Legislature(2019 - 2020)BUTROVICH 205

03/04/2019 03:30 PM Senate RESOURCES

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03:30:23 PM Start
03:31:06 PM Confirmation Hearing: Alaska Board of Game
03:49:50 PM Presentation: "building Alaska's Blue Economy - Alaska's College of Fisheries & Ocean Sciences"
04:24:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
Board of Game - Jerry Burnett - Juneau
"Building Alaska's Blue Economy - Alaska's
College of Fisheries & Ocean Sciences" by Dr.
Brad Moran, Dean & Dr. Milo Adkison, Professor -
UAF College of Fisheries & Ocean Sciences
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         March 4, 2019                                                                                          
                           3:30 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Chris Birch, Chair                                                                                                      
Senator John Coghill, Vice Chair                                                                                                
Senator Cathy Giessel                                                                                                           
Senator Lora Reinbold                                                                                                           
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
MEMBERS ABSENT                                                                                                                
Senator Scott Kawasaki                                                                                                          
COMMITTEE CALENDAR                                                                                                            
CONFIRMATION HEARING:                                                                                                           
Alaska Board of Game                                                                                                          
Jerry Burnett - Juneau                                                                                                          
     - CONFIRMATION ADVANCED                                                                                                    
PRESENTATION: "BUILDING ALASKA'S BLUE ECONOMY - ALASKA'S COLLEGE                                                                
OF FISHERIES & OCEAN SCIENCES"                                                                                                  
     - HEARD                                                                                                                    
PREVIOUS COMMITTEE ACTION                                                                                                     
No previous action to record                                                                                                    
WITNESS REGISTER                                                                                                              
JERRY BURNETT, Appointee                                                                                                        
Alaska Board of Game                                                                                                            
Alaska Department of Fish and Game                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Addressed his appointment to the Alaska                                                                   
Board of Game.                                                                                                                  
ROD ARNO, Executive Director                                                                                                    
Alaska Outdoor Council                                                                                                          
Palmer, Alaska                                                                                                                  
POSITION  STATEMENT:  Testified  in   support  of  Mr.  Burnett's                                                             
appointment to the Alaska Board of Game.                                                                                        
MARK RICHARDS, Executive Director                                                                                               
Resident Hunters of Alaska                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:  Did not  provide  a  recommendation on  Mr.                                                             
Burnett's appointment to the Alaska Board of Game.                                                                              
DR. BRAD MORAN, Dean                                                                                                            
College of Fisheries & Ocean Sciences                                                                                           
University of Alaska-Fairbanks                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Provided an overview of  the college's value                                                             
and  return on  investment  to the  state  via the  presentation,                                                               
"Building Alaska's Blue Economy."                                                                                               
ACTION NARRATIVE                                                                                                              
3:30:23 PM                                                                                                                    
CHAIR CHRIS BIRCH called the  Senate Resources Standing Committee                                                             
meeting to order  at 3:30 p.m. Present at the  call to order were                                                               
Senators  Coghill,  Kiehl,  Giessel, and  Chair  Birch.  Senators                                                               
Reinbold  and   Bishop  joined  the  committee   meeting  shortly                                                               
^CONFIRMATION HEARING: Alaska Board of Game                                                                                     
                     CONFIRMATION HEARING:                                                                                  
                      Alaska Board of Game                                                                                  
3:31:06 PM                                                                                                                    
CHAIR BIRCH  announced the consideration  for the  appointment of                                                               
Jerry Burnett  to the Alaska Board  of Game. He said  Mr. Burnett                                                               
is a  new appointee and,  if confirmed, his appointment  would be                                                               
through June 30, 2021.                                                                                                          
He detailed that the main role of  the Alaska Board of Game is to                                                               
conserve and  develop Alaska's wildlife resources  which includes                                                               
establishing  open and  closed seasons,  areas  for taking  game,                                                               
setting bag limits,  and regulating methods and  means. The board                                                               
is  also  involved  in  setting  policy  and  direction  for  the                                                               
management  of  the  state's wildlife  resources.  The  board  is                                                               
charged  with   making  allocative   decisions  and   the  Alaska                                                               
Department of Fish  and Game is responsible  for management based                                                               
on those same decisions.                                                                                                        
3:31:53 PM                                                                                                                    
JERRY   BURNETT,  Appointee,   Alaska  Board   of  Game,   Alaska                                                               
Department  of  Fish  and  Game,   Juneau,  Alaska,  provided  an                                                               
overview of his curriculum vitae as follows:                                                                                    
   • Alaska Department of Revenue:                                                                                              
        o Deputy commissioner,                                                                                                  
        o August 2008-September 2011, and December 2014-December                                                                
   • Statewide information technology officer:                                                                                  
        o April 2014-December 2014.                                                                                             
   • Alaska Department of Revenue:                                                                                              
       o Administrative director and legislative liaison,                                                                       
        o December 2004-August 2008, and September 2011-April                                                                   
   • Alaska Department of Corrections:                                                                                          
        o Administrative director,                                                                                              
        o January 2003-2004.                                                                                                    
   • Alaska Legislature:                                                                                                        
        o Legislative staff,                                                                                                    
        o January 1990-December 2002.                                                                                           
   • University of Alaska Southeast:                                                                                            
        o Adjunct professor of business administration,                                                                         
        o 1990-2002.                                                                                                            
   • Alaska Outdoor Council                                                                                                     
