Legislature(2011 - 2012)CAPITOL 120

02/09/2012 05:00 PM House FISHERIES


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05:03:16 PM Start
05:03:55 PM HCR18
06:01:54 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HCR 18 COMMERCIAL FISHERIES PROGRAMS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        February 9, 2012                                                                                        
                           5:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Steve Thompson, Chair                                                                                            
Representative Craig Johnson, Vice Chair                                                                                        
Representative Alan Austerman                                                                                                   
Representative Bob Herron                                                                                                       
Representative Scott Kawasaki                                                                                                   
Representative Bob Miller                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lance Pruitt                                                                                                     
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 18                                                                                              
Relating  to an  examination  of  fisheries-related programs  and                                                               
resources  in  the state  to  determine  how those  programs  and                                                               
resources may best be strengthened  and focused to facilitate the                                                               
entry  of  young  Alaskans   into  gainful,  lifelong  commercial                                                               
fisheries  careers  and  to  the  development  of  a  systematic,                                                               
aggressive,  and  sustained  program  to turn  the  tide  on  the                                                               
graying  of the  fleet and  to increase  ownership of  successful                                                               
commercial fisheries operations by young Alaskans.                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HCR 18                                                                                                                  
SHORT TITLE: COMMERCIAL FISHERIES PROGRAMS                                                                                      
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
04/17/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/17/11       (H)       FSH                                                                                                    
02/09/12       (H)       FSH AT 5:00 PM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM CLARK, Staff                                                                                                                
Representative Bryce Edgmon                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Introduced  HCR 18 on  behalf of  the House                                                             
Special Committee on Fisheries, by request.                                                                                     
                                                                                                                                
FRED VILLA, Associate Vice President                                                                                            
Academic Affairs for Workforce Programs                                                                                         
University of Alaska Fairbanks (UAF)                                                                                            
POSITION STATEMENT:   Testified,  during the  hearing on  HCR 18,                                                             
and responded to questions.                                                                                                     
                                                                                                                                
DR. MICHAEL CASTELLINI, Dean                                                                                                    
School of Fisheries and Ocean Sciences                                                                                          
University of Alaska Fairbanks (UAF)                                                                                            
POSITION STATEMENT:   Testified,  during the  hearing on  HCR 18,                                                             
and responded to questions.                                                                                                     
                                                                                                                                
WANETTA AYERS, Director                                                                                                         
Division of Economic Development                                                                                                
Department of Commerce, Community & Economic Development (DCCED)                                                                
POSITION STATEMENT:   Testified,  during the  hearing on  HCR 18,                                                             
and responded to questions.                                                                                                     
                                                                                                                                
AGGIE BLANDFORD, Executive Director                                                                                             
Western Alaska Community Development Association (WACDA)                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified,  during the  hearing on  HCR 18,                                                             
and  presented   an  overview  of   the  active   CDQ  [Community                                                               
Development Quota] programs throughout the state.                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:03:16 PM                                                                                                                    
                                                                                                                                
CHAIR  STEVE  THOMPSON  called the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at   5:03  p.m.    Representatives                                                               
Thompson, Miller, Austerman, Johnson,  and Herron were present at                                                               
the  call  to order.    Representative  Kawasaki arrived  as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
              HCR 18-COMMERCIAL FISHERIES PROGRAMS                                                                          
                                                                                                                                
5:03:55 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON  announced that the  only order of  business would                                                               
be   HOUSE  CONCURRENT   RESOLUTION  NO.   18,  Relating   to  an                                                               
examination of  fisheries-related programs  and resources  in the                                                               
state to determine  how those programs and resources  may best be                                                               
strengthened  and  focused  to  facilitate  the  entry  of  young                                                               
Alaskans into gainful, lifelong  commercial fisheries careers and                                                               
to  the development  of a  systematic, aggressive,  and sustained                                                               
program  to turn  the tide  on the  graying of  the fleet  and to                                                               
increase ownership of  successful commercial fisheries operations                                                               
by young Alaskans.                                                                                                              
                                                                                                                                
5:05:49 PM                                                                                                                    
                                                                                                                                
TIM  CLARK,  Staff,  Representative Bryce  Edgmon,  Alaska  State                                                               
Legislature,  introduced HCR  18,  paraphrasing  from a  prepared                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     HCR  18  calls on  the  Legislature  to strengthen  and                                                                    
     support  programs  and  resources  in  the  state  that                                                                    
     assist  the efforts  of  younger  resident Alaskans  to                                                                    
     launch    ownership-level    careers   in    commercial                                                                    
     fisheries.                                                                                                                 
                                                                                                                                
     The  seafood  industry  is  Alaska's  largest  private-                                                                    
     sector employer  and has been the  economic mainstay in                                                                    
     dozens  of our  communities  for more  than a  century.                                                                    
     Yet only  a fraction  of seafood  harvesting businesses                                                                    
     are Alaska owned.                                                                                                          
                                                                                                                                
     Nearly  half  of  the Individual  Fishing  Quota  [IFQ]                                                                    
     shares  issued for  Alaska fisheries  are held  by non-                                                                    
     Alaskans, and  nearly one quarter of  the limited entry                                                                    
     permits  issued   for  Alaskan  salmon   fisheries  are                                                                    
     Outside owned.                                                                                                             
                                                                                                                                
