Legislature(2001 - 2002)

04/16/2002 01:40 PM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                    
                SENATE LABOR & COMMERCE COMMITTEE                                                                             
                         April 16, 2002                                                                                         
                             1:40 pm                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Ben Stevens, Chair                                                                                                      
Senator Alan Austerman                                                                                                          
Senator Loren Leman                                                                                                             
Senator John Torgerson                                                                                                          
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All Members Present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 504(FIN) am                                                                                               
"An Act relating to the wages of people working in the fisheries                                                                
business."                                                                                                                      
                                                                                                                                
     SCHEDULED BUT NOT HEARD                                                                                                    
                                                                                                                                
SENATE JOINT RESOLUTION NO. 44                                                                                                  
Relating to preparation of a joint state-federal research and                                                                   
development plan.                                                                                                               
                                                                                                                                
     MOVED CSSJR 44(L&C) OUT OF COMMITTEE                                                                                       
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
SJR 44 - No previous action to consider.                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mr. George B. Newton, Chairman                                                                                                  
U.S. Arctic Research Commission                                                                                                 
4350 N. Fairfax Dr., Suite 630                                                                                                  
Arlington VA 22703                                                                                                              
POSITION STATEMENT:  Supported SJR 44.                                                                                        
                                                                                                                                
Mr. Mead Treadwell, Managing Director                                                                                           
Institute of the North                                                                                                          
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SJR 44.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
TAPE 02-21, SIDE A                                                                                                            
Number 001                                                                                                                      
            SJR 44-STATE-FEDERAL JOINT RESEARCH PLAN                                                                        
                                                                                                                              
CHAIRMAN BEN STEVENS called the Senate  Labor & Commerce Committee                                                            
meeting to order at 1:40 pm and announced  that HB 504 was pending                                                              
on referral and that they would take up SJR 44.                                                                                 
                                                                                                                                
SENATOR  LEMAN  explained that  SJR  44  talks about  research  in                                                              
Alaska and  how we can better  coordinate among state  and federal                                                              
agencies. They have seven of the  eight commissioners present from                                                              
the U.S. Arctic Research Commission.  He noted that Russ Kelly who                                                              
is  working on  his  staff is  an intern  from  the University  of                                                              
Alaska Fairbanks and this is one of his projects.                                                                               
                                                                                                                                
MR.  GEORGE NEWTON,  Chairman,  U.S. Arctic  Research  Commission,                                                              
introduced  Mead Treadwell -  Institute of  the North,  Dr. Jackie                                                              
Grebmeier - University  of Tennessee, Mary Jane  Fate - Indigenous                                                              
member,  Dr. John  Hobbie -  Woods Hole  MA, Mr.  Jack Roderick  -                                                              
Anchorage, and  Mr. Jim Llewellyn  - Bell South as  the commission                                                              
members  who were  present. He  said  that he  was from  McClaine,                                                              
Virginia and  had been on  the commission  since 1992 and  this is                                                              
his  second  term  as  chairman.   He  said  the  Arctic  Research                                                              
Commission was formed  in 1984 as is primarily the  product of the                                                              
work of Senator Frank Murkowski.                                                                                                
                                                                                                                                
     It consists  of seven members  as mentioned  earlier. We                                                                   
     are  all  presidential  appointees.  It's  important  to                                                                   
     recognize,  I think, in  the make  up of the  commission                                                                   
     there are  four of us who  must be associated  with some                                                                   
     research  entity or  some research  activity. Two of  us                                                                   
     come from  the business  sector and  one member must  be                                                                   
     representative of the indigenous peoples of Alaska.                                                                        
                                                                                                                                
     We do  no research. We rely  on our ability  to motivate                                                                   
     research  in the proper  direction from effectively  the                                                                   
     bully pulpit by convincing other  organizations that the                                                                   
     research they are planning or  the research we recommend                                                                   
     should be undertaken for the  betterment of the state of                                                                   
     Alaska and  the United States.  Our primary  function is                                                                   
     to recommend  policies and  priorities to the  president                                                                   
     and to congress and that, I  think, is one of the unique                                                                   
     elements of the  Arctic Research and Policy  Act in that                                                                   
     it allows us to talk directly  to both the president and                                                                   
     to the legislative branch.                                                                                                 
                                                                                                                                
