Legislature(2001 - 2002)

05/02/2001 12:40 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HR 6-COOK INLET AQUACULTURE ASSOCIATION                                                                                       
                                                                                                                                
CO-CHAIR WILSON  announced the only  order of business  before the                                                              
committee would  be HOUSE  RESOLUTION NO.  6, Supporting  the Cook                                                              
Inlet   Aquaculture  Association's   plan   for  enhancement   and                                                              
rehabilitation of Cook Inlet fisheries.                                                                                         
                                                                                                                                
[Although there  was a  motion to  adopt HR 6,  Version A,  as the                                                              
working  document  before the  committee,  it was  an  unnecessary                                                              
motion because the document was already before the committee.]                                                                  
                                                                                                                                
Number 0098                                                                                                                     
                                                                                                                                
REPRESENTATIVE   MIKE   CHENAULT,    Alaska   State   Legislature,                                                              
testified  as the  sponsor of  HR  6.   This resolution  expresses                                                              
support for the  Cook Inlet Aquaculture Association  (CIAA), which                                                              
is  imperative to  the strength  and  health of  the fisheries  in                                                              
Southcentral  Alaska.    Cook Inlet  Aquaculture  Association  has                                                              
assisted the Cook  Inlet fishermen for many years.   Recently, the                                                              
Cook  Inlet  fisheries dwindled  to  the  point that  an  economic                                                              
disaster  was declared;  furthermore,  funding for  CIAA has  been                                                              
cut.   Therefore,  other means  of  funding need  to be  explored.                                                              
This resolution  allows for the  continuation of CIAA  and support                                                              
for  funding at  federal levels.    Representative Chenault  said,                                                              
"It will  also provide  hope that  all Cook  Inlet fisheries  have                                                              
hope  of  recovery  and  a bright  future  for  all  fishermen  in                                                              
Alaska."                                                                                                                        
                                                                                                                                
Number 0211                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON  inquired as to how successful  programs such                                                              
as this have been with sockeye.                                                                                                 
                                                                                                                                
REPRESENTATIVE CHENAULT deferred to those online.                                                                               
                                                                                                                                
REPRESENTATIVE COGHILL  clarified that  this is a  resolution that                                                              
merely  says [the  legislature] agrees  with what  CIAA is  doing.                                                              
He understood  that  there are people  online  who can testify  to                                                              
the federal funding issue.                                                                                                      
                                                                                                                                
REPRESENTATIVE CHENAULT indicated agreement to both questions.                                                                  
                                                                                                                                
CO-CHAIR  WILSON asked  whether HR  6 is  requesting anything  for                                                              
this area  different from what  is done in  any other area  in the                                                              
state.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  CHENAULT  replied,  "I  don't  believe  so."    He                                                              
reiterated  that HR  6  is merely  a letter  of  support from  the                                                              
legislature.                                                                                                                    
                                                                                                                                
Number 0610                                                                                                                     
                                                                                                                                
JOEL MALATESTA,  SR., testified  via teleconference.   He informed                                                              
the  committee   that  he  is  affiliated  with   the  aquaculture                                                              
association  on the Kenai  Peninsula.   Mr. Malatesta  pointed out                                                              
that the  aquaculture association  has been  established  for many                                                              
years  on  the Kenai  Peninsula,  and  it  serves those  from  the                                                              
Matanuska-Susitna  Borough   to  the  Port  Graham   area.    This                                                              
aquaculture  association serves  over  50 percent  of the  state's                                                              
population.                                                                                                                     
                                                                                                                                
