Legislature(2013 - 2014)CAPITOL 106

02/04/2014 09:00 AM Senate STATE AFFAIRS


Download Mp3. <- Right click and save file as

Audio Topic
09:01:18 AM Start
09:01:20 AM Alaska Arctic Policy Commission Preliminary Report Presentation
09:58:03 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Joint w/ House State Affairs TELECONFERENCED
Alaska Arctic Policy Commission Preliminary
Report
Presented by Sen. McGuire, Rep. Herron and AAPC
Executive Director Nikoosh Carlo
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        February 4, 2014                                                                                        
                           9:01 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE STATE AFFAIRS                                                                                                             
                                                                                                                                
 Representative Bob Lynn, Chair                                                                                                 
 Representative Wes Keller, Vice Chair                                                                                          
 Representative Lynn Gattis                                                                                                     
 Representative Shelley Hughes                                                                                                  
 Representative Doug Isaacson                                                                                                   
 Representative Charisse Millett                                                                                                
 Representative Jonathan Kreiss-Tomkins                                                                                         
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 Senator Fred Dyson, Chair                                                                                                      
 Senator Cathy Giessel, Vice Chair                                                                                              
 Senator John Coghill                                                                                                           
 Senator Bill Wielechowski                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
HOUSE STATE AFFAIRS                                                                                                             
                                                                                                                                
 All House members present                                                                                                      
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 Senator Bert Stedman                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
ALASKA ARCTIC POLICY COMMISSION PRELIMINARY REPORT PRESENTATION                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE BOB HERRON                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Gave the  Alaska Arctic  Policy Commission                                                             
Preliminary Report Presentation as co-chair of the commission.                                                                  
                                                                                                                                
SENATOR LEISL McGUIRE                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Gave the  Alaska Arctic  Policy Commission                                                             
Preliminary Report Presentation, as co-chair of the commission.                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:01:18 AM                                                                                                                    
                                                                                                                                
CHAIR BOB LYNN called the joint  meeting of the Senate and Senate                                                             
State  Affairs   Standing  Committees  to  order   at  9:01  a.m.                                                               
Representatives   Keller,  Gattis,   Isaacson,  Hughes,   Kreiss-                                                               
Tomkins, and  Lynn, and Senators Coghill,  Giessel, Wielechowski,                                                               
and  Dyson were  present at  the call  to order.   Representative                                                               
Millett arrived as the meeting was in progress.                                                                                 
                                                                                                                                
9:01:20 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN handed the gavel over to Chair Dyson.                                                                                
                                                                                                                                
9:02:07 AM                                                                                                                    
                                                                                                                                
^Alaska Arctic Policy Commission Preliminary Report Presentation                                                                
Alaska Arctic Policy Commission Preliminary Report Presentation                                                             
                                                                                                                                
CHAIR DYSON  announced that  the only order  of business  was the                                                               
Alaska Arctic Policy Commission Preliminary Report Presentation.                                                                
                                                                                                                                
9:02:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BOB HERRON,  Alaska  State Legislature,  reported                                                               
that as required  by [the resolution adopted by  the Alaska State                                                               
Legislature in  April 2012, which  established the  Alaska Arctic                                                               
Policy Commission] the commission  delivered its full preliminary                                                               
report by January 30, 2014,  and delivered to all legislators the                                                               
commission's  executive summary  on February  3, 2014.   He  said                                                               
there  has  been  a  flood of  reports,  including  the  National                                                               
Strategy for  the Arctic  Region, issued early  in 2013,  and the                                                               
implementation plan  for that strategy  was supposed  to revealed                                                               
in September;  however, the commission provided  its thoughts and                                                               
information  to the  White House,  and the  administration pushed                                                               
back the reveal  to November, then to December, then  to the same                                                               
day Alaska issued its preliminary  report.  He characterized that                                                               
as "a  good sequence of events."   He explained that  both he and                                                               
Senator McGuire think  that the commission had an  impact on [the                                                               
administration's] report and implementation plan.                                                                               
                                                                                                                                
REPRESENTATIVE HERRON  opined that the legislature  needs to have                                                               
an Arctic footing and work  with its federal counterparts and the                                                               
governor,  who is  in the  branch most  responsible for  having a                                                               
working  relationship  with  the  federal government.    He  said                                                               
Alaska holds the purse strings and  writes the laws, and it needs                                                               
to  understand   how  it  can   best  protect  its   interest  to                                                               
international and federal governments in the Arctic.                                                                            
                                                                                                                                
