Legislature(2025 - 2026)BUTROVICH 205

02/12/2025 03:30 PM Senate RESOURCES

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Audio Topic
03:30:49 PM Start
03:31:37 PM Eo 136 Establish Dept of Agriculture
05:01:19 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ EO 136 ESTABLISH DEPT. OF AGRICULTURE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                       February 12, 2025                                                                                        
                           3:30 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Matt Claman                                                                                                             
Senator Forrest Dunbar (via teleconference)                                                                                     
Senator Scott Kawasaki                                                                                                          
Senator Shelley Hughes                                                                                                          
Senator Robert Myers                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EO 136 ESTABLISH DEPT OF AGRICULTURE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN BOYLE, Commissioner                                                                                                        
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Introduced Executive Order 136 on behalf of                                                               
the administration.                                                                                                             
                                                                                                                                
BRENT GOODRUM, Deputy Commissioner                                                                                              
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Gave a presentation on Executive Order 136                                                                
Establish Department of Agriculture.                                                                                            
                                                                                                                                
ROGER VANDERWEELE,                                                                                                              
VanderWeele Farm                                                                                                                
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified by invitation on EO 136.                                                                        
                                                                                                                                
MIKE MOSESIAN, President                                                                                                        
Mosesian Farms of Alaska (Bell's Nursery)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on EO 136.                                                                        
                                                                                                                                
SCOTT MUSGRAGE, President                                                                                                       
Alaska Farm Bureau                                                                                                              
Delta Junction                                                                                                                  
POSITION STATEMENT: Testified by invitation on EO 136.                                                                        
                                                                                                                                
BETH VAN SANDT, Scenic Place Peonies                                                                                            
Homer, Alaska                                                                                                                   
POSITION STATEMENT: Testified by invitation on EO 136.                                                                        
                                                                                                                                
INGA PETERSON, Alaska Future Farmers of America                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on EO 136.                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:49 PM                                                                                                                    
CHAIR  GIESSEL called  the  Senate  Resources Standing  Committee                                                               
meeting to order  at 3:30 p.m. Present at the  call to order were                                                               
Senators Meyers,  Dunbar, Hughes, Claman,  Kawasaki, Wielechowski                                                               
and Chair Giessel.                                                                                                              
                                                                                                                                
^EO 136 ESTABLISH DEPT OF AGRICULTURE                                                                                           
              EO 136 ESTABLISH DEPT OF AGRICULTURE                                                                          
                                                                                                                              
3:31:37 PM                                                                                                                    
CHAIR GIESSEL announced the consideration  of Executive Order 136                                                               
Establishing the [Alaska] Department of Agriculture.                                                                            
                                                                                                                                
3:32:39 PM                                                                                                                    
JOHN BOYLE, Commissioner, Department  of Natural Resources (DNR),                                                               
Anchorage, Alaska,  introduced EO  136 to establish  a Department                                                               
of  Agriculture on  behalf of  the administration.  He emphasized                                                               
the need to  enhance agriculture's role in the  state, citing the                                                               
2020 pandemic as  a catalyst for this  initiative. He highlighted                                                               
the   vulnerabilities  in   Alaska's   supply  chain,   including                                                               
potential disruptions from  global pandemics, volcanic eruptions,                                                               
earthquakes, and  port infrastructure damage. He  underscored the                                                               
importance  of   agriculture  in   ensuring  food   security  and                                                               
resilience against such threats.                                                                                                
                                                                                                                                
3:34:57 PM                                                                                                                    
COMMISSIONER  BOYLE said,  historically,  Alaska had  a rich  and                                                               
cherished agricultural tradition,  with significant contributions                                                               
from regions like Haines and  the Matanuska Valley. Despite this,                                                               
he  said  agriculture  had  been  neglected  for  decades,  often                                                               
overshadowed  by   other  industries  and  economic   issues.  He                                                               
advocated for  elevating agriculture to a  cabinet-level position                                                               
to  ensure  strategic  leadership   and  policy  focus.  He  said                                                               
establishing an  Alaska Department  of Agriculture  would enhance                                                               
Alaska's  progress  toward   food  security,  stimulate  economic                                                               
growth, and create  opportunities for new residents  to engage in                                                               
farming and  livestock raising, ultimately enriching  the state's                                                               
way of life.                                                                                                                    
                                                                                                                                
3:38:08 PM                                                                                                                    
COMMISSIONER  BOYLE  urged  that  the  time  was  right  for  the                                                               
creation  of a  new department.  He said  that it  was a  pivotal                                                               
moment  of opportunity  in energy  and agriculture.  He expressed                                                               
optimism   about  resolving   energy   challenges  through   both                                                               
renewable and  non-renewable sources,  predicting that  the state                                                               
will recognize  the benefits of  abundant and  affordable energy.                                                               
He  highlighted Alaska's  unique ability  to expand  agricultural                                                               
land while other states face  challenges due to land scarcity. He                                                               
praised Alaska's abundant  fresh water supply, and said  it was a                                                               
significant advantage for agriculture,  especially in contrast to                                                               
water shortages in other parts of the U.S.                                                                                      
                                                                                                                                
