Legislature(2021 - 2022)BUTROVICH 205

02/22/2021 03:30 PM Senate RESOURCES

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-- Testimony <Invitation Only> --
Heard & Held
Heard & Held
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           SB 64-SHELLFISH PROJECTS; HATCHERIES; FEES                                                                       
4:04:32 PM                                                                                                                    
CHAIR REVAK  announced the  consideration of  SENATE BILL  NO. 64                                                               
"An Act relating  to management of enhanced  stocks of shellfish;                                                               
authorizing   certain  nonprofit   organizations  to   engage  in                                                               
shellfish enhancement projects; relating  to application fees for                                                               
salmon  hatchery   permits  and  shellfish   enhancement  project                                                               
permits;  allowing  the  Alaska Seafood  Marketing  Institute  to                                                               
market  aquatic farm  products;  and providing  for an  effective                                                               
4:04:52 PM                                                                                                                    
SENATOR  STEVENS,  speaking  as  sponsor  of  SB  64,  stated  he                                                               
appreciated  the testimony  on the  previous bill  and noted  Ms.                                                               
Curry made a  good comment that the seafood  industry is Alaska's                                                               
only renewable  industry. If  the state treats  it right,  if the                                                               
legislature creates  opportunities for the processors  to go into                                                               
new lines, as well as  shellfish enhancement, then the state will                                                               
see a major long-term benefit.                                                                                                  
He  said   SB  64  is  about   strengthening  Alaska's  fisheries                                                               
portfolios,  promoting  economic   development  policy,  creating                                                               
jobs, doing  more research, and  food security. In the  big, long                                                               
term  picture   the  bill  should   be  a  win-win   for  Alaska,                                                               
businesses, and consumers.                                                                                                      
4:06:06 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau,  Alaska, explained  SB 64 is  a result  of a                                                               
considerable  amount of  work  by  stakeholders, biologists,  and                                                               
scientists. The large  focus of the bill is on  the crab and clam                                                               
He noted most  of Alaska's crab fisheries have  been shutdown for                                                               
quite  sometime for  reasons that  the scientific  community does                                                               
not entirely  understand, but  certainly may  include overfishing                                                               
of  the  state's  crab  fisheries. However,  the  state  has  not                                                               
provided any  substantive tools to  fix the situation  other than                                                               
to discontinue the fishing of those species.                                                                                    
MR. LAMKIN  pointed out  there has been  what scientists  call an                                                               
environmental regime shift  in Alaska's oceans where  at one time                                                               
the  crustaceansor   crabswere   the   dominant  biomass  of  the                                                               
state's  waters,  but  nowadays   that  has  shifted  to  finfish                                                               
He explained  finfish, for example,  virtually all  creatures out                                                               
there  really enjoy  feeding on  baby crabs  and clamswhich   are                                                               
very  vulnerable   in  the  earliest  stage   of  their  lifeand                                                                
predation is probably a bit part of this picture.                                                                               
MR.  LAMKIN said  SB  64  provides a  legal  framework for  large                                                               
scale,  shellfish  hatchery projects  to  function  in Alaska  to                                                               
nurture  the shellfish  younglingsking   crab,  razor clams,  and                                                               
geoducksin  their formative stages to  provide them with a better                                                               
shot at  survival in the wild.  The intent of the  legislation is                                                               
to carefully  balance Alaska's wild versus  enhanced programs and                                                               
He  explained   the  policy  structure  contained   in  the  bill                                                               
represents  an  investment  in  the  state's  science,  fisheries                                                               
related jobs,  private sector, and  in Alaska's  constitution for                                                               
the principle  of sustainable yield.  He said hopefully  the bill                                                               
will ultimately improve what shows up on Alaska's dinner tables.                                                                
MR.  LAMKIN  noted that  earlier  in  the day,  Senator  Steven's                                                               
office  received   two  additional   support  letters   from  the                                                               
Southeast  Alaska Fishermen's  Alliance as  well as  the Aleutian                                                               
Pribilof  Island  Community  Development  Association  in  strong                                                               
support of the bill.                                                                                                            
CHAIR  REVAK  asked Mr.  Lamkin  to  proceed with  the  sectional                                                               
analysis for SB 64.                                                                                                             
4:09:07 PM                                                                                                                    
MR. LAMKIN presented the following sectional analysis for SB 64:                                                                
     Section 1                                                                                                                
     AS 16.05.730(c) Provides the  Alaska Board of Fisheries                                                                    
     authority   to   direct   the  department   to   manage                                                                    
     production of  enhanced shellfish stocks,  beyond brood                                                                    
     stock needs, for cost recovery harvest.                                                                                    
     Section 2                                                                                                                
     AS 16.10.400(b) Removes a  flat $100 permit application                                                                    
     fee  for new  private nonprofit  salmon hatcheries,  to                                                                    
     instead be determined by  the department by regulation,                                                                    
