Legislature(2009 - 2010)BARNES 124

02/23/2010 10:15 AM House FISHERIES


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Audio Topic
10:19:41 AM Start
10:21:12 AM HB344
12:25:19 PM Overview
01:00:42 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
--Recessed to Immediately After Session--
+= HB 344 SALMON PRODUCT DEVELOP. TAX CREDIT TELECONFERENCED
Moved CSHB 344(FSH) Out of Committee
+ Presentation: Remarks on the "Interim TELECONFERENCED
Report of the Interagency Ocean Policy
Task Force" with focus on the "Interim
Framework for Effective Coastal and
Marine Spatial Planning," by Arne
Fuglvog, Legislative Assistant to
Senator Lisa Murkowski & Doug DeMaster,
Director, National Oceanographic &
Atmospheric Administration, Amy Holman
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 23, 2010                                                                                        
                           10:19 a.m.                                                                                           
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Craig Johnson                                                                                                    
Representative Charisse Millett                                                                                                 
Representative Cathy Engstrom Munoz                                                                                             
Representative Robert L. "Bob" Buch                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Tammy Wilson                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 344                                                                                                              
"An Act  relating to the  salmon product development  tax credit;                                                               
and  providing for  an effective  date by  amending an  effective                                                               
date in sec.  7, ch. 57, SLA  2003, as amended by sec.  4, ch. 3,                                                               
SLA 2006, and by sec. 4, ch. 8, SLA 2008."                                                                                      
                                                                                                                                
     - MOVED CSHB 344(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
OVERVIEW:  INTERIM REPORT OF THE INTERAGENCY OCEAN POLICY TASK                                                                  
FORCE WITH FOCUS ON THE INTERIM FRAMEWORK FOR EFFECTIVE COASTAL                                                                 
AND MARINE SPATIAL PLANNING.                                                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 344                                                                                                                  
SHORT TITLE: SALMON  PRODUCT DEVELOP. TAX CREDIT                                                                                
SPONSOR(s): REPRESENTATIVE(s) THOMAS                                                                                            
                                                                                                                                
02/12/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/10       (H)       FSH, FIN                                                                                               
02/18/10       (H)       FSH AT 10:15 AM BARNES 124                                                                             
02/18/10       (H)       Heard & Held                                                                                           
02/18/10       (H)       MINUTE(FSH)                                                                                            
02/23/10       (H)       FSH AT 10:15 AM BARNES 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM CLARK, Staff                                                                                                                
Representative Bryce Edgmon                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   As staff to the House  Special Committee on                                                             
Fisheries, presented the changes for the CSHB 344, Version R.                                                                   
                                                                                                                                
PETER ECKLUND, Staff                                                                                                            
Representative William "Bill" Thomas, Jr.                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Responded to questions,  during the hearing                                                             
on CSHB 344.                                                                                                                    
                                                                                                                                
DOUGLAS DeMASTER, Ph.D.                                                                                                         
Science and Research Director                                                                                                   
Regional Team Leader                                                                                                            
National Oceanic and Atmospheric Administration (NOAA)                                                                          
Seattle, Washington                                                                                                             
POSITION  STATEMENT:   Participated  in the  presentation of  the                                                             
interim  report  of  the  Interagency  Ocean  Policy  Task  Force                                                               
(OPTF).                                                                                                                         
                                                                                                                                
ARNE FUGLVOG, Legislative Assistant                                                                                             
Fisheries, Transportation, and Natural Resources                                                                                
Office of U.S. Senator Lisa Murkowski                                                                                           
Washington, D.C.                                                                                                                
POSITION  STATEMENT:   Participated  in the  presentation of  the                                                             
interim  report  of  the  Interagency  Ocean  Policy  Task  Force                                                               
(OPTF).                                                                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:19:41 AM                                                                                                                   
                                                                                                                                
CHAIR  BRYCE  EDGMON  called  the   House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at  10:19  a.m.    Representatives                                                               
Edgmon,  Keller, Munoz,  Johnson, and  Buch were  present at  the                                                               
call to  order.   Representative Millett  arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
           HB 344-SALMON PRODUCT DEVELOP. TAX CREDIT                                                                        
                                                                                                                                
10:21:12 AM                                                                                                                   
                                                                                                                                
CHAIR EDGMON announced that the  first order of business would be                                                               
HOUSE  BILL NO.  344,  "An  Act relating  to  the salmon  product                                                               
development tax  credit; and providing  for an effective  date by                                                               
amending  an effective  date  in sec.  7, ch.  57,  SLA 2003,  as                                                               
amended by  sec. 4, ch. 3,  SLA 2006, and  by sec. 4, ch.  8, SLA                                                               
2008."                                                                                                                          
                                                                                                                                