3:40:00 PM                                                                                                                    
COMMISSIONER   BOYLE   said   Alaska's   strategic   geopolitical                                                               
position, with  the world's third  busiest cargo airport  and its                                                               
proximity to  major markets, positioned  it well  for significant                                                               
agricultural  growth.  He  suggested Alaska  could  become  self-                                                               
sufficient in food production and  a major agricultural exporter,                                                               
citing the  Netherlands as an  example. He said key  to realizing                                                               
this   potential  was   solving   Alaska's   energy  issues   and                                                               
coordinating efforts among various  state entities. He noted that                                                               
Alaska  possessed  unique  advantages that  provided  competitive                                                               
advantages in the  global market. He emphasized the  need for the                                                               
advocacy  a Department  of Agriculture  would  provide to  ensure                                                               
Alaska received  its fair share  of federal  agricultural funding                                                               
and support.                                                                                                                    
                                                                                                                                
3:43:31 PM                                                                                                                    
COMMISSIONER BOYLE discussed the  lack of a coherent agricultural                                                               
policy  in Alaska  over  the past  50 years,  which  he said  has                                                               
hindered  the   development  of   crops  suitable   for  northern                                                               
climates.   He   highlighted   the  success   of   Saskatchewan's                                                               
agricultural  sector,  noting  the University  of  Saskatchewan's                                                               
research on soil mapping, soybean  cultivation, gene editing, and                                                               
crop disease  resistance. He emphasized  the challenges  faced by                                                               
Alaska farmers  who lack  state support and  must fund  their own                                                               
research. He  concluded by advocating  for the creation of  a new                                                               
department  to coordinate  resources  and  strategies, aiming  to                                                               
increase  food production,  attract  young  farmers, and  enhance                                                               
Alaska's food security and self-sufficiency.                                                                                    
                                                                                                                                
3:47:02 PM                                                                                                                    
CHAIR GIESSEL  recalled that homesteading  was common  in Alaska.                                                               
She mentioned  a personal  memory from 70  years ago  involving a                                                               
little neighbor  girl whose family  grew all their own  food. She                                                               
recalled active 4-H clubs and  the Cooperative Extension Service,                                                               
which played a  significant role in the  community. She expressed                                                               
a desire  to see  more young people  involved in  agriculture and                                                               
homesteading  yet acknowledged  that  these  were very  different                                                               
times.                                                                                                                          
                                                                                                                                
3:48:31 PM                                                                                                                    
BRENT  GOODRUM,   Deputy  Commissioner,  Department   of  Natural                                                               
Resources,  Anchorage,  Alaska,  moved  to  slide  1,  introduced                                                               
himself  and   said  Executive  Order   136  would   establish  a                                                               
Department of  Agriculture, thereby elevating  state agricultural                                                               
policies and  activities to a singularly  focused department with                                                               
cabinet   level   leadership.   He   said   Governor   Dunleavy's                                                               
overarching goals  with Executive Order  136 were to  continue to                                                               
grow  Alaska's  agricultural  base,   improve  our  state's  food                                                               
security  and  further  develop  Alaska's  agricultural  economic                                                               
sector:                                                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Executive Order 136                                                                                                      
     Establishing the Department of Agriculture                                                                               
     Senate Resources Committee                                                                                               
                                                                                                                                
     Presented by:                                                                                                              
     John C. Boyle III, Commissioner                                                                                            
     Brent Goodrum, Deputy Commissioner                                                                                         
     Alaska Department of Natural Resources                                                                                     
     February 12, 2025                                                                                                          
                                                                                                                                
3:49:24 PM                                                                                                                    
MR.  GOODRUM moved  to and  narrated  slide 2.  He said  Alaska's                                                               
agricultural sector had  long been recognized as  crucial for the                                                               
state's development, as evidenced by  its central position on the                                                               
state seal and  the establishment of a  Department of Agriculture                                                               
in  1945. Despite  this,  the department  was  absorbed into  the                                                               
Department of  Natural Resources around statehood.  He emphasized                                                               
the  need for  further agricultural  development to  enhance food                                                               
security, economic diversity, and independence:                                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Alaska Agriculture: Status Report                                                                                        
                                                                                                                              
     • Robust Alaska agriculture is a long-held vision                                                                          
     • Hardy Alaskans are farming                                                                                               
        • 2022 national census: 1,173 Alaska farms and                                                                          
          ranches produced about $39.7 million in crop                                                                          
          value and $51.2 million in animal production                                                                          
       • So much more potential  with dedicated, focused,                                                                       
        expert support                                                                                                          
     • Why grow agriculture?                                                                                                    
        • Greater food security and independence for                                                                            
          Alaskans                                                                                                              
        • Further develop an important economic sector                                                                          
          (jobs, value chain benefits)                                                                                          
                                                                                                                                
