Legislature(2011 - 2012)BARNES 124

02/20/2012 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HCR 23 ALASKA ARCTIC POLICY COMMISSION TELECONFERENCED
Moved CSHCR 23(RES) Out of Committee
*+ HB 263 PRODUCTION TAX CREDIT; DISCLOSURES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
             HCR 23-ALASKA ARCTIC POLICY COMMISSION                                                                         
                                                                                                                                
1:04:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON announced that the  first order of business would                                                               
be HOUSE CONCURRENT RESOLUTION NO.  23, Establishing and relating                                                               
to the Alaska Arctic Policy Commission.                                                                                         
                                                                                                                                
1:04:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REGGIE  JOULE, Alaska State  Legislature, speaking                                                               
on behalf of  the House Finance Committee, sponsor  by request of                                                               
the  Alaska Northern  Waters Task  Force, explained  that HCR  23                                                               
proposes establishing  an Alaska Arctic Policy  Commission, which                                                               
was one  of the recommendations  from the Alaska  Northern Waters                                                               
Task  Force  (ANWTF).   The  ANWTF  was  established in  2010  in                                                               
response to the  discussions being held in  Washington, D.C., the                                                               
Canadian North,  and the Circumpolar  North regarding  the Arctic                                                               
and Alaska's  Arctic waters.   One of the  goals of ANWTF  was to                                                               
get the legislature engaged in  these conversations as opposed to                                                               
waiting for budgetary  items to come forward.  In  the process of                                                               
engaging the  legislature, the task  force would also  engage the                                                               
communities and  seek areas of expertise  to provide information.                                                               
The task  force held a series  of meetings around the  state.  He                                                               
characterized the process as a very interesting journey.                                                                        
                                                                                                                                
1:06:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE  directed the  committee's attention  to the                                                               
information in  the committee packet  from the  National Security                                                               
Presidential   Directive  and   Homeland  Security   Presidential                                                               
Directive.  These  directives were created in  January 2009 under                                                               
the George  W. Bush Administration.   He told the  committee that                                                               
the  committee   packet  should  include   information  regarding                                                               
Canada's  strategy with  the  Arctic, but  he  would provide  the                                                               
committee with information regarding  Denmark's strategy with the                                                               
Arctic.   The  aforementioned  illustrates  that other  countries                                                               
have  been developing  policies related  to the  north.   He then                                                               
informed  the  committee that  the  Arctic  Council is  currently                                                               
chaired by Sweden.   In 2013 Canada will assume  the chair of the                                                               
Arctic Council for two years, which  will be followed by the U.S.                                                               
chairing the  council, he  highlighted.   Therefore, for  a four-                                                               
year period the Arctic Council  will be chaired by North America.                                                               
By working with  Canada and by chairing the  council, there's the                                                               
ability to have some impact on  the policies and decisions of the                                                               
Arctic  Council.    The  aforementioned is,  in  part,  why  this                                                               
resolution  is before  the committee.    Collectively, the  ANWTF                                                               
believed  that the  next step  should be  taken because  although                                                               
there  is a  national policy  regarding the  Arctic, there  is no                                                               
strategy  in  terms  of  implementation   of  that  policy.    In                                                               
conclusion,  Representative Joule  opined  that establishing  the                                                               
Alaska Arctic  Policy Commission  would help Alaska  stay engaged                                                               
in the conversation regarding the Arctic.                                                                                       
                                                                                                                                
1:10:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER recalled  testimony from Canadian visitors                                                               
who  relayed  that  Canada  already views  itself  as  an  Arctic                                                               
nation.   However, the U.S.,  save Alaska, is largely  unaware of                                                               
the  Arctic  issues.    She, therefore,  asked  if  the  Canadian                                                               
territories and provinces that border  the Arctic have a separate                                                               
policy  or  commission  separate  from  the  national  policy  or                                                               
commission.   She then  questioned in  what ways  Alaska's Arctic                                                               
policy would be different than that of the U.S. national policy.                                                                
                                                                                                                                
REPRESENTATIVE JOULE  confirmed that  Canada does have  an Arctic                                                               
policy and  three of  Canada's Arctic  provinces/territories have                                                               
put forth  their own Arctic  visions.  Therefore,  he recommended                                                               
that Alaska should do much the same.                                                                                            
                                                                                                                                