10:21:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KELLER moved to adopt  CSHB 344, 26-LS1473\R, Kane                                                               
2/22/10, as the working document.                                                                                               
                                                                                                                                
CHAIR  EDGMON,  hearing no  objection,  announced  Version R  was                                                               
before the committee.                                                                                                           
                                                                                                                                
10:22:11 AM                                                                                                                   
                                                                                                                                
TIM  CLARK,  Staff,  Representative Bryce  Edgmon,  Alaska  State                                                               
Legislature,  explained that  CSHB 344,  Version R,  includes ice                                                               
making  equipment  as a  major  means  to accomplish  value-added                                                               
processing; page  2, line 7,  sub-subparagraph (i).  He  said the                                                               
value-added  processes  that have  most  increased  the worth  of                                                               
salmon catches  depend on high  quality harvest.  With  a greater                                                               
proportion  of high  quality fish,  more can  be directed  to the                                                               
value-added  processes.    Ice   is  essential  to  significantly                                                               
increasing  the  percentage  of  number 1  grade  fish  from  the                                                               
harvest.   Adding ice making  equipment to the list  of qualified                                                               
investments  under  the  products development  tax  credit  would                                                               
result in a  significantly larger quantity of  quality salmon and                                                               
increase the proportion of value-added processing.                                                                              
                                                                                                                                
10:23:40 AM                                                                                                                   
                                                                                                                                
PETER ECKLUND, Staff, Representative  William "Bill" Thomas, Jr.,                                                               
Alaska State Legislature, stated sponsor support for Version R.                                                                 
                                                                                                                                
10:23:59 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if the  only change to the  bill is                                                               
the inclusion of ice making equipment.                                                                                          
                                                                                                                                
CHAIR EDGMON said yes.                                                                                                          
                                                                                                                                
10:24:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MUNOZ  moved  to  report CSHB  344,  Version  26-                                                               
LS1473\R,  Kane,  2/22/10,  out   of  committee  with  individual                                                               
recommendations and  the accompanying  fiscal notes.   Hearing no                                                               
objection,  CSHB   344(FSH)  moved  out  of   the  House  Special                                                               
Committee on Fisheries.                                                                                                         
                                                                                                                                
10:25:34 AM                                                                                                                   
                                                                                                                                
The committee recessed to a call of the chair.                                                                                  
                                                                                                                                
^OVERVIEW                                                                                                                       
                                                                                                                                
 OVERVIEW:  Interim Report of the Interagency Ocean Policy Task                                                             
Force With Focus on the Interim Framework for Effective Coastal                                                             
                  and Marine Spatial Planning.                                                                              
                                                                                                                              
12:25:19 PM                                                                                                                   
                                                                                                                                
CHAIR EDGMON reconvened the House  Special Committee on Fisheries                                                               
and  announced  that the  final  order  of  business would  be  a                                                               
presentation  of  the Interim  Report  of  the Interagency  Ocean                                                               
Policy  Task  Force  with  focus on  the  Interim  Framework  for                                                               
Effective Coastal and Marine Spatial Planning.                                                                                  
                                                                                                                                
12:25:59 PM                                                                                                                   
                                                                                                                                
DOUGLAS DeMASTER, Ph.D., Science  and Research Director, Regional                                                               
Team  Leader,  National  Oceanic and  Atmospheric  Administration                                                               
(NOAA), provided  a PowerPoint presentation  on the  Ocean Policy                                                               
Task Force (OPTF), which is  a panel comprised of senior, policy-                                                               
level  officials from  throughout  the  federal government,  with                                                               
representatives from  24 agencies and departments.   Formation of                                                               
the task  force came  about via  a request from  the head  of the                                                               
National Oceanic and Atmospheric  Administration (NOAA) and via a                                                               
directive for  policy from President Obama  to ensure appropriate                                                               
stewardship of  the nation's coastlines.   The task  force, which                                                               
is  a  means  to  incorporate   the  Great  Lakes  under  coastal                                                               
management, is  led by the  White House Council  on Environmental                                                               
Quality  (CEQ),  and  the  Office  of  Science,  Technology,  and                                                               
Policy.   The newly  formed group is  the National  Ocean Council                                                               
(NOC), to which  regionally formed boards will report.   The task                                                               
force  has   established  nine  priority   objectives,  including                                                               
ecosystem  based  management  and   coastal  and  marine  spatial                                                               
planning (CMSP), which  is today's topic.  Referring  to slide 7,                                                               
he reviewed  the definition of  CMSP and the  associated process,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
     Definition of CMSP:                                                                                                        
     A   comprehensive,   adaptive,  integrated,   ecosystem                                                                    
     based, and transparent  spatial planning process, based                                                                    
     on   sound   science,   for   analyzing   current   and                                                                    
     anticipated  uses of  ocean, coastal,  and Great  Lakes                                                                    
     areas.                                                                                                                     
                                                                                                                                