3:51:18 PM                                                                                                                    
SENATOR CLAMAN asked  whether the food produced  in Alaska, apart                                                               
from seafood, was sold outside Alaska or consumed in the state.                                                                 
                                                                                                                                
3:51:38 PM                                                                                                                    
MR. GOODRUM said there were  some exports and that the Department                                                               
of Natural  Resources (DNR) Division of  Agriculture participated                                                               
in the  Western Association of  State Departments  of Agriculture                                                               
(WASDA)  working with  international  markets and  in the  United                                                               
States to  promote Alaska agribusiness.  He offered to  provide a                                                               
list of products exported out of Alaska.                                                                                        
                                                                                                                                
3:52:02 PM                                                                                                                    
SENATOR  CLAMAN asked  [which products]  go outside  [Alaska] and                                                               
for percentages of  what is consumed in Alaska  versus the amount                                                               
consumed outside.                                                                                                               
                                                                                                                                
3:52:31 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 3:                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Executive Order 136                                                                                                      
                                                                                                                                
       • Establishes the Alaska Department of Agriculture                                                                       
        • Transitions  in full  the Division  of Agriculture                                                                    
          from the Department of Natural Resources (DNR) to                                                                     
          the new department                                                                                                    
             • Statutory responsibilities, functions, do                                                                        
               not change                                                                                                       
        • Provides   transitionary  measures   for  seamless                                                                    
          reorganization                                                                                                        
        • Effective July 1, 2025                                                                                                
                                                                                                                                
3:53:14 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 4:                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Vision                                                                                                                   
                                                                                                                                
        • Governor's  overarching  goal: increase  focus  on                                                                    
          agriculture and food security with a dedicated                                                                        
          department and leadership                                                                                             
        • Focus will  help develop  a robust,  durable state                                                                    
          agricultural policy, including a strategic plan                                                                       
          with an implementation roadmap                                                                                        
        • Continuation   of   the  Governor's   budget   and                                                                    
          legislative policy actions following the COVID-19                                                                     
          pandemic to enhance food security in Alaska                                                                           
        • Aligns  with top  recommendations  of task  forces                                                                    
          and stakeholders                                                                                                      
        • New  department is  first  step  to provide  solid                                                                    
          foundation for future growth                                                                                          
                                                                                                                                
3:54:22 PM                                                                                                                    
MR. GOODRUM moved to and narrated  slide 5. He highlighted the US                                                               
Department of Agriculture's  role as a major  funding partner and                                                               
the  potential for  increased federal  resources. He  said a  new                                                               
Department  of  Agriculture   would  enhance  legislative  focus,                                                               
oversight,  and  accountability,  ensuring  better  advocacy  for                                                               
agricultural issues and improved sector performance:                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Improved Results for Alaskans                                                                                            
                                                                                                                                
        • Robust,    durable    agriculture   policy    with                                                                    
           implementation plan                                                                                                  
        • Stronger  strategic   alignment  with  stakeholder                                                                    
           groups, Alaska agriculture entities                                                                                  
        • More   consistent,   proactive  interaction   with                                                                    
           federal partners                                                                                                     
        • Cabinet-level agriculture advocacy                                                                                    
        • Opportunity  for  greater  legislative  focus  and                                                                    
           attention                                                                                                            
                                                                                                                                
3:56:11 PM                                                                                                                    
MR.  GOODRUM moved  to slide  6  and said  Department of  Natural                                                               
Resources (DNR)  managed a broad  range of  activities, including                                                               
oil  and gas  operations,  state parks,  mining,  land and  water                                                               
management, forestry, and wildfire response:                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Today's Department of Natural Resources (DNR)                                                                            
                                                                                                                                
        • 1,054 employees  (767 PFT, 215 PPT,  72 NP) across                                                                    
          seven divisions, two offices                                                                                          
        • Led by commissioner supported by two deputies                                                                         
        • Statewide offices, programs and sites                                                                                 
        • FY2025   Management  Plan   budget  (all   funds):                                                                    
          $173,399.3                                                                                                            
        • DNR returns  $21 to the  state treasury  for every                                                                    
          UGF dollar appropriated                                                                                               
                                                                                                                                
3:57:02 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 7, providing a brief                                                                    
overview of the current Division of Agriculture organization:                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Today's Division of Agriculture                                                                                          
                                                                                                                                
        • Division Director                                                                                                     
        • Programs  separated  into Agriculture  Development                                                                    
          and Plant Materials Center sections                                                                                   
        • Employees: 37 total (32 PFT and 5 PPT)                                                                                
        • FY2025 Management Plan: $7,176.2 all funds                                                                            
        • Headquarters in Palmer                                                                                                
                                                                                                                                
