Legislature(2005 - 2006)CAPITOL 124

04/13/2005 01:00 PM House RESOURCES


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01:09:20 PM Start
01:13:32 PM HB252
02:08:37 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 252 SPORT FISHING FACILITY REVENUE BONDS TELECONFERENCED
Moved Out of Committee
Bills Previously Heard/Scheduled
HB 252-SPORT FISHING FACILITY REVENUE BONDS                                                                                   
                                                                                                                                
CO-CHAIR SAMUELS announced that the  only order of business would                                                               
be HOUSE  BILL NO.  252   "An Act providing  for a  sport fishing                                                               
facility surcharge  on sport fishing licenses;  providing for the                                                               
construction  and renovation  of state  sport fishing  facilities                                                               
and for other projects beneficial  to the sport fish resources of                                                               
the state  as a public  enterprise; and authorizing  the issuance                                                               
of revenue bonds to finance those projects."                                                                                    
                                                                                                                                
REPRESENTATIVE JIM  HOLM, Alaska  State Legislature, said  HB 252                                                               
was  hatched when  Senator Ted  Stevens obtained  $10 million  in                                                               
federal funds for  a hatchery in Fairbanks.  He  said HB 252 adds                                                               
fees  to sport  fishing licenses  to rebuild  a hatchery  in Fort                                                               
Richardson and to build a new  hatchery in Fairbanks.  Bonds will                                                               
be sold  to build the  projects and reimbursed  by the fund.   He                                                               
noted that the total will be  $69 million, with $45 million going                                                               
to the Fort  Richardson hatchery.  If it isn't  rebuilt, he said,                                                               
it will  be torn  down because  it is  over 30  years old  and is                                                               
running out  of warm water.   There will  be $15 million  for the                                                               
Fairbanks hatchery,  $3.5 million  in reserves, and  $5.5 million                                                               
for other  fish projects including  the Crystal Lake  hatchery in                                                               
Petersburg,   the   Northern   Southeast   Regional   Aquaculture                                                               
Association hatcheries  in Sitka and  Haines, and $160,000  for a                                                               
new hatchery in Skagway.                                                                                                        
                                                                                                                                
1:13:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLM noted that the  license is currently $15, and                                                               
it will go to $23.50 under HB 252.   Once the bonds are paid for,                                                               
the increase  will be  reduced.   Alaska's fee  will not  be high                                                               
compared to sport fishing licenses  for other states, and we will                                                               
have state of the art facilities, he concluded.                                                                                 
                                                                                                                                
1:15:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO said he wants to hear from sport anglers.                                                                  
                                                                                                                                
REPRESENTATIVE HOLM  said most are  supportive, but  some thought                                                               
it was a greater increase than expected.                                                                                        
                                                                                                                                
1:17:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLM said about 80  percent of the money will come                                                               
from non-resident anglers.                                                                                                      
                                                                                                                                
REPRESENTATIVE   LEDOUX  asked   if  more   non-resident  fishing                                                               
licenses are sold.                                                                                                              
                                                                                                                                
1:18:03 PM                                                                                                                    
                                                                                                                                
DOUG VINCENT-LANG,  Assistant Director,  Division of  Sport Fish,                                                               
Alaska  Department of  Fish  & Game  (ADF&G),  said the  division                                                               
sells  more  sport  fishing  licenses   to  non-residents.    The                                                               
surcharge  would  depend on  the  license  time-period, he  said.                                                               
Many  sport groups  have supported  HB 252  because the  hatchery                                                               
production provides economic  benefits and fishing opportunities.                                                               
Kids start their  fishing experiences on stocked  lakes, he said.                                                               
This is how people get interested  in fishing.  The hatchery fish                                                               
relieves  pressure on  wild stocks,  "and  I can't  tell you  how                                                               
important  that  is,"  he  said.     The  hatchery  fish  provide                                                               
diversion fisheries, because the others  are fully allocated.  He                                                               
concluded  that there  is great  value to  anglers in  taking the                                                               
pressure off wild stocks like rainbow trout.                                                                                    
                                                                                                                                
1:20:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  asked  the  survival  rate  of  catch  and                                                               
release rainbow trout.                                                                                                          
                                                                                                                                
MR.  VINCENT-LANG said  management for  wild stock  rainbow trout                                                               
encourages  non-lethal, non-bait  fisheries,  and  there is  less                                                               
than five percent mortality.                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO   asked  how  far  hatchery   fish  can  be                                                               
transported.                                                                                                                    
                                                                                                                                
MR. VINCENT-LANG said  ADF&G is very good  at hatchery transport.                                                               
Fish go  by tanker truck  between Anchorage and  Fairbanks, which                                                               
is 400 miles.   He said 21 lakes in Kodiak  are stocked from Fort                                                               
Richardson.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO asked how hatcheries are located.                                                                          
                                                                                                                                