     The CMSP Process:                                                                                                          
     Identifies  areas most  suitable for  various types  or                                                                    
     classes  of activities  in  order  to reduce  conflicts                                                                    
     among  uses, reduce  environmental impacts,  facilitate                                                                    
     compatible  uses,   and  preserve   critical  ecosystem                                                                    
     services  to  meet economic,  environmental,  security,                                                                    
     and social objectives.                                                                                                     
                                                                                                                                
12:29:00 PM                                                                                                                   
                                                                                                                                
DR.  DeMASTER said  this  is  the framework  to  be  used by  the                                                               
regional planning body  (RPB) task forces, which  will be formed.                                                               
Seven national goals  have been established, and  he named three:                                                               
promoting compatibility  among uses and reducing  user conflicts;                                                               
streamlining and improving the rigor  and consistency of decision                                                               
making  and regulatory  processes; and  increasing certainty  and                                                               
predictability in  planning.  Additionally, there  are 12 guiding                                                               
principles that  are to  be followed  under CMSP,  which include:                                                               
ecosystem-based  management; stakeholder  and public  engagement;                                                               
best  available science;  precautionary approach;  flexibility to                                                               
accommodate  changing conditions  (environment, science,  policy,                                                               
technology).  He directed attention to  a map to indicate how the                                                               
U.S.  regions  are  divided  and  pointed  out  that  the  Alaska                                                               
coastline comprises a single complex region.                                                                                    
                                                                                                                                
12:30:24 PM                                                                                                                   
                                                                                                                                
DR.  DeMASTER reported  that  a  legal team  has  been formed  to                                                               
establish  authority.   Thus far,  the  planning legalities  have                                                               
been  addressed and  the  go-ahead given  to  begin the  process.                                                               
Adherence  and compliance  will be  handled via  a memorandum  of                                                               
understanding  (MOU)  between  the various  agencies.    Although                                                               
there are various  organizations that do not fit  easily into the                                                               
following  rubric,  the three  groups  of  agencies are  federal,                                                               
state, and tribal organizations.                                                                                                
                                                                                                                                
12:31:28 PM                                                                                                                   
                                                                                                                                
DR.   DeMASTER  said   the  process   calls   for  engaging   the                                                               
stakeholders, creating  a draft plan  for review by the  NOC, and                                                               
once  approved, having  the  plan adopted.   The  plan  is to  be                                                               
science  based,   and  given  the  federal   and  state  agencies                                                               
involved, compliance  with the  science mandate  should not  be a                                                               
problem, he opined.  It is  expected to take one year to identify                                                               
teams, and  one to  two years  to implement  regional plans.   He                                                               
reported that  $20 million will  be available  in FY 11  for this                                                               
project, on  a competition basis.   An additional $6  million has                                                               
been requested  by NOAA  to support  CMSP.   February 12  was the                                                               
public  comment  deadline  and  a  report  will  be  provided  to                                                               
President Obama in March of 2010.                                                                                               
                                                                                                                                