3:57:50 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 8:                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Today's Division of Agriculture                                                                                          
                                                                                                                                
        • Inspections, certifications                                                                                           
        • Farm, production loans through Agricultural                                                                           
          Revolving Loan Fund                                                                                                   
        • Alaska   Grown   and   other   promotion   (state,                                                                    
          national, international)                                                                                              
        • Agricultural land sales / leases support                                                                              
        • Administers federal grants to Alaskans                                                                                
        • Future Farmers of America                                                                                             
        • Seed storage and production, varietal trials                                                                          
        • Seed cleaning services rendered                                                                                       
        • Revegetation and erosion control consulting                                                                           
        • Industrial hemp regulation                                                                                            
        • Invasive plant, pest management                                                                                       
                                                                                                                                
3:59:32 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 9:                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Tomorrow's Department of Agriculture                                                                                     
                                                                                                                                
        • Responsible leadership, organizational structures                                                                     
        • Primed for build-out over time with increased                                                                         
          programming, responsibilities                                                                                         
        • Employees: 50 total (45 PFT and 5 PPT)                                                                                
        • FY2026 increment: $2,734.4 UGF                                                                                        
        • Headquarters in Palmer                                                                                                
                                                                                                                                
     PFT: Permanent full-time      NP: Non-permanent                                                                            
     PPT: Permanent part-time      UGF: Unrestricted                                                                            
                                        general fund                                                                            
                                                                                                                                
     [Proposed Organizational Chart - adaptive formatting]                                                                      
                                                                                                                                
     Commissioner                                                                                                               
                                                                                                                                
          Special Assistant to Commissioner                                                                                     
          Executive Secretary                                                                                                   
          Deputy Commissioner                                                                                                   
               Administrative Services Director                                                                                 
                  • Financial Services                                                                                          
                  • Budget                                                                                                      
                  • Human Resources                                                                                             
                  • Information Technology                                                                                      
                                                                                                                                
               Natural Resource Manager 3                                                                                       
                  • Agriculture Development                                                                                     
                       o Communication                                                                                          
                       o Inspection and Pest Detection                                                                          
                         Program                                                                                                
                       o Land Disposal                                                                                          
                       o Grant Services                                                                                         
                  • Future Farmers of America (FFA)                                                                             
                  • Agriculture Revolving Loan Fund (ARLF)                                                                      
                  • Administrative/Procurement                                                                                  
                  • Northern Latitude Plant Materials                                                                           
                    Center                                                                                                      
                       o Maintenance and Operations                                                                             
                       o Revegetation Program                                                                                   
                       o Seed Cleaning Services                                                                                 
                       o Greenhouse Production                                                                                  
                       o Seed Potato Program                                                                                    
                       o Invasive Plant Program                                                                                 
                       o Seed/Pathogen Testing Program                                                                          
                       o Industrial Hemp Program                                                                                
                                                                                                                                
4:00:28 PM                                                                                                                    
MR. GOODRUM moved to slide 10:                                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Costs  New Positions ($ in thousands)                                                                                    
                                                                                                                                
    Department   of   Agriculture,   Departmental   Support                                                                     
     Services                                                                                                                   
     13 New Full-Time Positions  Total: $2,103.5 UGF                                                                            
                                                                                                                                
     [Slide 10 contains a table detailing the positions and                                                                     
    associated   costs    to   staff   a    Department   of                                                                     
     Agriculture.]                                                                                                              
                                                                                                                                
4:00:52 PM                                                                                                                    
SENATOR  WIELECHOWSKI asked  how many  of the  new administrative                                                               
and  information technology  (IT) positions  would engage  in the                                                               
new  department's  main  mission rather  than  provide  ancillary                                                               
support.                                                                                                                        
                                                                                                                                
4:01:52 PM                                                                                                                    
MR.  GOODRUM returned  to  slide 9  and  highlighted the  current                                                               
positions in  DNR that will  be placed  in the new  Department of                                                               
Agriculture.  He said  their role  will be  to continue  with the                                                               
department  mission.  He  emphasized the  importance  of  support                                                               
services for every  department and said it was a  lean section of                                                               
the  new department  that  would handle  critical  roles such  as                                                               
budgeting, finance, IT, and HR functions.                                                                                       
                                                                                                                                
4:03:20 PM                                                                                                                    
SENATOR WIELECHOWSKI expressed  support for expanding agriculture                                                               
and acknowledged the importance of  support staff. He said he was                                                               
concerned about  costs and asked  how much the  support positions                                                               
directly focused on the main mission of the department.                                                                         
                                                                                                                                