        o Southeast vice president in 2000,                                                                                     
        o President in 2002-2003.                                                                                               
   • Territorial Sportsmen:                                                                                                     
        o Served many years on the board of directors including                                                                 
          four years as the president.                                                                                          
He said over  the past 20 years he has  been deeply involved with                                                               
the  issues that  are near  and dear  to hunters  and anglers  in                                                               
Alaska, noting  that he has  authored or coauthored  comments and                                                               
proposals  to the  boards  of Fish  and  Game, sometimes  working                                                               
through the  local Fish and  Game Advisory Committee  process. He                                                               
added that  he has  authored and  coauthored comments  on federal                                                               
and state legislation and  proposed regulations concerning access                                                               
to federal lands, the state's  right to manage its resources, and                                                               
on  a  variety  of  land-use  proposals. He  noted  that  in  his                                                               
previous  state positions  he has  served on  several boards  and                                                               
that has  provided him  with an appreciation  of the  process for                                                               
hearing  and considering  public  comments  and testimony  before                                                               
making decisions and adopting regulations.                                                                                      
MR. BURNETT summarized as follows:                                                                                              
     Section 8  of the Alaska Constitution  provides in part                                                                    
     that wherever  occurring in their natural  state, fish,                                                                    
     wildlife,  and waters  are reserved  to the  people for                                                                    
     common   use;   and   that  fish,   forest,   wildlife,                                                                    
     grasslands,  and  all   other  replenishable  resources                                                                    
     belong to  the state shall be  utilized, developed, and                                                                    
     maintained  on a  sustained-yield principle  subject to                                                                    
     preferences on beneficial uses.                                                                                            
     In  accordance with  the statutory  framework developed                                                                    
     by the Legislature and codified  in Title 16, it is the                                                                    
     role  of the  Board  of Game  to  consider the  science                                                                    
     developed by the  Department of Fish and  Game, and the                                                                    
     input  from the  public, to  set regulations,  seasons,                                                                    
     and  bag  limits  that will  ensure  Alaska's  wildlife                                                                    
     resources   are  utilized   on   the  sustained   yield                                                                    
He opined that he is well qualified  to be a part of the Board of                                                               
Game process as a board member.                                                                                                 
3:35:56 PM                                                                                                                    
SENATOR GIESSEL  asked him to  define "maximum benefit"  in terms                                                               
of allocation when talking about wildlife.                                                                                      
MR. BURNETT  answered that the legislature  has many definitions,                                                               
but each game  population starts with the  subsistence benefit in                                                               
almost all  areas of the  state. The  maximum benefit of  game is                                                               
preserving the  harvestable surplus  that can  be used  for human                                                               
consumption, but  there are a  number of different uses  that are                                                               
dependent on location  and how easily people can  access the game                                                               
populations, in some  cases the maximum benefit  for a population                                                               
may have  to do  with professional-guided hunts.  Maximum benefit                                                               
is complicated  and that  is why public  comment is  important to                                                               
understand various uses in communities by each user group.                                                                      
SENATOR  GIESSEL  asked  how  many  years it  has  been  since  a                                                               
Southeast member has been appointed to the Alaska Board of Game.                                                                
MR. BURNETT answered that he was not sure.                                                                                      
SENATOR BISHOP asked how he feels about cow moose hunts.                                                                        
MR. BURNETT answered  that he did not have a  feeling on specific                                                               
antlerless hunts because Board of  Game authorization for keeping                                                               
a  game's  population balanced  in  an  area depends  on  habitat                                                               
degradation due  to a rapidly  growing population as well  as the                                                               
game's benefit as food.                                                                                                         
3:38:56 PM                                                                                                                    
SENATOR  BISHOP noted  Mr.  Burnett's  statement regarding  input                                                               
from the  public to set  regulations. He  said he hoped  that Mr.                                                               
Burnett would pay attention and  listen to the public. He pointed                                                               
out  that there  are more  hunters in  the field  than there  are                                                               
Alaska Department of  Fish and Game (ADF&G) people  in the field.                                                               
He opined that while ADF&G may  have the science, there are a lot                                                               
of people in the field that  keep good field notes, not anecdotal                                                               
but good field notes.                                                                                                           
MR. BURNETT replied that he will certainly listen to the public.                                                                
SENATOR  REINBOLD  addressed a  public  safety  concern from  car                                                               
encounters and accidents  caused by moose as well  as bears being                                                               
attracted into  urban areas. She  opined that ADF&G  would rather                                                               
manage  the public  than  the  wildlife. She  asked  how he  will                                                               
manage wildlife and public safety in heavy user areas.                                                                          
MR. BURNETT  said his personal feeling  is that a person  is much                                                               
more  valuable than  any game  animal and  he is  not opposed  to                                                               
managing a population for additional public safety.                                                                             
SENATOR  REINBOLD  said  there  are  a lot  of  people  that  are                                                               
concerned  about the  number  of  brown and  black  bears in  her                                                               
community.  She   opined  that  game  management   was  done  far                                                               
differently in the past and  a massive transition occurred in the                                                               
1990s  that caused  the  incredible numbers  of  game. She  asked                                                               
that, people be kept in the center to ensure public safety.                                                                     
3:42:16 PM                                                                                                                    
SENATOR  KIEHL remarked  that it  has been  too many  years since                                                               
someone  from Southeast  Alaska  was appointed  to  the Board  of                                                               
SENATOR KIEHL  addressed the board's  use of  advisory committees                                                               
around  the state.  He opined  that many  Alaskans put  a lot  of                                                               
