Legislature(2011 - 2012)BARNES 124

03/21/2012 01:00 PM House RESOURCES


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Audio Topic
01:07:45 PM Start
01:08:02 PM HB360
01:09:51 PM HB365
01:39:45 PM Overview(s): Oil & Gas Taxes & Credits
03:00:05 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HOUSE BILL -- "Production Tax on Oil & Gas" TELECONFERENCED
<Bill Hearing Withdrawn>
+ Overview: Oil & Gas Taxes & Credits by Dept. of TELECONFERENCED
Revenue
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 360 INTERSTATE MINING COMPACT & COMMISSION TELECONFERENCED
Moved Out of Committee
+= HB 365 AQUATIC INVASIVE SPECIES TELECONFERENCED
Moved CSHB 365(RES) Out of Committee
                HB 365-AQUATIC INVASIVE SPECIES                                                                             
                                                                                                                                
1:09:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  announced that the  next order of  business would                                                               
be HOUSE  BILL NO. 365,  "An Act  relating to the  rapid response                                                               
to, and  control of, aquatic  invasive species."  In  response to                                                               
Representative Gardner,  Co-Chair Feige requested Mr.  Swanton of                                                               
the  Alaska Department  of Fish  &  Game (ADF&G)  to address  the                                                               
status of  the department's 2002 Alaska  Aquatic Nuisance Species                                                               
Management Plan.                                                                                                                
                                                                                                                                
1:11:19 PM                                                                                                                    
                                                                                                                                
CHARLES  SWANTON,  Director,  Division   of  Sport  Fish,  Alaska                                                               
Department of  Fish & Game  (ADF&G), explained that  ADF&G's 2002                                                               
Alaska  Aquatic Nuisance  Species Management  Plan was  primarily                                                               
put together because such a  plan was required under the National                                                               
Invasive Species  Act [of  1996] to  receive federal  funding for                                                               
[invasive] species.   The  plan resulted  in the  state receiving                                                               
approximately $1.7  million in  federal funds.   Noting  that the                                                               
noxious weeds  identified in  the plan are  under the  purview of                                                               
the  Department of  Natural Resources  (DNR),  he specified  that                                                               
ADF&G's primary focus  has been on northern pike  because that is                                                               
the most  pervasive issue ADF&G  has had to  deal with.   He said                                                               
the  department  has  been reasonably  successful  at  addressing                                                               
northern pike - the most  recent eradication efforts being in and                                                               
around  Yakutat, along  with a  fair amount  of work  on northern                                                               
pike in  and around the  Anchorage area and the  Kenai Peninsula.                                                               
He added that  the 2002 plan is fairly comprehensive  and in some                                                               
respects  the  authorities are  well  beyond  what ADF&G  has  to                                                               
implement;  however, as  a guiding  document it  allows ADF&G  to                                                               
focus its attentions, which the department has done.                                                                            
                                                                                                                                
1:13:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  asked how  the  2002  plan was  implemented  to                                                               
address  the  Didemnum vexillum  (D.  vex)  situation in  Sitka's                                                               
Whiting Harbor.                                                                                                                 
                                                                                                                                
MR. SWANTON replied he is unsure  about D. Vex in relation to the                                                               
plan.  He said the D. Vex  issue was discovered in 2010 through a                                                               
"bioblitz" conducted  by a  wide number of  agencies.   While the                                                               
2002  plan references  a wide  array  of invasives,  it does  not                                                               
identify D.  vex or tunicates.   The plan has offered  ADF&G some                                                               
guidance for addressing  D. vex, but by and large  that issue was                                                               
relatively unique  and has required  time to focus on  what needs                                                               
to be done to move forward.                                                                                                     
                                                                                                                                
1:14:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON noted it  has been two years  since the                                                               
D. Vex  was identified and voiced  her hope that a  plan has been                                                               
put in place  to ensure it does  not spread.  She  said she would                                                               
be very upset  to find ADF&G has  let it go and has  no plans for                                                               
the future.                                                                                                                     
                                                                                                                                
MR.  SWANTON responded  ADF&G  has  systematically addressed  the                                                               
issue as  best it  can with  the limited  funding available.   He                                                               
said ADF&G has requested a  capital project within the governor's                                                               
budget specifically  to Whiting Harbor  and D. vex.   That budget                                                               
will allow  ADF&G the  necessary funds  to eradicate  the species                                                               
and  do some  follow-up monitoring  for several  years after  the                                                               
eradication to ensure that all of it was eradicated.                                                                            
                                                                                                                                
1:16:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  expressed  her concern  that  D.  Vex                                                               
eradication was  not been  included in  the operating  budget and                                                               
stated  that it  will take  more than  one-time funds  since this                                                               
invasive has not been eradicated  and has dispersed over quite an                                                               
area.   Regarding the capital  budget, she asked  whether someone                                                               
has informed the other body that  this is an emergency and is not                                                               
a one-time funding thing.                                                                                                       
                                                                                                                                
MR. SWANTON answered  ADF&G has identified this as  a priority on                                                               
the  capital   side  and  the  department   has  had  discussions                                                               
throughout the  course of  legislative hearings  in terms  of the                                                               
department's budget.   He presumed folks are aware  of what ADF&G                                                               
is trying to do with this capital project and the intent.                                                                       
                                                                                                                                