     The  financial  and   societal  contributions  resident                                                                    
     fishers  make to  their home  ports  and hometowns  are                                                                    
     considerable; Alaska  should do all it  can to increase                                                                    
     resident  ownership of  businesses  harvesting fish  in                                                                    
     its waters.                                                                                                                
                                                                                                                                
     In recent  decades, the mean age  of commercial fishing                                                                    
     entry permit  owners in Alaska has  increased from just                                                                    
     more than 40 years to nearly 50 years.                                                                                     
                                                                                                                                
     This  "graying  of  the fleet"  is  happening  in  part                                                                    
     because  younger Alaskans  confront ever  more daunting                                                                    
     obstacles to acquiring fish harvesting operations.                                                                         
                                                                                                                                
     Nowadays, the  cost of entry into  commercial fisheries                                                                    
     on  a   diversified  level  sufficient  to   provide  a                                                                    
     satisfactory  income for  a skipper  and crew  is often                                                                    
     more than $350,000.                                                                                                        
                                                                                                                                
     Such  amounts  are  beyond  the  reach  of  most  young                                                                    
     Alaskans,  who  usually  lack the  considerable  credit                                                                    
     histories  and collateral  assets  necessary to  secure                                                                    
     large bank loans.                                                                                                          
                                                                                                                                
     Also,   with   the   increase  in   limited-entry   and                                                                    
     rationalized  fisheries  in  recent  decades-running  a                                                                    
     successful  fishing operation  requires sharp  business                                                                    
     skills  and the  savvy  to navigate  complex state  and                                                                    
     federal regulatory systems.                                                                                                
                                                                                                                                
     There is simply  not as much margin for  error as there                                                                    
     was in the past.                                                                                                           
                                                                                                                                
     HCR  18 recognizes  there are  many  fine programs  and                                                                    
     agencies  in the  state whose  goals include  promoting                                                                    
     strong   resident  commercial   fisheries  and   aiding                                                                    
     younger Alaskans' success in them.                                                                                         
                                                                                                                                
     The resolution  urges the Legislature to  examine these                                                                    
     efforts  in order  to determine  how best  they can  be                                                                    
     strengthened and focused to  further the aspirations of                                                                    
     young Alaskan fisheries entrepreneurs.                                                                                     
                                                                                                                                
     Doing  so   will  fortify  one  of   the  state's  most                                                                    
     important  industries and  the many  communities, rural                                                                    
     and urban alike, that benefit from it.                                                                                     
                                                                                                                                
     FINANCING & EDUCATION                                                                                                      
                                                                                                                                
     Many  people  agree  that government  efforts  to  spur                                                                    
     economic   development  are   most  effective   in  two                                                                    
     particular areas:                                                                                                          
                                                                                                                                
     Financing and Education/Training                                                                                           
                                                                                                                                
     The   Education  and   Training  needs   of  commercial                                                                    
     fishermen in Alaska differ from  those typical of other                                                                    
     occupations.                                                                                                               
                                                                                                                                
     A  strong, naturally  occurring apprenticeship  program                                                                    
     is  available  to  nearly any  able-bodied  person  who                                                                    
     pounds the  docks in a  fishing harbor and  talks their                                                                    
     way into  a deckhand's  job.   Training happens  on the                                                                    
     job, usually pretty quickly and pretty thoroughly.                                                                         
                                                                                                                                
     But HCR 18  is concerned with training  needs that have                                                                    
     to do with  the business side of fishing:   training in                                                                    
     financial    literacy;    business   management;    and                                                                    
     regulatory structures and processes.                                                                                       
                                                                                                                                
     As  the  business  of  fishing   has  grown  ever  more                                                                    
     challenging and  complex in  recent decades,  this kind                                                                    
     of education has become all but indispensable.                                                                             
                                                                                                                                
     To  address  creating  opportunities in  Education  and                                                                    
     Training, the agenda includes:                                                                                             
                                                                                                                                
     Mike  Castellini, University  of Alaska's  Dean of  the                                                                    
     School  of  Fisheries  and  Ocean  Sciences,  and  Fred                                                                    
     Villa,  Associate Vice  President  of the  University's                                                                    
     Workforce Programs.                                                                                                        
                                                                                                                                
     They will talk about  the University's Allied Fisheries                                                                    
     Working Group.                                                                                                             
                                                                                                                                
     From  what I  have  learned about  this initiative,  it                                                                    
     appears to be  very well aligned with the  goals of HCR
     18.                                                                                                                        
                                                                                                                                
     On the Financing side, we  have Wanetta Ayers, director                                                                    
     of  the  Division  of Economic  Development,  who  will                                                                    
     describe,  among other  things, the  state of  Alaska's                                                                    
     financing programs for commercial fishing enterprises.                                                                     
                                                                                                                                
     It's fair to say that  the Fisheries Committee has been                                                                    
     doing its part where  financing programs are concerned.                                                                    
     The  committee has  heard and  moved several  loan fund                                                                    
     bills whose  objectives are in  keeping with  the goals                                                                    
     of HCR 18.                                                                                                                 
                                                                                                                                