value into  advisory committees, noting that  the committees cost                                                               
a fair  amount of money. He  asked Mr. Burnett what  he viewed as                                                               
the best  way to interact,  consolidate, or not to  interact with                                                               
the committees.                                                                                                                 
MR. BURNETT  answered that the  state has 84  advisory committees                                                               
in different regions.  He explained that proposals go  out to the                                                               
advisory committees  and the department,  and then  the proposals                                                               
come  back to  the  board  for decisions.  He  said the  advisory                                                               
committees  are  expensive, but  important.  He  noted that  game                                                               
management is self-sustaining, paid  for by hunting license fees.                                                               
He disclosed that  there are proposals for a joint  Fish and Game                                                               
Board  meeting  in  March  to  address changes  to  some  of  the                                                               
advisory committees to make it  more convenient for people to get                                                               
together in a community.                                                                                                        
3:44:17 PM                                                                                                                    
CHAIR BIRCH opened public testimony.                                                                                            
3:44:50 PM                                                                                                                    
ROD  ARNO, Executive  Director, Alaska  Outdoor Council,  Palmer,                                                               
Alaska, testified in support of  Mr. Burnett's appointment to the                                                               
Alaska Board of Game. He  said Mr. Burnett is knowledgeable about                                                               
the Board of Game process which is very important.                                                                              
3:46:21 PM                                                                                                                    
MARK  RICHARDS, Executive  Director, Resident  Hunters of  Alaska                                                               
(RHAK), Fairbanks,  Alaska, did  not provide a  recommendation on                                                               
Mr. Burnett's  appointment. He said  he looks forward  to meeting                                                               
Mr.  Burnett to  address  questions regarding  Article  8 of  the                                                               
Alaska Constitution regarding maximum  benefit. He disclosed that                                                               
RHAK also  recommended David Brown  from Wrangel, noting  that he                                                               
served on the board from 2014 to 2017.                                                                                          
3:47:52 PM                                                                                                                    
CHAIR BIRCH closed public testimony.                                                                                            
3:48:14 PM                                                                                                                    
CHAIR  BIRCH stated  that in  accordance with  AS 39.05.080,  the                                                               
Senate Resources Committee reviewed  the following and recommends                                                               
the   appointment   be  forwarded   to   a   joint  session   for                                                               
Board Member of the Alaska Board of Game                                                                                        
Jerry Burnett - Juneau.                                                                                                         
CHAIR  BIRCH  reminded members  that  this  does not  reflect  an                                                               
intent  by  any  of  the  members to  vote  for  or  against  the                                                               
confirmation of the individual during any further sessions.                                                                     
3:48:50 PM                                                                                                                    
At ease.                                                                                                                        
^PRESENTATION:  "Building   Alaska's  Blue  Economy   -  Alaska's                                                               
College of Fisheries & Ocean Sciences"                                                                                          
 PRESENTATION: "Building Alaska's Blue Economy - Alaska's College                                                           
                 of Fisheries & Ocean Sciences"                                                                             
3:49:50 PM                                                                                                                    
CHAIR  BIRCH called  the committee  back to  order. He  announced                                                               
that  the committee  would hear  from the  University of  Alaska-                                                               
Fairbanks  College  of Fisheries  and  Ocean  Sciences (CFOS)  to                                                               
provide its perspective of how  the university system plays a key                                                               
research  and  workforce  development  role  in  Alaska's  marine                                                               
3:50:16 PM                                                                                                                    
DR.  BRAD MORAN,  Dean, College  of Fisheries  & Ocean  Sciences,                                                               
University  of  Alaska-Fairbanks,  Fairbanks,  Alaska,  explained                                                               
that he  wanted to use  the title of his  presentation, "Building                                                               
Alaska's Blue Economy," to give the  main message of the value of                                                               
CFOS and the return on investment of CFOS to Alaska.                                                                            
He addressed "Statewide CFOS presence" as follows:                                                                              
   • CFOS is a statewide entity.                                                                                                
   • CFOS has 12 locations, 11 locations are in coastal                                                                         
   • CFOS is the largest research and academic unit in Alaska                                                                   
     with geographic diversity with a large budget.                                                                             
   • CFOS is next in line after the Geophysical Institute with a                                                                
     fiscal budget of $46 million, FY2018, in expenditures which                                                                
     are almost entirely in Alaska.                                                                                             
   • CFOS received $5.9 million investment, FY2018, from the                                                                    
     state's general fund with an output of $46 million in                                                                      
     expenditures, an 8:1 return on investment.                                                                                 
   • CFOS committed $22.8 million in research, almost entirely                                                                  
     federal funds.                                                                                                             
   • CFOS was awarded $11.3 million from a national science                                                                     
     foundation to operate the research vessel (R/V) Sikuliaq.                                                                  
DR.  MORAN addressed  CFOS "Research  and  economic drivers"  via                                                               
facilities and centers as follows:                                                                                              
   • Alaska Sea Grant Program:                                                                                                  
        o Partnership with the National Oceanic and Atmospheric                                                                 
          Administration (NOAA).                                                                                                
        o Housed within CFOS.                                                                                                   
        o Director reports to Dr. Moran.                                                                                        
   • Coastal Marine Institute.                                                                                                  
   • Institute of Marine Science.                                                                                               
   • Kasitsna Bay Laboratory.                                                                                                   
   • Kodiak Seafood & Marine Science Center.                                                                                    
   • Lena Point Fisheries Facility.                                                                                             
   • Ocean Acidification Research Center:                                                                                       
        o Growing concern, particularly in high latitude, cold                                                                  
          waters such as the offshore of Alaska.                                                                                