REPRESENTATIVE P. WILSON expressed her deep disappointment.                                                                     
                                                                                                                                
1:17:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON stated that this  discussion shows the importance                                                               
of HB 365.   He said D. vex is an invasive  species that could be                                                               
extremely  damaging to  the  economy of  mariculture  and to  all                                                               
Southeast Alaska  fisheries, yet  the apparent authority  was not                                                               
there to  do an emergency  response.   The right emphasis  is not                                                               
being put on  the extreme importance of failing  to give priority                                                               
to  an invasion  in a  limited geographic  area and  HB 365  will                                                               
provide this priority.   He shared in  Representative P. Wilson's                                                               
deep disappointment about the response to the D. vex issue.                                                                     
                                                                                                                                
1:20:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE asked  why this emergency was not  included in the                                                               
supplemental budget request.  He said  ADF&G is not jumping up to                                                               
take  care of  what  could  be a  pretty  serious  problem.   The                                                               
committee did not  know there was a capital  request, which tells                                                               
that  the issue  has  not  received much  emphasis;  HB 365  will                                                               
therefore send the department a message.                                                                                        
                                                                                                                                
CO-CHAIR  SEATON   added  that   while  the  committee   heard  a                                                               
presentation last year, that presentation  was at the committee's                                                               
request after it  learned about the issue  from Representative P.                                                               
Wilson; the  department did not  come to the committee  saying it                                                               
had an  emergency that  needed to  be addressed  right away.   He                                                               
said the purpose of HB 365 is to tell ADF&G it needs to act.                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  pointed out that this D.  vex issue was                                                               
enough of  an emergency that it  went to a nationwide  alert with                                                               
involvement   from   the   National   Oceanic   and   Atmospheric                                                               
Administration  (NOAA),   the  Smithsonian  Institute,   and  the                                                               
University of Alaska.  Many people  knew how critical it was, yet                                                               
ADF&G said it  did not have the money and  could not do anything.                                                               
The state  cannot let this  happen because  it could lead  to the                                                               
devastating result of  quarantined harbors.  The  state must have                                                               
something  in place  to provide  direction so  that a  department                                                               
cannot say it has no money and will therefore not do anything.                                                                  
                                                                                                                                
1:23:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI noted  HB  360 was  amended  to cut  out                                                               
[freshwater aquatic  species] so  it now  deals only  with marine                                                               
aquatic  species.   He  inquired whether  ADF&G  would want  this                                                               
rapid response authority  to address all aquatic  species, if the                                                               
department believes it does not already have this ability.                                                                      
                                                                                                                                
MR. SWANTON replied he thinks  ADF&G's ability to respond rapidly                                                               
has all to  do with the circumstances  surrounding the particular                                                               
species,  the area,  and the  threat to  other resources  and the                                                               
economy.   He said  the revised fiscal  note addresses  the three                                                               
marine  species that  ADF&G  should be  paying  attention to  and                                                               
developing a plan for.                                                                                                          
                                                                                                                                
1:25:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI, noting that northern  pike is one of the                                                               
six [freshwater] species that would  be excluded from the bill as                                                               
amended,  asked whether  that means  northern pike  would not  be                                                               
identified as a priority invasive species.                                                                                      
                                                                                                                                
MR. SWANTON responded  that northern pike has been  a priority in                                                               
the  freshwater  aquatic  environment  through  the  department's                                                               
planning  exercise that  took place  in 2002  and the  subsequent                                                               
document.  The department has  had several successful eradication                                                               
efforts around the  state and will continue to  use the resources                                                               
it has sequestered for that particular instance.                                                                                
                                                                                                                                
1:26:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI pointed  out  that the  bill deals  with                                                               
rapid response  because the department  felt it did not  have the                                                               
ability to rapidly respond to  an invasive species.  For example,                                                               
flooding  of the  Salcha River  near Fairbanks  occurs regularly,                                                               
sometimes spilling water into the  Harding Lake tributary system.                                                               
Given  that ADF&G  stocks  Harding Lake  with  silver salmon  and                                                               
rainbow trout, he inquired whether  the department would have the                                                               
ability under HB 365, as amended,  to respond rapidly if pike got                                                               
into the Harding Lake area from one flooded season.                                                                             
                                                                                                                                
MR.  SWANTON   answered  he  believes  ADF&G   has  the  ability,                                                               
especially along the road system,  to address those issues fairly                                                               
rapidly, as  opposed to other areas  of the state even  in marine                                                               
waters.   Regarding the aforementioned Harding  Lake scenario, he                                                               
said he  feels comfortable that  ADF&G would have the  ability to                                                               
take care of those issues.                                                                                                      
                                                                                                                                
1:27:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  asked what  the  current  situation is  in                                                               
Whiting  Harbor and  whether there  is  evidence that  D. Vex  is                                                               
still there or has been eradicated.                                                                                             
                                                                                                                                