MR.  MALATESTA said  that over  the  years, the  CIAA program  has                                                              
been very  successful, although  there have  been problems  due to                                                              
the lack  of fish and tax  dollars from the commercial  fishermen,                                                              
along with  some regulatory closures.   He informed  the committee                                                              
that the  Kenai Peninsula  Borough Assembly  has placed  [CIAA] on                                                              
its  federal wish  list.   The [CIAA]  is attempting  to obtain  a                                                              
five-year federal  grant since  it is one  of the key  aquaculture                                                              
associations  in Alaska.   He pointed out  that there  are already                                                              
resolutions  from the cities  of Anchorage,  Homer, Soldotna,  and                                                              
Tyonek; the  Kenai Resource Coalition  Management Team;  the Kenai                                                              
Peninsula  Fishermen's  Association   (KPFA);  United  Cook  Inlet                                                              
Drift  Association (UCIDA);  the  United Fishermen's  Association;                                                              
and  the  Central  Peninsula Fish  and  Game  Advisory  Committee.                                                              
There  also are pending  resolutions  in the  cities of Kenai  and                                                              
Wasilla.                                                                                                                        
                                                                                                                                
MR.  MALATESTA said,  "All  we're asking  is  that you  give us  a                                                              
resolution in  support of our efforts  to try to get  some federal                                                              
monies to keep this  most valuable asset going."   It is important                                                              
to keep  the [CIAA]  hatcheries open, he  added.  However,  [CIAA]                                                              
is on the  brink of bankruptcy; thus, without  federal assistance,                                                              
[CIAA] may be forced to close.                                                                                                  
                                                                                                                                
MR. MALATESTA  addressed Representative  Dyson's earlier  question                                                              
by  saying that  over  CIAA's 20-year  life  it  has produced  all                                                              
kinds of  species of salmon.   Much of the sport-caught  salmon in                                                              
the  Seward   area  is   produced  by   [CIAA].    Mr.   Malatesta                                                              
emphasized, "This  association is so important to  over 50 percent                                                              
of  the population  because  we  [provide fish]  for  subsistence,                                                              
recreational, personal use, and commercial."                                                                                    
                                                                                                                                
REPRESENTATIVE DYSON  restated his earlier question  regarding the                                                              
success of hatcheries in enhancing red salmon recoveries.                                                                       
                                                                                                                                
Number 0727                                                                                                                     
                                                                                                                                
GARY   FANDREI,  Executive   Director,   Cook  Inlet   Aquaculture                                                              
Association  (CIAA), testified  via teleconference.   Mr.  Fandrei                                                              
informed  the committee  that CIAA  has had a  number of  projects                                                              
that have  increased the  production of [red  salmon in]  a number                                                              
of systems  such as  Tustumena Lake,  Hidden  Lake, Big Lake,  and                                                              
systems in the lower peninsula.                                                                                                 
                                                                                                                                
REPRESENTATIVE  DYSON   asked  if  those  projects   were  habitat                                                              
enhancements or were eggs or fingerlings being put out.                                                                         
                                                                                                                                
MR. FANDREI  explained  that the  lower Cook  Inlet area lakes  do                                                              
not have  fish in them.   Fish are  being placed in  those systems                                                              
and  the returning  adults  are available  to  the fishery,  which                                                              
includes commercial  and sport use.   In some of the  other lakes,                                                              
the natural  production is being  supplemented through  a hatchery                                                              
program.    Those  systems  that   don't  tend  to  have  adequate                                                              
spawning grounds  are supplemented through hatchery  programs.  He                                                              
agreed that he was speaking of reds.                                                                                            
                                                                                                                                
REPRESENTATIVE  DYSON asked  if  any of  the  introduced reds  are                                                              
spawning.                                                                                                                       
                                                                                                                                
MR.  FANDREI answered  that in  the  systems where  some of  those                                                              
fish  are being  supplemented, some  of those  fish are  spawning.                                                              
Those fish  in the lower  Cook Inlet lakes  are not able  to spawn                                                              
because [those areas] are terminal harvest areas.                                                                               
                                                                                                                                
Number 0912                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL asked,  "Under  what plan  is the  federal                                                              
funding being sought?"                                                                                                          
                                                                                                                                