     They include:                                                                                                              
                                                                                                                                
     The  governor's HB  121,  which  includes programs  for                                                                    
     Charter fishing  entry permits, shellfish  farming, and                                                                    
     micro loans;  Representative Austerman's HB  141, which                                                                    
     addresses  a  financing  program  for  Community  Quota                                                                    
     Entities; and  most recently Rep.  Edgmon's HB  261, on                                                                    
     low-interest   loans  for   commercial  fishing   entry                                                                    
     permits.                                                                                                                   
                                                                                                                                
     From   the   Western   Alaska   Community   Development                                                                    
     Association [WACDA],  we have Executive  Director Aggie                                                                    
     Blandford,  who   will  speak  on   Alaska's  Community                                                                    
     Development  Quota groups'  work  that  relates to  HCR
     18's goals.                                                                                                                
                                                                                                                                
     I think  you'll learn from  Ms. Blandford that  the CDQ                                                                    
     groups  have   very  comprehensive  programs   to  help                                                                    
     younger Alaskans into rewarding fisheries careers.                                                                         
                                                                                                                                
5:12:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  referred to  the committee  handout titled                                                               
"Executive  Summary,  Changes  in the  Distribution  of  Alaska's                                                               
Commercial  Fisheries  Entry  Permits, 1975-2010,"  labeled  CFEC                                                               
(Commercial  Fisheries  Entry  Commission) Report  Number  11-3N-                                                               
EXEC, to state  that it contains a table  indicating that fishing                                                               
permits leaving the state due to  the out migration of the permit                                                               
holder, and asked about the  fishing activities of those permits;                                                               
are they fished more or less than locally held permits.                                                                         
                                                                                                                                
MR. CLARK  deferred to  the Department  of Natural  Resources and                                                               
the CFEC.                                                                                                                       
                                                                                                                                
5:14:01 PM                                                                                                                    
                                                                                                                                
FRED  VILLA,  Associate  Vice  President,  Academic  Affairs  for                                                               
Workforce Programs, University  of Alaska (UA), said  that the UA                                                               
system  addresses  degrees   and  certificates  for  occupational                                                               
endorsements  in   high  demand   (HD)  areas.     The  workforce                                                               
investment  system   across  the   state  is   comprehensive  and                                                               
significant.   The Workforce Investment  Board is an  advisory to                                                               
the Department  of Labor  & Workforce  Development (DOLWD).   The                                                               
Department  of  Education  and   Early  Development  (EED)  is  a                                                               
critical partner,  as well  as the  university Board  of Regents.                                                               
The   university  maintains   regional   campuses  and   supports                                                               
community efforts, through a  combination of state appropriations                                                               
and private  funding.   He said a  number of  educational options                                                               
exist  in  Alaska,  including apprenticeship  programs,  many  of                                                               
which  can  be  nationally  certifiable  through  UA  assistance.                                                               
Other   options   include    for-profit   occupational   training                                                               
institutes,  private  college  a university  offerings,  and  the                                                               
employers  who  play a  critical  role  with on-the-job  training                                                               
opportunities.  He  stressed the need to  identify interest early                                                               
in order to best guide  an individual toward a successful career.                                                               
The  continuum  for  understanding  how children  can  be  guided                                                               
towards  interests and  an educational  goal  is fascinating  and                                                               
important.  By the third grade,  they may not know what they want                                                               
to be, but they  often know what they don't want  to do, he said,                                                               
and  offered  a personal  anecdote.    The Workforce  Development                                                               
Plans are  continually in  use and have  proven to  be successful                                                               
and important.   The graying of the fleet has  been identified in                                                               
a number of different industry  sectors including:  construction,                                                               
oil and gas,  the health coalition, and the  Alaska energy sector                                                               
partnership.   He stressed  that industry  has driven  the effort                                                               
for producing qualified  workers to fill the ranks.   Emerging on                                                               
this front  is the Seafood  Maritime Industry, as well  as mining                                                               
and tourism.   He  said it  is important  to understand  that the                                                               
fishing industry  is not unique, and  is at a critical  point for                                                               
considering  ways  for  identifying,  and  encouraging  the  next                                                               
generation of the workforce.                                                                                                    
                                                                                                                                