9:05:20 AM                                                                                                                    
                                                                                                                                
SENATOR LEISL  McGUIRE, Alaska  State Legislature,  said whenever                                                               
the state works on issues of  sovereignty, it needs to be careful                                                               
not to send mixed messages.   She said the governor's team was at                                                               
the  table.    She  said   there  were  five  Senators  and  five                                                               
Representatives involved, including Senator  Cathy Geisel who was                                                               
present  today,  who worked  alongside  public  members who  were                                                               
subject matter experts  who had been appointed by  the Speaker of                                                               
the House  and the Senate  President and brought strong  views to                                                               
the  table,   ranging  from  environmental  protection   to  pro-                                                               
development.   Topics  were run  through  the administration  and                                                               
respective agencies  to find  out where  policy had  already been                                                               
established  and where  there were  gaps.   She  stated that  the                                                               
crowning   achievement   was   working  alongside   the   federal                                                               
government.                                                                                                                     
                                                                                                                                
9:07:20 AM                                                                                                                    
                                                                                                                                
SENATOR McGUIRE  stated that one  of the  best ways to  work with                                                               
the federal government  is to figure out where it  is going.  She                                                               
said the commission figured out  in March [2013], during meetings                                                               
in Washington,  D.C., that the  Obama Administration  was already                                                               
on an aggressive  pace in terms of Arctic strategy.   In light of                                                               
that,  she said,  the  commission  was able  to  get the  federal                                                               
government to listen  and join commission meetings,  in person in                                                               
Unalaska and  by phone  in Barrow.   At  the latter  meeting, she                                                               
said, she  compared the Canadian  policy and an initial  draft of                                                               
the  strategic report,  and she  mentioned references  to climate                                                               
without mention  of the  human beings  involved.   Conversely, in                                                               
the Arctic report, many references  were made to the human beings                                                               
that  lived on  the land  and their  interrelationship with  that                                                               
climate.  The  change in ice is paramount in  the Arctic, because                                                               
it brings both opportunities and challenges.                                                                                    
                                                                                                                                
9:09:48 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE said she and  Representative Herron would present                                                               
slides  to the  committee.   She  named the  following web  site:                                                               
akarctic.com.   She explained  that what  was being  presented to                                                               
the committee was the preliminary  draft.  She relayed there were                                                               
16 policy  recommendations and four vision  statements, and there                                                               
is still a lot of work to do,  primarily in the area of state and                                                               
national security  and spill prevention  and response.   She said                                                               
those  two  issues "came  to  us  a  little  bit later"  and  are                                                               
"cumbersome,"  but the  commission's teams  are addressing  them.                                                               
Senator McGuire  reminded the committee  that the  commission was                                                               
created by the legislature, thus  is a reflection of its thoughts                                                               
and ideas.   She encouraged  feedback over the next  year, noting                                                               
that the final report will be issued on January 30, 2015.                                                                       
                                                                                                                                
9:11:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON directed  attention  to the  cover of  the                                                               
executive  summary, which  shows two  photos.   He described  the                                                               
upper  photo as  "a polar  star camera  view."   He said  Alaska,                                                               
between Canada  and Russia, is small,  but plays a key  role.  He                                                               
said the bottom  photo is "Alaska looking to  the Arctic, looking                                                               
to the future."                                                                                                                 
                                                                                                                                
9:12:07 AM                                                                                                                    
                                                                                                                                
CHAIR  DYSON offered  his understanding  that  during the  Hickel                                                               
administration,  an  organization   named,  Northern  Forum,  was                                                               
formed, and  he observed that  he has not seen  that organization                                                               
listed.                                                                                                                         
                                                                                                                                
9:12:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON responded  that  the commission  discussed                                                               
Northern  Forum  at  its  December   meeting  in  Anchorage,  and                                                               
[commission  member] Nils  Andreassen said  the organization  has                                                               
"sort of  gone into dormant  mode."   He said people  are talking                                                               
about bringing it back; but that idea has not gained traction.                                                                  
                                                                                                                                
9:12:50 AM                                                                                                                    
                                                                                                                                
CHAIR DYSON  recollected that in  the past, the entity  was busy;                                                               
it had  several international conferences  and lots of  work with                                                               
both the  Canadians and the  Russians.  He expressed  surprise to                                                               
find out it had atrophied.                                                                                                      
                                                                                                                                
9:13:11 AM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE said  someone who  has spoken  a lot  about this                                                               
issue is Lieutenant  Governor Mead Treadwell.  A  thought is that                                                               
if the Northern Forum is going  to be restarted, then its mission                                                               
should  be reinvigorated.   Currently,  part of  Northern Forum's                                                               
mission exists with  the Institute of the North,  but the missing                                                               
link  is  with  Russia.    She said  this  issue  has  also  been                                                               
discussed in  Senate meetings.   She said  the population  of the                                                               
Arctic is  4 million, 2 million  of which are Russian.   She said                                                               
that in  the past, many  trade missions took place  with Sakhalin                                                               
and  Khabarovsk, and  she emphasized  the importance  of resuming                                                               
them  on the  local level,  even if  federal strategy  is failing                                                               
with Russia.                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE,  in  response  to Chair  Dyson,  mentioned  the                                                               
Arctic   Imperative,   a   pro-development  group   in   Girdwood                                                               
comprising 300  people at  its inception  and increasing  to over                                                               
1,000  people  during  its three  year  existence;  however,  she                                                               
ventured the  chair was thinking about  two quasi-state entities,                                                               
which receive  state funding:   Northern Forum and  the Institute                                                               
of the North.                                                                                                                   
                                                                                                                                
