HB 173-CLIMATE CHANGE COMMISSION    4:00:51 PM CHAIR KREISS-TOMKINS announced that the final order of business would be HOUSE BILL NO. 173, "An Act establishing the Alaska Climate Change Response Commission; relating to the powers and duties of the Alaska Climate Change Response Commission; establishing the climate change response fund; and relating to the surcharge on oil produced in the state." 4:01:16 PM MEGAN HOLLAND, Staff, Representative Andy Josephson, Alaska State Legislature, reviewed the changes introduced in the committee substitute (CS) for HB 173, labeled 30-LS0163\R, Bruce, 5/1/17 [hereafter referred to as "Version R"] on behalf of Representative Josephson, prime sponsor, as follows: the oil surcharge and state funding are removed from the Alaska Climate Change Response Commission; Sections 1-4 relating to the oil surcharge are removed; Section 44.19.666 creating the Climate Change Response Fund is removed; the phrase, "in the climate change response fund" is removed from Section 44.19.662; all mention of state funding as sources of funding for the commission are removed; and under the CS, the commission would be operated through user fees and grant funding. 4:02:38 PM REPRESENTATIVE LEDOUX asked who the "users" would be in the reference to user fees. MS. HOLLAND replied that users would include government entities, non-government entities, and non-profits - organizations working in green energy and climate change response. She maintained that the fees would be for grant writing services provided by the commission, as well as other forms of assistance. REPRESENTATIVE LEDOUX asked for confirmation that no entities, including the state, would be required to use the services or pay for anything if they decided that they did not want to use the commission. She said, "This is all entirely voluntary ...." MS. HOLLAND answered yes. She clarified that Version R states that government entities and tribal organizations could not be charged user fees. REPRESENTATIVE LEDOUX asked, "If it's all voluntary, why wouldn't you just form a non-profit? Why do we need a bill to do something which is ... totally voluntary that is going to operate off of ... grant funds or people that think that it provides a good service and [want] to use it?" 4:04:45 PM REPRESENTATIVE ANDY JOSEPHSON, Alaska State Legislature, responded that as a state commission, the Alaska Climate Change Response Commission would be tasked with mitigation, grant receipts, and coordination with other government and non- government institutions. It would represent a statement of public policy by the legislature that climate change is real and seriously impacts Alaska. He maintained that a commission is needed both to mitigate climate change and fund schools in Newtok and Kivalina that are threatened. He said that it would continue the work done by former Governor Sarah Palin's [Alaska Climate Change Sub-Cabinet]. He added that it would model its membership on the now defunct Coastal Zone Management Act (CZMA) commission by having local representation. 4:06:58 PM MS. HOLLAND added that one of the primary purposes of the commission is to support non-profits and other entities in the effort, not provide the same services as non-profits. She maintained that Alaska misses out on billions of dollars in federal and private funds for [climate change related] efforts. REPRESENTATIVE LEDOUX referred to the proposed Section 44.19.652 [on page 3 of Version R, beginning on line 12], entitled "Compensation", which mentions "per diem and travel expenses". She asked if that would be paid for through user fees and grants. MS. Holland replied yes. 4:08:06 PM REPRESENTATIVE WOOL referred to testimony during the 4/11/17 House State Affairs Standing Committee meeting citing a study, which stated that most of the economic impact of climate change is projected to be in the Interior due to the large amount of infrastructure in that region. He pointed out that the Interior is not on the list of regions in Version R from which members of the commission would be appointed. REPRESENTATIVE JOSEPHSON offered that to correct that omission, there is a forthcoming amendment to add a seat representing the Interior. REPRESENTATIVE WOOL mentioned that with the selection [of commissioners] based on region, it would be unfortunate for a regional "battle" to ensue. He stated that climate change affects many places in Alaska; therefore, there may be conflict over funding or what region is in greatest need. He asked if the sponsor was concerned about this. He asked if the overall mission of the proposed legislation is to bring awareness to climate change or to mitigate it or something else. REPRESENTATIVE JOSEPHSON answered that he is not worried about regional tensions; they would be avoided because Version R is drafted such that the various regions would all be represented on the commission. He offered that like for the CZMA, the members of the commission would be those on the "frontlines" and in the best positions to know the impacts to their regions. He referred to the proposed Section 44.19.660 [on page 4 of Version R, beginning on line 