5:21:03 PM                                                                                                                    
                                                                                                                                
DR.  MICHAEL  CASTELLINI, Dean,  School  of  Fisheries and  Ocean                                                               
Sciences,  University of  Alaska,  said the  need for  integrated                                                               
seafood  industry,  fisheries,  and maritime  training  has  been                                                               
identified for  some time,  but the  last 24  months have  seen a                                                               
surge  of growth  in  the  endeavor.   He  reported that  funding                                                               
through the  Rasmuson Foundation has  allowed the UAF  to enhance                                                               
the  fisheries   program;  now  expanded  to   accommodate  75-80                                                               
students  per year  and offering  master  and doctorate  studies.                                                               
The project funding ends in two  years, but it has stimulated the                                                               
planning process.  He reported that  a result of the stimulus was                                                               
the  alignment of  UA course  offerings with  the graying  of the                                                               
fleet.  Meetings with CEQ's,  other interested organizations, and                                                               
individuals have  helped to identify  the areas to  be addressed.                                                               
Allied  Fish was  developed as  a cross-campus  UA collaborative,                                                               
integrated initiative  to assess and enhance  the development and                                                               
delivery  of programs,  courses,  research  and information  that                                                               
meet the employment needs of  the fisheries, seafood and maritime                                                               
industries.  A model was created  based on type and area of need,                                                               
as well  as the type  of educational certificate would  serve the                                                               
purpose.   Industry  has helped  by providing  instructors.   The                                                               
Rasmuson  Foundation,  the  governor  and others  held  a  summit                                                               
meeting, and plans were laid for  the steps that will be taken in                                                               
the next  six months to bring  this effort to fruition.   He said                                                               
expectations are that the program  will be fully developed within                                                               
the  next three  years.   The  full  title of  the  effort is  UA                                                               
Fisheries, Seafood, and  Maritime Initiative, and a  web site has                                                               
recently been launched.                                                                                                         
                                                                                                                                
5:29:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE AUSTERMAN  inquired how  the high  school students                                                               
and off-campus college sites will be integrated.                                                                                
                                                                                                                                
MR.  CASTELLINI  said work  is  occurring  on  all of  the  rural                                                               
campuses, tied into  the regional hub campus with  which they are                                                               
associated; UAF,  UAA, or UAS.   Further, recent  private funding                                                               
has been awarded  that will place fisheries curriculum  in the K-                                                               
12 schools.                                                                                                                     
                                                                                                                                
MR. VILLA added that state  resources are levered through various                                                               
approaches  to  provide  training  options  away  from  the  main                                                               
campuses.   One  example  is the  refrigeration training  course,                                                               
where  equipment  was purchased  and  housed  in a  mobile  unit,                                                               
making it portable and available to regional training centers.                                                                  
                                                                                                                                
5:33:42 PM                                                                                                                    
                                                                                                                                
MR. VILLA summarized  what the initiative is  expected to provide                                                               
and directed  attention to  the handout  in the  committee packet                                                               
titled  "Summary Inventory  of University  of Alaska  Educational                                                               
and  Training  Offerings  related   to  Fisheries,  Seafood,  and                                                               
Maritime Industries December 2011."   The 50 programs offered are                                                               
still being  developed, and staff  is working on  the initiative.                                                               
The web  site began  this week,  and the next  major event  is to                                                               
host  an industry  forum, March  4, 2012,  Anchorage, Alaska,  to                                                               
gain  further input  and interest.   A  survey will  be conducted                                                               
throughout the industry to identify  actual occupational need, in                                                               
analyzing  the training  gap versus  the  occupations.   Industry                                                               
will also help  establish the order of priorities as  a basis for                                                               
the workforce development plan.                                                                                                 
                                                                                                                                
5:37:13 PM                                                                                                                    
                                                                                                                                
WANETTA AYERS, Director, Division  of Economic Development (DED),                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED), said that the resolution  speaks to the core of economic                                                               
development,  which  tailors  a  set  of  coordinated,  policies,                                                               
programs,  and  actions,  to  create  specific  outcomes  for  an                                                               
industry.    There  are  underlying  population  dynamics,  which                                                               
affect aspect  of many  major Alaskan  industries.   Any economic                                                               
development effort  needs to consider potential  labor shortages,                                                               
and  that  is the  intent  of  this  initiative for  the  fishing                                                               
industry, she opined.   Allied Fish has identified  skill gaps in                                                               
the  seafood  harvesting  and processing  sector  and  effort  is                                                               
progressing in  a positive way  with an anticipated  outcome that                                                               
will  create options/opportunities  for  future  workers.   World                                                               
demand for Alaskan seafood has  been created, which requires that                                                               
the health of  the fleet and industry support be  addressed.  The                                                               
DED has  a financing  section, she  reminded, which  has provided                                                               
the Commercial  Fishing Revolving  Loan Fund since  1972.   As of                                                               
the  last fiscal  year  the loan  fund value  was  just over  $83                                                               
million, with over  2,000 active accounts.  Last  year the demand                                                               
for loans ranked  high, and 258 new loans originated  for a total                                                               
value of nearly  $20.6 million.  The activity has  been robust in                                                               
the  lending program,  and  it is  anticipated  to continue,  she                                                               
opined.   Additionally, the Fisheries Enhancement  Revolving Loan                                                               
Program  helps  to  contribute to  the  common  property  fishery                                                               
through aquaculture activities.   Regarding technical assistance,                                                               
she  said the  office of  fisheries  development has  on staff  a                                                               
development specialist who responds to  calls for assistance on a                                                               
variety of  issues including:  permitting,  regulations, business                                                               
support and  counseling, product and  pricing issues, as  well as                                                               
developing underutilized  fisheries where opportunities  could be                                                               
cultivated  such  as  shellfish mariculture.    Other  activities                                                               
include initiating incentivize changes  in seafood processing for                                                               
marketing new  product forms and  can sizes.   Research regarding                                                               
availability   of    seafood   related   jobs    and   investment                                                               
opportunities is an  area that needs expanded,  she finished, and                                                               
said it  is a  wise time to  be taking a  full accounting  of the                                                               
industry.                                                                                                                       
                                                                                                                                
