Legislature(2019 - 2020)BUTROVICH 205
01/30/2019 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Alaska Mariculture Development Plan/task Force | |
| SB22 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 22 | TELECONFERENCED | |
SB 22-SHELLFISH ENHANCE. PROJECTS; HATCHERIES
4:23:44 PM
CHAIR BIRCH announced the consideration of Senate Bill 22 (SB
22).
4:24:01 PM
SENATOR GARY STEVENS, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 22, revealed that he worked at his family's
cannery in Kodiak from 1970-1975 where king crab and shrimp was
canned. His family's cannery was ultimately sold when, "things
fell apart" in the Kodiak fishery. He said Kodiak still has king
crab, but not of a commercial nature.
SENATOR STEVENS set forth that SB 22 would lend itself to
creating a commercial fishery as well as a personal-use fishery
which is very important in Kodiak. He said SB 22 is about
enhancing and restoring the state's shellfish industry and the
usage of shellfish by Alaskans, particularly for crabs and
clams. He added that the bill promotes the constitutional duty
of the "sustained yield principle" for the state's fisheries. He
said SB 22 establishes a framework to permit and monitor
improvements of the state's shellfish population.
He summarized that 40 years of no fishing in Kodiak is a shame
where a regime change occurred that went from crab to mostly
pollock. He said his hope is to go back to crab with a shellfish
enhancement project.
4:26:23 PM
TIM LAMKIN, Staff, Senator Stevens, Alaska State Legislature,
Juneau, Alaska, said he appreciated Chairman Birch's earlier
comments regarding the committee's goals of economic
diversification, building the state's portfolio and spurring
other economic development, goals that he believes SB 22 speaks
to.
He explained that SB 22 is the result of a lot of work by
stakeholders and the state's scientists and biologists. He noted
that the same legislation was introduced during the previous
session but did not make it.
He detailed that the state's fish industry is a multi-billion-
dollar industry that is the largest private employer in Alaska.
He noted that most of the wild crab fisheries have been dormant
and shutdown for quite some time for reasons that are not
entirely understood by the scientific community, but in part
might be for over harvesting. He opined that the state has not
provided any tools to fix the fisheries other than to simply
stop fishing. He said SB 22 will help try to bring a fix to the
table.
He explained that there has been an "environmental regime shift"
where crustaceans were once the oceans' dominant biomass and now
the finfish dominate. He detailed that the bill's intent is to
provide a legal framework where crabs can be raised in
hatcheries and released into the wild to provide a better shot
at growing to maturity for harvest. He said the policy addition
from SB 22 should have a positive effect on the state's economy,
science investment, fisheries-related jobs, and bolster the
constitution's principle of sustainable yield that will
ultimately show up on Alaskans' supper table.
4:29:51 PM
SENATOR KAWASAKI referenced the sponsor's statement for SB 22
and addressed the fifth paragraph as follows:
The bill creates a regulatory framework with which
Alaska Department of Fish & Game (ADF&G) can manage
shellfish enhancement projects and outlines criteria
for issuance of permits. It sets out stringent safety
standards to ensure sustainability and health of
existing natural stocks. The commissioner of ADF&G
must also make a determination of substantial public
benefit before a project can proceed.
He asked Mr. Lamkin to confirm that SB 22 sets out stringent
safety standards to ensure sustainability and health of existing
natural stocks.
MR. LAMKIN replied that SB 22 is closely modeled after existing
salmon hatchery permit language so in the spirit of it being
closely monitored in high standards of safety for those
hatcheries, they will likewise be applied for shellfish hatchery
projects.
SENATOR KAWASAKI readdressed the sponsor statement where the
fifth paragraph had stated, "The commissioner of ADF&G must also
make a determination of substantial public benefit before a
project can proceed." He asked what "substantial public benefit"
is defined as.
MR. LAMKIN replied that he did not have the definition memorized
but noted that the definition is either in statute or regulation
that is consistent with other preexisting statutory language
with salmon hatcheries which are applied to the shellfish
hatcheries.