4:04:17 PM                                                                                                                    
COMMISSIONER  BOYLE   noted  apparent  redundancy.   However,  he                                                               
advocated   for   the   necessity   of   administrative   support                                                               
professionals for  the new department to  stand independently. He                                                               
emphasized  the intent  to  be as  fiscally  prudent as  possible                                                               
while  building the  foundation and  establishing the  foundation                                                               
and   framework  for   future  commissioners   to  advocate   for                                                               
additional resources to further the department's mission.                                                                       
                                                                                                                                
4:06:07 PM                                                                                                                    
SENATOR  WIELECHOWSKI  characterized  [EO   136]  as  an  initial                                                               
request [for funding].  He asked whether it was  likely that more                                                               
funding would be requested in future budget requests.                                                                           
                                                                                                                                
4:06:23 PM                                                                                                                    
COMMISSIONER  BOYLE  said  that  would be  determined  by  future                                                               
governors  and  future legislators,  depending  on  the level  of                                                               
priority  placed on  agriculture, agricultural  initiatives, food                                                               
security  and  creating  economic opportunities.  He  anticipated                                                               
advocacy  for  additional   incremental  investments  to  provide                                                               
services.                                                                                                                       
                                                                                                                                
4:06:55 PM                                                                                                                    
SENATOR  WIELECHOWSKI  asked  whether   there  were  statutes  or                                                               
regulations  in   place  that   were  stopping   progress  toward                                                               
agricultural   efforts.  He   suggested  that   there  might   be                                                               
opportunities  to   commit  to  improving   agricultural  support                                                               
without requiring additional support staff.                                                                                     
                                                                                                                                
4:07:27 PM                                                                                                                    
COMMISSIONER  BOYLE  said no.  He  emphasized  the importance  of                                                               
having   a  governor   and   DNR   commissioner  who   prioritize                                                               
agriculture. He  highlighted the need  for a strategic  vision to                                                               
ensure consistent  support for agriculture and  acknowledged that                                                               
governors  and  DNR  commissioners  may be  distracted  by  other                                                               
issues.  He  urged establishing  a  permanent  entity focused  on                                                               
agriculture  to   ensure  it   receives  ongoing   attention  and                                                               
resources,  regardless  of  changes  in  leadership.  He  said  a                                                               
Department   of  Agriculture   would  prevent   agriculture  from                                                               
becoming an  afterthought and provide farmers  with the necessary                                                               
support.                                                                                                                        
                                                                                                                                
4:09:19 PM                                                                                                                    
SENATOR WIELECHOWSKI noted that  DNR support staff were currently                                                               
performing these functions [for  the Division of Agriculture]. He                                                               
asked whether there  would be a decrement to DNR  staff. He asked                                                               
whether  DNR would  continue to  have the  same level  of support                                                               
staff needs [when the Division  of Agriculture is no longer under                                                               
Department of Natural Resources (DNR)].                                                                                         
                                                                                                                                
4:10:05 PM.                                                                                                                   
COMMISSIONER BOYLE said  there would not be a  reduction to DNR's                                                               
support staff.  He returned to slide  6 and pointed out  that DNR                                                               
had  a   budget  of  approximately  $173.4   million  with  1,000                                                               
employees.  He  pointed  out  that reducing  DNR's  staff  by  37                                                               
employees  would not  significantly reduce  the workload  for DNR                                                               
support staff except to possibly make it more manageable.                                                                       
                                                                                                                                
4:11:11 PM                                                                                                                    
SENATOR   CLAMAN  expressed   skepticism  about   the  governor's                                                               
commitment to  establishing a  Department of  Agriculture, noting                                                               
that he had not initiated the  effort until the last two years of                                                               
his eight  years as governor. He  asked why the governor  had not                                                               
prioritized agriculture earlier in his administration.                                                                          
                                                                                                                                
4:12:01 PM                                                                                                                    
COMMISSIONER  BOYLE   discussed  the  demands  of   a  governor's                                                               
transition period as they take  office in Alaska. He reflected on                                                               
the  impact of  COVID-19, noting  the stress  and uncertainty  it                                                               
caused and the lack of a  playbook for managing such a crisis. He                                                               
highlighted  the importance  of reforming  other departments  and                                                               
the   Governor's  commitment   to   creating   a  Department   of                                                               
Agriculture, which he described  as a sustainable and responsible                                                               
initiative amidst  budgetary constraints.  He said  the convening                                                               
of a  new legislature was seen  as an opportune time  to progress                                                               
the idea.                                                                                                                       
                                                                                                                                
4:13:52 PM                                                                                                                    
SENATOR  CLAMAN  commended  Commissioner  Boyle's  knowledge  and                                                               
advocacy  for   agricultural  issues   in  Alaska,   despite  his                                                               
background in  oil and gas.  He praised the effectiveness  of the                                                               
current system, which allocated 4.1  percent of the DNR budget to                                                               
agriculture. However,  he expressed concern over  the proposed 35                                                               
percent increase in  personnel and 38 percent  increase in budget                                                               
for  a new  Department of  Agriculture. He  struggled to  justify                                                               
this to education  advocates, who were pressing  for more funding                                                               
for  schools,  and  he  questioned   the  necessity  of  the  new                                                               
department,  especially when  it could  divert $2.7  million from                                                               
education.                                                                                                                      
                                                                                                                                