13], entitled "Powers of the commission", and noted that the powers of the commission would be broad; the commission would be a clearinghouse for information, study, grant seeking, coordination with other agencies, public outreach, and monitoring and reporting. He mentioned that the duties are also listed under the proposed Section 44.19.662 [on page 5 of Version R, beginning on line 2], entitled "Duties of the commission". He pointed out that the original version of HB 173 was more ambitious; it included a surcharge using the [Division of] Spill Prevention and Response (SPAR) [Department of Environmental Conservation (DEC)] fund. Version R is less ambitious in that there are fewer resources to accomplish what is proposed, but it is a starting point to begin the process. He relayed that two governors ago there was a belief that this was a concern; he maintained that the impact of climate change has only grown; and it is important to recommence these efforts. 4:12:33 PM CHAIR KREISS-TOMKINS asked if under Version R, a designee would be permitted to attend a commission meeting in the place of a commissioner. REPRESENTATIVE JOSEPHSON responded that there is mention of alternate members and deputy commissioners. He expressed his confidence that with the large number of members on the commission, the absence of a single commissioner would not undermine the commission's work. He referred the committee to the proposed Section 44.19.656 [on page 3 of Version R, beginning on line 21], entitled "Alternate members". 4:14:02 PM REPRESENTATIVE WOOL asked if there are other commissions or committees working on these issues. He mentioned the [10th] Arctic Council Ministerial Meeting [5/1/17] and offered that there is a great deal of activity on the topic of climate change. He asked if there is redundancy. REPRESENTATIVE JOSEPHSON offered his understanding that although the lieutenant governor has a keen interest in climate change and is examining it as matter of policy for the [Governor Bill] Walker/[Lieutenant Governor Byron] Mallot administration, there is not a specific state effort. He offered that the topic of climate change comes up often in many legislative hearings, but as a state effort with a commission, it has been suspended since the Palin subcabinet was disbanded. He conceded that there is a great deal of research on climate change in Alaska, and it is a significant topic of research and concern for the University of Alaska Fairbanks (UAF); however, he offered that he is not aware of a centralized effort on this issue emanating from state government. 4:15:54 PM REPRESENTATIVE JOHNSON referred to page 2, lines 6-7, of Version R - the proposed subparagraph (E) - which read, "Upper Cook Inlet area, including the Municipality of Anchorage and the Matanuska-Susitna Borough", and noted that the area mentioned encompasses a large population of the state, and only one representative [for that area] is proposed for the commission. She opined that it would be disproportionately underrepresented. She asked about the goal of the composition of the commission, if not by population or equal representation. REPRESENTATIVE JOSEPHSON referred to the proposed Section 44.19.660 [on page 4 of Version R, beginning on line 13], which describes the powers of the commission, and the proposed Section 44.9.662 [on page 5 of Version R, beginning on line 2], which describes the duties of the commission. He noted that the duties of the commission would be broad and encompassing. He indicated that the intent for composition of the commission is not for a "one man, one vote" membership, like in the legislature, but more for the geographic representation; it would be the commissioners with the greatest stake and exposure to climate change. REPRESENTATIVE LEDOUX moved to bring the CS for HB 173, Version R, before the committee for discussion. There being no objection, the motion passed. 4:18:23 PM The committee took an at-ease from 4:18 p.m. to 4:20 p.m. 4:19:56 PM REPRESENTATIVE LEDOUX moved to rescind the committee action to bring the CS for HB 173, Version R, before the committee for discussion. There being no objection, the action was rescinded. [The motion to bring Version R before the committee was treated as withdrawn]. REPRESENTATIVE LEDOUX moved to adopt the CS for HB 173, Version R, as the working document. There being no objection, Version R was adopted as a work draft. 4:20:42 PM CHAIR KREISS-TOMKINS opened public testimony on HB 173. 