1:12:02 PM                                                                                                                    
                                                                                                                                
CHRISTINE HESS, Staff, Representative  Reggie Joule, Alaska State                                                               
Legislature, related that the  Nunavut and Northwest Territories'                                                               
Arctic  policies  are  new and  Canada's  [national]  policy  was                                                               
established in  2009.   Canada's Arctic  policy is  geared toward                                                               
military  and  national  sovereignty  and  resource  development,                                                               
whereas   the  Arctic   policies   of   Nunavut,  the   Northwest                                                               
Territories,  the Yukon,  and Greenland  are more  about regional                                                               
cooperation   and   economically  sustainable   communities   and                                                               
resource development.   Therefore, the policy  of the territories                                                               
and provinces are more regionally based.                                                                                        
                                                                                                                                
1:13:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DICK expressed concern  from his constituents that                                                               
this proposal might  result in the U.S. sacrificing a  bit of its                                                               
national  sovereignty   and  joining  a  global   [effort].    He                                                               
requested assurance that is not the case.                                                                                       
                                                                                                                                
REPRESENTATIVE JOULE remarked, "I guess  one of the options is to                                                               
do  nothing; where  would that  take  us?"   Because of  Alaska's                                                               
location,  the U.S.  sits on  the Arctic  Council as  one of  the                                                               
Arctic  nations.   With  regard to  whether  it's appropriate  to                                                               
allow the federal government to  make the decision and follow its                                                               
lead, he opined  that Alaska has a bit of  independence and would                                                               
like to be able to influence  some of the decisions being made at                                                               
the federal  level as  well as  at the  international level.   He                                                               
suggested, "If anything, it would be asserting our sovereignty."                                                                
                                                                                                                                
1:14:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON, referring to  the membership of the Alaska                                                               
Arctic Policy Commission, asked if  the intent is for the members                                                               
to be Alaska residents.                                                                                                         
                                                                                                                                
REPRESENTATIVE JOULE answered that for  the most part the members                                                               
of the commission should be Alaska residents.                                                                                   
                                                                                                                                
1:15:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  then inquired  as to the  reasoning behind                                                               
requiring the final report one  year after the preliminary report                                                               
is due.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  JOULE  responded   that  the  preliminary  report                                                               
provides  an  update to  the  legislature,  basically a  progress                                                               
report.                                                                                                                         
                                                                                                                                
1:16:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON inquired  as to what state  should stand up                                                               
for its interests in the Arctic.                                                                                                
                                                                                                                                
REPRESENTATIVE JOULE answered Alaska.                                                                                           
                                                                                                                                
REPRESENTATIVE  HERRON then  questioned who  should respond  when                                                               
actions  are  taken  by  others  that  impact  Alaska's  national                                                               
interest and undermine relationships the  state has built or lack                                                               
sensitivity to Alaska's interests and perspectives.                                                                             
                                                                                                                                
REPRESENTATIVE JOULE again answered Alaska.                                                                                     
                                                                                                                                
1:17:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER  commended  Representative Joule  for  his                                                               
work on  this.   He pointed  out that the  task force  focused on                                                               
ensuring that the benefits would  be shared amongst those who are                                                               
most effected.   He then  asked if the Inuit  Circumpolar Council                                                               
(ICC)   would  be   an  example   of   an  international   Arctic                                                               
organization  from which  one of  the members  of the  commission                                                               
would represent.                                                                                                                
                                                                                                                                
REPRESENTATIVE JOULE replied yes.                                                                                               
                                                                                                                                
1:19:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON inquired  as to  whether these  will be                                                               
permanent positions  since there  is no  mention of  rotating the                                                               
membership.  She  related her belief that it's  advisable to have                                                               
the rotation  go through a  governor's terms in order  to provide                                                               
some continuity between administrations.                                                                                        
                                                                                                                                