12:34:12 PM                                                                                                                   
                                                                                                                                
ARNE FUGLVOG,  Legislative Assistant,  Fisheries, Transportation,                                                               
and  Natural Resources,  Office of  U.S. Senator  Lisa Murkowski,                                                               
said  the  CEQ  is  the   action  agency  working  directly  with                                                               
President  Obama on  this project.   Marine  spatial plans  exist                                                               
internationally as  well as in  some coastal states in  the U.S.,                                                               
and many of the  models work well.  Part of  the impetus for this                                                               
project is to  have federal coordination with  the existing state                                                               
plans.   He relayed  concerns that have  arisen within  Alaska as                                                               
well as  those expressed  in Congress.   One is  the size  of the                                                               
Alaska  coastline and  the need  for 3  to 5  comprehensive plans                                                               
versus the one indicated on  the previously viewed map.  Clearly,                                                               
with  the Alaska  region shoreline  being the  size of  the other                                                               
eight regions  combined, the  funding will fall  short.   A major                                                               
concern exists for how the  CMSP will interact with existing law.                                                               
An executive order  (EO) will be signed by  the president, either                                                               
as a mandate  or recommendation.  A mandate could  require that a                                                               
plan  and framework  be  developed to  interface  with, or  alter                                                               
existing law.  However, the question  of how an EO will be upheld                                                               
in  court and  whether  it supersedes  or  pre-empts what  exists                                                               
remains  in   question.    Also,  agencies   are  concerned  with                                                               
receiving an  underfunded mandate.   He suggested that  a mandate                                                               
is being discouraged,  and a directive for  voluntary programs to                                                               
serve  areas may  be a  means to  defray costs.   There  does not                                                               
appear  to be  a demonstrated  need in  Alaska for  this type  of                                                               
federal oversight.                                                                                                              
                                                                                                                                
12:42:20 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE BUCH expressed concerns  for how this program will                                                               
work with  the United Nations  Convention on  the Law of  the Sea                                                               
(UNCLOS)  treaty, as  well as  the Homeland  Security Act,  which                                                               
provides the Coast Guard pre-emptive authority.                                                                                 
                                                                                                                                
MR. FUGLVOG  said that the  Coast Guard, and other  agencies, are                                                               
part of  the OPTF, and  the idea is  to integrate all  the facets                                                               
into a seamless process.   Typically, management has been handled                                                               
sector-to-sector and  law-by-law, with  the hope  that everything                                                               
coordinates.   The UNCLOS  is awaiting  ratification by  the U.S.                                                               
Senate.  The  framework stipulates that the U.S.  will conform to                                                               
international  and  domestic laws  and  treaties.   The  involved                                                               
agencies  will  all be  represented  at  the  table in  the  CMSP                                                               
process.                                                                                                                        
                                                                                                                                
12:44:28 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE BUCH pointed  out that for the  first time freight                                                               
can be moved  through the Northwest Passage.   He maintained that                                                               
without ratification, and  being part of the UNCLOS,  the U.S. is                                                               
not at  the table.   He then asked  about the stance  of Alaska's                                                               
congressional delegation.                                                                                                       
                                                                                                                                
MR.  FUGLVOG reported  that  U.S. Senator  Lisa  Murkowski is  in                                                               
support of  ratification.  Additionally, a  resolution of support                                                               
passed the Alaska Legislature, and  he assured the committee that                                                               
lack of agency support is not the impediment.                                                                                   
                                                                                                                                
12:45:47 PM                                                                                                                   
                                                                                                                                
CHAIR EDGMON  referred to the  five states that  have independent                                                               
marine spatial plans, and asked  whether tidal and wave power, or                                                               
other energy issues,  are the driving factor  behind the existing                                                               
plans.                                                                                                                          
                                                                                                                                
MR. FUGLVOG  reported that energy is  a factor in Oregon  as well                                                               
as  in  Massachusetts.   Massachusetts  exempted  the  commercial                                                               
fisheries from the CMSP to  eliminate dealing with that industry.                                                               
California  established three  regions;  the  northern region  is                                                               
currently  focusing  on  sanctuaries.     He  said  it  would  be                                                               
informative to  track California's  progress and results.   Pilot                                                               
projects  may be  the  best vehicle,  he said,  as  there are  no                                                               
existing domestic models.                                                                                                       
                                                                                                                                
12:48:26 PM                                                                                                                   
                                                                                                                                
CHAIR EDGMON indicated  that it is hard to imagine  how CMSP will                                                               
take place in  Alaska, given the complexity of  state and federal                                                               
fisheries management schemes.                                                                                                   
                                                                                                                                
MR.  FUGLVOG  said  a  burden  will be  placed  on  the  existing                                                               
agencies,  state and  federal, with  NOAA potentially  taking the                                                               
lead.   He sympathized with how  difficult it will be  for Alaska                                                               
to  comply,   should  the  requirement  for   regional  plans  be                                                               
presented as a federal mandate.                                                                                                 
                                                                                                                                
DR. DeMASTER interjected that in the  text of the framework it is                                                               
specified that  this is  not intended to  be a  top-down mandate.                                                               
However, depending on  how the EO is  written, the implementation                                                               
could include a top-down aspect.                                                                                                
                                                                                                                                