CHAIR DYSON  said while he  appreciates what had been  said about                                                               
invigorating the  mission, it seems "that  organization" has done                                                               
a lot  of work,  and the  legislature should  find out  what that                                                               
work is and build upon it.                                                                                                      
                                                                                                                                
SENATOR MCGUIRE concurred.                                                                                                      
                                                                                                                                
REPRESENTATIVE HERRON said there should  be a reference to it for                                                               
historical value.                                                                                                               
                                                                                                                                
9:15:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES noted that she  had read most of the report                                                               
and is  "excited about  the potential."   She  said she  sees the                                                               
work  of   the  Arctic  Council   as  pivotal.     She  expressed                                                               
appreciation for the work that is  being done.  She said it would                                                               
be helpful  if the report  included a description of  the groups,                                                               
as well as  list their membership, status,  and cooperative work.                                                               
She  stated  appreciation for  the  commission's  timing and  its                                                               
timely work with the federal government.                                                                                        
                                                                                                                                
9:17:18 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE  said most of  the groups are  federally created,                                                               
and  she posited  that  that  distinction should  be  made.   She                                                               
indicated one  question is:   "How do  we insert ourselves  in at                                                               
the  state level?"    She mentioned  another  group, the  Pacific                                                               
NorthWest  Economic Region  (PNWER) Arctic  Caucus, which  was in                                                               
recognition  that  at  the  provincial,  territorial,  and  state                                                               
levels,  Canada and  Alaska  are  not being  heard  enough.   She                                                               
expressed thanks  for the  late Governor  Hickel for  his vision,                                                               
and   expressed  appreciation   for   Lieutenant  Governor   Mead                                                               
Treadwell  and [former  state Senate  President] Drue  Pearce who                                                               
came before the  commission and did a lot of  work on this issue,                                                               
which she said  people were not always  interested in discussing,                                                               
even a couple years ago.                                                                                                        
                                                                                                                                
9:19:10 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE directed attention  to the slide presentation, to                                                               
two slides showing that there are  4 million people living in the                                                               
Arctic  and  the  division between  the  Russian,  European,  and                                                               
American Arctic.                                                                                                                
                                                                                                                                
9:19:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  explained  the  next  slide  showing  the                                                               
[covers of]  the many  reports issued  by the  federal government                                                               
over  the last  year.   She  said  the newest  report  is by  the                                                               
Department of Defense  (DoD) in November 2013, which  is what the                                                               
commission is  going to address  this year for the  final report.                                                               
He turned  to the  next slide  entitled, "U.S.  National Strategy                                                               
for the  Arctic Region."   He said  that entity wants  to advance                                                               
its   security  interests,   pursue  responsible   Arctic  Region                                                               
stewardship, and  strengthen international cooperation.   He said                                                               
the  commission opines  that  those "lines  of  efforts" seem  "a                                                               
little  too   high  level"  and   do  not   consider  responsible                                                               
development that protects and sustains northern communities.                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  directed  attention to  the  next  slide,                                                               
entitled, "Arctic  Council Chair,"  which shows  a timeline.   He                                                               
said this spring  and summer, the federal government  is going to                                                               
[hold] "listening sessions"  in Alaska to talk to  as many people                                                               
as possible.   Next  fall, he said,  the federal  government will                                                               
finalize  its  chairmanship themes  and  go  to the  other  seven                                                               
Arctic states  and negotiate  the themes so  that there  is "buy-                                                               
in."  He  stated that the chairmanship for the  Arctic Council is                                                               
"going  very,  very quickly."    He  said  the next  slide  shows                                                               
"Permanent  Participants of  the  Arctic Council,"  and he  noted                                                               
that  four of  the  participants are  indigenous Alaskan  groups:                                                               
the   [Aleut  International   Association]  (AIA),   the  [Arctic                                                               
Athabaskan Council]  (AAC), the [Gwich'in  Council International]                                                               
(GCI), and [Inuit Circumpolar Conference] (ICC).                                                                                
                                                                                                                                
9:21:50 AM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE  directed  attention  to  a  slide  showing  the                                                               
"Alaska  Arctic Policy  Commission" has  26 members,  composed of                                                               
five Senators, five Representatives,  one executive branch member                                                               
appointed by the governor, and  fifteen members appointed jointly                                                               
by  the Senate  President and  Speaker  of the  House; the  slide                                                               
lists the industries from which  those fifteen members come.  She                                                               
reiterated   the  commission's   interaction  with   the  federal                                                               
government, adding  that she and  Representative Herron  have had                                                               
weekly   conversations   with   representatives  of   the   Obama                                                               
Administration.                                                                                                                 
                                                                                                                                