4:20:58 PM DANIELLE REDMOND testified that this year the state is faced with a massive budget deficit that has strained the legislature. She opined that in all these budget conversations, it is important to look ahead and to point out that Alaska is on the frontlines of climate change impacts, which will result in enormous costs for the state. She relayed that having a body to study these questions and support communities like Shishmaref, whose existence is at stake, seems like the very least Alaska should do. 4:22:24 PM BUCK LINDEKUGEL, Conservation Attorney, Southeast Alaska Conservation Council (SEACC), testified that SEACC welcomes action by Representatives Josephson and Geran Tarr on climate change, because Alaska cannot ignore the long-term implications of climate change on Alaska's economy and unique way of life. He expressed his appreciation that the proposed legislation focuses on climate impacts to rural Alaska, because it would provide important support to local communities and non-profits, who are on the frontlines of this issue. He stated that Alaska needs to act now; the President of the United States has made climate denial a staple of his success and has appointed a climate denier to run the Environmental Protection Agency (EPA). He said, "It's time to get to work here in Alaska on positive local job-creating solutions to climate change." 4:24:12 PM BOB SHAVELSON, Advocacy Director, Cook Inletkeeper, testified that Cook Inletkeeper is a non-profit started in 1995 focusing on clean water and healthy salmon. He maintained that "the debate is over"; it is well known that burning fossil fuels causes climate change and ocean acidification; and Alaska is on the frontlines of rapid climate change. He mentioned the receding glaciers, disappearing sea ice, and melting permafrost. He stated that in Kachemak Bay, there have been a variety of significant impacts directly linked to a warming climate: forest devastation by a massive aphid; extensive seabird die- off; hardshell clam die-off; decrease in razor clam population on the east side of Cook Inlet; and never-before-seen instances of paralytic shellfish poisoning (PSP). He maintained that the most disturbing impact is the temperatures of the salmon streams, which violates the clean water standards, causes stress in salmons, and makes them more vulnerable to pollution, predation, and disease. He said that climate change threatens the Alaskan lifestyle, and fisheries are at grave risk. He expressed his support for HB 173 and is disappointed that the funding mechanism was removed. He maintained that without adequate funding, HB 173 would be a "tiny baby step," and giant strides are needed to address the severity of the problem. 4:26:38 PM ELIZABETH RODERICK testified that she appreciates that the legislature is considering acting on climate change; the state is not addressing the issue; action is overdue; and HB 173 will begin some movement on the issue. She maintained that many Alaskans are worried; she is losing sleep; and communities are experiencing economic losses. She stated that tourism and fisheries are the third and fourth largest sectors of the Alaska economy and relayed some of the consequences of climate change: in 2015, warm water temperatures and low river levels killed salmon in Matanuska and Susitna areas; hundreds of arctic char stocked by the Department of Fish & Game died; in January 2017, U.S. Secretary of Commerce [Penny Pritzker] granted Governor Walker's request for declaration of disaster for Alaska's salmon fisheries; the harvests in Kodiak, Prince William Sound, Chignik, and Lower Cook Inlet were much below the forecasts; and the National Oceanic and Atmospheric Administration (NOAA) [U.S. Department of Commerce (DOC)] determined that increasing acidity in Alaska waters is dissolving the shells of snails feeding pick salmon, herring, and mackerel. MS. RODERICK offered that the Arctic sea ice is considered the "air conditioner" for the world because of the role it plays in regulating global temperatures, and it is disappearing at an alarming rate. She reiterated that infrastructure is being badly impacted and will cost a great deal if not addressed now. She stated that Alaska has lost an estimated 300,000 caribou in northern Alaska from drowning and starvation due to the warmer temperatures. She maintained that the state's military leaders are declaring [climate change] to be the biggest threat to economic and national security. She expressed her disappointment with the elimination of the surcharge in Version R and asserted that Alaska needs to move forward with a climate change adaptation plan. 4:29:46 PM KAREN CAMERON, P.E.P.P.A., testified that the Arctic is where the greatest changes are taking place. She lamented that Alaska is not the leader and model that it could be for the rest of the world. She maintained that a commission, such as proposed under HB 173, would allow a variety of communications between scientists, citizens, and governmental officials; Alaska could have one vision as to what needs to be done and how to go about it. MS. CAMERON asserted that there are incredible sources of funding that Alaska is missing out on - the National Science Foundation (NSF), Federal Emergency Management Agency (FEMA), U.S. Department of Agriculture (USDA), and NOAA. Many non- profits could apply for this money, and the money could be funneled through the State of Alaska. She emphasized the importance of the commission members and encouraged the appointment of Adjutant General Laurie Hummel, Commissioner of the Department of Military & Veterans' Affairs (DMVA). She stated that there were many issues to consider and expressed her appreciation for the people focused on climate change. 