MR.  SWANTON   replied  ADF&G  has  not   undertaken  eradication                                                               
efforts,  but has  removed from  the  water the  nets for  oyster                                                               
spatter that were the most contaminated  and that were not on the                                                               
sea floor.   Some of the  superstructure has been cleaned  up, he                                                               
continued, and most  of the tunicate currently exists  on the sea                                                               
floor fairly  prominently in the head  of that bay.   Mapping has                                                               
been done and the invasive  species coordinator has made in-roads                                                               
as to  what permits are going  to be necessary in  preparation of                                                               
hopefully  receiving   this  capital   project  to   conduct  the                                                               
eradication efforts, which  will start in earnest as  soon as the                                                               
funding is available.                                                                                                           
                                                                                                                                
1:29:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE,  regarding  the  fiscal note  mentioned  by  Mr.                                                               
Swanton, inquired what has changed  in the current fiscal note as                                                               
opposed to the original one.                                                                                                    
                                                                                                                                
MR. SWANTON responded ADF&G has  removed three of the six species                                                               
it was  going to develop rapid  response plans for.   In essence,                                                               
the original  note has  been carved in  half because  those rapid                                                               
response plans would  not be referenced.  Should HB  365 pass and                                                               
funding  become available,  ADF&G  would  develop rapid  response                                                               
plans  for  the  invasive  tunicate,  European  green  crab,  and                                                               
Spartina cordgrass.   In further  response, Mr. Swanton  said the                                                               
revised  amount  would  be  $430,000 for  fiscal  year  2013  and                                                               
$215,000 for fiscal year 2014 for finalization of those plans.                                                                  
                                                                                                                                
REPRESENTATIVE MUNOZ understood the fiscal  note is to help ADF&G                                                               
develop  the plan  and identify  information around  each of  the                                                               
species.    She  asked  what   the  capital  amount  is  for  the                                                               
eradication efforts.                                                                                                            
                                                                                                                                
MR. SWANTON answered  that this fiscal note does  not reflect any                                                               
cost with implementing any plans if  ADF&G does find any of these                                                               
species for eradication.   This fiscal note is  solely to develop                                                               
plans that  would allow for  the various agencies  and interested                                                               
parties to understand their roles in removing that threat.                                                                      
                                                                                                                                
1:31:43 PM                                                                                                                    
                                                                                                                                
MR.  SWANTON, in  response to  Co-Chair Feige,  said the  current                                                               
capital  request for  eradicating  D. vex  in  Whiting Harbor  is                                                               
$500,000.  In  response to Co-Chair Seaton, Mr.  Swanton said the                                                               
mechanism for this  eradication has yet to be  determined.  There                                                               
has been some  success within the literature,  he continued, that                                                               
suggests some  sort of matting  structure to cover  the substrate                                                               
and choke  off the invasive.   The department is planning  to put                                                               
it out for  bid as soon as possible to  a qualified contractor to                                                               
conduct the eradication.  In  response to Representative Gardner,                                                               
Mr. Swanton  said ADF&G believes  the matting will likely  be the                                                               
best approach and will take care  of most of the eradication; the                                                               
department  is suggesting  the contractor  use  other methods  to                                                               
clean up  the other spots.   The remainder  of the money  will be                                                               
used for monitoring to ensure the invasive does not resurface.                                                                  
                                                                                                                                
1:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI,  noting that D.  vex is not  included in                                                               
ADF&G's  2002 Alaska  Aquatic Nuisance  Species Management  Plan,                                                               
asked whether the plan will be updated.                                                                                         
                                                                                                                                
MR. SWANTON replied  the 2002 plan is not a  rapid response plan;                                                               
rather,  it  is  a  broader perspective  plan  put  together  for                                                               
purposes of  securing federal funding for  invasive species work.                                                               
He said  ADF&G has  received about  $1.4-$1.7 million  in federal                                                               
funding to implement  elements of the plan,  primarily focused on                                                               
northern  pike.   He  reiterated  that  he  cannot speak  to  the                                                               
noxious weeds elements in the  plan [because that falls under the                                                               
purview of the Department of Natural Resources].                                                                                
                                                                                                                                
REPRESENTATIVE KAWASAKI commented that page  v of the 2002 plan's                                                               
executive summary  states that protocols  shall be  developed for                                                               
early  detection, rapid  response to,  control and  management of                                                               
new invasive species.  Therefore, he  said, some of this might be                                                               
redundant and the fiscal note should reflect this.                                                                              
                                                                                                                                
1:37:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON moved  to  report  HB 365,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
pending fiscal  notes.  There  being no objection,  CSHB 365(RES)                                                               
was reported from committee.                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  added  that  HB   365  is  being  reported  from                                                               
committee with the  understanding to ADF&G that it  has some work                                                               
to  do on  the plan  as  well as  the general  approach to  those                                                               
things that threaten Alaska's economy and environment.                                                                          
                                                                                                                              

Document Name Date/Time Subjects
DOR.H.RES.Presentation.3.21.12.pdf HRES 3/21/2012 1:00:00 PM
HRES 3.21.12 Credits Table.pdf HRES 3/21/2012 1:00:00 PM
HRES 3.21.12Credits Summary.pdf HRES 3/21/2012 1:00:00 PM