   • Pollock Conservation Cooperative Research Center.                                                                          
   • Rasmuson Fisheries Research Center.                                                                                        
   • R/V Sikuliaq and Seward Marine Center.                                                                                     
He said  CFOS's facilities  and centers  are a  significant asset                                                               
within  the  college  that  deals   with  the  fisheries,  marine                                                               
biology, and oceanographic  challenges that the state  faces in a                                                               
rapidly changing environmental system.  The assets have reach and                                                               
expertise across the state in the noted areas.                                                                                  
3:53:18 PM                                                                                                                    
SENATOR COGHILL  explained that  because of  ocean acidification,                                                               
fish migration, and  what the state does in  high seas fisheries,                                                               
Alaska ends up working with  British Columbia, Hawaii, Korea, and                                                               
Japan on  the state's sciences. He  asked if he can  explain what                                                               
CFOS is  doing to  work with those  governing entities.  He noted                                                               
that  Dr. Moran's  presentation shows  federal input,  but opined                                                               
that Alaska sees itself, CFOS too,  as the guardians of the north                                                               
Pacific and Arctic. However, Alaska  must share the area with the                                                               
other entities.  He asked if the  $46 million is similar  to what                                                               
other   states   are   doing  and   whether   Alaska   has   good                                                               
DR. MORAN  answered that  CFOS is  a resource  to the  state that                                                               
provides unbiased information,  education, and workforce training                                                               
around  fisheries, ocean,  and  marine biology.  CFOS  is also  a                                                               
strong resource for its colleagues  in other states and countries                                                               
such as British  Columbia, Canada. He emphasized that  CFOS has a                                                               
very competitive and  strong program that ranks in  the top five.                                                               
He said  the fact  that CFOS operates  the research  vessel (R/V)                                                               
Sikuliaq puts it  on par or more with entities  such as the state                                                               
of Washington, which also operates a global class vessel.                                                                       
SENATOR COGHILL noted  a recent meeting with  the Counsel General                                                               
of Japan  and pointed out that  Japan is one of  Alaska's largest                                                               
seafood customers  in addition to  China and Korea.  He mentioned                                                               
Alaska's seafood  production base and  asked if CFOS  competes or                                                               
complements  for its  federal research  dollars in  comparison to                                                               
other north Pacific areas.                                                                                                      
3:55:41 PM                                                                                                                    
DR. MORAN answered  that NOAA is the primary funder  that uses an                                                               
open competition for proposals that  CFOS and any organization in                                                               
the U.S. can  compete for. He said CFOS  interacts regularly with                                                               
many  state, national,  and international  entities  as well.  He                                                               
explained  that the  state's investment  to leverage  the federal                                                               
dollars  is far  reaching. He  asserted that  CFOS is  absolutely                                                               
competitive with  other states,  one metric  being the  return on                                                               
investment for Alaska.                                                                                                          
SENATOR COGHILL  explained that his questioning  pertains to what                                                               
the state can or cannot  control from a fisheries perspective and                                                               
CFOS's  role  in  reaching  out  to  national  and  international                                                               
DR.  MORAN  replied  that  Alaska   and  CFOS  are  national  and                                                               
international  leaders in  fisheries. He  said CFOS  collaborates                                                               
with faculty  in other institutions,  but CFOS is  competitive as                                                               
SENATOR COGHILL  said he wanted  Dr. Moran  to say out  loud that                                                               
Alaska and  CFOS are  world renowned, a  position that  the state                                                               
does not want to give up.                                                                                                       
DR. MORAN  concurred. He said CFOS  is very proud of  what it has                                                               
accomplished with an outstanding fisheries department.                                                                          
3:58:27 PM                                                                                                                    
He noted  that CFOS  has a number  of industry  partnerships. For                                                               
example, the cooperative with the at-sea processors:                                                                            
   • At-sea processor cooperative:                                                                                              
        o Trident Seafoods;                                                                                                     
        o Aleutian Spray Fisheries, Incorporated;                                                                               
        o American Seafoods Company;                                                                                            
        o Glacier Fish Company.                                                                                                 
   • Largest philanthropic donor to the University of Alaska in                                                                 
     marine sciences.                                                                                                           
   • Through 2019 approximately $16 million was donated that                                                                    
        o Students,                                                                                                             
        o Research,                                                                                                             
        o Workforce training,                                                                                                   
        o Ted Stevens Chair in Marine Policy.                                                                                   
   • Excellent example of industry supporting and working hand-                                                                 
     in-hand with CFOS around fisheries.                                                                                        
DR. MORAN addressed CFOS's "Federal agency partnerships" as                                                                     
   • Alaska Sea Grant partnership:                                                                                              
        o Excellent example of a solid partnership with NOAA.                                                                   
        o Statewide entity,                                                                                                     
        o $1.5 million  budget with NOAA with  a 50-percent match                                                               
        o CFOS   supports  Sea   Grant,  the   college's  primary                                                               
          outreach arm to coastal communities.                                                                                  
 • Department of Interior-Bureau of Ocean Energy Management:                                                                    
        o Doubled their  input into the Coastal  Marine Institute                                                               
          from $500,000 to $1 million.                                                                                          
        o Virtual institute, not a bricks-and-mortar.                                                                           
        o CFOS uses  the investment to primarily  support student                                                               
          and faculty research.                                                                                                 
He explained that the partnerships leverage funding to support                                                                  
research and Alaska's coastal communities.                                                                                      
4:00:23 PM                                                                                                                    