1:23:21 PM                                                                                                                    
                                                                                                                                
MR.  VINCENT-LANG said  there are  different production  needs in                                                               
Fairbanks and  Anchorage.  In  Fairbanks the state has  access to                                                               
hot water from the Aurora  power plant, which reduces operational                                                               
costs.    The  Anchorage  facility  meets  that  region's  needs.                                                               
Recreational  fishing needs  are  not conducive  to private  non-                                                               
profit ventures, he noted.                                                                                                      
                                                                                                                                
1:24:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked about support from sport groups.                                                                    
                                                                                                                                
CO-CHAIR SAMUELS said that will be in public testimony.                                                                         
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  if  the  Southeast Alaska  hatchery                                                               
enhancements are part of a long-range plan.                                                                                     
                                                                                                                                
MR. VINCENT-LANG said ADF&G spends  $750,000 through private non-                                                               
profit hatcheries in  Southeast.  There is also  $193,000 for the                                                               
Crystal  Lake Hatchery,  which will  be gone  at the  end of  the                                                               
year, he  said.   The projects  in the bill  are the  things that                                                               
were needed and were in ADF&G's  plans.  Some needs are addressed                                                               
through the  hatchery programs.   In Kodiak  there is  a stocking                                                               
plan that will be addressed through the hatchery in Anchorage.                                                                  
                                                                                                                                
1:27:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLM said the committee has letters of support.                                                                  
                                                                                                                                
CO-CHAIR  RAMRAS  said  he  supports  the  hatchery  programs  in                                                               
Fairbanks  and Anchorage,  but he  asked  why the  state needs  a                                                               
brand new $45 million hatchery in Anchorage.                                                                                    
                                                                                                                                
MR.  VINCENT-LANG  said the  hatchery  in  Anchorage is  old  and                                                               
crumbling, and  it is losing  its hot water.   The well  field at                                                               
the old  hatchery is maxed out,  he said, and a  new design would                                                               
use  water more  efficiently.   The demand  over the  next twenty                                                               
years requires the  new re-circulation technology, he  said.  The                                                               
production needs are greater in Anchorage than Fairbanks.                                                                       
                                                                                                                                
CO-CHAIR RAMRAS said there is  ample surplus waste heat according                                                               
to  Jim  Posey  of  Anchorage  Municipal Light  And  Power.    In                                                               
Fairbanks, there  is money  earmarked for  a mile-long  pipe from                                                               
the Aurora Energy power plant for  free waste hot water.  He said                                                               
he supports the hatchery program but it needs an airing.                                                                        
                                                                                                                                
1:34:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS noted that the  Fairbanks pipe will cost about $2                                                               
million.  The  Anchorage power plant has offered  the same option                                                               
to  the hatchery  in  Anchorage,  and it  will  cost  $1.5 to  $3                                                               
million.  "Are we being fiscally conservative?" he asked.                                                                       
                                                                                                                                
1:35:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS asked  how much  the Anchorage  hatchery can  be                                                               
upgraded  for $15  million.   There is  $350 million  in deferred                                                               
maintenance in  schools, he  said, and  he wants  a justification                                                               
for a $45 million new hatchery.                                                                                                 
                                                                                                                                
GORDON GARCIA,  Project Manager,  Division of Sport  Fish, Alaska                                                               
Department of  Fish & Game, said  ADF&G looked at a  pipeline and                                                               
estimated a construction cost of $4  to $6 million.  The hatchery                                                               
would also  need to get the  water to the power  plant, and water                                                               
is  limited in  that area.    He noted  that Anchorage  Municipal                                                               
Light and  Power has already  allocated most of its  excess heat,                                                               
so the  state would  have to  compete with  other entities.   The                                                               
right of way for the  pipeline, he explained, would be "literally                                                               
millions of dollars."                                                                                                           
                                                                                                                                
1:39:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said his dialogue  with Jim Posey was casual, and                                                               
he asked the  department to revisit it.  He  asked Mr. Garcia how                                                               
close ADF&G could get to its hatchery target with $15 million.                                                                  
                                                                                                                                
MR. GARCIA said he  would need to do research, but  it would be a                                                               
band-aid to barely  keep up with existing demand.   "We're losing                                                               
ground, even  as we speak,"  he said.  With  the loss of  the hot                                                               
water, the cost of keeping  the current hatchery running would be                                                               
prohibitive.  Recirculation  is much more efficient,  and it will                                                               
reduce competition for water.                                                                                                   
                                                                                                                                
1:41:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said he still disagrees with some of the issues.                                                                
                                                                                                                                