REPRESENTATIVE   JOULE   clarified   that  once   appointed   the                                                               
individuals  would serve  on the  commission; there  would be  no                                                               
rotation.  The membership is  a little larger than the membership                                                               
of  the  ANWTF because  it  was  realized  that there  were  some                                                               
individuals that  would have been  helpful to have  involved with                                                               
ANWTF.   For instance, the  oil and gas industry,  the University                                                               
of  Alaska  and its  research  capabilities,  and tribal  members                                                               
weren't members of ANWTF.   The membership of the proposed Alaska                                                               
Arctic  Policy Commission  would bring  more of  the stakeholders                                                               
together to  shape this policy.   He them emphasized that  one of                                                               
the important pieces  of ANWTF was the  dialogue with communities                                                               
and continuing that effort is very important.                                                                                   
                                                                                                                                
1:22:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  recalled  from Representative  Joule's  earlier                                                               
remarks  that the  majority  of the  membership  of the  proposed                                                               
Alaska Arctic  Policy Commission should be  Alaskans.  Therefore,                                                               
he  surmised  that  there  should  be  a  qualification  for  the                                                               
language on page 3, lines 8-17,  to specify the members are to be                                                               
Alaskans.                                                                                                                       
                                                                                                                                
MS.   HESS  pointed   out  that   the   member  representing   an                                                               
international Arctic organization  may or may not  be an Alaskan.                                                               
Therefore,  the   Alaskan  qualification   would  refer   to  the                                                               
membership on page 3, lines 8-16.                                                                                               
                                                                                                                                
REPRESENTATIVE  JOULE interjected  that he  wanted to  leave that                                                               
option   open,  but   added  that   ICC  would   likely  be   the                                                               
international  Arctic  organization  from  which  the  membership                                                               
would come.                                                                                                                     
                                                                                                                                
1:23:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  directed attention  to the  language on  page 3,                                                               
lines 26-29, as follows:                                                                                                        
                                                                                                                                
          FURTHER RESOLVED that the public members and, if                                                                    
     the  member representing  the  federal government  does                                                                    
     not  receive   reimbursement  for  expenses   from  the                                                                    
     federal  government, the  federal government  member of                                                                    
     the  commission   may  receive  per  diem   and  travel                                                                    
     expenses  authorized for  boards and  commissions under                                                                    
     AS 39.20.180;                                                                                                              
                                                                                                                                
CO-CHAIR SEATON  questioned whether  the intent  is to  cover the                                                               
expenses of  the individual or is  the desire for [the  member of                                                               
the international Arctic organization] to be an Alaskan.                                                                        
                                                                                                                                
REPRESENTATIVE JOULE said that he  would consider an amendment to                                                               
require  all the  members  of  the commission  be  Alaskans as  a                                                               
friendly amendment.                                                                                                             
                                                                                                                                
MS. HESS,  drawing from the  experience with ANWTF,  related that                                                               
although ANWTF  provided for  international fees,  about $100,000                                                               
was left  over because not  everyone could attend  every meeting.                                                               
Therefore, that  $100,000 could be re-appropriated  to help cover                                                               
the expenses  of this proposed  Alaska Arctic  Policy Commission.                                                               
She suggested  that if there  was an international member  on the                                                               
proposed commission,  the cost of  that member could  be absorbed                                                               
into the budget.                                                                                                                
                                                                                                                                
1:25:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  clarified that  he is  trying to  understand how                                                               
the sponsor would like to structure this.                                                                                       
                                                                                                                                
REPRESENTATIVE  JOULE   stated  that   he  would  like   for  the                                                               
membership of commission [specified on  page 3, lines 8-17] to be                                                               
composed of Alaska  residents, particularly since it  would be an                                                               
Alaska strategy and policy.                                                                                                     
                                                                                                                                
CO-CHAIR SEATON commented that was his thinking that as well.                                                                   
                                                                                                                                
1:25:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON   recalled  discussions  of   other  legislation                                                               
involving Norway and  the Arctic Council that  revealed they were                                                               
about  nation-to-nation   interactions.    This   proposal  would                                                               
provide the state  with a structure to  influence and participate                                                               
in  the  Arctic  Council.   He  asked  if  that  is part  of  the                                                               
intention of this resolution.                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOULE acknowledged  that the  State of  Alaska is                                                               
already engaged in some of  the discussions regarding the Arctic.                                                               
The difference,  in part, with this  proposal is that this  is an                                                               
opportunity for  the state, including the  legislature, to remain                                                               
active and engaged  in discussions and the process  of the Arctic                                                               
vision.   A  result of  the  "Findings &  Recommendations of  the                                                               
Alaska  Northern  Waters  Task  Force"  report  is  that  he  and                                                               
Commissioner  Hartig will  travel  to Washington,  D.C., to  meet                                                               
with the U.S.  Arctic Council senior advisor.  He  noted that the                                                               
Department  of  Interior  and  the  U.S.  Coast  Guard  are  very                                                               
interested [in ANWTF's findings and recommendations as well].                                                                   
                                                                                                                                
