02/15/2008 08:30 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB257 | |
| Overview: Adf&g Mariculture Management and Permitting | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 257 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 15, 2008
8:34 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Kyle Johansen
Representative Gabrielle LeDoux
Representative Bryce Edgmon
Representative Peggy Wilson
MEMBERS ABSENT
Representative Craig Johnson
Representative Lindsey Holmes
COMMITTEE CALENDAR
HOUSE BILL NO. 257
"An Act transferring duties relating to aquatic farming and
hatchery operations from the Department of Fish and Game to the
Department of Natural Resources, eliminating certain permit
requirements applicable to aquatic farming and hatchery
operations, and directing the Department of Natural Resources to
administer and supervise promotional and marketing work for
aquatic farm products; and providing for an effective date."
- MOVED CSHB 257(FSH) OUT OF COMMITTEE
OVERVIEW: ADF&G MARICULTURE MANAGEMENT AND PERMITTING
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 257
SHORT TITLE: TRANSFER AQUATIC FARMING TO DNR
SPONSOR(s): REPRESENTATIVE(s) HARRIS BY REQUEST
05/11/07 (H) READ THE FIRST TIME - REFERRALS
05/11/07 (H) FSH, RES
01/18/08 (H) FSH AT 8:30 AM BARNES 124
01/18/08 (H) -- MEETING CANCELED --
02/11/08 (H) FSH AT 8:30 AM BARNES 124
02/11/08 (H) -- Meeting Postponed to 02/15/08 --
02/15/08 (H) FSH AT 8:30 AM BARNES 124
WITNESS REGISTER
JOHN BITNEY, Staff
to Representative John Harris
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 257 on behalf Representative
Harris, prime sponsor.
DOUG WARNER, Manager
Inspection/Marketing Services
Division of Agriculture
Department of Natural Resources (DNR)
Palmer, Alaska
POSITION STATEMENT: Testified in support of CSHB 257, Version
K.
JOHN HILSINGER, Director
Division of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of CSHB 257, Version
K.
PAUL FUHS, Lobbyist
PAC Alaska, LLC
Seafarms Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of CSHB 257, Version
K.
RODGER PAINTER, President
Alaskan Shellfish Growers Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of CSHB 257, Version
K.
JOHN HILSINGER, Director
Division of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Provided the departmental presentation on
mariculture management and permitting titled "Alaska Aquatic
Farm Program."
PAUL FUHS, Lobbyist
PAC Alaska, LLC
Seafarms Alaska
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion on
mariculture management and permitting.
RODGER PAINTER, President
Alaskan Shellfish Growers Association
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion of
mariculture management and permitting.
CYNTHIA PRING-HAM, Mariculture Coordinator
Office of the Commissioner
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Participated in the discussion on
mariculture management and permitting.
ACTION NARRATIVE
CHAIR PAUL SEATON called the House Special Committee on
Fisheries meeting to order at 8:34:16 AM. Representatives
Seaton, Edgmon, LeDoux, and Johansen were present at the call to
order. Representative Wilson arrived as the meeting was in
progress.
HB 257-TRANSFER AQUATIC FARMING TO DNR
8:35:04 AM
CHAIR SEATON announced that the first order of business would be
HOUSE BILL NO. 257, "An Act transferring duties relating to
aquatic farming and hatchery operations from the Department of
Fish and Game to the Department of Natural Resources,
eliminating certain permit requirements applicable to aquatic
farming and hatchery operations, and directing the Department of
Natural Resources to administer and supervise promotional and
marketing work for aquatic farm products; and providing for an
effective date."
8:36:41 AM
REPRESENTATIVE JOHANSEN moved to adopt CSHB 257, Version 25-
LS0676\K, Kane, 2/13/08, as the working document. There being
no objection, Version K was before the committee.
8:37:02 AM
JOHN BITNEY, Staff to Representative John Harris, Alaska State
Legislature, explained that all provisions of HB 257 were
eliminated, save Sections 1 and 30. Version K, in its
simplicity, creates a provision in statute for the Alaska Grown
Program to include mariculture products; for
promotional/marketing purposes.
8:39:28 AM
REPRESENTATIVE LEDOUX noted that the sponsor is Representative
Harris "by request," and she inquired as to who requested the
legislation.
MR. BITNEY said that he doesn't know who specifically requested
HB 257, although he said there are significant proponents of
mariculture who have been dealing with the issue of sorting out
the purview for mariculture.
REPRESENTATIVE LEDOUX inquired why "by request," is sometimes
used.