He addressed "Innovation and commercialization" as follows:                                                                     
   • Blue Evolution leasing space at Kodiak to process kelp for                                                                 
        o Kodiak Seafood Marine Science Center.                                                                                 
        o Make seafood  products like salsa  and penne  made from                                                               
        o Two years in operation.                                                                                               
        o Example of CFOS working with a private corporation.                                                                   
        o Kelp is a  field or mariculture that  is an opportunity                                                               
          for Alaska.                                                                                                           
   • Blue Pipeline Incubator at Seward fostering ocean business                                                                 
     and workforce:                                                                                                             
        o Just started within the last few months.                                                                              
        o External  support funding  from the  City of  Seward as                                                               
          well as other support lines.                                                                                          
        o Similar  to   a  research   park  or   "incubator"  for                                                               
          technology innovation.                                                                                                
   • MARINER ARPA-E award to develop sugar kelp for market:                                                                     
        o Award from the U.S. Department of Energy.                                                                             
        o CFOS works closely with the University of Alaska-                                                                     
        o Partners in the Lower 48.                                                                                             
        o Sugar kelp has a lot of upside potential.                                                                             
   • Pet treats from fish skins developed at Kodiak:                                                                            
        o CFOS faculty member has developed commercializable pet                                                                
          treats from fish skins.                                                                                               
DR. MORAN explained  that much of the research that  CFOS does is                                                               
basic research, hypothesis testing, and applied-side research.                                                                  
4:02:38 PM                                                                                                                    
He addressed  "Mariculture facilities,  faculty and  research" as                                                               
   • Facilities:                                                                                                                
        o Kodiak Seafood and Marine Science Center:                                                                             
             square4 Seafood research and development facility.                                                                 
        o Kasitsna Bay Laboratory:                                                                                              
             square4 Research on kelp and invertebrate ecology.                                                                 
             square4 Partnership with NOAA.                                                                                     
        o Seward Marine Center:                                                                                                 
             square4 Research on mariculture studies.                                                                           
        o Lena Point:                                                                                                           
             square4 CFOS research and teaching facility in Southeast                                                           
   • Active Mariculture Research:                                                                                               
        o MARINER Program:                                                                                                      
             square4 U.S. Department of Energy ARPA-E Phase I:                                                                  
                  • Proposing Phase II with the University of                                                                   
        o Numerous faculty and students working on kelp, crabs,                                                                 
         and ocean acidification impacting mariculture.                                                                         
He addressed  Alaska's mariculture  opportunity, noting  that the                                                               
state has more coastline than the  rest of the Lower 48 combined.                                                               
He emphasized  that there  is a  tremendous upside  potential for                                                               
non-fin-fish,   fin-fish   aquaculture,    including   kelp   and                                                               
shellfish.  He  said  there  are some  numerics  put  around  the                                                               
potential  for Alaska  in the  mariculture  space, anywhere  from                                                               
$100  million  to  you  pick.  The  mariculture  research  is  an                                                               
opportunity, particularly for  coastal subsistence communities to                                                               
engage in a new business venture.                                                                                               
4:03:58 PM                                                                                                                    
DR. MORAN addressed the "R/V Sikuliaq" as follows:                                                                              
   • Largest federal  research  asset   in  Alaska   that  CFOS                                                                 
   • Only ice capable vessel with the ability to go through 2.5                                                                 
     feet of ice at 2 knots. The vessel is not an icebreaker.                                                                   
   • R/V Sikuliaq is  a  $200  million  vessel,  owned  by  the                                                                 
     National Science Foundation (NSF).                                                                                         
   • March 2014-2018, CFOS has an operating contract  through a                                                                 
     cooperative agreement with NSF.                                                                                            
   • In 2018, CFOS was successful  with renewing  its operating                                                                 
     contract through 2023 for $33 million:                                                                                     
        o Vessel with be competed nationally for the next                                                                       
          contract in 2023.                                                                                                     
        o CFOS will have to write a proposal to reup an                                                                         
          operating contract that will also require:                                                                            
             square4 Good shoreside facilities,                                                                                 
             square4 Good operations.                                                                                           
   • R/V Sikuliaq is paid  for by  NSF, CFOS  does  not pay  to                                                                 
     operate the vessel.                                                                                                        
   • CFOS shows NSF that it means business by providing support                                                                 
     for "ship days" by paying crew, food, and fuel as well as                                                                  
     paying for:                                                                                                                
       o Half of the salary for CFOS's financial manager.                                                                       
        o Half-time liaison person to interact with subsistence                                                                 
        o All the salary cost for the vessel's port captain                                                                     
          based in Seward.                                                                                                      
        o Three quarters of the cost for the vessel's marine                                                                    
          superintendent to operate and function in the Seward                                                                  
          marine center.                                                                                                        
   • R/V Sikuliaq is a significant financial  investment coming                                                                 
     back to Alaska and the university:                                                                                         
        o Annual indirect cost recovery for the vessel is $1                                                                    
          million to CFOS, a significant amount of revenue.                                                                     
DR. MORAN  set forth that the  R/V Sikuliaq is an  "absolute gem"                                                               
for  the State  of  Alaska,  likened to,  a  gift  that keeps  on                                                               
giving.  The  vessel raises  the  bar  for  the university  in  a                                                               