5:45:48 PM                                                                                                                    
                                                                                                                                
AGGIE  BLANDFORD, Executive  Director,  Western Alaska  Community                                                               
Development Association (WACDA), provided  an overview of the CDQ                                                               
(Community  Development Quota)  program, beginning  with a  brief                                                               
history.  She  paraphrased from a prepared  statement, which read                                                               
as follow [original punctuation provided]:                                                                                      
                                                                                                                                
     Each of  the CDQ  entities offers  financial assistance                                                                    
     to  local  fishermen  in  a  variety  of  ways.    With                                                                    
     generous terms,  CDQ entities offer low  or no interest                                                                    
     loan  programs to  local  fishermen.  Some examples  of                                                                    
     which include:                                                                                                             
                                                                                                                                
     APICDA    [Aleutian     Pribilof    Island    Community                                                                    
     Development] Association offers  interest free loans to                                                                    
     qualifying   residents  for   purchasing  gear,   small                                                                    
     vessels, and  acquiring IFQ [Individual  Fishery Quota]                                                                    
     halibut shares.  The loan  program offered to residents                                                                    
     of Akutan  assists fishermen  in purchasing  4A halibut                                                                    
     quota  shares.    The  loan  program  offered  to  Atka                                                                    
     fishermen helps  purchase 4B halibut quota  shares.  In                                                                    
     St. George,  the revolving loan program  assists locals                                                                    
     in  purchasing  fishing   gear  and/or  small  vessels.                                                                    
     Loans are paid  back over a series of  years based upon                                                                    
     a percentage of the fishermen's exvessel earnings.                                                                         
                                                                                                                                
     BBEDC  [Bristol Bay  Economic Development  Corporation]                                                                    
     offers  an  interest  rate  assistance  program,  which                                                                    
     provides  fishermen  the  opportunity  to  reinvest  in                                                                    
     their  commercial   fishing  operations   by  providing                                                                    
     relief from a portion of  the interest on existing loan                                                                    
     payments  for vessels,  permits, or  gear.   BBEDC also                                                                    
     offers a  permit loan  program that  provides financial                                                                    
     guarantees, down  payment grants,  interest assistance,                                                                    
     principal  reduction  assistance, technical  assistance                                                                    
     and/or training to successful applicants.                                                                                  
                                                                                                                                
     CBSFA's [Central Bering  Sea Fishermen's Association's]                                                                    
     vessel,  gear,  and  IFQ Loan  Program  provides  local                                                                    
     fishermen with low interest loans  that in recent years                                                                    
     has  allowed new  entry into  the CDQ  halibut fishery.                                                                    
     Fishermen   use   this   program  to   update   onboard                                                                    
     electronics and lengthen and  repower vessels for added                                                                    
     safety and  improved efficiency.  Locally  held IFQs on                                                                    
     St.  Paul Island  have also  increased as  a result  of                                                                    
     CBSFA's loan program.                                                                                                      
                                                                                                                                
     NSEDC [Norton  Sound Economic  Development Corporation]                                                                    
     offers  a revolving  loan program  that gives  resident                                                                    
     fishermen  access  to  capital  for  permits,  outboard                                                                    
     motors,  skiffs, and  gear.   These loans  have largely                                                                    
     been applied  toward the  salmon and  herring fisheries                                                                    
     in the Norton Sound region.   NSEDC's large vessel loan                                                                    
     program   assists   fishermen   in   acquiring   and/or                                                                    
     repowering  larger vessels  to  prosecute the  region's                                                                    
     red king crab and halibut fisheries.                                                                                       
                                                                                                                                
     YDFDA [Yukon  Delta Fisheries  Development Association]                                                                    
     offers  inhouse  loan programs  to  help finance  Yukon                                                                    
     River  salmon  permits,  outboard motors,  and  fishing                                                                    
     gear.  Approximately  450   commercial  fishermen  have                                                                    
     taken advantage of YDFDA's loan programs.                                                                                  
                                                                                                                                
     Grants and Fishermen's Advance Programs                                                                                    
                                                                                                                                
     APICDA offers  fishermen association grants  of $20,000                                                                    
     per   year  to   each  of   the  associations   in  its                                                                    
     communities   (and    Unalaska).       The   individual                                                                    
     associations  determine how  the funds  will be  spent,                                                                    
     i.e.  for   attending  NPFMC  [North   Pacific  Fishery                                                                    
     Management   Council],   IPHC  [International   Pacific                                                                    
     Halibut Commission], and/or Board  of Fish meetings, or                                                                    
     to  establish  associationrun   gear   or  vessel  loan                                                                    
     programs.                                                                                                                  
                                                                                                                                
     CVRF  offers  a   fishermen's  advance  program,  which                                                                    
     assists its  residents with purchasing  gear, supplies,                                                                    
     and renewing  fishing permits at  the beginning  of the                                                                    
     fishing season.                                                                                                            
                                                                                                                                
     Vessel build/buy/upgrade                                                                                                   
                                                                                                                                
     YDFDA  offers   financing  to  fishermen   to  purchase                                                                    
     locally built aluminum skiffs.                                                                                             
                                                                                                                                