1:42:21 PM                                                                                                                    
                                                                                                                                
BILL  BUBBEL,  Tanana  Valley Convention  and  Visitor's  Bureau,                                                               
Trout  Unlimited, and  Chena Riverfront  Commission, said  he has                                                               
followed the hatchery process from  the beginning.  He noted that                                                               
a fishing  license is  a user  fee, not  a tax.   It  is resource                                                               
enhancement for the people using  the resource, he said, so there                                                               
is little opposition.   He reported that Alaska  is below average                                                               
for non-resident sport fishing fees.   Having catchable fish is a                                                               
huge  marketing  tool  for  tourism, and  it  will  increase  and                                                               
sustain visitation  in the area.   He  added that locals  are not                                                               
going to mind  spending the extra $8.  He  said, "Canada is about                                                               
fished out;  their stocking  program is a  little bit  behind, so                                                               
Alaska is  still a  dream that  [visitors] have,  and we  need to                                                               
fulfill that."   He claimed  the Interior has  different hatchery                                                               
needs,  and  transporting from  Anchorage  has  caused high  fish                                                               
mortality.  Pressure on lakes  is increasing because of increased                                                               
military in  the area.   "We need to  grow more fish,"  he added.                                                               
It  will take  time to  build the  hatchery, and  lakes will  get                                                               
depleted soon,  he warned.   Senator Stevens  has given  about $8                                                               
million  toward  the  hatchery,  he  highlighted,  and  about  $1                                                               
million has been spent on well  drilling and engineering.  It's a                                                               
huge  community  project,  involving kids,  the  university,  and                                                               
tourism advocates, he concluded.                                                                                                
                                                                                                                                
1:47:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said he agrees  with Mr. Bubbel on the importance                                                               
of getting kids involved in science, biology and the outdoors.                                                                  
                                                                                                                                
A.  L. BUKI  WRIGHT,  General Manager,  Aurora  Energy, said  the                                                               
company's power plant is on the  Chena River and has heat that it                                                               
doesn't use.  The hatchery can use  it if located within 1 to 1.5                                                               
miles of  the plant.   In the  process of making  electricity the                                                               
plant needs  Chena River  water to cool  hot equipment,  he said.                                                               
The warm water is now channeled back into the river and wasted.                                                                 
                                                                                                                                
1:52:28 PM                                                                                                                    
                                                                                                                                
MR. WRIGHT said  the water is warm enough to  raise fish, but not                                                               
to heat  the building.   So  Aurora Energy  will sell  its hotter                                                               
"district heat" for heating the buildings, he said.                                                                             
                                                                                                                                
1:54:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLM  asked about  Aurora Energy's  commitment for                                                               
the life of the project.                                                                                                        
                                                                                                                                
MR. WRIGHT said  the company has every intention  of being there,                                                               
and will  sign a long-term  contract to  provide the heat  for "a                                                               
lot longer" than 15 years.                                                                                                      
                                                                                                                                
1:55:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said  without the benefit of the  waste heat, the                                                               
annual cost  of the hatchery  would be  $700,000 more.   He hopes                                                               
there will be natural gas in the future.  He thanked Mr. Wright.                                                                
                                                                                                                                
1:58:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO asked about gas  coming to Fairbanks, and if                                                               
Aurora Energy will be forced to abandon the coal plant.                                                                         
                                                                                                                                
MR. WRIGHT said gas may or may  not mean that the coal plant will                                                               
shut down.  Gas  might be more expensive than coal,  he said.  It                                                               
is unlikely that the power plant  would shut down, and even if it                                                               
is converted to gas it would continue to have waste heat.                                                                       
                                                                                                                                
2:01:09 PM                                                                                                                    
                                                                                                                                
RICKY  GEASE,  Executive  Director,  Kenai  River  Sport  Fishing                                                               
Association, Soldotna,  said the  association supports  the bill.                                                               
The  new  facilities  are  important  for  the  future  of  sport                                                               
fishing, he said.  Over 60,000  new anglers will be coming to the                                                               
region in the next decade, and it  is time to plan now.  The user                                                               
fees will not  turn anyone away, especially since  the money will                                                               
be  used  for  resource  enhancement, he  said.    Lake  hatchery                                                               
programs are  important for  diversifying angling  activities and                                                               
reducing fishing on the extremely popular Kenai River.                                                                          
                                                                                                                                
2:04:41 PM                                                                                                                    
                                                                                                                                
JENNIFER  YUHAS,  Executive   Director,  Alaska  Outdoor  Council                                                               
(AOC), said  the AOC supports the  usage fee, but not  the use of                                                               
bonding.                                                                                                                        
                                                                                                                                
2:05:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked  if the bonding goes  forward and the                                                               
revenue  stream is  identified as  its user  fee on  recreational                                                               
licenses, "are you opposing that?"                                                                                              
                                                                                                                                
MS. YUHAS  reiteriated that  the AOC is  opposed to  funding with                                                               
bonds.                                                                                                                          
                                                                                                                                
REPRESENTATIVE SEATON asked why.                                                                                                
                                                                                                                                
MS. YUHAS said because the delegates voted against it.                                                                          
                                                                                                                                
CO-CHAIR RAMRAS said  the bonding mechanism can be  dealt with in                                                               
the House Finance Committee.                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS moved  to report  HB 252  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection,  HB 252  was passed  out of  the House                                                               
Resources Standing Committee.                                                                                                   

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