significant way in  ocean science research. He  admitted that the                                                               
R/V Sikuliaq is one of the reasons he moved to Alaska.                                                                          
4:06:38 PM                                                                                                                    
CHAIR  BIRCH  noted that  U.S.  Senators  Murkowski and  Sullivan                                                               
announced that  the U.S. Coast Guard  has significant investments                                                               
in infrastructure facilities including  cutters and an icebreaker                                                               
vessel. He asked if the U.S. Coast Guard works with the NSF.                                                                    
DR. MORAN  answered that U.S. Coast  Guard is run under  the U.S.                                                               
Department of  Homeland Security, an  agency whose mission  is to                                                               
protect the  country's coast.  The R/V  Sikuliaq is  for enabling                                                               
discovery and  research. He  noted that the  R/V Sikuliaq  can be                                                               
contracted both nationally and  internationally. For example, the                                                               
Office of  Naval Research has  used the vessel. The  R/V Sikuliaq                                                               
can  support a  wide range  of capabilities.  Internationally the                                                               
vessel can  be used  for methane hydrate  exploration as  well as                                                               
oil and gas work. The vessel day rate is $50,000.                                                                               
CHAIR  BIRCH asked  where  the R/V  Sikuliaq  primarily sails  in                                                               
state waters.                                                                                                                   
DR.  MORAN  answered that  the  vessel  goes where  investigators                                                               
propose  to do  research.  The  R/V Sikuliaq  is  a global  class                                                               
vessel that can go anywhere. The  only place the vessel cannot go                                                               
is ocean ice conditions that is greater than 2.5 feet thick.                                                                    
4:09:16 PM                                                                                                                    
SENATOR KIEHL asked  how much the NSF awards  the university each                                                               
year to operate and maintain the R/V Sikuliaq.                                                                                  
DR. MORAN replied approximately $11 million.                                                                                    
SENATOR KIEHL asked him to explain the $50,000 daily rate.                                                                      
DR. MORAN explained that CFOS  operates the vessel optimally, but                                                               
the day  rate varies based on  how many days the  vessel is used.                                                               
He  explained that  the $11  million NSF  award is  approximately                                                               
what the agency believes what  is needed for operation. The award                                                               
is not for the entire year. He  noted that the U.S. Navy is being                                                               
billed $2.3  million for  the vessel's  use, which  is additional                                                               
revenue  on  top  of cooperative  agreement.  He  disclosed  that                                                               
Canada chartered  the vessel for  3 weeks and the  European Union                                                               
(EU) put  $500,000 toward a  7-day charter. He offered  to submit                                                               
the vessel's operational data to committee members.                                                                             
DR. MORAN  addressed examples  of the value  that CFOS  brings to                                                               
understanding  the ecosystem  function in  the coastal  and ocean                                                               
waters.  One example  is the  Northern Gulf  of Alaska  Long-Term                                                               
Ecosystem Research Program (NGA LTER) and detailed as follows:                                                                  
   • Started in 2018.                                                                                                           
   • Funded by NSF.                                                                                                             
   • The research award is exceptionally hard to get.                                                                           
   • Alaska has four LTERs.                                                                                                     
   • R/V Sikuliaq will enable the NGA LTER program greatly.                                                                     
He  addressed a  map  and noted  that 45  years  of research  has                                                               
occurred along the Gulf of  Alaska Mooring (GAK1) line, primarily                                                               
with a 20-year time series. GAK1  set the stage for the expansion                                                               
of the program to other areas  in the Gulf of Alaska, noting that                                                               
$2.5  million in  research and  ship time  is spent  annually. He                                                               
said  the  goal  is  ultimately  to  understand  changes  in  the                                                               
ecosystem  that will  affect commercial  fisheries. The  NGA LTER                                                               
will go at least 10 years.                                                                                                      
SENATOR  BISHOP  asked  if  the  University  of  Alaska-Fairbanks                                                               
operates the Toolik Field Station north of Atigun Pass.                                                                         
DR. MORAN answered yes. He explained  that the station is a long-                                                               
term ecosystem research station.                                                                                                
4:12:15 PM                                                                                                                    
He addressed  the European  Union Research  Icebreaker Consortium                                                               
(ARICE). He  asserted that  on the  international stage,  CFOS is                                                               
engaged  and known  internationally. He  explained that  ARICE is                                                               
unique  collaboration that  came up  a  couple of  years ago.  He                                                               
detailed ARICE vessels as follows:                                                                                              
   • PRV Polarstern, Germany;                                                                                                   
   • IB Oden, Sweden;                                                                                                           
   • R/V Kronprins Haakon, Norway;                                                                                              
   • RRS Sir David Attenborough, United Kingdom;                                                                                
   • CCGS Amundsen, Canada;                                                                                                     
   • R/V Sikuliaq, United States of America.                                                                                    
He explained  that the R/V Sikuliaq  is involved with all  of the                                                               
major players that are polar  icebreaker operators. He noted that                                                               
the  Sikuliaq is  the only  non-icebreaker  vessel. He  disclosed                                                               
that CFOS receives  funding from the "EU Blue  Growth Strategy of                                                               
the Horizon  2020 Initiative"  for the  consortium collaboration,                                                               
emphasizing that being involved is difficult to attain.                                                                         
DR. MORAN addressed "Fisheries graduates  in Alaska's economy" as                                                               
   • Alaska Commercial Fisheries:                                                                                               
        o Yield over 60 percent of the nation's fishery                                                                         
        o Over $4 billion wholesale value.                                                                                      
        o Alaska's largest private employer:                                                                                    
             square4 60,000 workers.                                                                                            
   • Sport Fisheries/Subsistence:                                                                                               
        o Anglers spend $1 billion on trip-related expenditures,                                                                
          supporting 16,000 jobs in Alaska.                                                                                     
        o Important customary and traditional uses of fishery                                                                   
He noted that 47 percent of CFOS faculty are women. Half of the                                                                 
