to have a resilient lifestyle in 10 or 20 years, given the uncertainty about oil and the uncertainty about how much people can continue to use fossil fuels given the climate change, planning should start now to make sure that as much food as possible can be grown on Alaskan farms, in greenhouses or other indoor facilities in the state to really make sure that is a solid economically. Also, Mr. Meter said in the 1950s it was possible to import someone from Wisconsin who knew how to farm and now many fewer people know those skills. So, the report recommended starting at the school level to make sure that every high school graduate has basic skills in how to produce and cook food and eat carefully and build a healthy lifestyle for themselves. It also involves making sure the farm land is available, critically important in Alaska since some of the best farm land in the state has been taken by suburban expansion. This will require infrastructure investments for food storage, to store it safely and close to where people live in the wintertime. "We're going to need to keep I think a culture of producing food and harvesting food alive in the state." Marketing and professional training for people to really keep the system vibrant will be needed. SENATOR STOLTZE thanked him for his presentation and said with less than 600 acres of spud production, Alaska can only go up. It has capacity to do that, but the local market needs to be developed, and that is where the most assistance is needed. 5:40:10 PM SENATOR MICCICHE related a personal story about friends who named their potato farm "Outfit" and bought the surrounding homestead and ended up doing quite well. But they had a guaranteed market and a guaranteed contract. A very important part of it is developing outlets and he hoped they could move in that direction. He also had a question about what percentage of food Alaskans purchase that is brought from outside, because from the earlier presentation he thinks a lot slips by in the evaluation of how much is grown locally. He assumed that of the 95 percent of the $2 billion that is imported that the percentage grown and harvested in Alaska is much higher than 5 percent. MR. METER said these are "very rough estimates," and that it is costly to make an accurate account of those imports. The numbers they have are close enough to work with to have a pretty good overall sense at a gross level of what is going on, but if he says 95 percent of the food is imported that doesn't mean that he thinks 5 percent has been produced inside the state. The one clear number they have and one of the reasons he spoke about direct sales is that the US Bureau of Agriculture does ask farmers to talk about how much food they sell to household consumers. He recalled that was about $20 million. There had historically been a strong cattle industry that is also much weaker than it was just because of the economics of raising food and the relative ease of bringing it in from outside. Right now it looks like .3 or .4 percent of the food that farmers produce is sold directly to household customers, but he didn't have a firm number. SENATOR MICCICHE said he didn't think the leakage was on imports, but on local farming and livestock production. 5:44:52 PM CHAIR GIESSEL said this discussion reminded her of Creamer's Dairy that used to deliver milk in glass bottles to her doorstep in Fairbanks. She thanked everyone for their presentations and Ms. Vanwyan, who organized this hearing on food security in Alaska. 5:45:42 PM Finding no further business, Chair Giessel adjourned the Senate Resources Standing Committee meeting at 5:45 p.m.

Document Name Date/Time Subjects
SB 163-Version I.pdf SRES 4/1/2016 3:30:00 PM
SB 163
SB 163-Explanation of Changes-Version I-3-31-2016.pdf SRES 4/1/2016 3:30:00 PM
SB 163
SB 163-Comments-Tyler Rental.pdf SRES 4/1/2016 3:30:00 PM
SB 163
SB 163-Comments-Sean Brownell.pdf SRES 4/1/2016 3:30:00 PM
SB 163
SB 163-Comments-George Campbell.pdf SRES 4/1/2016 3:30:00 PM
SB 163
SB 163-Comments-Alaska Forest Association.pdf SRES 4/1/2016 3:30:00 PM
SB 163
Exec Summary-Building Food Security in Alaska-Ken Meter.pdf SRES 4/1/2016 3:30:00 PM
Food Security
Bryce Wrigley Presentation-Food Security-4-1-2016.pdf SRES 4/1/2016 3:30:00 PM
Food Security
ADFG-Div Subsistence-Lauren Sill-Food Security-4-1-2016.pdf SRES 4/1/2016 3:30:00 PM
Food Security
SB 163-Assorted Comments-4-1-2016.PDF SRES 4/1/2016 3:30:00 PM
SB 163
Sarra Khlifi-Food Coalition Presentation-4-1-2016.pdf SRES 4/1/2016 3:30:00 PM
Food Security
SB 163-Supporting Document-Alaska Dispatch News Commentary-Comms. Hartig, Rutherford, Cotten.pdf SRES 4/1/2016 3:30:00 PM
SB 163