     as described in Section 3 of the bill, below                                                                               
     Section 3                                                                                                                
     AS 16.10.400 Conforming  language consistent with other                                                                    
     fee   structures  set   and  adjusted   by  regulation,                                                                    
     requiring  fees to  approximately reflect  the cost  of                                                                    
     administering  the  application   process,  and  to  be                                                                    
     reviewed and adjusted periodically.                                                                                        
     Section 4                                                                                                                
     Adds a  new Chapter  12 to  Title 16,  "Shellfish Stock                                                                    
     Enhancement Projects"  AS 16.12.010  Provides direction                                                                    
     to the commissioner of the  Department of Fish and Game                                                                    
     on  the  issuance  of  permits  for  private  nonprofit                                                                    
     shellfish  fishery  enhancement  projects  intended  to                                                                    
     improve  the yield,  rehabilitate  stocks, or  increase                                                                    
     habitat  for shellfish.  This  subsection also  directs                                                                    
     the  commissioner  to set  an  application  fee and  to                                                                    
     consult with  technical experts  in the  relevant areas                                                                    
     before permit issuance;                                                                                                    
     AS  16.12.020   Provides  for  a  hearing   and  public                                                                    
        notification and input process prior  to issuance of                                                                    
        a permit;                                                                                                               
     AS 16.12.030 Describes terms  and conditions for permit                                                                    
        holders  to  conduct  their   work,  including  cost                                                                    
        recovery fisheries,  harvest, sale,  and release  of                                                                    
        enhancement   project   produced    shellfish,   and                                                                    
        selection of brood stock sources;                                                                                       
     AS 16.12.040 Describes the  revocation process should a                                                                    
        permit holder  fail  to comply  with  the terms  and                                                                    
        conditions of the permit;                                                                                               
     AS  16.12.050 Specifies  that shellfish  produced under                                                                    
        an  approved  enhancement   project  are   a  common                                                                    
        property  resource,   with  provision   for  special                                                                    
        harvest areas by  permit holders. This  section also                                                                    
        specifies  the  Board  of   Fisheries  to  establish                                                                    
        regulations relating to this chapter;                                                                                   
     AS  16.12.060  Directs  the department  to  advise  and                                                                    
        assist permit holders in their planning, operations,                                                                    
        and construction of  facilities to a  reasonable and                                                                    
        appropriate extent;                                                                                                     
     AS 16.12.070  provides department authority  to approve                                                                    
        source and  number  of shellfish  taken  for use  as                                                                    
     AS   16.12.080  places   restrictions  on   how  monies                                                                    
        receives from sale of shellfish may be used only for                                                                    
       operating costs associated with their facilities;                                                                        
     AS 16.12.090  Relates to  Cost Recovery  Fisheries, and                                                                    
        provides a means by  which a shellfish  hatchery may                                                                    
        contract to either harvest and sell shellfish, or to                                                                    
        implement  a   self-assessment   from  amongst   its                                                                    
        membership, for  purposes of  recovering operational                                                                    
        costs associated with the hatchery.                                                                                     
     AS 16.12.100 Gives the  department authority to inspect                                                                    
        facilities at any time while the facility is in                                                                         
     AS  16.12.110 Requires  a permit  holder  to submit  an                                                                    
        annual report to the department;                                                                                        
     AS  16.12.199  provides  definitions  for  "enhancement                                                                    
        project,"    "facility,"    "genetically    modified                                                                    
        shellfish," "hatchery," and "shellfish."                                                                                
4:11:55 PM                                                                                                                    
     Section 5                                                                                                                
     Provides  the Commercial  Fisheries Entry  Commission :                                                                    
     AS  16.43.400(a)  Provides   the  Commercial  Fisheries                                                                    
     Entry  Commission authority  to  issue special  harvest                                                                    
     area  entry permits  to  holders  of private  nonprofit                                                                    
     shellfish   rehabilitation,   or  enhancement   project                                                                    
     Section 6                                                                                                                
     AS  16.43.430 Defines  legal fishing  gear for  special                                                                    
     harvest area entry permit holders.                                                                                         
     Section 7                                                                                                                
     AS 16.51.090  adds marketing  and promotion  of aquatic                                                                    
     farm products  to the powers  and duties of  the Alaska                                                                    
     Seafood Marketing Institute (ASMI).                                                                                        