MR. MALATESTA  explained that the plan  is to only get  funds from                                                              
the  federal  government,  although  there  may  be  some  borough                                                              
matching  funds.   He anticipated  that  the funds  would be  from                                                              
various agencies  such as NOAA  (National Oceanic  and Atmospheric                                                              
Administration)  or  the Environmental  Protection  Agency  (EPA).                                                              
These funds  will go  to the Kenai  Peninsula Borough,  which will                                                              
pass those  funds through  to CIAA.   Mr. Malatesta  stressed that                                                              
there  are grant  monies available  and the  application has  been                                                              
produced in book form and presented in Washington, D.C.                                                                         
                                                                                                                                
Number 1015                                                                                                                     
                                                                                                                                
DREW SPARLIN,  Member, Cook  Inlet Aquaculture Association  Board,                                                              
testified  via   teleconference.    Mr.  Sparlin   encouraged  the                                                              
committee  to  pass HR  6  out  of  committee.   He  informed  the                                                              
committee  that  he has  been  a CIAA  board  member  for over  20                                                              
years.   Mr.  Sparlin  said, "We  need assistance  very  severely.                                                              
And we're hoping  that we can get through the rough  times, if you                                                              
... will  help us by  showing your support  and maybe allow  us to                                                              
better our  chances of  getting some  assistance from  Washington,                                                              
D.C."                                                                                                                           
                                                                                                                                
REPRESENTATIVE SCALZI  inquired as  to the current  tax assessment                                                              
for CIAA.                                                                                                                       
                                                                                                                                
MR.  SPARLIN  answered  that  the  current tax  is  2  percent  of                                                              
[CIAA's] gross income  from salmon harvested by  Cook Inlet permit                                                              
holders.    In further  response  to  Representative  Scalzi,  Mr.                                                              
Sparlin affirmed that it is for all salmon in all areas.                                                                        
                                                                                                                                
Number 1215                                                                                                                     
                                                                                                                                
BOB  MERCHANT,  President,  United Cook  Inlet  Drift  Association                                                              
(UCIDA), testified  via teleconference,  stating that UCIDA  is in                                                              
support of HR 6 and hopes that the committee passes it.                                                                         
                                                                                                                                
Number 1242                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to  report HR  6  out of  committee                                                              
with  individual  recommendations   and  the  accompanying  fiscal                                                              
note.                                                                                                                           
                                                                                                                                
REPRESENTATIVE   SCALZI  noted  that   he  supports   the  motion.                                                              
However, he wanted  to address some of the earlier  questions.  In                                                              
regard  to the  fish  stock,  Representative Scalzi  informed  the                                                              
committee that  across from  Cook Inlet  there is Kirschner  Lake,                                                              
which is  a terminal harvest area  because there is  a [waterfall]                                                              
there  that the  fish cannot  go  up.   There is  also a  terminal                                                              
harvest area  at Leisure Lake, which  is shared by both  sport and                                                              
commercial fishermen.  The Kasilof River is also enhanced.                                                                      
                                                                                                                                
REPRESENTATIVE  SCALZI  reiterated  Mr. Sparlin's  testimony  that                                                              
the  2  percent  salmon  tax  is for  all  salmon  in  that  area.                                                              
Although  it is paid  for with  the commercial  dollar, there  are                                                              
multiple uses  and benefits  in those rivers  and lakes.   Some of                                                              
the  loss of  revenue correlates  with the  raising of  escapement                                                              
goals in  areas such as  the Kenai River.   Therefore,  those fish                                                              
aren't  being caught  in the commercial  sector;  thus there  is a                                                              
loss  in   revenue  [for   the  aquaculture   association].     In                                                              
conclusion, Representative  Scalzi informed the committee  that he                                                              
was a  member of  CIAA for  several years  as a representative  of                                                              
the borough.                                                                                                                    
                                                                                                                                
Number 1390                                                                                                                     
                                                                                                                                
CO-CHAIR WILSON  asked if  there was any  objection to  the motion                                                              
to report  HR 6 from  committee.  There  being no objection,  HR 6                                                              
was reported from the House Special Committee on Fisheries.                                                                     

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