MR. BITNEY opined that at times the sponsor may want to reflect
that someone has brought the matter to his/her attention.
8:41:57 AM
REPRESENTATIVE EDGMON, referred to page 2, paragraph (3), and
read: "assist prospective settlers and others desiring to
engage in the agricultural industry." He asked for
clarification of the use of the language "prospective settlers,"
and to whom it is directed.
MR. BITNEY pointed out that lines 6-9 [paragraph (3)] is
longstanding, statutory language that exists under Title 3;
regarding the DNR commissioner responsibilities as related to
agriculture.
8:44:02 AM
CHAIR SEATON said:
The reason this is addressing Department of Natural
Resources, although what we're mainly talking about is
the regulation of mariculture within fish and game
[ADF&G], is because the Alaska Grown logo is part of
[Division of Agriculture], and this is going to that
marketing piece. Is that correct?
MR. BITNEY noted his agreement. The marketing of Alaska Grown
products is administered through the Division of Agriculture,
DNR, and mariculture management is under the purview of ADF&G.
8:45:42 AM
DOUG WARNER, Manager, Inspection/Marketing Services, Division of
Agriculture, Department of Natural Resources (DNR), stated
support for Version K, and the authority it provides to
implement marketing for the Alaska mariculture program.
Currently some shellfish and oyster farmers are able to
participate, in the program via grandfather rights, but
new/developing mariculture farmers do not qualify. The language
in the bill will authorize the extension of the Alaska Grown
program to those individuals, and he described the success of
the program. The regulations for the Alaska Grown products are
undergoing revision, making this legislation timely for
expansion of the plan to include aquaculture.
8:49:11 AM
JOHN HILSINGER, Director, Division of Commercial Fisheries,
Alaska Department of Fish & Game (ADF&G), stated official
support for Version K.
8:50:38 AM
REPRESENTATIVE LEDOUX referred to the original bill, and
recalled previous hearings, which indicated a concern regarding
ADF&G's ability/resource availability to properly research
mariculture, thus hindering the formation of this new industry.
However, Version K only addresses the marketing and promotional
aspect. She questioned how marketing can occur, if there are no
funds to research mariculture and create a healthy industry.
CHAIR SEATON pointed out that today's presentation will address
that situation.
8:52:38 AM
REPRESENTATIVE JOHANSEN directed attention to the fiscal note
and inquired about the current status of the two positions being
proposed for transfer from ADF&G to DNR.
MR. HILSINGER explained that the fiscal note for the original HB
257 would have transferred two positions; Version K holds no
fiscal note for ADF&G.
REPRESENTATIVE JOHANSEN surmised then that the DNR fiscal note
may still be accurate.
8:54:07 AM
REPRESENTATIVE LEDOUX asked what is the advantage of having the
marketing of aquatic farmed, and hatchery products, administered
by DNR, as opposed to the Alaska Seafood Marketing Institute
(ASMI).
MR. HILSINGER responded that farmed shellfish products are
considered a farm product; different than the commercially
harvested products. He then deferred to the industry
representative.
8:56:39 AM
PAUL FUHS, Lobbyist, PAC Alaska, LLC, Seafarms Alaska, stated
support for HB 257, and said it will be of benefit to the
mariculture industry in their marketing endeavors. In reply to
Representative LeDoux's inquiry, he said that DNR has
established that marketing of farmed products be labeled Alaska
Grown, while ASME promotes the market of Alaska Wild.
Mariculture fits well under the Division of Agriculture, he
opined.
8:58:01 AM
RODGER PAINTER, President, Alaskan Shellfish Growers Association
(ASGA), expressed support for Version K. He said that a number
of shellfish farmers are under the program, and others would
like to be involved. He recalled being a board member of ASME,
and said that the shellfish farmers do play a small part in the
ASME scheme. Further, he informed the committee that ASGA is
credited for requesting that Representative Harris introduce
this bill.
9:00:16 AM
CHAIR SEATON closed public testimony.
9:01:01 AM
REPRESENTATIVE JOHANSEN moved to report CSHB 257, Version 25-
LS0676\K, Kane, 2/13/08, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 257(FSH) was reported from the House Special
Committee on Fisheries.
9:01:27 AM
CHAIR SEATON asked if Version K has a fiscal note attached.