CHAIR BIRCH asked Mr. Lamkim or ADF&G to address the bill's
fiscal note as it relates to commercial fishing as well as the
permitting process.
MR. LAMKIN replied that he will defer to ADF&G to address the
fiscal note for SB 22.
SENATOR GIESSEL asked that Mr. Lamkin provide a sectional
analysis for the bill.
MR. RAYBUNG explained that the fiscal note is indeterminate, but
if the fisheries grow there could be a fiscal impact if
additional staffing is required.
CHAIR BIRCH asked Mr. Lamkin to proceed with a sectional
analysis for SB 22.
4:33:08 PM
MR. LAMKIN referenced the sectional analysis for SB 22 as
follows:
Section 1:
Provides the Alaska Board of Fisheries authority to
direct the department to manage production of enhanced
shellfish stocks, beyond broodstock needs, for cost
recovery harvest.
Section 2:
Increases the permit application fee for new private
nonprofit salmon hatcheries from $100 to $1,000.
Section 3:
Adds a new Chapter 12 to Title 16, "Shellfish Stock
Enhancement Projects:
• AS 16.12.010: Provides direction to the
commissioner of the Department of Fish and Game
on issuance of permits for private nonprofit
shellfish fishery enhancement projects and
establishes a $1,000 permit application fee. This
section directs the commissioner to consult with
technical experts in the relevant areas before
permit issuance;
• AS 16.12.020: Provides for a hearing and public
notification and input process prior to issuance
of a permit;
• AS 16.12.030: Describes terms and conditions for
permit holders to conduct their work, including
cost recovery fisheries, harvest, sale, and
release of enhancement project produced
shellfish, and selection of broodstock sources;
• AS 16.12.040: Describes the revocation process
should a permit holder fail to comply with the
terms and conditions of the permit;
• AS 16.12.050: Specifies that shellfish produced
under an approved enhancement project are a
common property resource, with a provision for
special harvest areas by permit holders. This
section also specifies the Board of Fisheries to
establish regulations relating to this chapter;
• AS 16.12.060: Directs the department to advise
and assist permit holders in their planning,
operations, and construction of facilities to a
reasonable and appropriate extent;
• AS 16.12.070: Provides department authority to
approve source and number of shellfish taken for
use as broodstock;
• AS 16.12.080: Places restrictions on how monies
received from sale of shellfish may be used only
for operating costs associated with their
facilities;
• AS 16.12.090: Relates to Cost Recovery Fisheries
and provides a means by which a shellfish
hatchery may contract to either harvest and sell
shellfish, or to implement a self-assessment from
amongst its membership, for purposes of
recovering operational costs associated with the
hatchery;
• AS 16.12.100: Gives the department authority to
inspect facilities at any time while the facility
is in operation;
• AS 16.12.110: Requires a permit holder to submit
an annual report to the department;
• AS 16.12.199: Provides definitions for
"enhancement project," "facility," "genetically
modified shellfish," "hatchery," and "shellfish.
Section 4:
Provides the Commercial Fisheries Entry Commission
(CFEC) authority to issue special harvest area entry
permits to holders of private nonprofit shellfish
rehabilitation, or enhancement project permits.
Section 5:
Defines legal fishing gear for special harvest area
entry permit holders.
Section 6:
Exempts shellfish raised in a private nonprofit
shellfish project from the farmed fish definition.
Sections 7-8:
Establish state corporate income tax exemption for a
nonprofit corporation holding a shellfish fishery
enhancement permit.
Section 9:
Exempts shellfish harvested under a special harvest
area entry permit from seafood development taxes.
Section 10:
Establishes an effective date for the salmon hatchery
permit application fee described in section 2.
Section 11:
Authorizes the Department of Fish and Game to adopt
implementing regulations.
Section 12:
Establishes an immediate effective date for section 11
pursuant to AS 01.10.070(c).