SENATOR MCGUIRE  turned to  the slide  entitled, "AAPC  Letter of                                                               
Intent," and  she noted  there are  eight areas  of consideration                                                               
listed:    Indigenous  Perspectives and  Priorities;  governance;                                                               
Oil, Gas,  and Mineral Exploration  and Development;  Science and                                                               
Research; Energy;  Planning &  Infrastructure; Security  & Marine                                                               
Transportation;  and   Fisheries.    She  encouraged   the  joint                                                               
committee members to  let the commission know if  there should be                                                               
any  further  considerations  added.   Senator  McGuire  directed                                                               
attention to a slide showing the commission's vision statements.                                                                
                                                                                                                                
9:23:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON paraphrased  the vision  statements, which                                                               
read:   "Values community sustainability and  thriving cultures";                                                               
"Ensures   public  safety   and  security";   "Advances  economic                                                               
development  and   a  healthy  environment";   and  "Incorporates                                                               
transparency and inclusion into decision making."                                                                               
                                                                                                                                
SENATOR MCGUIRE noted  that depicted in the  lower [right] corner                                                               
of the  slide is Edward  Saggan Itta,  former mayor of  the North                                                               
Slope Borough, during a portion a  meeting set aside to listen to                                                               
the local people.                                                                                                               
                                                                                                                                
9:24:10 AM                                                                                                                    
                                                                                                                                
CHAIR  DYSON  referred  to  Representative  Herron's  mention  of                                                               
public safety,  and he  asked if  the term is  being used  in the                                                               
vision  statement  in   connection  with  cross-border  terrorist                                                               
activity or transportation safety.                                                                                              
                                                                                                                                
REPRESENTATIVE HERRON answered all of the above.                                                                                
                                                                                                                                
SENATOR MCGUIRE  added that  the group  is expanding  its mission                                                               
and  the  governor  is  placing  a  heavy  emphasis  on  homeland                                                               
security.   She  said,  "That  part was  added  in vis-à-vis  our                                                               
international  neighbors."    She stated,  "But  this  particular                                                               
group:   public  safety with  respect  to marine  traffic."   She                                                               
mentioned the need for search  and rescue response and a presence                                                               
built  up to  the population  increases.   In  response to  Chair                                                               
Dyson, she said air traffic is also a consideration.                                                                            
                                                                                                                                
9:25:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  directed  attention  to  the  next  slide                                                               
entitled, "Strategic Recommendations."   He listed the categories                                                               
and respective  leaders:  Governance and  Indigenous Perspectives                                                               
-  Senators   Stevens  and  Hoffman;   Science  and   Research  -                                                               
Representatives Edgmon and  Kerttula; Planning and Infrastructure                                                               
and  Wildlife  - Representative  Neuman;  Oil,  Gas, and  Mineral                                                               
Resources and Search and Rescue/Oil  Pollution - Senator Giessel;                                                               
Security  and  Defense -  Senators  Austerman  and Olson;  Marine                                                               
Transportation   -  Senator   Austerman;  Energy   and  Power   -                                                               
Representatives   Edgmon  and   Kerttula;  Fisheries   -  Senator                                                               
Hoffman.   He indicated that  Representative Guttenberg  would be                                                               
taking Representative Kerttula's spot.                                                                                          
                                                                                                                                
REPRESENTATIVE   HERRON,  referring   to   the  slide   entitled,                                                               
"Barrow,"  said  public  testimony  lasted  seven  hours  at  the                                                               
aforementioned  meeting  in  the  North Slope  Borough,  and  one                                                               
opinion  resulted, which  was "pretty  unanimous":   "The Chukchi                                                               
and the Beaufort is our garden;  we would rather that the federal                                                               
government  and the  state  work together  to  drain [the  Arctic                                                               
National Wildlife  Refuge] (ANWR) first."   He directed attention                                                               
to the slide  entitled, "Unalaska," and said it is  number one in                                                               
the  U.S. for  seafood volume  and will  play a  key role  in the                                                               
Arctic, because it is the  largest current port in Western Alaska                                                               
and key component to the Bering Sea.                                                                                            
                                                                                                                                
9:27:38 AM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE  said delegates  from  Iceland  and Norway  have                                                               
expressed interest in working with  Alaska in having "sister port                                                               
ships."   She said  those countries  are way  ahead of  Alaska in                                                               
recognizing  the potential  for  marine traffic  as  a result  of                                                               
"these opening  lanes."  She said  it is nice for  the commission                                                               
to look at  how opening the Northwest Passage  changes the volume                                                               
that comes  through the Bering  Sea down  into "that port."   She                                                               
continued as follows:                                                                                                           
                                                                                                                                
     I use  the figure that  Mayor Marquardt gave of  22 new                                                                    
     vessels  just to  support the  one exploratory  well of                                                                    
     [Shell  Oil Company],  and that's  not even  full-stage                                                                    
     development,  and that's  not Statoil,  and that's  not                                                                    
     [ConocoPhillips  Alaska,   Inc.];  and  that   port  is                                                                    
     already full, because it's the  largest fishery port on                                                                    
     the earth.                                                                                                                 
                                                                                                                                
