Legislature(2023 - 2024)BUTROVICH 205
05/10/2024 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB295 | |
| HB329 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| * | HB 295 | ||
| * | HB 329 | ||
HB 329-AQUATIC FARMS AND HATCHERIES
4:06:16 PM
CO-CHAIR BISHOP reconvened the meeting and announced the
consideration of CS FOR HOUSE BILL NO. 329(FSH) am "An Act
relating to state tideland leases; relating to geoduck seed
transfers; and relating to aquatic farming or related hatchery
operation site leases."
4:06:59 PM
SARAH VANCE, Representative, District 6, Alaska State
Legislature, Juneau, Alaska, presented HB 329. She read the
sponsor statement as follows:
[Original punctuation provided.]
Sponsor Statement v.D
HB 329 Aquatic Farm and Hatchery Leases
"An Act relating to state tideland leases; and
relating to aquatic farming or related hatchery
operation site leases."
House Bill 329 promises to provide a significant boost
to Alaska's aquatic farming industry, known as
mariculture. This legislation has the potential to
bolster the state's economy, help preserve its
environment and enrich its coastal communities by
streamlining the tideland lease process and extending
lease durations to up to 25 years. Mariculture, the
cultivation of marine shellfish and aquatic plants,
stands as a beacon of sustainable economic growth for
Alaska.
Mariculture not only generates employment
opportunities across various sectors but also injects
vitality into coastal communities. The industry
fosters commerce, both domestically and
internationally, while nurturing a vibrant ecosystem
in Alaska's pristine waters.
One of the key features of HB 329 is the
simplification of the lease acquisition process.
Currently, prospective mariculturists endure a lengthy
multi-agency application and review process which
generally takes years to complete. This bureaucratic
hurdle often deters potential farmers from entering
the industry. HB 329 aims to lessen this burden by
enabling quicker access to tidelands, enabling farmers
to concentrate more on farming and less on paperwork.
Moreover, the extension of the lease duration to 20
years provides for long-term stability for
mariculturists and encourages sustained investment in
the industry. This stability is crucial for the
development of robust mariculture operations. There is
also a clause that gives current lessees a first-
preference to the lease if they are in good standing
with DNR and ADF&G on their reports.
The environmental benefits of mariculture are also
noteworthy. Shellfish and seaweed play a vital role in
maintaining water quality by filtering out pollutants
and excess nutrients. They provide essential habitat
for diverse marine life and help mitigate ocean
acidification a pressing concern.
Furthermore, mariculture aligns with Alaska's rich
cultural heritage, complementing existing traditions
and customs in coastal communities. By promoting the
sustainable utilization of marine resources,
mariculture strengthens the bond between Alaskans and
their natural surroundings.
With HB 329 paving the way for a more supportive
regulatory framework, Alaska's mariculture industry is
poised to flourish, creating jobs, stimulating
commerce, and safeguarding the state's precious marine
ecosystems. As stakeholders rally behind this
initiative, Alaska's coastal communities stand to reap
the benefits of a thriving and sustainable mariculture
sector for generations to come.
4:08:38 PM
REPRESENTATIVE VANCE said Mariculture farmers have 10-year
leases but lack first right of refusal in retaining the lease
upon renewal. Granting this right adds stability, supports
investment, helps secure loans, and ensures long-term success
since product growth takes time. She stated that HB 329, Section
1, allows geoduck seed transfer to occur on the Aleutian chain,
a provision inadvertently omitted previously when farming was
permitted in the gulf. HB 329 does not allow geoduck seed
transfer to areas of Alaska where the species could be
considered invasive. HB 329 also give mariculture farmers a seat
at the table when leasing of tideland within 25 miles of their
business is considered for carbon sequestration. HB 329 provides
for commissioner discretion and public input regarding tideland
leases. She said other changes include cleanup language,
stronger recognition of traditional uses, and ensuring tribes
are consulted. If leased and tidelands aren't used commercially
for a year, the permit can be revoked to prevent misuse.
4:13:53 PM
SENATOR WIELECHOWSKI asked if she recalls the geoduck fights. He
stated there were concerns about invasive species impacting the
ecosystem. He asked how many miles on the Aleutian Islands, HB
329 opens to geoduck hatcheries.
4:14:42 PM
REPRESENTATIVE VANCE replied this amendment was added to the
original bill in House Fisheries. She invited Ms. Dufault to
reply.
4:15:13 PM
KATE DUFAULT, Program Manager, Aquatic Farm Leasing and Shore
Fishery Leasing Programs, Division of Mining, Land, and Water,
Department of Natural Resources, Anchorage, Alaska, answered
questions on HB 329. She invited Alaska Department of Fish and
Game (ADFG) to respond and said she knows there is at least one
lease application for an aquatic farm lease near Adak.
4:15:45 PM
SENATOR WIELECHOWSKI asked how the program works and whether
there are concerns with potential impacts to other native
species.
4:16:14 PM
MS. DUFAULT replied that species and acquired farm leases are
under ADFG's authority. Their aquatic farm operation permits
allow people to do stock transfers and obtain seed from
hatcheries.
4:16:39 PM
SENATOR DUNBAR asked how the 25 miles of submerged lands
mentioned in Section 4 is determined and measured.
4:17:18 PM
REPRESENTATIVE VANCE replied this language was in coordination
with the Department of Natural Resources (DNR). She invited DNR
to respond.
4:17:43 PM
MS. DUFAULT replied that the 25-mile distance follows the rules
in AS 38.05.945, which is mentioned several times in statute.