     CBSFA, to  increase the local fleet's  ability to catch                                                                    
     the amount  of halibut quota  available in the  area of                                                                    
     St. Paul  Island, built the  FV [Fishing  Vessel] Saint                                                                    
     Paul and the  FV Saint Peter.  In  addition to catching                                                                    
     CDQ halibut, the vessels are  also available to harvest                                                                    
     locally held  IFQ.  This  allows for  full maximization                                                                    
     of  locally held  quota  and  provides local  fishermen                                                                    
     incentive  to purchase  additional quota.   The  Saints                                                                    
     Boats also  provide locals an  opportunity to  serve as                                                                    
     crewmembers and eventually as skippers.                                                                                    
                                                                                                                                
     Access/Permit Brokerage                                                                                                    
                                                                                                                                
     BBEDC  strives  to  retain   ownership  of  permits  by                                                                    
     residents  of  the region.    Through  the Bristol  Bay                                                                    
     Permit  Brokerage program,  as  a  free public  service                                                                    
     BBEDC   provides   listings  for   sales/purchases   of                                                                    
     permits,  permit holders,  and  vessels, helps  recruit                                                                    
     crew  and/or captains,  assists with  documentation for                                                                    
     sales  and   transfers,  vessel  licenses   and  permit                                                                    
     renewals, and other Coast Guard  required forms.  These                                                                    
     financial  assistance programs  only benefit  fishermen                                                                    
     if they are  able to translate their  new gear, permit,                                                                    
     or upgraded vessel  into income.  To help  do that, the                                                                    
     CDQs   entities   continue  development   of   regional                                                                    
     fisheries by  seeking out markets for  local products -                                                                    
     to  give fishermen  the best  price possible  for their                                                                    
     catch.   Higher dock prices  are the result of  the CDQ                                                                    
     entities'  efforts  to   develop  and  identify  better                                                                    
     markets for  the region's products  and the  efforts to                                                                    
     bring  back  dormant  fisheries, such  as  the  herring                                                                    
     fishery  in  the  Norton Sound.    YDFDA,  through  its                                                                    
     subsidiary  Kwik'pak Fisheries,  is the  only buyer  in                                                                    
     the first  two sub  districts of  the Yukon  River from                                                                    
     the mouth of  the Yukon River at Nunam  Iqua and Kotlik                                                                    
     all  the way  to Marshall.   Without  YDFDA's presence,                                                                    
     there  would be  no  viable commercial  fishery in  the                                                                    
     region.   Unique  opportunities also  open the  door to                                                                    
     commercial fishing  to CDQ community residents  who may                                                                    
     not  have  otherwise  participated.    NSEDC's  seafood                                                                    
     plant  in Nome,  for  example, will  purchase red  king                                                                    
     crab  and  assorted  finfish  caught  through  the  ice                                                                    
     during  the  winter  months,   which  not  only  offers                                                                    
     additional income but also  increases the potential for                                                                    
     introducing new entrants to commercial fishing.                                                                            
                                                                                                                                
     In  addition to  Bering  Sea/Aleutian Island  fisheries                                                                    
     investments, the  CDQ entities make  direct investments                                                                    
     in  local  and  regional  fisheriesrelated  development                                                                    
     projects, such as:  Boat purchases or fabrication.                                                                         
                                                                                                                                
     YDFDA's   Yukon  Marine   Manufacturing  company   that                                                                    
     operates  in Emmonak  builds  aluminum  skiffs for  the                                                                    
     local fleet.  Approximately  200 locals have taken part                                                                    
     in this program  over the last 10 years.   CDQ entities                                                                    
     also  build  and  operate processing  plants  &  buying                                                                    
     stations in CDQ member communities.                                                                                        
                                                                                                                                
     APICDA,  through its  subsidiary APICDA  Joint Ventures                                                                    
     [AJV],  and in  partnership with  the Atka  Fishermen's                                                                    
     Association, operates  a plant  in Atka  that processes                                                                    
     halibut  and sablefish.   AJV  also  owns and  operates                                                                    
     Bering  Pacific  Seafoods,  a  processing  facility  in                                                                    
     False Pass.                                                                                                                
                                                                                                                                
     BBEDC, through  its ownership interest in  Ocean Beauty                                                                    
     Seafoods,  operates a  plant in  Naknek that  processes                                                                    
     salmon and herring.                                                                                                        
                                                                                                                                
     CBSFA  partners   with  Trident  Seafoods   to  process                                                                    
     locally  caught  halibut  at  the  plant  on  St.  Paul                                                                    
     Island.                                                                                                                    
                                                                                                                                
     Coastal  Villages  built  and operates  a  $40  million                                                                    
     processing  facility  in  Platinum capable  of  150,000                                                                    
     lbs/day  of finished  product. During  the peak  of the                                                                    
     salmon  season,  it  takes  more  than  245  people  to                                                                    
     operate  the plant  and its  support vessels.   Coastal                                                                    
     also operates 6 halibut  plants (Chefornak, Hooper Bay,                                                                    
     Kipnuk,  Mekoryuk,  Toksook  Bay, and  Tununak)  and  a                                                                    
     salmon buying station in Bethel.                                                                                           
                                                                                                                                