4:32:09 PM KRISTEN COLLINS, Organizer, Alaska Center, testified that she supports forming a commission and stated that Alaska's Arctic communities are already faced with the impact of a warming climate. She maintained that the proposed legislation represents a step that the state needs to take forward to be able to react and recover from climate change impacts. She offered her support for HB 173 and urged the committee to prioritize legislation that would enable communities to be resilient in the years and through the changes to come. She expressed her disappointment that the funding mechanism was removed from the proposed legislation; and she offered her support for HB 173. 4:33:15 PM ANN RAPPOPORT testified that the proposed legislation would be a mix of relief and adjustment strategies for addressing climate change in Alaska. She mentioned her career in fish and wildlife biology and reiterated that Alaska is ground zero for climate change. She relayed impacts that she has seen in her 38 years in Alaska: glaciers melting and the gardening season lengthening significantly; coastal erosion and river flooding causing millions and millions of dollars of damage to countless villages and infrastructure throughout the state; and invasive species spreading with threats to wild fish, wildlife, and habitats that support subsistence, commercial, and recreational uses of tremendous economic, cultural, and other benefits to all Alaskans. MS. RAPPORT said, "It's way past time for the state to implement a thoughtful and coordinated approach to addressing these changes and threats to our existing economy and ways of life." She asserted that HB 173 would present a start to this approach. It would bring state agencies and elected leaders together in a climate change response commission to come up with solutions for Alaska. It would include grants, procurements, and technical and financial assistance to communities advancing renewable energy technology and advising the governor and legislature on climate policy. She maintained that all of these are very much needed. She stated that she is very disappointed in the change in the funding mechanism under Version R. She opined that the source of funding originally proposed - 1-cent per barrel surcharge on oil production - is appropriate due to the relationship between the production of oil and climate change; it is very reasonable; it would not impact the budget; and it would provide funding for the essential activities under HB 173. She mentioned that she is concerned that the user fees and grants proposed in Version R would not provide sufficient funding. CHAIR KREISS-TOMKINS asked for an at-ease to pass the gavel to Vice Chair LeDoux. 4:35:23 PM The committee took an at-ease from 4:35 p.m. to 4:37 p.m. 4:36:42 PM VICE CHAIR LEDOUX continued public testimony on HB 173. 4:37:01 PM BJOMA OLSEN, Kachemak Bay Conservation Society (KBCS), testified that he recently has started an organization called Alaskans KNOW Climate Change to encourage Alaska to address the climate change issue. He relayed that the EPA has stated that over the past 60 years, Alaska has warmed 3 degrees Fahrenheit - more than twice the global average - and over 6 degrees in the winter during the same period. Three Iditarod [Trail Sled Dog Races] had to be moved to a Fairbanks restart. He added that Alaska is witnessing the effects of climate change, which should put to rest any ideas of a "liberal conspiracy theory." He fully supports HB 173 and is also dismayed that the surcharge has been removed from the proposed legislation. He suggested that Alaska should join the European nations that have been taking large strides in addressing climate change adaptation and mitigation. 4:38:59 PM MIKE SALLEE testified that he agrees with the other testifiers. He offered that a climate commission could possibly build upon already existing projects, such as: the one in which Thorne bay students created a working model of a water pump that works off the tides 24 hours per day; and studies of the food chain involving salmon and sable fish, specifically related to the dissolving shell of the tetrapod due to ocean acidification. He said he is very disappointed that the surcharge on oil was eliminated from the proposed legislation. He maintained that it is well documented that the oil industry has undermined the science connecting climate change to human activity. He asserted that he is apprehensive of the power of oil interests in influencing the Alaska legislature. 4:41:32 PM The committee took a brief at-ease at 4:41 p.m. 4:41:56 PM VICE CHAIR LEDOUX continued public testimony on HB 173 after technical difficulties were resolved. 