     Section 8                                                                                                                
     AS  16.51.110  conforming amendment,  prohibiting  ASMI                                                                    
     from promoting  aquatic farm products not  from Alaska,                                                                    
     a specific  region of  Alaska, or  by a  specific brand                                                                    
     Section 9                                                                                                                
     AS  16.51.180(7)  conforming  amendment  regarding  the                                                                    
     definition of "seafood."                                                                                                   
     Section 10                                                                                                               
     AS  16.51.180  (8)  is  a  new  referential  subsection                                                                    
     pointing to  the existing  definition of  "aquatic farm                                                                    
     product"  as described  in AS  16.40.199, which  states                                                                    
     "an aquatic  plant or shellfish,.. that  is propagated,                                                                    
     farmed, or  cultivated in an  aquatic farm and  sold or                                                                    
     offered for sale."                                                                                                         
     Section 11                                                                                                               
     AS 17.20.049(b)  Exempts shellfish raised in  a private                                                                    
     nonprofit  shellfish  project  from the  definition  of                                                                    
     "farmed fish."                                                                                                             
     Section 12                                                                                                               
     AS   37.05.146(c)   Makes  application   fee   revenues                                                                    
     received by the Dept. of  Fish and Game from the salmon                                                                    
     hatchery and  shellfish hatchery programs  be accounted                                                                    
     for  separately.  Appropriations   from  those  program                                                                    
     receipts  are not  made from  the unrestricted  general                                                                    
     revenue fund.                                                                                                              
     Section 13                                                                                                               
     AS   43.20.012(a)  Exempts   a  nonprofit   corporation                                                                    
     holding  a shellfish  fishery  enhancement permit  from                                                                    
     state corporate income tax  when making shellfish sales                                                                    
     and engaging in shellfish cost recovery activity                                                                           
     Section 14                                                                                                               
     AS  43.20.012(a) Is  a  technical conforming  amendment                                                                    
     required by prior session law  and has no impact on the                                                                    
     policies being set in this bill.                                                                                           
     Section 15                                                                                                               
     AS  43.76.390  Exempts   shellfish  harvested  under  a                                                                    
     special   harvest  area   entry  permit   from  seafood                                                                    
     development taxes.                                                                                                         
     Section 16                                                                                                               
     Establishes an  effective date for the  salmon hatchery                                                                    
     permit application fee change,  as described in Section                                                                    
     2 above.                                                                                                                   
     Section 17                                                                                                               
     Authorizes  the Department  of Fish  and Game  to adopt                                                                    
     implementing regulations.                                                                                                  
     Section 18                                                                                                               
     Establishes an immediate effective date for Section 17                                                                     
     pursuant to AS 01.10.070(c).                                                                                               
     Section 19                                                                                                               
     Is a technical, conforming effective date for Section                                                                      
        14 concomitant with 2 CH 55, SLA 2013 and has no                                                                        
     effect on the policy set forth in this bill.                                                                               
4:14:41 PM                                                                                                                    
CHAIR REVAK  announced the committee will  hear invited testimony                                                               
on SB 64.                                                                                                                       
4:15:04 PM                                                                                                                    
DR.  GINNY ECKERT,  Professor,  University  of Alaska;  Director,                                                               
Alaska Sea Grant,  Fairbanks, Alaska, testified in  support of SB
64.  She noted  her expertise  is in  shellfishhaving  worked  in                                                               
shellfish  in  Alaska since  2000and   has  worked in  king  crab                                                               
rehabilitation  since  2007 as  well  as  served as  the  science                                                               
director  and   co-chair  of  the  Alaska   King  Crab  Research,                                                               
Rehabilitation  and   Biology  (AKCRRAB)  Program.   She  thanked                                                               
Senator  Stevens and  the legislature  for their  work on  SB 64,                                                               
noting she  testified in support  of the previous version  of the                                                               
legislation in 2016.                                                                                                            
She  stated she  will speak  to the  need for  rehabilitation for                                                               
shellfish,  a fishery  resource that  includes crabs,  clams, and                                                               
abalonemany  of  these stocks are  in decline. She noted  she has                                                               
done some  recent work  on abalone, a  species with  potential as                                                               
DR. ECKERT  said she is  going to talk  more about king  crab, an                                                               