MR. WARNER answered yes. The fiscal note addresses the need to
provide a minimum amount of support to the shellfish farming
industry. He said that the Alaskan Grown Program intends to
cooperate with ASME in order to compliment both marketing
efforts. Passage of Version K allows the state to enter into
market access programs administered by the USDA (United States
Department of Agriculture). The fiscal note total is $132.7
thousand.
^OVERVIEW: ADF&G MARICULTURE MANAGEMENT AND PERMITTING
9:04:15 AM
CHAIR SEATON announced that the final order of business would be
and overview from Alaska Department of Fish & Game (ADF&G) on
mariculture and permitting.
9:04:39 AM
JOHN HILSINGER, Director, Division of Commercial Fisheries,
Alaska Department of Fish & Game (ADF&G), paraphrased from the
presentation document titled "Alaska Aquatic Farm Program,"
which read as follows[original punctuation provided]:
Status and Production
Currently there are 63 farm sites, one hatchery, and 4
nurseries approved to operate in the state. Total
acreage permitted for aquatic farming is 330 acres, an
increase from 290 acres permitted in 2006.
Table 1 shows historical statewide aquatic farm
production in Alaska Based on 2006 data which is most
complete, production totaled $614,843 with production
almost evenly divided between southcentral and
southeast Alaska. Peak production for the industry
was in 2005 and totaled $676,045. Over 79 percent of
the production came from the sale of Pacific oysters
and the remaining 21 percent was predominately for
littleneck clam sales. Littleneck clam production
went up 6 percent from FY [fiscal year} 2005 totals.
Based on annual reports submitted to the department
thus far for calendar year 2007, the overall
production estimates for 2007 are anticipated to be
lower than 2006. Reports for 15 farms are still
outstanding. Preliminary farm data reports for the
calendar year 2007, shows 47 percent of the 63
permitted farms reported some level of production
activity compared to 42 percent at the end of 2006
based on 60 permitted farms.
Table 2 shows the number of farms that had production
and non-production since 1990. The percentage of
active farm sites has been consistently in the 40-50
percent range since 2000 and peaked at 73 percent in
1999.
In water inventory for Pacific oysters at aquatic farm
sites at the end of 2006 was 8,902,721 and was valued
at $3,828,170. This is [an] 8 percent decrease from
2005 inventory which was 9,687,442. The inventory
estimate was based on farm gate values of an average
0.43/oyster. The reduced inventory was probably due
to number of spat availability, quality of spat
received, and mortalities due to hard winter.
Aquatic farm employment in 2006 showed 71 people were
employed at farm sites totaling 2,848 days of work.
This was an increase from the 2005 aquatic farm
employment which had 60 people and 2,439 days of work.
Permitting
In [FY] 07, ADF&G staff issued 3 new operation
permits, 6 operation permit renewals, amended 11
operation permits, completed transfer of 1 permit to a
new permit holder, and conducted 26 site inspections
to determine compliance with permit conditions.
In addition, ADF&G has completed 99 percent of all the
aquatic farm sites operating under a current aquatic
farm site operation permit. In comparison, over half
of the operation permits were expired in 2003. This
renewal effort provided current permits for 35 farm
sites.
There are currently 5 applications that are pending
due to the need for more information from the
applicants and the need for biomass surveys.
Staff issued 78 transport permits, 10 acquisition
permits and 2 fish resource permits for enhancement
research projects.
Certification
Four Pacific oyster sea suppliers were certified in
2007, three of which are in the Lower 48 (Lummi,
Coast, and Kona Coast). Pacific oyster seed stock
supplies were not adequate to meet demands of the
farmers this last year.
Hatchery
The number one goal of the shellfish industry is the
availability of high quality seed for farmers use.
The Mariculture Program has been working with Jeff
Hetrick, Alutiiq Pride Shellfish Hatchery Manager, for
over a year to develop a Hatchery Management Plan
which includes details on anticipated seed production
and transport to farms, disease control measures,
planned brood stock acquisition and schedule, specific
and anticipated breeding practices to maintain and
improve genetic fitness. This Management plan is
similar to what is required of the Alaska salmon
hatcheries and will help in planning for future
activities the hatchery plans to do and ensures that
hatchery operations are producing spat from native
species with sufficient genetic diversity.
Mariculture Development Zones
Before the passage of HB 208, the ASGA [Alaska
Shellfish Growers Association] and the Alaska Marine
Advisory Program worked with ADF&G, ADNR [Alaska
Department of Natural Resources], ADEC [Alaska
Department of Environmental Conservation], ADGC Alaska
Division of Government Coordination [no longer in
service], the Southeast Conference, the Alaska
Cooperative Extension Service, and numerous other
organizations, were working on designation of
Mariculture Development Zones with an overall purpose
of improving rural economies through the expansion of
an environmentally sound mariculture industry. ADF&G
is working with Ray Ralonde, Alaska Marine Advisory
Program Aquaculture Specialist to resurrect this
important effort in the coming years.