4:15:57 PM                                                                                                                    
COMMISSIONER BOYLE noted the limited  shelf life of commissioners                                                               
and said  it was  a lucky  thing he  cared about  agriculture. He                                                               
said   future  commissioners   would  have   varying  levels   of                                                               
commitment to agriculture in Alaska.                                                                                            
                                                                                                                                
4:16:36 PM                                                                                                                    
COMMISSIONER   BOYLE   acknowledged   the   difficult   decisions                                                               
appropriators  face in  budgeting  and  highlighted the  critical                                                               
need for  food security,  especially in  the context  of national                                                               
disasters or global pandemics. He  underscored the necessity of a                                                               
strong agricultural  sector for Alaska's resilience  and economic                                                               
growth, suggesting that initial  investments in agriculture, even                                                               
at  the  expense  of  other  priorities,  would  yield  long-term                                                               
benefits, including greater food  security and economic activity,                                                               
and opportunities for future generations.                                                                                       
                                                                                                                                
4:18:56 PM                                                                                                                    
SENATOR CLAMAN  questioned the urgency  of creating  a Department                                                               
of Agriculture  at this time.  He addressed the energy  issues in                                                               
the  state and  the potential  pipeline construction,  suggesting                                                               
that significant progress may be  several years away. The speaker                                                               
suggested  that prioritizing  funds for  the new  department over                                                               
education or  [permanent fund] dividends now  might be premature,                                                               
as  the  energy  sector's  growth was  speculative.  He  proposed                                                               
waiting until the energy issue was more certain.                                                                                
                                                                                                                                
4:20:27 PM                                                                                                                    
COMMISSIONER BOYLE  emphasized the  importance of acting  now due                                                               
to the  current alignment and  will [to promote  agriculture] and                                                               
he  discussed ever-changing  priorities. He  highlighted energy's                                                               
broad   impact  on   all  sectors   of  the   economy,  including                                                               
agriculture.  He   suggested  strategic  planning   to  integrate                                                               
vertical  farming with  server farms,  leveraging waste  heat for                                                               
efficient  vegetable  production.  He said  this  approach  would                                                               
utilize  the power  grid and  natural gas  pipelines to  create a                                                               
self-sustaining  system. He  advocated for  the preparation  of a                                                               
capable  leadership  team [in  a  Department  of Agriculture]  to                                                               
capitalize   on  future   energy  abundance   and  affordability,                                                               
ensuring   a  smooth   transition   and  effective   departmental                                                               
readiness.                                                                                                                      
                                                                                                                                
4:23:08 PM                                                                                                                    
CHAIR  GIESSEL  said  she  intended to  leave  time  for  invited                                                               
testimony and  would limit the remaining  presentation to fifteen                                                               
minutes.                                                                                                                        
                                                                                                                                
4:23:22 PM                                                                                                                    
SENATOR  HUGHES   expressed  her  support  for   agriculture  and                                                               
acknowledged  concerns   about  funding  and  timing   raised  by                                                               
Senators   Wielechowski   and   Claman.   She   highlighted   the                                                               
significant  need  for  education  funding  in  the  hundreds  of                                                               
millions  of dollars  compared  to the  few  million dollars  for                                                               
agriculture. She mentioned the  likely nutritional superiority of                                                               
locally  grown foods  over imports  and said  the Mat-Su  schools                                                               
spent nearly  $200,000 [on Alaska  grown foods] in  the 2023-2024                                                               
school year and planned to increase that spending.                                                                              
                                                                                                                                
SENATOR HUGHES discussed the need  to diversify Alaska's economy,                                                               
with  agriculture being  a significant  contributor and  compared                                                               
Alaska's latitude with that of  the Netherlands and Saskatchewan,                                                               
indicating  similar agricultural  opportunities. She  highlighted                                                               
testimony  by  producers from  other  states  who understand  the                                                               
importance   of   a   Department  of   Agriculture   to   support                                                               
agricultural producers.                                                                                                         
                                                                                                                                
SENATOR  HUGHES  stressed the  importance  of  food security  and                                                               
recalled the  potential impact  of the  Port of  Seattle's strike                                                               
threat in 2023.  She argued that delaying action  [to establish a                                                               
Department of Agriculture]  was not a viable option, as  it was a                                                               
life  and  safety issue.  She  said  funding  should be  kept  in                                                               
perspective relative to other needs.                                                                                            
                                                                                                                                