     NSEDC  operates   3  facilities,  a  salmon   plant  in                                                                    
     Unalakleet, a  halibut plant in  Savoonga, and  a plant                                                                    
     in Nome that processes both halibut and crab.                                                                              
                                                                                                                                
     YDFDA  operates a  salmon processing  plant in  Emmonak                                                                    
     and buying stations along the lower Yukon River.                                                                           
                                                                                                                                
     In  additional   to  processing  facilities,   the  CDQ                                                                    
     entities invest in  other infrastructure and equipment,                                                                    
     such as:                                                                                                                   
                                                                                                                                
     Cranes for  offloading product and pulling  vessels out                                                                    
     of the water                                                                                                               
                                                                                                                                
     Harbor improvements                                                                                                        
                                                                                                                                
     Ramp and dock installation                                                                                                 
                                                                                                                                
     Safe and secure moorage space for vessels                                                                                  
                                                                                                                                
     Loaders and hydraulic boat trailers                                                                                        
                                                                                                                                
     Fleets  of Tenders  vessels assist  regional processing                                                                    
     operations and help fishermen with deliveries.                                                                             
                                                                                                                                
     APICDA owns  and operates a  fleet of  8 tender/fishery                                                                    
     support vessels.                                                                                                           
                                                                                                                                
     In the Kuskokwim region,  CVRF [Coastal Villages Region                                                                    
     Fund]  owns and  operates a  fleet of  7 tender/fishery                                                                    
     support  vessels  in  addition to  contracting  with  3                                                                    
     additional  vessels to  round  out  the buying  service                                                                    
     that it provides to regional fishermen.                                                                                    
                                                                                                                                
     NSEDC  owns and  operates a  fleet of  5 tender/fishery                                                                    
     support  vessels  that  assist  buying  and  processing                                                                    
     operations in Norton Sound area fisheries.                                                                                 
                                                                                                                                
     YDFDA,  through  its  subsidiary  Yukon  River  Towing,                                                                    
     operates a  fleet of 7 LCMs  [Landing Craft Mechanized]                                                                    
     and one  lightering/gravel barge that assist  the local                                                                    
     fisheries during the fishing  season.  CDQ ice machines                                                                    
     and ice barges  help fishermen keep their  catch cold -                                                                    
     and improve  the quality of  the fish  product, helping                                                                    
     resident fishers earn the best price for their catch.                                                                      
                                                                                                                                
     BBEDC,  though it's  Chilling Products  Program, offers                                                                    
     slush  ice bags  and insulated  totes to  fishermen and                                                                    
     gives grants  for vessel upgrades  such as  RSW systems                                                                    
     and   hold  insulation   upgrades  that   improve  fish                                                                    
     quality.   They  also  operate two  ice  barges in  the                                                                    
     region during the salmon season.                                                                                           
                                                                                                                                
     In  total, NSEDC  has purchased  15 large  ice machines                                                                    
     and 12 smaller single-phase  ice machines to assist its                                                                    
     regional processing  and fish buying operations  in the                                                                    
     Norton  Sound   region.     Ensuring  safety   is  also                                                                    
     paramount to the CDQ organizations.                                                                                        
                                                                                                                                
     CDQ entities  offer safety training and  provide safety                                                                    
     gear (or  gear at  cost) to  resident fishermen  in CDQ                                                                    
     communities.                                                                                                               
                                                                                                                                
     In  partnership   with  other  local   entities,  NSEDC                                                                    
     financed  a  portion  of the  construction  of  a  fire                                                                    
     prevention/search and  rescue vessel that  operates out                                                                    
     of the Port of Nome.                                                                                                       
                                                                                                                                
     CBSFA also  partnered with the local  tribal government                                                                    
     to construct  a stateof  theart  quick  response vessel                                                                    
     that provides  search and rescue services  to the local                                                                    
     fleet  on  St.  Paul   Island.    CDQs  offer  storage,                                                                    
     facilities,  welding  and  other equipment  for  vessel                                                                    
     repair and maintenance.                                                                                                    
                                                                                                                                
     In  Nelson  Lagoon,  APICDA's subsidiary  AJV  and  the                                                                    
     Nelson Lagoon Tribal Council operate  a gear and vessel                                                                    
     storage company to support the local salmon fishery.                                                                       
                                                                                                                                
     CBSFA  helps subsidize  some of  the  costs of  renting                                                                    
     adequate  space to  perform vessel  maintenance on  St.                                                                    
     Paul   Island  by   bringing  in   engine  technicians,                                                                    
     aluminum  fabricators  and  welders to  help  fishermen                                                                    
     ensure longterm operation of their vessels.                                                                                
                                                                                                                                
     In  19  of  its  member  communities,  CVRF  built  and                                                                    
     operates   Community  Service   Centers,  multipurpose                                                                     
     buildings  that are  equipped with  space to  maintain,                                                                    
     repair, service  and modify boats, motors,  and fishing                                                                    
     gear.  The  workspace is also available  for repair and                                                                    
     maintenance   of  snow   machines,  ATVs   [all-terrain                                                                    
     vehicle(s)],  sleds,  trailers,   and  other  equipment                                                                    
     critical  to  village  life.    Coastal  also  provides                                                                    
     aluminum boat repair,  boat customization services, and                                                                    
     small  engine maintenance  and repair  services at  its                                                                    
     Community Service Centers.                                                                                                 
                                                                                                                                