9:12:55 AM
MR. HILSINGER related the need for the department to improve
service in the private non profit (PNP) hatchery and mariculture
permitting section. He opined that the staff, in this sector,
has not received appropriate support to accomplish the task that
the state has requested. The necessary activities have become
more complex, but only five people are employed in the section:
two cover salmon hatchery operations; two work with mariculture;
and one handles the permits. Today the salmon hatcheries
require remote releases, the mariculture industry is growing and
expanding into new species, and the permitting/ planning aspect
has become more complex. An increment was submitted to add
positions to this section. The increment addition would allow
full-time positions to attend to mariculture, and PNP hatchery
permitting. Additionally, a regional supervisor level employee
would be recruited to supervise, coordinate, and integrate the
overlapping functions of mariculture and PNP. These steps will
greatly improve the sections effectiveness.
9:17:08 AM
CHAIR SEATON outlined inception of the mariculture program, how
it differs from commercial fishing, why its administration
overlaps within ADF&G and DNR, and the circumstances surrounding
the state's interest in the development of this industry.
9:19:38 AM
REPRESENTATIVE EDGMON asked if ADF&G is tracking the noxious
weed concern, which has lead to the recommendation for
establishing a board to address invasive land and water based
species.
MR. HILSINGER responded that he would like to assume that
department is tracking the issue, but stated that he has not
been directly involved.
9:20:28 AM
CHAIR SEATON referred to the "Alaska Aquatic Farm Program"
document, Table 1, to note the industry fluctuations and inquire
whether the current downward turn should be considered a trend.
He also asked if the increment revisions being proposed will
impact the aforementioned decline.
MR. HILSINGER answered that he didn't necessarily view the
decline as a trend. He explained that 79 percent of the value
is in the oyster industry, which has had difficulty receiving
adequate oyster spat. He opined that this should not prove to
be a long term problem. The department can facilitate the
issuance of permits, and identify sites, which will hopefully
spur new development to offset the decline. Technological
difficulties are posing a challenge in introducing new species,
such as little neck clam and geoduck farming. These are hurdles
that the department expects to overcome.
CHAIR SEATON highlighted that the legislature has supported
efforts to develop geoduck farming.
9:24:12 AM
PAUL FUHS, Lobbyist, PAC Alaska, LLC; Seafarms Alaska, informed
the committee that the industry has backed Version K, because of
the new departmental management and administration. During her
campaign, the governor pledged support for the development of
the mariculture industry. Additionally, each of the production
sites is located in a rural setting; making this a strategic
economic consideration. He related his understanding of the
difficulties that people are having in making application, and
obtaining permits through the department. The requirements have
become more restrictive, he opined, resulting in few, if any,
new applications in 2007 for geoduck farming. He described a
number of the hurdles involved in developing a geoduck
operation. These include a significant upfront cost for
developing spat to market size, the need for bonding, and
specific site exit requirements. Further, he said, following
spat introduction, it may be difficult to ascertain at what
point the product should be considered a farmed geoduck. He
expressed his disappointment that Mr. Hilsinger didn't discuss
these issues, and opined that new positions within the
department will not solve these issues. However, he suggested
that one solution may be to allow the cultivation of an area for
five years, after which time the existing geoducks could be
considered a farmed product.
CHAIR SEATON said he shares some of Mr. Fuhs frustrations. He
then requested that the industry and department meet to develop
written guidelines, and reportable to this committee, in order
to provide continuity of understanding.
9:33:32 AM
RODGER PAINTER, President, Alaskan Shellfish Growers
Association, related that for the past 35 years he has watched
the department grapple with aquatic farming. The process has
been difficult and slow. Two years ago, shellfish growers met
with the Murkowski Administration and put together a vision plan
for aquaculture. The number one recommendation was to move the
mariculture program from ADF&G due to the long-standing
frustrations, and awkwardness, of having it administered under
commercial fisheries. He explained why the FRED (Fisheries
Rehabilitation and Enhancement Development) Division was
created, under ADF&G, and how it was later eliminated, during
years of cut backs. However, the need still exists to provide
aquaculture a better voice in the department. With the support
of the new administration, departmental recognition that a
problem exists, and the increment request, it appears that a
response is occurring. The increment will essentially reinstate
a condensed version of FRED Division, with similar concepts.