4:42:40 PM CEAL SMITH, Alaska Climate Caucus; Alaska Climate Action Network, referred to a letter of support [dated 5/3/17] included in the committee packet and signed by over 170 people representing over 30 organizations in Alaska. She asserted that the issue of climate change is urgent and important; climate change is impacting Alaska profoundly and at an alarming rate; it is affecting people's everyday lives. She stated that the trends are not encouraging: every year since 2014 Alaska has had record-breaking temperatures; and this fall temperatures across large parts of the Arctic Ocean were 68 degrees Fahrenheit above normal. She relayed that the failure to act on climate change is hurting Alaskans. She said that nearly 15 years ago the U.S. General Accounting Office (GAO) reported 86 percent of Alaska's Native villages are impacted; Kivalina, Koyukuk, Newtok and Shishmaref are in imminent danger; and she expressed her belief that it is past time that Alaska supports the relocation of these villages. She offered that when polling the members of her organizations, climate change is ranked one and two among the list of concerns. She expressed that her membership is in support of HB 173 and would like to see the funding mechanism restored. 4:45:31 PM MOIRA INGLE testified that Alaska is at the forefront of climate change and Alaskans are seeing the effects of it. She lauded former Governor [Sarah] Palin's subcabinet and mentioned that former Governor [Sean] Parnell abandoned the effort. She emphasized that given the position of Alaska on the forefront of climate change in the U.S. and the world, state level action on climate change is long overdue. She expressed her support for HB 173 - to restart the effort - and her disappointment with the removal of the funding mechanism. She maintained that the proposed surcharge was modest and would have been levied on an appropriate industry - the fossil fuel industry - which has both benefited from oil extraction and is culpable in climate change. She referred to the 5/3/17 letter of support mentioned by the previous testifier and urged the committee to consider the suggestions in the letter for amendments to HB 173, as follows: to require the Commission to develop a climate change adaptation plan within two years; to expand the commission to include experts and representatives from more Interior census areas; and to increase the surcharge. 4:48:20 PM RAYMOND O'NEILL testified that he has worked throughout the state as an environmental engineer - in Shishmaref, in Yukon- Kuskokwim Delta communities, and in Yukon Flats communities - and has seen the impact of global warming. He asserted that it is a climate crisis that is approaching an emergency. Across North America including Alaska, vector borne diseases are on the rise. The village of Shishmaref is eroding away; infrastructure is not being supported; and new infrastructure is not being brought in because of the need for the community to move. He maintained that attention to climate change is long overdue; it is hurting Alaska now; the community public health, safety, economy, and environment have been impacted in many ways. He recommended that the committee adopt the amendments suggested in the 5/3/17 letter of support. He said he is outraged that the surcharge on fossil fuel would be questioned; the people of the communities most impacted are unable to fund the effort; and the industries that have profited from [the extraction of fossil fuels] need to assist. 4:51:02 PM MICHELLE O'NEIL PURYEAR testified that she agrees with the proposed legislation; it is the social responsibility of any corporation doing resource extraction to reinvest in the communities they affect; and she considers it the cost of doing business. 4:52:14 PM CARL WASSILLIE, Biologist, Alaska's Big Village Network (ABVN), testified that he is a Yup'ik biologist from the Kuskokwim [River] area. He stated that he is concerned about climate change; climate change resolutions have been issued from the Yukon-Kuskokwim region beginning in 2005; since 2003, multiple tribes of the region have requested that [actions] be taken domestically and internationally to adjust to the changes that are causing harm to communities. He maintained that the State of Alaska has responsibility to the citizens of Alaska and for preventing implications of human rights abuses associated with doing nothing about climate change. He stated that he supports HB 173 fully and is disappointed that the funding has been eliminated. (indisc.) He asserted that HB 173 would be a good step and expressed his appreciation for the state reevaluating what the Palin administration did in 2006. He said the impacts [of climate change] are not only physical but are psychological; the harm is ongoing, especially in coastal villages and river villages dealing with the loss of sea ice and increased flooding and erosion. 4:54:51 PM ERIC SHAETZLE testified that Alaska must anticipate and prepare for the effects of climate change. He offered that even if the assessment of the numerous impacts was restricted solely to the fishing industry, those efforts would be justified. He maintained that ocean acidification and hydrologic cycle disruptions are direct threats to Alaska's economy. Alaska needs to protect the economic interest of Alaskans and identify opportunities for Alaska that might emerge because of the growing response to this global challenge. 4:55:53 PM VICE CHAIR LEDOUX closed public testimony on HB 173. 4:56:06 PM The committee took a brief at-ease at 4:56 p.m. 4:56:28 PM VICE CHAIR LEDOUX announced that HB 173 would be held over.