She said that the law states village corporations within 25
miles of a project must be notified, so DNR uses 25 miles as the
crow flies.
4:18:29 PM
CO-CHAIR BISHOP asked Ms. Dufault to describe how a best
interest finding works regarding leases. He noted that if HB 239
does not pass the 16 lease holders will need to apply for
another lease term.
4:19:17 PM
MS. DUFAULT replied 18 months before a lease expires, her office
contacts the owner to ask if they want to continue. If so, they
must apply for a new term either a lease renewal term or a lease
term that must be adjudicated through a best interest finding.
She described details of each process.
4:21:09 PM
CO-CHAIR BISHOP asked for the timeline on the best interest
renewal process, when there are no appeals.
4:21:19 PM
MS. DUFAULT replied that the process takes approximately 8-12
months for a best interest finding and renewal decisions average
4 months.
4:21:34 PM
CO-CHAIR BISHOP said it sounds like the geothermal bill. There
was another leaseholder going through the same process that took
about the same amount of time.
4:22:03 PM
SENATOR KAWASAKI questioned Section 7(k). He noted that it
appears to give a commissioner subjective discretion on whether
a survey is required.
4:22:27 PM
REPRESENTATIVE VANCE replied that the current language requires
fair market value appraisal, but it may not always be necessary
since tidelands are leased, not sold. She stated that the
revised language clarifies that the commissioner has discretion
to require a survey.
4:23:03 PM
CO-CHAIR BISHOP asked if there are any people who top filed on
top of the leases.
4:23:27 PM
MS. DUFAULT replied that to her knowledge there are no top
filings for mining.
4:23:35 PM
CO-CHAIR BISHOP clarified that he is referring to aquatic
leases. He asked if top filing exists for aquatic leases and
provided an example.
4:24:10 PM
MS. DUFAULT asked if he meant a competitive process.
4:24:16 PM
CO-CHAIR BISHOP replied yes.
4:24:20 PM
MS. DUFAULT replied for someone to apply competitively or top
filing, a lease would need to be expired for someone to do that.
If a lease is active and in good standing and someone
accidentally applies on top of the current lease site, their
application will be denied.
4:24:52 PM
SENATOR WIELECHOWSKI asked about the carbon management
provisions.
4:25:02 PM
REPRESENTATIVE VANCE replied it was a floor amendment, but the
bill included a placeholder that restricted carbo sequestration
leases to not be solely for carbon. She provided an example of a
business that grows kelp but only harvests the top 20 percent
and retains the bottom for carbon sequestration. Mariculture
grows felt that tideland leases could be locked for up to 55
years. This is significant given the growth potential of
mariculture. She said she added the placeholder to allow time
for the department to work out a compromise ensuring growers
have a voice in the process.
4:26:53 PM
CO-CHAIR BISHOP opened public testimony on HB 329.
4:27:17 PM
JASON LESSARD, Executive Director, Alaska Mariculture Alliance,
Anchorage, Alaska, testified in support of HB 329. He said the
bill effectively addresses regulatory issues and will benefit
industry growers. With coastal communities struggling, it opens
new opportunities, especially in kelp farming, which doesn't
conflict with the fishing season. He emphasized the importance
of food security and sovereignty and noted kelp has many uses
beyond carbon sequestration, like fertilizer. For example, a
Kodiak farmer sent kelp to a pig farmer who saw increased piglet
births and reduced antibiotic use.
4:31:26 PM
PAUL FUHS, President, Alaska Shellfish Growers Cooperative,
Anchorage, Alaska, testified in support of HB 329. He said
growers, including those focused on geoducks, have led the
industry for years. The bill addresses lease renewal issues
currently, best interest findings cancel leases and require
reapplication, with competitive bids forcing growers to bid
against their own operations. He stated that if a lease is
canceled, everything reverts to common property and could be
opened to commercial fishing, requiring limited entry permits.
This is a concern in the Aleutians. While the region borders the
Gulf of Alaska, Fish and Game classifies it separately, which is
why precise language was needed. He stated that acreage is
limited by seafloor conditionsin Adak, only 15 acres are used
for kelp farming. The same concern applies to carbon
sequestration. Kelp farms can go almost anywhere, but ideal
sites must not displace others.
4:34:41 PM
CO-CHAIR BISHOP closed public testimony.
4:34:55 PM
CO-CHAIR BISHOP held HB 329 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 295 - Transmittal Letter v.A (01.24.24).pdf |
HFSH 2/6/2024 10:00:00 AM HFSH 2/27/2024 10:00:00 AM SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB295 - Supporting Document Statutes and Regulations.pdf |
HFSH 3/7/2024 10:00:00 AM SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB295 - Supporting Document ADFG Lake Stocking Policy.pdf |
HFSH 3/7/2024 10:00:00 AM SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB295 Version U.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB295 Sectional Analysis Version U 05.07.24.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB295 Summary of Changes Made in the House 05.07.24.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB 295 ADFG Fiscal Note.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 295 |
| HB 329 Sponsor Statement Ver. D.A.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 329 |
| HB 329 Ver. D.A.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 329 |
| HB 329 Sectional Analysis Ver. D.A.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 329 |
| HB 329 Explanation of Changes for Ver. D to Ver. D.A.pdf |
SRES 5/10/2024 3:30:00 PM |
HB 329 |
| HB 329 - DMLW-DNR Fiscal Note (04-23-24).pdf |
SRES 5/10/2024 3:30:00 PM |
HB 329 |