graduate students from CFOS continue to work in Alaska, many in                                                                 
the Department of Fish and Game, and NOAA.                                                                                      
4:14:42 PM                                                                                                                    
He addressed "University of Alaska-Fairbanks Blue MBA" as                                                                       
   • CFOS has worked with the School of Management to create an                                                                 
     online MBA program called "Blue MBA."                                                                                      
   • Only online MBA program in the U.S. or the world that                                                                      
     provides business solutions for a changing Arctic in:                                                                      
        o Mariculture,                                                                                                          
        o Fisheries,                                                                                                            
        o Shipping,                                                                                                             
        o Ocean observing in forecasting.                                                                                       
He said  CFOS is excited about  the Blue MBA program,  one of two                                                               
professional  master's   degrees  offered  that   allows  working                                                               
professionals  throughout  the  world to  advance  their  careers                                                               
through a master's degree.                                                                                                      
He addressed "Beaufort Sea fish monitoring" as follows:                                                                         
   • Goal:                                                                                                                      
        o As part of their commitment to environmental and                                                                      
          social responsibility, since 1985 Hilcorp Energy has                                                                  
          funded surveys of nearshore fishes in the Beaufort Sea                                                                
          for potential impacts of oil and gas development.                                                                     
   • Methods:                                                                                                                   
        o Fyke nets sampled daily from late June to early                                                                       
        o Consideration for funding winter sampling because                                                                     
          Arctic cod spawns in the winter.                                                                                      
   • Results:                                                                                                                   
        o Ongoing research is focusing on climate effects on                                                                    
          fish communities, bioenergetics, and growth.                                                                          
DR. MORAN emphasized that the Beaufort Sea monitoring is an                                                                     
example of CFOS being a resource to the state as well as working                                                                
with industry.                                                                                                                  
4:17:02 PM                                                                                                                    
He addressed research on "Whale depredation on longline                                                                         
fisheries" as follows:                                                                                                          
   • Problems:                                                                                                                  
        o Management:                                                                                                           
             square4 Inaccurate Stocks Assessments.                                                                             
        o Fishermen:                                                                                                            
             square4 Reduced Catches,                                                                                           
             square4 Increased Costs.                                                                                           
        o Whales:                                                                                                               
             square4 Risk of Entanglement,                                                                                      
             square4 Behavior Change.                                                                                           
   • Results:                                                                                                                   
        o 39-73 percent reduction in survey catches;                                                                            
        o 35-70 percent reduction in commercial catches of                                                                      
          halibut, sablefish and Greenland turbot.                                                                              
   • Outcomes:                                                                                                                  
        o Adjustments to stock assessments:                                                                                     
             square4 Pot gear now allowed in Gulf of Alaska.                                                                    
He addressed "Declines in size of Pacific halibut" as follows:                                                                  
   • Problem:                                                                                                                   
        o Average weight of age-20 halibut declined from 120                                                                    
          lbs. in 1988 to 45 lbs. in 2015.                                                                                      
        o Population stock also declined.                                                                                       
   • Methods:                                                                                                                   
        o Cumulative effects of size-selective fishing and                                                                      
         harvest rates evaluated by simulation models.                                                                          
   • Results:                                                                                                                   
        o High harvest rates and size-selective fishing explains                                                                
          30-65 percent of the decline in the Gulf of Alaska.                                                                   
   • Outcome:                                                                                                                   
        o International Pacific Halibut Commission revised stock                                                                
          assessment model.                                                                                                     
   • Funding:                                                                                                                   
        o Pollock Conservation Cooperative Research Center                                                                      
        o North Pacific Research Board (NPRB).                                                                                  
   • Collaborators:                                                                                                             
        o Pacific Halibut Research and Stock Management (IPHC).                                                                 
DR. MORAN  said halibut fisheries  are critical to the  state and                                                               
the decline is significant, noting  that CFOS is actively working                                                               
on the halibut fisheries.                                                                                                       
4:18:17 PM                                                                                                                    
He addressed "Analysis of tanner crab size limit" as follows:                                                                   
   • Problem:                                                                                                                   
        o Many tanner crab never grow to legal size, resulting                                                                  
          in excessive discards and waste.                                                                                      
   • Approach:                                                                                                                  
        o Computer model analysis of catch, bycatch, and fishery                                                                
   • Results:                                                                                                                   
        o Lower size limit reduces discard mortality.                                                                           
        o Produces higher yields and revenues, and lower fishing                                                                
   • Outcome:                                                                                                                   
        o Board of Fisheries approved proposal.                                                                                 
        o Reduce size limit, improve profitability of the tanner                                                                
          crab fishery.                                                                                                         
He said  the outcome for the  tanner crab size limit  is a result                                                               