Section 13:
Establishes an effective date for section 8
concomitant with section 2, Chapter 55, SLA 2013.
4:39:50 PM
SENATOR COGHILL addressed AS 16.12.070 in section 3 regarding
taking broodstock "where feasible." He asked Mr. Lamkin to
elaborate on taking approved broodstock "where feasible."
MR. LAMKIN answered that his understanding is the broodstock is
delicate and to the extent possible, practical, or feasible,
broodstock will be taken from the first selected location to
maximize quality. If the first choice is not available or
feasible, the appropriate next steps will be taken. He asked
that ADF&G confirm his previous assessment.
SENATOR COGHILL replied that ADF&G can corroborate later. He
said there have been discussions on how to keep the integrity of
local broodstocks. He said the concern moving forward is, "Where
the exception becomes the rule."
4:41:50 PM
CHAIR BIRCH [opened invited and public testimony].
4:42:22 PM
TOMI MARSH, President, Oceans Alaska, Ketchikan, Alaska,
testified in support of SB 22. She explained that Oceans Alaska
is a nonprofit shellfish hatchery located in Ketchikan.
We believe mariculture is important for economic
diversification, existing businesses, education, and
fisheries. SB 22 helps create the regulatory framework
for which ADF&G can manage shellfish fishery
enhancement, restoration, and shellfish hatcheries;
this will allow interested stakeholders to either
continue or begin enhancement and or restoration of
certain species.
At Oceans Alaska we support SB 22 as it will diversify
economic development and increase environmental
stewardship through enhancement of traditional and
economically important commercially harvested
shellfish species such sea cumbers and geoducks which
have been impacted by sea otter predation; two,
enhance a shellfish species as integral to marine
ecosystems and habitat restoration; three, enhancement
of shellfish species that are vital to climate change
and pollution mitigation.
4:43:48 PM
CHAIR BIRCH announced that he "officially" opened public
testimony.
4:44:09 PM
JEFF HETRICK, Director, Alutiiq Pride Shellfish Hatchery,
Seward, Alaska, testified in support of SB 22. He explained that
Alutiiq is the institute that has been doing most of the work
towards shellfish enhancement for almost 20 years. He summarized
that Alutiiq worked on the following projects and species:
• Littleneck and butter clam's enhancement;
• Cockle projects;
• Red and blue king crab research;
• Worked with NOAA and AKCRRAB on king crab enhancement;
• Sea cucumber project with the Southeast Alaska Regional
Dive Fisheries Association (SARDFA) to test the feasibility
for large-scale enhancement;
• Abalone;
• Purple hinge rock scallops.
MR. HETRICK specified that Alutiiq's programs have been done
under a commissioner's permit or a research permit through
ADF&G.
He noted an earlier question by a committee member regarding
working with other regions and countries. He disclosed that
Alutiiq has been, "Sitting on this technology now for quite some
time and they look to us for advice and direction trying to
raise some of these species."
He disclosed that Alutiiq is in the final year of doing its out-
stock and experiments of Kodiak. Alutiiq has developed hatchery
technology and is currently working on out-stocking in terms of
size of release, location, density, and all the things that
scientists look for to maximize survival once stock is released.
He said Alutiiq believes they are at the point to do a large-
scale release of 500,000 crabs. He noted that a large-scale
release is needed to find out if king crab enhancement is going
to work.
He summarized that Alutiiq's primary focus is to bring back the
depressed stocks and is standing by for the approval of SB 22.
4:47:29 PM
TREVOR SANDE, member, Alaska Fisheries Development Foundation,
Ketchikan, Alaska, testified in support of SB 22. He disclosed
that he has operated an oyster farm for eight years. He
explained that hatcheries are learning how to adapt to changing
pH levels in the ocean. He opined that mariculture enhancement
will be a tool when ocean acidification impacts Alaska's wild
stock.