     NSEDC  invested   in  portable  welding   machines  and                                                                    
     provided  training for  the  equipment  for several  of                                                                    
     their member communities  to assist fishermen's ability                                                                    
     to conduct maintenance on their vessels.                                                                                   
                                                                                                                                
     Each  of  the  six  CDQ  entities  also  offers  robust                                                                    
     education and training programs  for residents of their                                                                    
     respective member communities,  some fisheries specific                                                                    
     examples:                                                                                                                  
                                                                                                                                
     Scholarships for postsecondary education                                                                                   
                                                                                                                                
     Vocational training opportunities and scholarships                                                                         
                                                                                                                                
     Student loan forgiveness programs                                                                                          
                                                                                                                                
     Nautical training for new and aspiring boat captains                                                                       
                                                                                                                                
     GPS [global positioning system] and safety training                                                                        
                                                                                                                                
     Net mending and hanging classes (NSEDC)                                                                                    
                                                                                                                                
     Welding  training  for  portable  welders  -  so  local                                                                    
     fishermen  can pre-form  vessel  repair  in their  home                                                                    
     communities,  extending the  life of  vessels currently                                                                    
     in operation (NSEDC).                                                                                                      
                                                                                                                                
     Recognizing   the  importance   of  understanding   the                                                                    
     fisheries  management and  regulation process  some CDQ                                                                    
     entities also sponsor  fishermen's attendance at NPFMC,                                                                    
     Board of Fish, and IPHC meetings (CBSFA).                                                                                  
                                                                                                                                
     The  CDQ Program  provides a  wide range  of employment                                                                    
     opportunities.    Specific   to    promoting   regional                                                                    
     commercial   fishing  activity,   CDQ  entities   offer                                                                    
     employment:                                                                                                                
                                                                                                                                
     On board  CDQ vessels - both inregion  and  in the BSAI                                                                    
     fisheries                                                                                                                  
                                                                                                                                
     As processors in CDQ processing facilities                                                                                 
                                                                                                                                
     As skippers and crew on CDQ tender and support vessels                                                                     
                                                                                                                                
     And CDQs also employ  scientists - fisheries biologists                                                                    
     and technicians who work to  understand and help ensure                                                                    
     healthy fish populations in the  region.  In 2010, more                                                                    
     than  1500 regional  commercial fishery  permit holders                                                                    
     were  paid exvessel  payments in  CDQ  regions.   Those                                                                    
     fishermen   in  turn   supported  an   estimated  1,700                                                                    
     crewmember   jobs.      A  more   recent   example   of                                                                    
     fisheriesrelated  employment opportunities  provided by                                                                    
     the  CDQ program,  Coastal Villages  Seafoods, employed                                                                    
     335 people from the  Kuskokwim region at its processing                                                                    
     facility  in 2011  and 30  region  residents crewed  on                                                                    
     tenders/fishery support  vessels -  in addition  to the                                                                    
     local fishermen and their associated crews.                                                                                
                                                                                                                                
     The  CDQ program,  through its  investments in  people,                                                                    
     community  and  fisheries,   represents  a  substantial                                                                    
     opportunity  and an  important asset  in responding  to                                                                    
     many challenges  faced by Western Alaska.   The program                                                                    
     has come  a long  way over  the course  of the  last 20                                                                    
     years, but there's  still a lot of work to  do.  Giving                                                                    
     CDQ community  residents the incentive to  fish and the                                                                    
     ability to  earn a living doing  so is one of  the most                                                                    
     important    and    effective   economic    development                                                                    
     activities  available in  remote Western  Alaska.   The                                                                    
     CDQ entities  welcome any support  the State  of Alaska                                                                    
     can   provide  in   making   commercial  fishing   more                                                                    
     attractive   and  accessible   option   for  the   next                                                                    
     generation.                                                                                                                
                                                                                                                                
[Chair Thompson passed the gavel to Vice Chair Johnson during                                                                   
the presentation.]                                                                                                              
                                                                                                                                
6:01:54 PM                                                                                                                    
                                                                                                                                
VICE CHAIR JOHNSON announced that the bill would be held for                                                                    
further discussion.                                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 6:02                                                                    
p.m.                                                                                                                            

Document Name Date/Time Subjects
HCR 18 Sponsor Statement Final.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 Allied Fisheries Initiative Oct 11 Summary.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 CFEC Permit Distribution Report--Exec. Sum..pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 CFRLF Program Summaries.PDF HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 Excerpt Slides DCCED Aging of the Fleet.PDF HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 Graying of the Fleet.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 MAP Commercial Fisheries Training Survey.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 MAP Program Workshops, Tools, and Publications.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 Office of Fisheries Development Web Page.PDF HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 WACDA CDQ Program Summary.PDF HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR 18 University of Alaska Report on Seafood-Fisheries Summit Dec 2011.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR18 Seafood ITAs 2-6-12.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18
HCR18 Copy of Sea Food Grants 2-6-12.pdf HFSH 2/9/2012 5:00:00 PM
HCR 18