9:28:43 AM                                                                                                                    
                                                                                                                                
CHAIR  DYSON ventured  that Senator  McGuire had  meant to  infer                                                               
that much  of the new traffic  coming through is coming  from the                                                               
Northeast  Passage from  Russia.   He  offered his  understanding                                                               
that there  are unresolved issue regarding  "innocent passage" in                                                               
the Canadian  archipelago, and  there is  a tacit  agreement that                                                               
Canada is  not going to push  to stop that traffic  in areas that                                                               
they consider  to be  their national waters.   He  mentioned "the                                                               
pie-shaped border dispute" between  the Yukon and Alaska, wherein                                                               
there is  a tacit  agreement to "operate  without that  one being                                                               
resolved."  He asked, "Have I got that right?"                                                                                  
                                                                                                                                
SENATOR MCGUIRE  answered yes on both  counts.  In response  to a                                                               
follow-up question,  she said she  does not  have a sense  of the                                                               
time frame on either of those issues.  She continued:                                                                           
                                                                                                                                
     I know that [for] our  Canadian friends, it's a dinner-                                                                    
     time conversation  about ...  whether they  agree about                                                                    
     innocent passage  or not, and  I'm just  thrilled about                                                                    
     the agreement  to just leave ...  the little pie-shaped                                                                    
     argument.  In fact, it's  the reason that ... there was                                                                    
     push-back when  I wanted to  form the Arctic  caucus to                                                                    
     begin with, because  there was a feeling  that it could                                                                    
     tear us apart as a group.                                                                                                  
                                                                                                                                
9:30:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  directed attention to the  slide entitled,                                                               
"Adak,"  which  he  characterized  as "an  asset  the  Navy  left                                                               
behind."   He  said  Chair  Dyson had  brought  up  a good  issue                                                               
regarding  the  "Northwest"  -  the   northern  sea  route.    He                                                               
mentioned the 3,000-4,000  ships that go through  Unimak Pass and                                                               
back down "through the chain beyond  Adak."  He said if Canada is                                                               
successful in  either Prince Rupert  or Kitimat,  those resources                                                               
that are going  west to Asia could double  traffic through Unimak                                                               
Pass - Alaska's territory - under innocent passage.                                                                             
                                                                                                                                
REPRESENTATIVE  HERRON  stated that  one  of  the most  important                                                               
strategies is going to be:   "How do we get beyond just voluntary                                                               
oil spill  response capability  in all these  ships?"   He opined                                                               
that  it is  in  the  state's best  interest  that  ships have  a                                                               
mandatory response  capacity, because  7,000 ships  going through                                                               
Alaska's  waters  every year  in  the  near  future have  a  huge                                                               
potential for disaster.                                                                                                         
                                                                                                                                
REPRESENTATIVE  HERRON turned  to the  slide entitled,  "Bethel,"                                                               
which he  noted shows  an Alaska Native  woman from  Kuskokwim in                                                               
the background photo.   He said the Yukon and  Kuskokwim Rivers -                                                               
the two major tributaries to  bisect Alaska - are "very dependent                                                               
on the Bering Sea."                                                                                                             
                                                                                                                                
SENATOR  MCGUIRE  said the  point  about  the potential  for  oil                                                               
spills from the  many vessels passing through the  Bering Sea was                                                               
brought up when the commission heard from Unalaska.                                                                             
                                                                                                                                
9:32:23 AM                                                                                                                    
                                                                                                                                
CHAIR  DYSON  offered an  explanation  about  the term  "innocent                                                               
passage" as follows:                                                                                                            
                                                                                                                                
     This is a  term of art in international  law; it's been                                                                    
     placed for  [a] couple  of centuries.   Basically, [it]                                                                    
     says that  the oceans of  the world are the  commons of                                                                    
     the world,  and all vessels  from all nations  - unless                                                                    
     there's  been something  specific -  have the  right to                                                                    
     innocent  passage   through  the  commons  -   all  the                                                                    
     maritime corridors  of the world.   The discussion with                                                                    
     Canada is  the traditional  -- the best  routes through                                                                    
     there, which are  only a couple ...  [through] sea ice,                                                                    
     are  well  within  the  Canadian  archipelago,  and  so                                                                    
     there's question  in their mind.   But innocent passage                                                                    
     means   all  kinds   of  commercial   [and]  recreation                                                                    
     [vessels] and  everything else, as long  as they're not                                                                    
     about bad  things.  ... [This  is a] huge issue  in the                                                                    
     maritime  world.   And  if  you  look at  international                                                                    
     maritime transportation,  there are a few  choke points                                                                    
     in  the   world  where  that's  hugely   important  who                                                                    
     controls those.                                                                                                            
                                                                                                                                