iconic species  native to Alaska.  Many of the state's  king crab                                                               
stocks  have crashed.  In the  Gulf of  Alaska, king  crab stocks                                                               
crashed in  the early  1980s and have  not recovered  since, even                                                               
with fisheries closure. Over fishing  is very likely the cause of                                                               
the decline  due to very  high fishing  rates, and the  state did                                                               
not  have much  knowledge about  fishery science  then. There  is                                                               
great concern about bycatch, including  at that time an allowance                                                               
for foreign fleets until the early 1970s.                                                                                       
She noted  the king  crab stocksin   the absence  of fishinghave                                                                
not  recovered  in almost  40  years.  There are  current  stocks                                                               
todaythe   Bristol  Bay red  king  crab  fisheryin  decline  that                                                               
warrants concern for possible closure in the upcoming years.                                                                    
DR. ECKERT said  AKCRRAB has done quite a bit  of research on the                                                               
feasibility of  rehabilitation through  culturing king crab  in a                                                               
hatchery and out-planting  them. AKCRRAB has learned  a lot about                                                               
king  crabs  and  is  learning more  about  the  bottlenecks  and                                                               
potential  for recovery.  AKCRRAB  has very  good evidence  these                                                               
stocks  are  recruitment-limited,  and  enhancement  could  help.                                                               
AKCRRAB has out-planted  animals on a small scale and  is able to                                                               
find  these animals  when they  grow larger  several years  later                                                               
However,  moving forward,  doing experiments  at a  larger scale,                                                               
and to potentially rehabilitate  stocks through stock enhancement                                                               
requires SB 64.                                                                                                                 
DR. ECKERT  said she  understands there  could be  concerns about                                                               
genetics; however,  the noted shellfish  are very  different from                                                               
salmon. Hatcheries collect adult salmon  and decide who is mating                                                               
with  each  other.  Through   shellfish  stock  enhancement,  the                                                               
animals  are reproducing  in the  wild,  they are  mating in  the                                                               
wild, and  AKCRRAB brings  them into the  lab with  the offspring                                                               
somewhat  intact.  The females  sort  of  carry the  embryos,  so                                                               
AKCRRAB can just hatch them out  to give them an advantage in the                                                               
early stages  and then put  them out into  the wild so  that they                                                               
can be more successful.                                                                                                         
4:18:52 PM                                                                                                                    
SENATOR KIEHL  noted that terminal  harvest areas  are associated                                                               
with  salmon hatcheries,  which  is relatively  easy because  the                                                               
salmon comeback to their release  location. He asked if crab show                                                               
the same affinity  towards a place and whether that  is an option                                                               
the  department  will  have  in   managing  those  cost  recovery                                                               
CHAIR REVAK asked how crab migrate.                                                                                             
DR. ECKERT  replied crabs  are very  different from  salmon, they                                                               
are not going to migrate back  to the place where they were born.                                                               
She conceded AKCRRAB  has a lot to learn about  where these crabs                                                               
She said AKCRRAB  has done work in recent years  that suggest the                                                               
young  crabs inhabit  shallower  waters and  migrate into  deeper                                                               
waters. Crab fisherfolk  will note crabs go deeper  in the summer                                                               
and shallower  in the winter.  Colleagues at the  National Marine                                                               
Fisheries  Service   in  Kodiak   have  out-planted   very  small                                                               
juveniles and they have been able  to find them a couple of years                                                               
DR. ECKERT summarized  that AKCRRAB has opportunities  to do more                                                               
work,  but  the  program  believes  these  animals  are  probably                                                               
staying relatively  in a small  area; ADF&G could talk  about how                                                               
to manage this in the future.                                                                                                   
SENATOR KIEHL  noted the  bill has  a prohibition  on genetically                                                               
modified shellfish and  it includes a definition.  He pointed out                                                               
freshwater fish hatcheries will modify  their fish so they cannot                                                               
reproduce.  However, the  sponsor  spoke about  the intension  to                                                               
enhance recovery and get reproducing stock numbers up.                                                                          
He asked  if there is  the possibility in the  future, especially                                                               
if shellfish stick  to a particular area, to do  the same sort of                                                               
thing or if the definition  of genetic modification rules out the                                                               
possibility  of enhancing  a localized  area with  nonreproducing                                                               
4:21:43 PM                                                                                                                    
DR. ECKERT  replied she does  not know the answer.  She explained                                                               
AKCRRAB does not  understand the biology that much  but there are                                                               
fascinating things  that are happening  with technology  now. The                                                               
way  AKCRRAB currently  grows crab  in the  hatchery is  to allow                                                               
female  crabs   to  hatch-out   their  embryos   without  genetic                                                               
manipulation. AKCRRAB  wants to focus carefully  to not overwhelm                                                               
any of the natural genetic diversity.                                                                                           