     Among  our more detailed  duties are  things such  as to                                                                   
     promote  cooperation  -  to   get  federal  agencies  to                                                                   
     cooperate  with the state  of Alaska  and the towns  and                                                                   
     cities  of   Alaska,  to  share   data,  to   promote  a                                                                   
     cooperative  effort  and  logistics  to  further  Arctic                                                                   
     research  and  lastly, to  work  with  the state,  as  I                                                                   
     mentioned.                                                                                                                 
                                                                                                                                
He was very excited about the future  prospects of the Arctic even                                                              
though there  are problems, like  the protection  and preservation                                                              
of the  Arctic as  we know  it today.  He added  that he  includes                                                              
Alaska as part  of the Arctic. The boundary comes  from the Arctic                                                              
Circle  down  the  Yukon  River into  the  Bering  Sea.  They  are                                                              
concerned  about  the  problems  of  Alaska's  infrastructure  and                                                              
preservation  of the Bering  Sea ecosystem.  The rapid  warming of                                                              
the Arctic is  a direct and immediate concern as  the impacts will                                                              
be realized by our children and grandchildren.                                                                                  
                                                                                                                                
Among the  opportunities to exploit  are the possible  shipping of                                                              
oil  from the  North Slope  to supplement  the  activities on  the                                                              
TAPS.  This  makes ports  like  Adak  and Dutch  Harbor  potential                                                              
opportunities as  trans shipment  points, where cargo  shifts from                                                              
ice-strengthened ships  that have traversed the  Arctic into ships                                                              
that ply  the oceans  of the warmer  temperate oceans.  The reason                                                              
for this  hearing is to  work with the  State, the  Alaska Science                                                              
Technology  Foundation   and  the   University  of  Alaska   in  a                                                              
cooperative  effort to  develop  a plan  for  the future  economic                                                              
development within  the State of Alaska.  It is one of  the direct                                                              
important  mandates that  is held  under the  Arctic Research  and                                                              
Policy Act.                                                                                                                     
                                                                                                                                
He  left the  committee with  a report  on  Goals and  Objectives,                                                              
which they public  every two years and he encouraged  them to read                                                              
it.                                                                                                                             
                                                                                                                                
SENATOR LEMAN  asked what  their annual budget  is and  to compare                                                              
what the U.S.  spends on research  in the Arctic to what  is spent                                                              
on the Antarctic.                                                                                                               
                                                                                                                                
MR. NEWTON replied  that their budget is just over  $1 million and                                                              
they fund no actual research. They  might have $5,000 - $10,000 to                                                              
fund  a conference  or meeting  at  which Arctic  research is  the                                                              
primary  function. The  rest goes  to salaries,  lights, heat  and                                                              
real estate and publishing things like their report.                                                                            
                                                                                                                                
The research dollars for the Arctic  and Antarctic are essentially                                                              
equal if he limits  it to the National Science  Foundation. "It is                                                              
in  the   research  logistics   budgets   where  there  exists   a                                                              
significant disparity."                                                                                                         
                                                                                                                                
The costs  of getting  there and buying  the equipment  to support                                                              
research and staying there, etc.  is about $25 million per year or                                                              
about half of the total Arctic budget at NSF.                                                                                   
                                                                                                                                
In  the Antarctic  there is  $25 -  $30 million  for research  and                                                              
almost $180 million  for getting there and staying  there. This is                                                              
in  response to  a  presidential directive  that  was signed  many                                                              
years  ago  that committed  the  United  State to  maintain  three                                                              
stations in the  Antarctic, Palmer Station, McMurdo  and the South                                                              
Pole Station.  It also pays for  the entire infrastructure  of the                                                              
bases.                                                                                                                          
                                                                                                                                
MR. NEWTON  said when he joined  the commission, there  was almost                                                              
no Arctic  research logistics budget.  The commission  supported a                                                              
study that was done by the Arctic  Research Consortium of the U.S.                                                              
in Fairbanks  in conjunction with  some support from  the National                                                              
Science  Foundation.  It  was  used  by the  Senate  to  create  a                                                              
separate budget line item for Arctic  research. Now their research                                                              
grants are used on research.                                                                                                    
                                                                                                                                