9:33:36 AM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE  directed  attention   to  the  slide  entitled,                                                               
"Nome,"  which  she  said  is   a  hot  spot  where  movement  in                                                               
infrastructure has begun.   The federal government  is looking at                                                               
both Port Clarence  and Nome in its feasibility study.   She said                                                               
consideration is being given to  developing a hangar large enough                                                               
for WX C-130 aircraft, as well as other infrastructure.                                                                         
                                                                                                                                
9:34:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  brought attention  to the  slide entitled,                                                               
"Bering Strait,"  which he said  is a  key choke point,  thus, is                                                               
probably the  area that  will receive the  most attention  in the                                                               
immediate future.                                                                                                               
                                                                                                                                
SENATOR MCGUIRE pointed out Port Clarence  and Nome on the map on                                                               
the Bering Strait slide.                                                                                                        
                                                                                                                                
9:34:40 AM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE   directed  attention   to  a   slide  entitled,                                                               
"Fairbanks," and she  relayed that the commission  held a meeting                                                               
there  to  focus on  UAF  as  Alaska's  Arctic University.    She                                                               
indicated the  connection between northern climates  and suicide,                                                               
alcoholism,  and drug  addiction,  and stated  the importance  of                                                               
studying the impacts of development in the north.                                                                               
                                                                                                                                
9:35:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON stated  that UAF is number one  in the U.S.                                                               
in  Arctic research  and is  a member  of the  University of  the                                                               
Arctic.    He  emphasized,  "It's important  that  a  legislature                                                               
invest in research, because we live in the Arctic."                                                                             
                                                                                                                                
SENATOR  MCGUIRE   brought  attention  to  the   slide  entitled,                                                               
"Anchorage,"  where   the  commission  heard  reports   from  its                                                               
subcommittees  during  a two-day  work  session.   She  commended                                                               
those involved for their focused efforts.                                                                                       
                                                                                                                                
9:36:55 AM                                                                                                                    
                                                                                                                                
SENATOR  COGHILL noted  that while  in Fairbanks,  the commission                                                               
had invited  a lot of  people to  come listen to  its discussion,                                                               
but seemed  to have "lost  a little  bit of voice"  in Anchorage,                                                               
which has a larger population.                                                                                                  
                                                                                                                                
9:37:28 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE explained that by  the time the commission met in                                                               
Anchorage on  December 9-10,  its focus  was on  bringing forward                                                               
its report  to the  legislature by  the 12/30/13.   She  said she                                                               
would recommend holding a public hearing in Anchorage, Alaska.                                                                  
                                                                                                                                
SENATOR  COGHILL responded  that  he would  really encourage  the                                                               
commission enlisting Kenai in the  discussion.  He said he thinks                                                               
Fairbanks  feels  a  part  of   the  discussion  because  of  the                                                               
university's role  and perhaps because  its Native  population is                                                               
larger.  He warned against creating a divide in the state.                                                                      
                                                                                                                                
9:39:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON said  Representative Coghill  made a  good                                                               
point,  but  he echoed  Senator  McGuire's  explanation that  the                                                               
commission had  been under  a time crunch  and wanted  to deliver                                                               
quality product.  He said  the commission realizes that it cannot                                                               
separate the Arctic Ocean from Alaska  or any part of Alaska from                                                               
itself.   He said  there will  be dozens  of smaller  meetings by                                                               
teams that will  have the responsibility to reach  out and gather                                                               
input from  all Alaskans.  He  said, "Too many others  are trying                                                               
to tell us how to be Alaskan."                                                                                                  
                                                                                                                                
SENATOR COGHILL  opined that if Alaska  is going to speak  to the                                                               
federal government  about the Arctic,  it needs  to do so  with a                                                               
unified voice.   He  commended the  commission for  its beginning                                                               
efforts.                                                                                                                        
                                                                                                                                
9:40:37 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL remarked that the  Sikuliaq - the Arctic research                                                               
vessel belonging UAF  harbors in Seward when it  comes to Alaska,                                                               
so "excluding the peninsula would be a mistake."                                                                                
                                                                                                                                
9:40:59 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE  turned to information  on the next  slide, which                                                               
lists  "Challenges  in  Alaska's  Arctic,"  as  follows:    "Huge                                                               
differences  between resource  wealth  and community  prosperity;                                                               
Isolated, remote  communities; lack  of infrastructure  - energy,                                                               
transportation,   telecommunications,   etc.;  Many   layers   of                                                               
ownership  of land  and resources;  Increasingly active  Arctic -                                                               
search for role, way to mitigate risk, and manage expectations."                                                                
                                                                                                                                