She noted there  is potential for future  modification. Norway is                                                               
working on lobster; they are a  leader in many of the aquaculture                                                               
efforts. However, she  does not know if Norway  has done anything                                                               
like [genetic  modification], but  if that  were to  happen, they                                                               
would be first.                                                                                                                 
SENATOR KIEHL  conceded that  concern is 15-20  years out  at the                                                               
closest and is not an issue.                                                                                                    
4:23:36 PM                                                                                                                    
HEATHER   MCCARTY,   Co-Chair,   Alaska   King   Crab   Research,                                                               
Rehabilitation  and Biology  (AKCRRAB)  Program, Juneau,  Alaska,                                                               
testified in  support of SB 64.  She noted she is  also the Chair                                                               
of the Alaska Governor's Mariculture Task Force (AMTF).                                                                         
She  said her  main  interest  in crab  came  from her  employer,                                                               
Central  Bering  Sea  Fishermen's  Association  (CBSFA),  one  of                                                               
Western Alaska's six [Community  Development Quota] (CDQ) Program                                                               
groups for  St. Paul  Island in the  Pribilof Islands.  Blue king                                                               
crab  used to  surround  St. Paul  Island, it  was  a viable  and                                                               
lucrative fishery both for the local  people and for the State of                                                               
Alaska for many  years. However, like several  other crab stocks,                                                               
the blue king crab had  precipitously declined in the early 1980s                                                               
and  fisherfolk have  not fished  the  area since  then, but  the                                                               
stocks continue to  decline. A group started  the AKCRRAB Program                                                               
in 2006 to try  and bring the stock back as well  as the red king                                                               
crab in the Kodiak area.                                                                                                        
MS. MCCARTY noted  she has been part of AMTF  since the beginning                                                               
in 2016. AMTF consists of  scientists, industry people, community                                                               
representatives,  and agency  representatives  for  the State  of                                                               
Alaska.  AMTF is  dedicated to  developing mariculture  in Alaska                                                               
for the  benefit of the state  and its people. AMTF  supports the                                                               
passage of  SB 64noting  previous  support for  the legislation's                                                               
various iterations for the last two legislative sessions.                                                                       
She  said AMTF  believes that  the mariculture  of shellfish  and                                                               
seaweed has great  potential in Alaska to  benefit the economies                                                                
particularly  of  coastal  communitiesto   provide  ocean-related                                                               
jobs in  those communities in  entry-level ways for  residents to                                                               
make  use of  their experience  on the  water and  their existing                                                               
equipment such  as boats  and so onnot   to mention  the existing                                                               
processing opportunities  in those coastal communities.  SB 64 is                                                               
a big piece of that development.                                                                                                
MS.  MCCARTY  explained the  bill  is  one of  AMTF's  priorities                                                               
because  advancing   the  culture  of  shellfishas    Dr.  Eckert                                                               
describedrequires   the legislation  for advancement.  AMFT spent                                                               
the  last  decade  and  a  half developing  methods  of  crab  in                                                               
captivity, release  monitoring, and understanding  habitat needs.                                                               
AMTF  cannot  go the  extra  step  into larger  scale  production                                                               
without the  benefit of SB  64 to implement regulations  and help                                                               
the program  go one step  further into making shellfish  a viable                                                               
4:27:50 PM                                                                                                                    
SAM  RABUNG,  Director,  Commercial  Fisheries  Division,  Alaska                                                               
Department  of  Fish  and  Game,  Juneau,  Alaska,  testified  in                                                               
support  of   SB  64.  He   explained  Alaska   currently  limits                                                               
mariculture to  aquatic farming, sometimes called  "wet farming,"                                                               
which  entails growing  privately-owned organisms  under positive                                                               
control  and  not  releasing  themit   is  private  property  for                                                               
private  business  for  profit.  In contrast,  the  fisheries  in                                                               
Alaska  are  common property  and  owned  by  all the  people  of                                                               
Alaska.    Mariculture   could    restore   extirpated    stocks,                                                               
rehabilitate  weak  stocks,  and  enhance  fisheries  to  support                                                               
harvest levels above natural  production; however, currently that                                                               
is not legal and that is the reason for SB 64.                                                                                  
MR. RABUNG said  in response to Senator  Kiehl's earlier question                                                               
about special harvest areas for crab,  there is a provision in SB
64 that allows for a fishery  assessment as a cost recovery tool,                                                               
so the common  property could harvest the organisms  in a release                                                               
area and they pay an assessment  to fund the cost of the project,                                                               
it is  just one  of the  many available  tools if  SB 64  were to                                                               
He  noted  to  answer  the previous  question  by  Senator  Kiehl                                                               
regarding releasing  non-reproducing organisms, the  problem with                                                               
that  is   that  would   preclude  being   able  to   restore  or                                                               
rehabilitate stocks because they would  not be able to reproduce.                                                               
Brood stock  collection would occur  in an area near  the release                                                               