However, this does not solve all of the problems, he opined.
CHAIR SEATON suggested that, as work with the department
continues, documentation on the development of the mariculture
industry needs to be formalized in writing. He invited Mr.
Painter to participate, in that endeavor, as an interested
party.
9:39:58 AM
REPRESENTATIVE EDGMON inquired about the start-up costs involved
in an aquatic farming operation.
MR. PAINTER responded that it varies greatly depending on the
species. With the geoduck the start-up investment is
significant, given that a market return may not be realized for
the first seven years, of the geoduck spat to maturity cycle.
Set-up for oyster farming is different, and the variables are
many. He offered that his oyster farm investment was
approximately $250,000.
REPRESENTATIVE EDGMON surmised that it takes a significant
amount of up-front capital, with much risk involved.
MR. PAINTER pointed out that there are loan programs available
under the United States Department of Agriculture for aquatic
farming, however qualification is restricted to those with prior
farming experience. He referred to Table 1, of the committee
handout, to add that the 2007 downward trend for oysters was a
result of significant low growth rates. Many farms had to
shutdown due to these low growth rates, attributable to Mother
Nature related phenomena.
9:44:02 AM
REPRESENTATIVE EDGMON returned to the issue of invasive noxious
plants in Alaska, and asked whether there is a concern for the
aquatic farmer.
MR. PAINTER explained that the industry is regulated to farm
indigenous species only, save Pacific oysters, minimizing the
concern for the generation of invasive species. However, the
farmers are concerned about the changes in the ocean waters.
The warming trend will bring in a host of new plants and
animals; Manila clams for example.
9:46:18 AM
CHAIR SEATON described the community aspect of developing a
mariculture farm, such as geoducks. It could be taken on as a
long-term project within the community vs. an individual with
investment capital.
9:47:41 AM
CYNTHIA PRING-HAM, Mariculture Coordinator, Office of the
Commissioner, Alaska Department of Fish & Game (ADF&G), said her
duties include oversight of the operation permitting for aquatic
farms in Alaska.
9:48:06 AM
CHAIR SEATON restated his concerns for the factionalism and
discord that has stifled this industry. He suggested that
written guidelines, as well as an historical account, for
mariculture development in Alaska be issued. The document may
be crucial for a congruent resolve of the situation, and he
asked if it is something that would come under her purview, as a
coordinator.
MS. PRING-HAM agreed that consistency provides the key to bring
necessary guidance to the program. She opined that creating a
working document will be very useful, and provide long-term
benefits, as the industry continues to develop.
9:50:40 AM
CHAIR SEATON reviewed that the proposed ADF&G increment is to
support the shellfish hatchery. He pointed out that it is the
only hatchery that serves the mariculture industry. Recalling
that the initial long-range plan was for this hatchery to be
financially solvent, he said that it now appears it will require
continued subsidization; a scenario he believes the legislature
will not support. Options have been explored, resulting in the
king crab enhancement program. Another direction of note, has
been to incubate Washington State geoduck smolt to spat size,
for resale, to provide the needed economic base for the
shellfish hatchery. He asked for the department's perspective
on the situation.
MR. HILSINGER noted that he received a recent letter from the
Alutiiq Pride Shellfish Hatchery, regarding the on going work
towards developing a geoduck plan. The pathologists are working
to provide an assessment on the feasibility of the program. A
timely determination should be forthcoming from the biologists.
Also legal review is occurring, as to whether regulation
changes, or statute amendments, will need to be considered. He
acknowledged the fiscal concerns that surround state
involvement.
9:56:16 AM
CHAIR SEATON said that a precedent already exists for incubation
of non indigenous species, and cited an Alaska based hatchery
doing similar work with British Columbia salmon stock.
MR. HILSINGER added that Alaskan weathervane scallops have been
propagated in a Washington State hatchery, and the spat returned
to Alaska.
CHAIR SEATON stressed the strong commitment from the legislature
for the viability of the hatchery.
9:58:39 AM
MR. FUHS provided the committee with a document titled "Tipping
the Balance; Removing the Barriers - Growing a Sustainable
Shellfish Industry in Coastal Alaska." It addresses various
goals and provides a strategic plan, from the private sector
perspective. He also expressed concern for the viability of the
state's hatchery program.
10:00:40 AM
CHAIR SEATON provided information on future committee agendas.
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 10:00
a.m.
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