SENATOR HUGHES questioned whether  the current commissioner could                                                               
manage  advocating for  the 34  recommendations  prepared by  the                                                               
[Alaska  Food Security  and Independence]  Task Force  while also                                                               
advocating  for  other  industries  like oil,  gas,  mining,  and                                                               
forestry. She suggested the need  for a cabinet-level position to                                                               
effectively  grow  the  agriculture industry  and  increase  food                                                               
security.                                                                                                                       
                                                                                                                                
4:28:22 PM                                                                                                                    
COMMISSIONER  BOYLE  expressed  confidence   in  his  ability  to                                                               
advocate for the  multiple missions of the  Department of Natural                                                               
Resources  (DNR),  including  agriculture,  and  acknowledged  he                                                               
could  manage agricultural  initiatives  more  effectively if  it                                                               
were his  sole focus. He noted  that he had oversight  for a wide                                                               
range   of   responsibilities,   including   forestry,   wildland                                                               
firefighting,  state  parks,  oil   and  gas,  mining,  and  land                                                               
management,  with  a team  of  over  1000  employees. He  said  a                                                               
dedicated  Commissioner  of Agriculture  could  do  more for  the                                                               
state.                                                                                                                          
                                                                                                                                
4:29:42 PM                                                                                                                    
SENATOR  KAWASAKI asked  whether there  were any  vacancies among                                                               
the 37  Division of Agriculture  positions. He asked  whether all                                                               
the positions were classified permanent and full-time.                                                                          
                                                                                                                                
4:30:04 PM                                                                                                                    
MR. GOODRUM  offered to get back  to the committee when  he could                                                               
provide complete and accurate information.                                                                                      
                                                                                                                                
4:30:15 PM                                                                                                                    
CHAIR GIESSEL announced invited testimony on EO 136.                                                                            
                                                                                                                                
4:31:06 PM                                                                                                                    
ROGER  VANDERWEELE, VanderWeele  Farm, Palmer,  Alaska, testified                                                               
by invitation on  EO 136. He introduced himself  and his family's                                                               
farm, which  grew primarily potatoes, but  also carrots, lettuce,                                                               
and broccoli.  He highlighted the  Alaska Grown program  and said                                                               
it clearly  increased consumer identification and  sales of their                                                               
products within the state.                                                                                                      
                                                                                                                                
MR.  VANDERWEELE said  the  farm had  always  seen potential  for                                                               
growth and  emphasized the need  for consistent demand  to expand                                                               
operations.  He  discussed  the significant  increase  in  orders                                                               
during COVID-19, which was three  to four times the normal demand                                                               
and  said, despite  the  strain on  their  farm's capacity,  they                                                               
prioritized meeting the increased  demand to serve the community.                                                               
He reflected on  the importance of being  prepared for unexpected                                                               
surges in demand in the future.                                                                                                 
                                                                                                                                
4:32:54 PM                                                                                                                    
MR. VANDERWEELE emphasized the cleanliness  of Alaska produce and                                                               
said  Alaska was  an ideal  place  to grow  seed potatoes,  which                                                               
could be  exported. He said  policy and politics  complicated the                                                               
process  of growing  the seed  potato  industry, but  it had  the                                                               
potential  to significantly  benefit  the farming  sector and  he                                                               
expressed a  desire for more  support and understanding  of those                                                               
challenges.                                                                                                                     
                                                                                                                                
4:33:43 PM                                                                                                                    
MR. VANDERWEELE  noted growing consumer interest  in Alaska-grown                                                               
products,  particularly  in  meat  and dairy.  He  described  the                                                               
conundrum of  the timing of  supply and demand, focusing  on meat                                                               
production.  He  suggested  a  parallel with  the  demand  for  a                                                               
Department  of  Agriculture and  the  growth  of the  agriculture                                                               
industry in the state and advocated for a proactive approach.                                                                   
                                                                                                                                
MR.  VANDERWEELE concluded  that there  was potential  for growth                                                               
[in the agriculture  industry] in the state. He  said farming was                                                               
what his family chose to do and they hoped to see it succeed.                                                                   
                                                                                                                                
4:36:02 PM                                                                                                                    
MIKE  MOSESIAN,  President,  Mosesian  Farms  of  Alaska  (Bell's                                                               
Nursery), Anchorage,  Alaska, testified by invitation  on EO 136.                                                               
He  emphasized the  importance of  establishing  a market  before                                                               
planting  crops. He  described his  experience building  personal                                                               
relationships  with   produce  managers  in   Anchorage,  getting                                                               
feedback  on the  product's marketability  and the  generosity of                                                               
retailers running ads for his farm's produce.                                                                                   
                                                                                                                                
4:37:12 PM                                                                                                                    
MR.  MOSESIAN described  the  difficult  transition when  Safeway                                                               
entered the market and highlighted  the importance of cooperation                                                               
from stores like Safeway, Walmart,  and Fred Meyer to give Alaska                                                               
farmers more shelf space and  support local produce. He mentioned                                                               
the  high markup  on locally  grown products,  which made  them a                                                               
luxury item for consumers, affecting sales.                                                                                     
                                                                                                                                