9:41:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  indicated  that the  commissions  efforts                                                               
have  resulted  in  an  "Arctic   Package,"  which  includes  the                                                               
following  legislation:   [Companion bills  SB 140  and HB  288],                                                               
which  address  Arctic development  and  would  allow the  Alaska                                                               
Industrial Development  and Export Authority (AIDEA)  to leverage                                                               
private money; [HB 165], which  addresses Alaska Arctic ports and                                                               
development  authority; and  [HJR  24], relating  to the  "Arctic                                                               
Council,"  outlining  the  state's   priorities  to  the  federal                                                               
government,  and  promoting  the  idea of  having  the  voice  of                                                               
Alaskan  officials  heard  in   consideration  of  appointing  an                                                               
individual to lead the council.                                                                                                 
                                                                                                                                
9:42:57 AM                                                                                                                    
                                                                                                                                
SENATOR   MCGUIRE  related   that   the  media   asked  her   and                                                               
Representative   Herron  how   Alaska  faces   an  infrastructure                                                               
challenge  with   a  tight  budget.     She  said   the  proposed                                                               
legislation  related  to  AIDEA  is modeled  on  the  Sustainable                                                               
Energy Transmission and Supply (SETS)  bill that addressed energy                                                               
and  liquefied natural  gas  (LNG) trucking.    She talked  about                                                               
"deferred  interest  on principal  ways  of  partnering with  the                                                               
private sector."   She said the state may not  be in the position                                                               
to "hand  out lots  of cash,"  but "these  development challenges                                                               
are not going to go away."   She opined that although building up                                                               
the  Trans-Alaska  Pipeline  is  important,  the  Arctic  is  the                                                               
economic opportunity for  future generations, which is  why it is                                                               
important to invest, even in tough times.                                                                                       
                                                                                                                                
9:44:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER expressed appreciation  to the co-chairs of                                                               
the commission for the work being done.                                                                                         
                                                                                                                                
9:44:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  emphasized the many other  people who have                                                               
worked hard, including former Lieutenant  Governor Fran Ulmer and                                                               
Jaime Robinson.   He said the commission hired  C. Nikoosh Carlo,                                                               
Ph.D.,  as   executive  director,   and  she  brought   with  her                                                               
experience working previously in Washington, D.C.                                                                               
                                                                                                                                
9:46:07 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE thanked  Jesse Logan and Rob Earl  for their hard                                                               
work.                                                                                                                           
                                                                                                                                
9:46:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT noted  one thing not expressed  is how far                                                               
ahead Russia  is on issues  of the Arctic,  a point she  said was                                                               
made at  the Arctic Imperative.   She  posited that Russia  is "a                                                               
force to  be reckoned with."   She warned against  falling behind                                                               
in "the race to own the Arctic."                                                                                                
                                                                                                                                
9:47:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON  recommended keeping an eye  on all other                                                               
nations, and he said China,  "being an observer," scares him more                                                               
than Russia.   He mentioned  the interest of  non-Arctic nations.                                                               
He asked Senator McGuire and  Representative Herron how they view                                                               
the  building interest  and convergence  of other  nations on  an                                                               
area that has "strategic value  to our long-term interest and yet                                                               
isn't catching  the popular press."   He questioned how  the work                                                               
of the commission might be affected in an election year.                                                                        
                                                                                                                                
9:48:53 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE  responded that the  commission will call  on all                                                               
legislators to work  as a team.  She said  she and Representative                                                               
Herron  will continue  working on  this issue.   She  stated that                                                               
there  would be  continued listening  sessions throughout  spring                                                               
and  summer.   She  recollected  a  time when  Secretary  Salazar                                                               
visited,  and  she  talked  about finding  gaps  and  giving  the                                                               
legislature an awareness  of them.  She said, "That  helps us, as                                                               
a state, move  into this place where the United  States takes the                                                               
chairmanship."   She relayed that  this would be only  the second                                                               
time in history  that the U.S. will have the  chairmanship of the                                                               
Arctic Council.                                                                                                                 
                                                                                                                                
9:50:20 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL,   in  response  to   Representative  Isaacson's                                                               
previous comment,  said both China  and India have  been admitted                                                               
to  the  Arctic Council  in  "permanent  observer status."    She                                                               
added, "So,  it is  absolutely a concern;  I appreciate  what you                                                               
expressed."                                                                                                                     
                                                                                                                                
9:50:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  said,  "That  is   key."    He  said  the                                                               
executive branch  goes to "ministerials"  and can be on  the U.S.                                                               
delegation  to  the  Arctic  Council  and  will  continue  to  be                                                               
participants in the  six working groups in the council.   He said                                                               
the  committee  work  is  where  the real  work  gets  done,  and                                                               
Alaskans can be involved in that.                                                                                               
                                                                                                                                