1:29:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  agreed  that  this  is  an  extremely                                                               
important issue  that should  be moved  forward.   She questioned                                                               
whether Arctic policy  is an important enough  issue that someone                                                               
from  the  House Finance  Committee  should  be on  the  proposed                                                               
commission.                                                                                                                     
                                                                                                                                
REPRESENTATIVE   JOULE   pointed    out   that   the   resolution                                                               
specifies there are to be  three representatives appointed by the                                                               
Speaker  of  the  House of  Representatives  and  three  senators                                                               
appointed by  the President of the  Senate.  The members  who are                                                               
appointed would be left to the  discretion of the Speaker and the                                                               
President.    He then  highlighted  that  both co-chairs  of  the                                                               
Senate  Finance Committee  and  himself, a  member  of the  House                                                               
Finance Committee,  were members of  ANWTF as well  as alternates                                                               
Representative  Edgmon, member  of the  House Finance  Committee,                                                               
and Senator Olson, member of the Senate Finance Committee.                                                                      
                                                                                                                                
1:30:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER said  she was struck by  the language used                                                               
regarding  the  membership  of  the  proposed  commission,  which                                                               
include  "appointed", "representing",  and  "from".   She  opined                                                               
that the language  is problematic.  For example,  it is difficult                                                               
to  represent   the  federal  government  unless   he/she  is  an                                                               
ambassador.   Therefore, she questioned  how an  Alaskan employed                                                               
by  the federal  government,  perhaps through  the Department  of                                                               
Interior  or  the  Bureau  of Land  Management,  would  have  the                                                               
authority   from  their   employer  to   represent  the   federal                                                               
government.    She  suggested  that  the  language  needs  to  be                                                               
wordsmithed a bit.                                                                                                              
                                                                                                                                
MS. HESS informed the committee that  the language is the same as                                                               
that used for  the resolution [that created  ANWTF], which didn't                                                               
seem to cause  any problem.  She explained that  [with ANWTF] the                                                               
member  representing  the  federal government  became  a  liaison                                                               
because the President  of the U.S. would have to  approve for the                                                               
individual  to actually  represent the  federal government.   The                                                               
ANWTF included  two rear admirals  as members and they  were very                                                               
active   contributing   members.     In   further   response   to                                                               
Representative   Gardner,   she   confirmed  that   the   members                                                               
representing  the  federal government  on  ANWTF  were in  effect                                                               
delegated to represent the federal government.                                                                                  
                                                                                                                                
1:32:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON related  his understanding  that the  U.S.                                                               
Arctic policy essentially says that  the U.S. is an Arctic nation                                                               
and  that it  is the  policy  of the  U.S. that  it will  involve                                                               
Alaskan communities  in the decisions impacting  them. Therefore,                                                               
he  encouraged the  sponsor to  include a  "Whereas" clause  that                                                               
speaks directly to  the involvement of Alaskans.   In response to                                                               
Co-Chair  Seaton,   Representative  Herron  specified   that  the                                                               
language he is referencing can  be found in the National Security                                                               
Presidential Directives (NPDS)  - 66 on page 2  in the Background                                                               
section where it  says, in part, "The United States  is an Arctic                                                               
nation, ..." and  on page 2 in the Policy  section where it says,                                                               
in  part,  "5. Involve  the  Arctic's  indigenous communities  in                                                               
decisions that affect them;".                                                                                                   
                                                                                                                                
1:34:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON invited public testimony.                                                                                       
                                                                                                                                