location  area   and  brought  into   a  hatchery   for  spawning                                                               
inducement and  progency protection  until their sizes  allow for                                                               
out-planting survival until maturity for harvest.                                                                               
MR. RABUNG said SB 64  would require that the entities performing                                                               
the  hatchery  work  be nonprofits.  Mechanisms  to  support  the                                                               
hatchery  work would  entail either  a fisheries  assessment tax,                                                               
stakeholder  self-assessment,  or  a direct  cost  recovery  from                                                               
fishing. The program would require self-support.                                                                                
4:31:15 PM                                                                                                                    
SENATOR KIEHL  referenced cost  recovery to  a fishery.  He asked                                                               
him  if the  department is  concerned  with the  comingling of  a                                                               
common property stocknatural  versus  enhancedor  does he see the                                                               
fishery as comparable to the  incidental catch of some wild stock                                                               
when a hatchery cost recovery is fishing salmon.                                                                                
MR.  RABUNG replied  yes, the  department will  start off  at low                                                               
levels  with  monitoring  with   the  intention  to  augment  the                                                               
harvest.  The harvest  will  have  wild stock  with  it, but  the                                                               
intent  for  a  direct  cost  recovery harvest  is  to  focus  on                                                               
hatchery or project-produced organisms.                                                                                         
He conceded [crabs] are not as  clean a fit as the salmon because                                                               
the  salmon  returns  to  their  release  location  at  maturity;                                                               
however,  this is  a  species-by-species  approach. For  example,                                                               
crabs  are  mobile and  can  move  around,  but clams  are  beach                                                               
planted, so  each species is  unique. He noted the  Eastside Cook                                                               
Inlet  razor   clams  are  in  declineno    personal-use  permits                                                               
openings  for   5-7  yearsand   they   are  a  candidate   for  a                                                               
rehabilitation  project  for  those  beaches  via  hatchery  out-                                                               
MR. RABUNG said  dive fisheries for [sea  cucumbers] and geoducks                                                               
in Southeast Alaska is  another enhancement-type project example.                                                               
Rotating  harvests  for   common-property  dive  fisheries  occur                                                               
approximately every three yearsfor   natural stock recovery. Out-                                                               
planting  hatchery  juveniles from  the  area  after the  fishery                                                               
occurs could speed up the rotation.                                                                                             
MR.  RABUNG  said  he  feels  that most  of  these  projects  are                                                               
probably not  going to  be directed-cost  recovery because  it is                                                               
not as easy to sort them  out and keep them segregated from their                                                               
naturally produced  cohorts. The other tools  in the billfishery                                                                
assessment tax  or stakeholders taxing  themselveswould  probably                                                               
be more likely used.                                                                                                            
4:35:23 PM                                                                                                                    
JEREMY  WOODROW, Executive  Director,  Alaska Seafoods  Marketing                                                               
Institute,  Juneau, Alaska,  testified in  support of  SB 64.  He                                                               
said he will speak  to the parts of the bill  that pertain to the                                                               
Alaska   Seafoods   Marketing   Institute  (ASMI).   The   Alaska                                                               
Mariculture Task  Force (AMTF) and  the Alaska  Shellfish Growers                                                               
Association support the statutory change.                                                                                       
He  said as  a public-private  partnership between  the State  of                                                               
Alaska and  the Alaska seafood  industry, ASMI has  established a                                                               
fostered  economic  development  of  Alaska's  renewable  natural                                                               
seafood resources. ASMI plays a  key role in the repositioning of                                                               
Alaska's seafood  industry as a competitive,  market driven, food                                                               
production industry.                                                                                                            
MR.  WOODROW detailed  ASMI accomplished  its work  to boost  the                                                               
value  of  Alaska's  seafood  through  partnerships  with  retail                                                               
grocers,  foodservice  distributors   and  operators,  restaurant                                                               
chains,  universities,  culinary  schools, and  the  media.  ASMI                                                               
conducts  consumer   campaigns,  public   relations,  advertising                                                               
activities,  and   aligns  with  industry  efforts   to  maximize                                                               
effectiveness. ASMI  also functions  as a  brand manager  for the                                                               
Alaska seafood family of brands.                                                                                                
He said  the economic  opportunity for  mariculture in  Alaska is                                                               
expanding  quickly. With  the support  and efforts  of AMTF,  the                                                               
industry is  seeing growth from  small family  businesses selling                                                               
boutique products to fisherfolk  looking to utilize their vessels                                                               
and  skills in  shoulder-seasons,  to  significant investment  in                                                               
production by  Alaska's major seafood companies,  recognizing the                                                               
opportunity   to   diversify   their  existing   Alaska   product                                                               
MR.  WOODROW  detailed AMTF  has  identified  the goal  to  build                                                               
Alaska's  mariculture production  into  a $100  million per  year                                                               
industry; this is no small  feat and will require quite literally                                                               