4:49:04 PM
STEVE RICCI, Staff, Aleutian Pribilof Island Community
Development Association (APICDA), Juneau, Alaska, testified in
support of SB 22. He referenced his support letter, paraphrased
as follows:
APICDA is one of six Community Development Quota (CDQ)
organizations created in 1992 by the Magnuson-Stevens
Act. Our mission is to increase direct participation
in the Bering Sea an Aleutian Islands fisheries for
our members and to develop fisheries related economic
opportunities in our communities.
The CDQ program utilizes fisheries resources to create
jobs, build infrastructure, and provide scholarships
and workforce development training. The CDQ program
has generated critically important and sustainable
economic opportunities to 65 coastal communities for
over 25 years and help leverage private sector dollars
through partnerships and investments.
We see tremendous opportunity in mariculture in
western Alaska. Business and revenue generation are
part of a larger picture. Potential increases to
subsistence fisheries, workforce development, and
furthering research efforts to better understand the
impacts of climatic related ocean changes are all
potential long-run benefits.
APICDA is a member organization of the [Alaska
Fisheries Development Foundation, Inc.] (AFDF), which
spearheaded the mariculture initiative. We have also
been involved in the AKCRRAB program which researches
the rehabilitation of king crab stocks. SB 22 will
fill a current gap that exists for permitting and
regulating restoration efforts such as the AKCRRAB
program and will provide a very important framework
for future enhancement efforts. We believe that SB 22
is consistent with the objectives of the Alaska
Mariculture Initiative and we fully support the bill.
4:51:37 PM
TOMMY SHERIDAN, Director of Government Affairs, Silver Bay
Seafoods, LLC, Cordova, Alaska, testified in support of SB 22.
He referenced his letter of support, paraphrased as follows:
Silver Bay Seafoods began in 2007 as a single salmon
processing facility in Sitka, Alaska and has since
grown into one of the largest seafood companies in the
state, currently operating large scale processing
facilities in Sitka, Craig, Valdez, and Naknek. The
company is also active in the California squid fishery
and is currently constructing a seafood processing
facility in False Pass where we will process salmon,
pollock, and cod. We also hope to expand into Kodiak
in the future as well. Silver Bay has aspirations for
developing production-scale mariculture operations in
Sitka Sound which at full production would yield up to
20 million Pacific oysters per year, bringing year-
round employment to the area along with the production
of an environmentally friendly, sustainable, and
healthy food source for sale and distribution both
locally and worldwide.
SB 22 creates a regulatory framework for the effective
management of shellfish fishery enhancement, shellfish
restoration activities, and shellfish hatcheries. Seed
security for such operations has been identified as an
impediment to mariculture development in Alaska and it
certainly has been a consideration in the development
of our own program. This act will allow interested
stakeholders to either begin or continue with the
enhancement and or restoration of species such as king
crab, sea cucumber, geoduck, abalone, or razor clams,
thereby supporting shellfish hatchery development in
the state.
4:54:01 PM
NANCY HILLSTRAND, Shareholder, Pioneer Alaskan Fisheries, Inc.,
Homer, Alaska, testified in opposition of SB 22. She detailed
that Pioneer Alaskan Fisheries has been a corporation in Alaska
since 1964, primarily crab fishermen in addition to salmon,
herring, and seafood processing.
She explained that she is concerned with SB 22 based upon what
she has seen with legislation that has been used for salmon
hatcheries. She noted that she submitted to the committee an
ADF&G review regarding the potential for the legislation to
devolve into a problem for wild stocks as well as the wild stock
fishermen.
She asserted that AKCRRAB needs to take a step-by-step approach
for research rather than opening wide open to the large-scale
industrial activities that will happen with SB 22. She contended
that ADF&G does not have the money to adequately monitor and
provide oversight. She opined that ADF&G should have additional
funds to do a good job or not do the project at all.
She pointed out that some wild stocks are rebounding and noted
that a similar situation occurred with salmon wild stocks were
naturally coming back when hatcheries were coming on.