The  U.S. government  total budget  for  Antarctic, including  all                                                              
federal  agencies  is  approximately   $190  million  and  it  has                                                              
remained  level for  the  past five  or  six years.  The  National                                                              
Science Foundation  budget has increased significantly  to support                                                              
Arctic  research,   almost  in  an   opposite  direction   to  the                                                              
Department of Defense budget. The  Arctic research budget from DOD                                                              
has  shrunk from  over $20  million five  years ago  down to  $2.7                                                              
million this past  year. It has been one of his  personal goals to                                                              
have greater  equity achieved  in the two  budgets. The  other way                                                              
they  can close  the gap  most effectively  is to  arrive at  more                                                              
effective research  within Congress  and the Office  of Management                                                              
and Budget, because it's tricky to  arrive at a coordinated budget                                                              
request for  the same project when  it appears in the  requests of                                                              
several different agencies under different budget examiners.                                                                    
                                                                                                                                
1:55 pm                                                                                                                         
                                                                                                                                
SENATOR AUSTERMAN asked if he supported the resolution.                                                                         
                                                                                                                                
MR. NEWTON said he does. It's broad  in its statement, but it fits                                                              
well with the  research elements they have supported  in the past.                                                              
One of the mandates  within the Arctic Research and  Policy is Act                                                              
is  that  the  Arctic  Research  Commission  is  to  cooperate  in                                                              
research activities and guidance  with the state of Alaska and the                                                              
local communities.                                                                                                              
                                                                                                                                
SENATOR  LEMAN asked  if he  had any  thoughts on  how they  would                                                              
translate information derived from  research either into expanding                                                              
the Alaskan economy or defending what we have.                                                                                  
                                                                                                                                
MR.  NEWTON  responded that  the  first  thing  is to  identify  a                                                              
problem  and  recognize it  as  a  problem  and then  to  generate                                                              
concepts into how  that can translate into  economic improvements.                                                              
For instance,  the fish  in the Bering  Sea -  they would  have to                                                              
find out when  and where they are  and what their threats  are and                                                              
work that  somehow into an improvement.  It's a bit  more tangible                                                              
to  identify threats  to the  infrastructure,  which is  something                                                              
they are  working on  now - identifying  climate change  and civil                                                              
infrastructure   in  an  effort   to  identify  the   particularly                                                              
vulnerable  elements  to  the  degradation  of  permafrost,  which                                                              
underlies approximately 50% of the state.                                                                                       
                                                                                                                                
CHAIRMAN STEVENS  said Executive Order 12501 that  established the                                                              
Commission,  section  9,  numbers   6  and  8  are  to  facilitate                                                              
cooperation  between  the  federal  government,  state  and  local                                                              
government  and recommend  the undertaking  of neglected  areas of                                                              
research and asked  for an example or two of things  that had been                                                              
addressed under that section.                                                                                                   
                                                                                                                                
MR.  NEWTON  replied that  one  of  the  things they  had  started                                                              
supporting four years  ago is an annual meeting  at the University                                                              
of  Alaska Anchorage  that deals  with  infrastructure within  the                                                              
State  of Alaska,  through the  School of  Engineering. They  have                                                              
contributed  funds to  get the meetings  started  that are  now an                                                              
annual  event. Four  years  ago they  identified  a  trend in  the                                                              
warming of the Arctic  and the impacts on the state  would be very                                                              
significant, particularly in harbors,  ports and coastlines and in                                                              
permafrost.                                                                                                                     
                                                                                                                                
Most  of  the  attendees,  from his  perception,  have  come  from                                                              
commercial interests  in the state, but there hasn't  been a great                                                              
deal of interest from state officials.                                                                                          
                                                                                                                                
CHAIRMAN  STEVENS said  that led  into  section 8,  which says  to                                                              
coordinate  with  the  government  and  the  state  of  Alaska  in                                                              
fulfilling the responsibilities of this act.                                                                                    
                                                                                                                                
MR. NEWTON reiterated that they hadn't  had much interest from the                                                              
state.                                                                                                                          
                                                                                                                                
CHAIRMAN STEVENS  asked if  that is the  reason they  have brought                                                              
the resolution to the legislature.                                                                                              
                                                                                                                                
MR. NEWTON replied yes. They need to be more and do more.                                                                       
                                                                                                                                
CHAIRMAN  STEVENS  asked him  to  give  an  overview of  what  the                                                              
objective or vision of the plan would be.                                                                                       
                                                                                                                                