all-hands-on-deck  to meet  this  objective.  Providing the  same                                                               
opportunity for  Alaska mariculture products that  have benefited                                                               
Alaska's fisheries for 40 years  will undoubtingly help meet this                                                               
goal  by  utilizing  ASMI's   expertise  to  include  mariculture                                                               
products and  consumer retail foodservice and  food aid outreach,                                                               
and domestic and both in targeted markets.                                                                                      
MR.  WOODROW said  the ASMI  board would  like to  thank Chairman                                                               
Revak  and the  members  of the  Senate  Resources Committee  for                                                               
recognizing the  value of Alaska's  maritime economy and  for the                                                               
committee's  consideration  of   meaningful  legislation  to  aid                                                               
economic development across Alaska's coastal communities.                                                                       
4:38:21 PM                                                                                                                    
JEFF   HETRICK,  Mariculture   Director,  Alutiiq   Pride  Marine                                                               
Institute (APMI), Seward, Alaska, testified  in support of SB 64.                                                               
He detailed the Alutiiq Pride  Marine Institute (APMI) houses its                                                               
shellfish  hatchery  in  Seward.  APMI has  been  developing  the                                                               
hatchery technology  for many of  the important  Alaska shellfish                                                               
species  such as  littleneck clams,  butter  clams, razor  clams,                                                               
softshell clams,  cockles, purple-hinged  rock scallops,  as well                                                               
as red and  blue king crab, Bosworth abalone,  sea cucumbers, and                                                               
most  recently kelp;  APMI is  the first  entity to  successfully                                                               
raise many of these species.                                                                                                    
He  said   in  response  to  the   questions  concerning  genetic                                                               
manipulation,  it is  a  common practice  to  create triploid  or                                                               
infertile mollusk shellfish.  However, technology for crustaceans                                                               
is not quite as understoodas   Dr. Eckert saidbut  triploidy is a                                                               
valuable tool  for addressing concerns with  genetic impacts from                                                               
shellfish hatcheries.                                                                                                           
MR. HETRICK  noted, although APMI  produces geoducks  and oysters                                                               
for the  commercial operations, a  major focus has  been invested                                                               
beyond  the  aquatic farm  industry  to  conduct trial  shellfish                                                               
enhancement  projects and  APMI  does that  through planting  and                                                               
monitoring  local beaches  with  clams and  other  species in  an                                                               
effort to  have some tools  to perhaps  bring back some  of these                                                               
declining populations; all  this work to date  has been conducted                                                               
under research permits through the  Alaska Department of Fish and                                                               
Game (ADF&G)they   have been wonderful partnersas   APMI develops                                                               
this technology.                                                                                                                
MR. HETRICK  explained due to  lack of legislation, APMI  has not                                                               
been  able to  conduct programs  that  might be  large enough  to                                                               
provide more scientific data and  harvest opportunities. APMI has                                                               
worked  in some  areasPort  Graham,  Seldovia, Lower  Cook Inlet                                                                
where  locals are  actually harvesting  some  of APMI's  enhanced                                                               
populations, but  those were planted  under research  permits and                                                               
MR. HETRICK  noted with  king crabs, APMI  has assembled  a large                                                               
team  of  experts  in  crab biology  and  management.  APMI  just                                                               
finished  its third  year of  an out-stocking  program in  Kodiak                                                               
that  has  given APMI  great  expectations  for success  if  APMI                                                               
continues along the crab enhancement path.                                                                                      
He said he cannot understate the  significance of having SB 64 in                                                               
play. Alaska's  native coastal communities that  have financially                                                               
supported APMI's work for almost  20 years are anxiously awaiting                                                               
some  projects to  bring back  some of  those resources.  AMPI is                                                               
certainly  prepared  to  move  beyond  the  experimental  to  the                                                               
implementation phase of AMPI's work.                                                                                            
4:41:52 PM                                                                                                                    
JULIE  DECKER, Executive  Director, Alaska  Fisheries Development                                                               
Foundation, Wrangell, Alaska, testified in  support of SB 64. She                                                               
said  the  bill creates  a  framework  to develop  the  shellfish                                                               
fishery  enhancement  and  allows  for  ASMI  to  market  aquatic                                                               
products  which   will  further   the  development  of   the  new                                                               
mariculture industry.                                                                                                           
She  stated SB  64 accomplishes  two-priority recommendations  of                                                               
the AMTFwhich  she  also serves onas  a part of  a larger plan to                                                               
fully develop the  mariculture industry in Alaska with  a goal to                                                               
grow a $100-million-per-year industry in 20 years.                                                                              
MS.  DECKER  detailed  Alaska  Fisheries  Development  Foundation                                                               
(AFDF)  membership is  comprised of  seafood harvesters,  seafood                                                               
processors, and  support businesses.  AFDFfounded  in  1978has  a                                                               
mission to  identify opportunities  common to the  Alaska seafood                                                               