She asked if the program has an on-off switch and noted that an
on-off switch with salmon hatcheries is not used. She disclosed
that king crab was released in the Barents Sea and the crab
became an invasive species that impacted its cod fishery. She
asked that a feasibility study, cost analysis, and risk
assessment be done ahead of time.
CHAIR BIRCH confirmed that Ms. Hillstrand had submitted a 2009
ADF&G review to the committee.
5:00:31 PM
MARCOS SCHEER, Second Vice President, Southeast Conference,
Juneau, Alaska, testified in support of SB 22. He disclosed that
he is the founder and CEO of Premium Aquatics which is an
aquatics farming company. He added that he has served on the
board as well as being a member for Alaska Fisheries Development
Foundation since 2007.
He explained that Southeast Conference is a state and federally
funded designated regional economic development organization for
southeast Alaska. He continued as follows:
For more than 60 years, Southeast Conference has
served as a collective voice in advancing the
southeast region's economy. Southeast Conference has
over 200 members from organizations representing
business and governments from 32 regional communities.
My company is also a member of Southeast Conference.
The mission of Southeast Conference is to undertake
and support activities that promote strong economies,
healthy communities, and quality environment in
southeast Alaska.
He set forth that SB 22 is important to the communities and user
groups in southeast Alaska that might be advantaged by the
legislation, particularly for the rehabilitation of the stocks
that have been decimated by sea otter predation.
5:02:49 PM
JULIE DECKER, Executive Director, Alaska Fisheries Development
Foundation, Inc. (AFDF), Wrangell, Alaska, testified in support
of SB 22. She noted in her previous presentation that she failed
to mention that AFDF partakes in facilitating seafood
sustainability certification in some of Alaska's fisheries. She
explained that Alaska's major fisheries are certified as
sustainably managed by two international standards via two
different programs: The Marine Stewardship Council, and the
Alaska Responsible Fisheries Management Program. She said the
reason why AFDF seeks certification is because ADF&G puts a
priority on wild stocks and uses a precautionary approach to
managing Alaska's fisheries. She disclosed that the noted
language is included in SB 22 and AFDF expects the same would
happen moving forward with shellfish enhancement.
5:04:11 PM
SENATOR KIEHL noted that SB 22 does not address seaweed, a
subject that Ms. Decker addressed in her previous presentation.
He asked if ADF&G looks at seaweed seed producers elsewhere and
how seaweed is addressed.
MS. DECKER explained that there is no commercial fishery in the
state for seaweed, therefore a fisheries enhancement is not
eligible for seaweed. She specified that when seaweed is
addressed as a mariculture development species, seaweed is
expressed only in the aquatic farming realm.
SENATOR KAWASAKI asked where in the bill does it have
protections for "existing" or "natural" stocks. He referenced
the pink salmon issue where studies talk about the possible
impact on red and king salmon stocks in Prince William Sound.
MS. DECKER replied that ADF&G would be best suited to answer
Senator Kawasaki's question. She noted that ADF&G has strict
policies around genetics, marking, disease, and where to site
enhancement activities in order to reduce conflicts. She said
some of ADF&G's policies are embedded and do help with a
precautionary approach.
5:06:49 PM
JERRY MACCUNE, President, Cordova District, Fishermen United,
Cordova, Alaska, testified in support of SB 22. He revealed that
Cordova was once known as the "clam capital of the world." He
noted that the legislation does not involve a "full blown"
hatchery for all the shellfish. He specified that the intent is
to boost the stock in some places to see if it will take root.
He said in reference to pink salmon, he disclosed that a multi-
million-dollar study being paid for by the processors and
hatcheries will be completed within two years. He explained that
the study will address the interaction between wild stocks and
pink salmon. He emphasized that there is no direct evidence at
this time that pink salmon are impacting red or king salmon. He
opined that SB 22 is a great opportunity. He noted that seaweed
is taking off in the world and will be productive for a lot of
people in Alaska.
5:08:30 PM
CHAIR BIRCH closed public testimony.
5:08:33 PM
CHAIR BIRCH held SB 22 in committee.