MR.  NEWTON replied  he believes  that they  are working  together                                                              
with  the  elements of  ASTF,  the  University  and the  State  to                                                              
develop  a plan  that will  lead to  greater economic  development                                                              
within the  State. They have  regretted that there  wasn't greater                                                              
industry in the  State of Alaska that provided value  added to the                                                              
resources.                                                                                                                      
                                                                                                                                
SENATOR DAVIS  asked if  this resolution  had been discussed  with                                                              
the Science and Technologies Director and what was his input.                                                                   
                                                                                                                                
MR. MEAD  TREADWELL, commissioner, said  he is a former  member of                                                              
the Alaska Science and Technology  Foundation and he had extensive                                                              
discussions   with  Dr.  Kenworthy,   Executive  Director,   ASTF,                                                              
University leadership  and federal agencies (whom  they would like                                                              
to see participate more about this resolution.                                                                                  
                                                                                                                                
SENATOR DAVIS  asked if they envisioned  being able to  bring some                                                              
source  of funding  to  technologies  or are  they  looking for  a                                                              
source of funding for themselves.                                                                                               
                                                                                                                                
MR. TREADWELL  replied that  they hadn't  asked for  a grant  or a                                                              
fiscal note.                                                                                                                    
                                                                                                                                
SENATOR DAVIS asked what their intentions were.                                                                                 
                                                                                                                                
MR.   TREADWELL  said   that   each  of   the   entities  have   a                                                              
responsibility for  research in Alaska. The federal  agency has to                                                              
prepare  its  own  budgets  and respond  to  the  Arctic  Research                                                              
Commission,  the Science  and Technology  Foundation  has its  own                                                              
budget,  the  University  is  a large  recipient  of  hundreds  of                                                              
millions of dollars of research funds that we helped them get.                                                                  
                                                                                                                                
     The  idea here  is how  to take  those  funds and  these                                                                   
     efforts and see where coordination  could be helpful for                                                                   
     the economy  and the  health of  the environment of  the                                                                   
     state.  This resolution  encourages  trying  to get  the                                                                   
     four of  us to sit  down together  to begin with.  I can                                                                   
     say we've  advice to the  commission from both  senators                                                                   
     in the Alaska  congressional delegation that  we use our                                                                   
     bully pulpit at the commission  to try to bring together                                                                   
     marine  research in  the state.  Our executive  director                                                                   
     sits on  the Board  of the North  Pacific Research  Fund                                                                   
     and we are  advocating that the Research  Fund develop a                                                                   
     kind  of  broad  national  research  council  review  of                                                                   
     marine  fisheries  research  in this  state  right  now.                                                                   
     That's  something that  I can  say that  I've heard  the                                                                   
     University   people  advocate,   I've  heard   [indisc.]                                                                   
     advocate. We've worked together on that.                                                                                   
                                                                                                                                
     Just  two other  elements  on Senator  Stevens'  earlier                                                                   
     question  on  the economy.  There's  an element  of  the                                                                   
     resolution that  asks us to  work with the  federal land                                                                   
     holding  agencies  to  see  what  kind  of  research  is                                                                   
     necessary  to  take  federal  lands and  get  them  into                                                                   
     production. They  own much more  land in the  state than                                                                   
     we  do  as a  state  and  yet  we're doing  90%  of  the                                                                   
     revenues  from that. Any  yet they  really don't have  a                                                                   
     development  plan and  we'd  like to  see what  research                                                                   
     they   feel  is  necessary   to  get   that  land   into                                                                   
     development.                                                                                                               
                                                                                                                                
SENATOR  LEMAN  said he  had  two  amendments  to offer  that  are                                                              
cleanup brought to his attention  by members of the commission. He                                                              
moved amendment 1. There were no objections and it was adopted.                                                                 
                                                                                                                                
SENATOR LEMAN  moved to  adopt amendment 2  that expands  lands of                                                              
Alaska to waters  and air space. It's consistent  with the mission                                                              
of the  Arctic Research Commission.  There were no  objections and                                                              
the amendment was adopted.                                                                                                      
                                                                                                                                
SENATOR  LEMAN moved  to pass  CSSJR 44(L&C)  from committee  with                                                              
individual recommendations.  There were  no objections and  it was                                                              
so ordered.                                                                                                                     
                                                                                                                                
CHAIRMAN STEVENS  thanked everyone  for being there  and adjourned                                                              
the meeting at 2:12 pm.                                                                                                         
                                                                                                                                
                                                                                                                                

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