of direct research by CFOS.                                                                                                     
He addressed  "Improved hatchery  release of  salmon" based  on a                                                               
study by  Dr. Anne Beaudreau  and Douglas Duncan  regarding, "How                                                               
are nearshore predators responding  to hatchery released salmon?"                                                               
as follows:                                                                                                                     
   • Preliminary Results:                                                                                                       
        o Sculpin and Dolly Varden consume juvenile salmon in                                                                   
          areas near hatchery release sites.                                                                                    
        o Hatchery salmon may be less vulnerable to predators:                                                                  
             square4 Released at a large size.                                                                                  
   • Application:                                                                                                               
        o Optimize hatchery strategies to improve survival.                                                                     
        o Better understand predation in early marine survival                                                                  
          of juvenile salmon.                                                                                                   
DR. MORAN detailed  that the study was done by  the CFOS facility                                                               
at  Lena Point  in Juneau.  CFOS worked  with the  Douglas Island                                                               
Pink  and   Chum,  Inc.  (DIPAC)   hatchery  to   optimize  their                                                               
strategies to  ensure the  maximum sustainability  of wild-caught                                                               
with hatchery fisheries.                                                                                                        
SENATOR  BISHOP  asked  what  the   impact  of  low  rainfall  in                                                               
Southeast Alaska has had on  area hatcheries, particularly DIPAC,                                                               
and what is  the contingency plan for releasing  juvenile fish if                                                               
the low rainfall trend continues.                                                                                               
DR.  MORAN replied  that  he  would follow  up  with some  expert                                                               
information.  He  added  that  Senator  Bishop's  question  is  a                                                               
perfect example  where CFOS can be  a resource for an  answer. He                                                               
opined that the  prediction on the impact from  low rainfall will                                                               
be difficult  on what might happen  in the future, but  the topic                                                               
is an active area of research by CFOS faculty.                                                                                  
4:20:12 PM                                                                                                                    
He addressed "Research of fishery  management: decline of Chinook                                                               
salmon abundance and size, and  interactions of hatchery and wild                                                               
fish." He  detailed that  a CFOS  researcher is  using innovative                                                               
Global Positioning System (GPS) tagging  on Chinook salmon in the                                                               
Gulf of  Alaska to monitor  activity, noting an impact  was found                                                               
from salmon  shark predation, something  that was  not previously                                                               
known.   He   explained   salmon   with   the   GPS   tags   were                                                               
serendipitously  eaten   by  the  salmon  sharks.   Salmon  shark                                                               
research is being funded by PCCRC.                                                                                              
He explained that  the study on interaction of  hatchery and wild                                                               
fish  is  a  critical  question  on  optimizing  wild  runs.  The                                                               
different run  timing and the  overlap on spawning grounds  is an                                                               
area of active research.                                                                                                        
He addressed "Solutions across the university" as follows:                                                                      
   • Shark research for biomedical advances:                                                                                    
        o University of Alaska (UA) research on shark jaws                                                                      
          develops artificial cartilage implant for discs, knee                                                                 
          meniscus, and prosthetic linings.                                                                                     
        o Use for military combat injuries and veterans.                                                                        
   • Expertise for policymakers and coastal communities:                                                                        
        o UA Fisheries economists inform agencies and resource                                                                  
             square4 Example:  North Pacific Fisheries Management                                                               
        o Researchers study range of topics from global salmon                                                                  
          markets, subsistence, and the Arctic.                                                                                 
        o Alaska Sea Grant Program is a resource for fishermen,                                                                 
          public, and coastal economies.                                                                                        
4:22:30 PM                                                                                                                    
DR. MORAN summarized his presentation  by referencing an image of                                                               
a  CFOS buoy  that is  monitoring ocean  acidification in  one of                                                               
Alaska's coastal embayments.  He said he hoped  that his overview                                                               
left committee members with the following impressions on CFOS:                                                                  
   • Great value to the state.                                                                                                  
   • Good return on investment.                                                                                                 
   • Operates major facilities of international repute.                                                                         
   • Students are working in Alaska.                                                                                            
   • Drives forward the "Alaska Blue Economy."                                                                                  
CHAIR BIRCH noted that the R/V  Sikuliaq will be in Seward during                                                               
the upcoming summer months.                                                                                                     
DR.  MORAN answered  yes. He  said the  R/V Sikuliaq  will be  in                                                               
Seward the third  week of May and the ship  will be available for                                                               
committee members to tour.                                                                                                      
SENATOR  COGHILL  asked  if  CFOS  monitors  debris  on  Alaska's                                                               
coastline  from  other  countries  and  how  the  debris  affects                                                               
DR. MORAN answered that CFOS is  engaged in marine debris and can                                                               
provide  additional information.  He disclosed  that CFOS  is not                                                               
measuring the impacts from Fukushima.                                                                                           
SENATOR  COGHILL  replied  that  he  does  not  expect  Fukushima                                                               
monitoring, but that there was a  big impact. He added that there                                                               
has been debris from earthquakes in Indonesia as well.                                                                          
DR. MORAN  disclosed that prior to  his career with CFOS,  he did                                                               
measure  Fukushima radioactivity  coming  to the  coast of  North                                                               
America. He said there is no  threat to Alaska from the Fukushima                                                               
CHAIR BIRCH thanked Dr. Moran for the CFOS presentation.                                                                        
4:24:58 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Birch adjourned  the Senate  Resources Standing  Committee                                                               
meeting at 4:24 p.m.                                                                                                            

Document Name Date/Time Subjects
Governor's Appointee Board of Game Burnett.pdf SRES 3/4/2019 3:30:00 PM
UA Fisheries & Ocean Sciences 3.4.19.pdf SRES 3/4/2019 3:30:00 PM
BOG Appointee RHAK Email 3.4.19.pdf SRES 3/4/2019 3:30:00 PM