1:34:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BRYCE  EDGMON, Alaska State  Legislature, informed                                                               
the committee  that he was an  alternate member of the  ANWTF and                                                               
was able  to participate in  all the  meetings.  He  then related                                                               
his strong support for  HCR 23 as there are a  host of reasons to                                                               
discuss  the importance  of  Alaska being  fully  engaged in  the                                                               
opening of the Arctic.   Moreover, he expressed the importance of                                                               
Alaska  being engaged  with the  U.S.  in terms  of Alaska  being                                                               
strategically aligned in  the opening of the Arctic  as a foreign                                                               
policy  matter for  the  U.S.   He  stated  that  there are  many                                                               
details from ANWTF  that need to be shared.   He then highlighted                                                               
the importance of  keeping the commission going in  order to keep                                                               
the awareness level current in Alaska.                                                                                          
                                                                                                                                
1:37:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON,  after  ascertaining  no  one  else  wished  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
1:37:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  moved  to  adopt  Conceptual  Amendment  1,  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 3, line 6, following "follows";                                                                                       
        Insert "of which (B) through (I) will be Alaska                                                                         
     residents"                                                                                                                 
                                                                                                                                
1:37:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  objected for  discussion purposes  and                                                               
questioned   whether  Conceptual   Amendment  1   should  include                                                               
subparagraph (A) on page 3, line 7.                                                                                             
                                                                                                                                
CO-CHAIR  SEATON explained  that subparagraph  (A) refers  to the                                                               
federal government.                                                                                                             
                                                                                                                                
1:38:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE also questioned why not include subparagraph (A).                                                                
                                                                                                                                
CO-CHAIR SEATON pointed  out that there are a  number of entities                                                               
for which individuals may work and  who may be in the appropriate                                                               
status to represent the agency.   He said he wasn't sure where it                                                               
would  structurally  make sense  for  the  federal agencies,  and                                                               
therefore he didn't include subparagraph (A).                                                                                   
                                                                                                                                
1:39:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  removed  her  objection to  Conceptual                                                               
Amendment  1.    There  being no  further  objection,  Conceptual                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
1:39:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON moved  to  adopt  Conceptual Amendment  2,                                                               
which would insert  language in HCR 23 relating  that "the United                                                               
States calls  itself an Arctic nation  and it does have  a policy                                                               
that  does  involve  the   Arctic's  indigenous  communities  and                                                               
decisions  that affect  them."    The aforementioned  essentially                                                               
says that Alaskans do as well.                                                                                                  
                                                                                                                                
CO-CHAIR SEATON  surmised then that Conceptual  Amendment 2 would                                                               
say that "The  policy of the United States for  the Arctic region                                                               
is  that  the  United  States   will  involve  Arctic  indigenous                                                               
communities  in decisions  that  affect them."    He related  his                                                               
understanding that  Conceptual Amendment  2 would  essentially be                                                               
an additional "WHEREAS" clause.                                                                                               
                                                                                                                                
REPRESENTATIVE HERRON replied yes.                                                                                              
                                                                                                                                
There being no objection, Conceptual Amendment 2 was adopted.                                                                   
                                                                                                                                
1:41:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  moved  to  report   HCR  23,  as  amended,  with                                                               
individual recommendations and accompanying  fiscal notes.  There                                                               
being no  objection, CSHCR  23(RES) was  reported from  the House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects
HCR 23.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
HCR 23 Sponsor Statement.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
HCR 23 Fiscal Note.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
HCR 23 Arctic Calendar.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
HB 263.pdf HRES 2/20/2012 1:00:00 PM
HB 263
HB 263 Sponsor Statement.pdf HRES 2/20/2012 1:00:00 PM
HB 263
NWTF_Full_Report_Color.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
CS For HB 263 Ver E.pdf HRES 2/20/2012 1:00:00 PM
HB 263
HB 263 changes between Version E and original.pdf HRES 2/20/2012 1:00:00 PM
HCR 23
HCR 23 Canada Arctic Policy.docx HRES 2/20/2012 1:00:00 PM
HCR 23
HCR 23 National Security Presidential Directive - 66.docx HRES 2/20/2012 1:00:00 PM
HCR 23
HB 263 Backup.pdf HRES 2/20/2012 1:00:00 PM
HB 263
HB 263 Legal Opinion on Confidentiality.pdf HRES 2/20/2012 1:00:00 PM
HB 263
HB 263 Sectional Analysis.pdf HRES 2/20/2012 1:00:00 PM
HB 263