9:51:32 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE  said the commission  would have  other documents                                                               
for  the   legislature,  including  "the  Canadian   policy,  the                                                               
Northern vision,  and what they're  doing as their chairs."   She                                                               
said   Scandinavian   countries   have    held   back   to   back                                                               
chairmanships.   She mentioned the  Canadian delegation  and said                                                               
she is  a fan  of [Canada's Prime  Minister] Stephen  Harper, who                                                               
appointed a  Nunavut woman, Leona  Aglukkaq, as chair,  which she                                                               
opined  "says so  much."   She said,  "Their themes  are:   jobs,                                                               
economic  with  healthy  respect  for  indigenous  people  and  a                                                               
healthy respect  for the environment.   When you read  that, it's                                                               
Alaska,  Alaska, Alaska."    She said  she  thinks sharing  those                                                               
documents with the  legislature as a helpful  tool for responding                                                               
and  testifying  before  the  groups   that  will  be  soliciting                                                               
feedback.  She indicated that  she and Representative Herron have                                                               
been  pushing  for more  involvement  with  the Canadians  as  an                                                               
opportunity  to   influence  Arctic  policy  in   North  America.                                                               
However, she said there are  still places in the State department                                                               
that are still  "resistant to that Canadian vision  all the way."                                                               
She  encouraged support  of the  idea, "Wouldn't  it be  great to                                                               
have an  Alaskan?"  She explained  that the only reason  the U.S.                                                               
is an  Arctic nation  is because of  Alaska; therefore,  she does                                                               
not think "that's a stretch to say  that we ought to have that in                                                               
the same way that Canada has picked someone from the north."                                                                    
                                                                                                                                
9:53:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  said she appreciates Canada's  visions and                                                               
believes  "that is  an opportunity  for us  to extend  it."   She                                                               
echoed  Senator McGuire's  description  of the  Arctic being  the                                                               
next economic  frontier.  She said  she has hope for  rural areas                                                               
struggling  for healthy,  working communities.   She  stated that                                                               
she wonders  what the map of  Alaska will look like  in 50 years,                                                               
and opined  that "we"  have a  great challenge  to invest  in the                                                               
infrastructure.   She  expressed appreciation  for Representative                                                               
Coghill's comment  that this is  something that the  entire state                                                               
must embrace,  and she  said statewide,  Alaska will  be involved                                                               
with  resource  development  and   infrastructure  issues.    She                                                               
relayed  that she  had read  that one  day the  northern shipping                                                               
route will rival the Suez Canal.                                                                                                
                                                                                                                                
REPRESENTATIVE HUGHES,  regarding the placement of  more Alaskans                                                               
on  the Arctic  Council,  offered her  understanding that  "there                                                               
have been some  where we haven't had Alaskans and  we've had very                                                               
few."   She  asked  if consideration  has been  given  to how  to                                                               
ensure "people are at the  table" by assisting with scheduling or                                                               
financial assistance with travel.                                                                                               
                                                                                                                                
9:55:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  responded  that there  are  four  Alaskan                                                               
groups; there are four permanent  participants that go to all the                                                               
working group meetings.  The governor  attends, as well.  He said                                                               
the  legislature must  have  an understanding  of  how to  become                                                               
partners with  the executive branch  and work with  the permanent                                                               
groups - the  four Alaskan indigenous groups - to  have "a common                                                               
relationship."   He said  the indigenous  groups have  "done this                                                               
for almost  25 years, and  "we're coming  into it pretty  late in                                                               
the game."  He concluded, "The  executive branch is doing what it                                                               
has  to do,  but it  has  to be  an expanded  population that  is                                                               
involved in the Arctic Council in the working groups."                                                                          
                                                                                                                                
9:56:22 AM                                                                                                                    
                                                                                                                                
CHAIR  DYSON  asked, "When  an  international  or U.S.  Executive                                                               
branch wants to  know what's Alaska's position and  policy on any                                                               
of these  issues, who speaks for  the state?  Not  as an advisor,                                                               
but definitively."                                                                                                              
                                                                                                                                
REPRESENTATIVE HERRON  answered that it is  the executive branch,                                                               
which is why "we" have to  have an understanding of the Arctic in                                                               
order to help the executive branch.                                                                                             
                                                                                                                                
CHAIR  DYSON offered  his  understanding  that [the  legislature]                                                               
acts as advisor.   He asked if any of the  dozen groups that have                                                               
worked  on Arctic  policy  can serve  as  "an efficient  clearing                                                               
house for  all the  information, the research  ... that  has been                                                               
done over the last hundred years in the Arctic?"                                                                                
                                                                                                                                
REPRESENTATIVE HERRON  answered that  the Institute of  the North                                                               
has most base knowledge.                                                                                                        
                                                                                                                                
CHAIR DYSON noted that the  Alaska Oil and Gas Association (AOGA)                                                               
has  had  an  Arctic  Research   subcommittee  and  has  invested                                                               
hundreds of thousands of dollars into  it.  He expressed his hope                                                               
that Institute of the North has  at least a directory showing how                                                               
to get at that information.                                                                                                     
                                                                                                                                
9:58:03 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the Joint                                                                 
House and Senate State Affairs Committee meeting was adjourned                                                                  
at 9:58 a.m.                                                                                                                    

Document Name Date/Time Subjects
AAPC-Joint-State-Affairs (2).pdf SSTA 2/4/2014 9:00:00 AM
Alaska Arctic Policy Commission