12:50:04 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MILLETT observed that  the south Atlantic and Gulf                                                               
of  Mexico  areas  appear  to have  similar  concerns  as  Alaska                                                               
regarding fisheries  and oil/gas development.   She asked whether                                                               
these regions  are working  to create  a coalition  with commerce                                                               
industries, which may be affected by the CMSP.                                                                                  
                                                                                                                                
MR. FUGLVOG  offered that  the Gulf  of Mexico  has a  history of                                                               
sustained  oil and  gas drilling  and working  together with  the                                                               
fishing and  shrimp industries.   Alaska has been  highlighted in                                                               
the  OPTF  since  it  does  not  have  the  same  multiple  uses,                                                               
interactions, or conflicts as the  other continental regions.  In                                                               
the northeast,  concerns for off-shore  wind and wave  energy, as                                                               
well as shipping,  fishing, and the ESA  (Endangered Species Act)                                                               
around the  Right Whales exists.   It is expected that  the plans                                                               
for Alaska  will be  less complicated due  to fewer  user groups.                                                               
Other than in Cook Inlet, Alaska's  oil and gas industry does not                                                               
interact  with  the fishing  industry.    He reported  that  many                                                               
states are  anticipating the benefit  of having a CMSP  to assist                                                               
in  managing the  multiple uses  beyond any  existing inter-state                                                               
agreements.                                                                                                                     
                                                                                                                                
12:52:51 PM                                                                                                                   
                                                                                                                                
CHAIR EDGMON  mentioned that Cook  Inlet may be named  a critical                                                               
habitat  for  the  Beluga  Whale.    He  then  asked  what  might                                                               
transpire,  if that  is established,  in relation  to a  mandated                                                               
CMSP.                                                                                                                           
                                                                                                                                
DR. DeMASTER  acknowledged that  Cook Inlet  and the  North Slope                                                               
are both  areas that could  be impacted by conflicts  between the                                                               
ESA  and  industry.   If  the  proposal  to  name Cook  Inlet  as                                                               
critical habitat  for Beluga Whale  is adopted, it  would require                                                               
Section 7  consultation.  He opined  that having a CMSP  in place                                                               
would lessen the burden of the consultation.                                                                                    
                                                                                                                                
MR.  FUGLVOG  pointed out  that  the  interim framework  has  the                                                               
intended  goal  to  better coordinate  activity,  regulate  ocean                                                               
zoning, and streamline the process  by having all of the agencies                                                               
at the table.  The streamline  aspect has yet to be demonstrated,                                                               
but  with   the  number   of  agencies   commonly  communicating,                                                               
collaborating,  and cooperating,  and  the  level of  overlapping                                                               
laws,  regulations,  and  statutes,  it is  clearly  an  intended                                                               
outcome, although not the highest priority.                                                                                     
                                                                                                                                
12:56:37 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  BUCH reiterated  the importance  for ratification                                                               
of the  UNCLOS in  order to deal  with the  international aspects                                                               
prior to beginning  the state process.   The international issues                                                               
are primary and are occurring now,  and he opined that August may                                                               
be too late to enter the arena.                                                                                                 
                                                                                                                                
MR. FUGLVOG  assured the  committee that  ratification is  a high                                                               
priority in Washington, D.C.                                                                                                    
                                                                                                                                
12:58:20 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MILLETT  asked if  there is  a means  to encourage                                                               
the prioritization  of streamlining  the multi  agency permitting                                                               
process.                                                                                                                        
                                                                                                                                
MR. FUGLVOG indicated  hope that since Alaska  is one independent                                                               
region,  Alaska will  be involved  in developing  the appropriate                                                               
framework for the state RPB.   He expressed his further hope that                                                               
Alaska  could specify  the goal  of  streamlining the  permitting                                                               
process.   As long as  the authority  remains within the  RPB and                                                               
the stakeholder process is in place, Alaska will be involved.                                                                   
                                                                                                                                
1:00:13 PM                                                                                                                    
                                                                                                                                
CHAIR EDGMON thanked the presenters.                                                                                            
                                                                                                                                
1:00:42 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 1:01                                                                    
p.m.                                                                                                                            

Document Name Date/Time Subjects
Interim Report on OPTF.pdf HFSH 2/23/2010 10:15:00 AM
Interim-CMSP-Framework-Task-Force.pdf HFSH 2/23/2010 10:15:00 AM
HB 344--CS in HFSH.PDF HFSH 2/23/2010 10:15:00 AM
HB 344