industry;  and  develop   efficient,  sustainable  outcomes  that                                                               
benefit the economy, environment, and coastal communities.                                                                      
She  noted  one of  foundation's  recent  areas  of work  is  the                                                               
development of mariculture. As a  direct result of this work with                                                               
others,   AMTFestablished    in    2016completed    a   statewide                                                               
comprehensive  plan in  2018 with  the  goal of  growing a  $100-                                                               
million industry.                                                                                                               
MS. DECKER explained as the  facilitator for the certification of                                                               
the  Alaska salmon  fishery  as sustainable,  AFDF  has a  unique                                                               
viewpoint on some of the concerns  of others for the potential of                                                               
negative impacts  from SB  64. AFDF  is the  client for  both the                                                               
Alaska  Responsible Fisheries  Management  (RFM)  and the  Marine                                                               
Stewardship Council  (MSC) certifications of Alaska  salmon. As a                                                               
part  of these  certifications,  ADF&G management  of the  salmon                                                               
fishery,  including salmon  enhancement program,  receives review                                                               
every  year  by  independent  third-party  experts  to  determine                                                               
whether   it  meets   internationally   accepted  standards   for                                                               
sustainably  managed   fisheries.  Alaska  salmon   is  currently                                                               
certified  as sustainable  under both  the RFM  and MSC  programs                                                               
because  ADF&G's management  incorporates  a cautionary  approach                                                               
that prioritizes wild fish and  minimizes adverse impacts to wild                                                               
MS. DECKER  pointed out ADF&G has  extensive enhancement policies                                                               
which protect  wild stocks, including genetics  policies, release                                                               
sites,  marking,  and  disease policies;  given  these  policies,                                                               
ADF&G's is  fulfilling its constitutional  mandate to  manage the                                                               
state's   fishery  resources   for  sustainability.   ADF&G  will                                                               
similarly   manage   shellfish    enhancement   with   the   same                                                               
constitutional mandate to protect wild stocks.                                                                                  
She  said   another  benefit  of  developing   shellfish  fishery                                                               
enhancement is  the important role that  shellfish hatcheries may                                                               
play  in   helping  the   state  adapt   to  ocean   changes  and                                                               
acidification.  During  additional shellfish  hatchery  technique                                                               
development, the  state will  learn more  about its  abilities to                                                               
mitigate  the  effects  of  ocean  acidification  in  a  hatchery                                                               
setting. For  example, adjusting  pH levels at  critical juvenile                                                               
stages in hatchery  can improve survival after  crab release into                                                               
the  wild. Therefore,  shellfish hatcheries  may play  a critical                                                               
role  in  the future  by  helping  to  protect wild  stocks  from                                                               
negative impacts of ocean acidification.                                                                                        
MS. DECKER stated shellfish enhancement  can diversify and expand                                                               
economic   opportunities  by   increasing  harvest   for  sports,                                                               
subsistence, and commercial  uselike  Alaska's salmon enhancement                                                               
program.  For   example,  salmon  enhancement,   from  2012-2017,                                                               
contributed  approximately $720  million in  ex-vessel value  and                                                               
$2.1 billion  in first  wholesale value  to the  state's economy.                                                               
Similarly,  shellfish enhancement  can  infuse  the economies  of                                                               
Alaska's communities.                                                                                                           
She said  AFDF believes that  growth of the  mariculture industry                                                               
can play  an important  role in  Alaska's economic  recovery from                                                               
the COVID-19 disaster, and passage of SB 64 is central to fully                                                                 
enabling that recovery and potential.                                                                                           
4:47:10 PM                                                                                                                    
CHAIR REVAK announced the committee will hear public testimony                                                                  
on SB 33 and SB 64 during an upcoming meeting.                                                                                  
4:47:18 PM                                                                                                                    
CHAIR REVAK held SB 64 in committee.                                                                                            

Document Name Date/Time Subjects
SB033_SeafoodTaxCredit_Sectional_Version A.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB033_SeafoodTaxCredit_SponsorStatement.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB064_ShellfishEnhancement_Sponsor-Statement.pdf SFIN 4/6/2021 9:00:00 AM
SRES 2/22/2021 3:30:00 PM
SB 64
SB064_ShellfishEnhancement_Sectional_VersionA.pdf SFIN 4/6/2021 9:00:00 AM
SRES 2/22/2021 3:30:00 PM
SB 64
SB064_Shellfish-Enhancement_Research Backup_PSPA-UFA Flyer_Pays-Its-Way.pdf SFIN 4/6/2021 9:00:00 AM
SRES 2/22/2021 3:30:00 PM
SB 64
SB064 AFDF Letter of Support 2- Alaska Mariculture Development Plan.pdf SFIN 4/6/2021 9:00:00 AM
SRES 2/22/2021 3:30:00 PM
SB 64
SB064 2021-02-11 AFDF Letter of Support SB 64.pdf SRES 2/22/2021 3:30:00 PM
SB 64
SB033_SeafoodTaxCredit_SupportLetter_PSPA_02Feb2021.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB033_SeafoodTaxCredit_Support_BristolBayRSDA_05Feb2021.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB033_SeafoodTaxCredit_Support-Brochure_BristolBayRSDA_Feb2021.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB033_SeafoodTaxCredit_Support-Processing-Brochure_PSPA_Feb2019.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB033_SeafoodTaxCredit_SupportLetter_AFDF_11Feb2021.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB064_ShellfishEnhancement_SupportLetters_Bundled_as of 16Feb2021.pdf SRES 2/22/2021 3:30:00 PM
SB 64
SB033 Fiscal Note 2.22.21.pdf SRES 2/22/2021 3:30:00 PM
SB 33
SB064 Fiscal Notes 2.21.21.pdf SRES 2/22/2021 3:30:00 PM
SB 64
SB033 SEAFA Support Letter 2.22.21.pdf SFIN 1/24/2022 1:00:00 PM
SRES 2/22/2021 3:30:00 PM
SB 33
SB064 SEAFA Support Letter 2.22.21.pdf SRES 2/22/2021 3:30:00 PM
SB 64
SB033 ICICLE and Silver Bay Support Letters 2.22.21.pdf SFIN 1/24/2022 1:00:00 PM
SRES 2/22/2021 3:30:00 PM
SB 33
SB064 Nancy Hillstrand oppose 2.22.21.pdf SRES 2/22/2021 3:30:00 PM
SB 64