4:38:39 PM                                                                                                                    
MR.  MOSESIAN also  shared his  concerns about  escalating energy                                                               
costs in Alaska,  raising doubts about the  sustainability of his                                                               
business, especially  the production  of tomatoes  and cucumbers.                                                               
He said he  produced about half a million pounds  of tomatoes and                                                               
a  quarter   million  pounds  of   cucumbers  annually,   and  he                                                               
emphasized  the superior  quality and  nutrition of  fresh Alaska                                                               
produce.                                                                                                                        
                                                                                                                                
MR. MOSESIAN urged political advocacy  and the governor's support                                                               
to  promote   local  produce  and  ensure   its  availability  to                                                               
consumers.                                                                                                                      
                                                                                                                                
4:40:52 PM                                                                                                                    
SCOTT MUSGRAGE,  President, Alaska  Farm Bureau,  Delta Junction,                                                               
gave  invited testimony  in support  of EO  136, emphasizing  his                                                               
personal and  professional stake in the  agriculture industry. He                                                               
urged  that  the  transition  from  Division  of  Agriculture  to                                                               
Department of  Agriculture would  enhance Alaska's  commitment to                                                               
food  security, economic  diversity, and  agriculture growth.  He                                                               
acknowledged  potential  concerns   about  increased  government,                                                               
explaining that the  Farm Bureau believes this  step is essential                                                               
for sustainable food security.                                                                                                  
                                                                                                                                
4:41:53 PM                                                                                                                    
MR. MUSGRAGE  explained that increased  visibility and  a focused                                                               
commitment to  agriculture would help expand  farm production and                                                               
attract new farmers. He said  the new department would prioritize                                                               
agricultural needs without competing  with other sectors like oil                                                               
and  gas.  He  emphasized  the importance  of  reducing  Alaska's                                                               
dependence  on imported  food through  improved  access to  land,                                                               
research investment, and the development  of diverse crops and he                                                               
said a  strong agriculture sector  would create a  more resilient                                                               
and diversified economy, reducing  Alaska's reliance on oil, gas,                                                               
and mining.                                                                                                                     
                                                                                                                                
4:42:38 PM                                                                                                                    
MR. MUSGRAGE asserted that  Alaska's agriculture commodities were                                                               
superior and  that focusing on  yield improvements  and increased                                                               
production  would  expand exports,  leading  to  a more  balanced                                                               
trade environment, and potentially lowering the cost of imports.                                                                
                                                                                                                                
4:43:03 PM                                                                                                                    
MR. MUSGRAGE envisioned  an Alaska with greater  food security, a                                                               
stronger economy, and the ability  to produce high-quality, clean                                                               
food  in a  pristine environment.  He urged  support for  EO 136,                                                               
emphasizing the opportunity to be  a global leader in agriculture                                                               
production.                                                                                                                     
                                                                                                                                
4:44:27 PM                                                                                                                    
BETH VAN  SANDT, Scenic Place  Peonies, Homer,  Alaska, testified                                                               
by invitation  on EO  136, emphasizing  the emotional  and mental                                                               
benefits of her crop. She  discussed the challenges and successes                                                               
of the Alaska  peony industry and reported  that, despite limited                                                               
resources  and  no dedicated  research,  the  industry grew  from                                                               
$940,000 in  sales in  2017 to  over $2.35  million by  2022. She                                                               
said  there was  potential  for continued  and unlimited  growth,                                                               
explaining  that  Alaska's  climate offered  growers  the  unique                                                               
position  of  growing peonies  from  June  to September  offering                                                               
significant export potential.                                                                                                   
                                                                                                                                
4:47:14 PM                                                                                                                    
MS.  VAN  SANDT emphasized  the  need  for research  on  suitable                                                               
varieties  and  pest  management,  cold  storage  solutions,  and                                                               
better marketing.  She highlighted  the Homer  Peony Celebration,                                                               
which began  as a  July event, now  extended into  August, noting                                                               
that the festival significantly boosted the local economy.                                                                      
                                                                                                                                
MS.  VAN  SANDT   advocated  for  the  creation   of  the  Alaska                                                               
Department of  Agriculture and  for a  commissioner in  Juneau to                                                               
keep farmer voices present.                                                                                                     
                                                                                                                                
4:50:13 PM                                                                                                                    
INGA   PETERSON,  Alaska   Future  Farmers   of  America   (FFA),                                                               
Fairbanks,  Alaska,  testified  by  invitation  on  EO  136.  She                                                               
highlighted  the importance  of a  Department of  Agriculture for                                                               
the future of  aspiring young farmers and ranchers  in Alaska and                                                               
mentioned the significant  growth of Alaska FFA  since 2023, with                                                               
increased  membership   and  chapters   under  the   Division  of                                                               
Agriculture.                                                                                                                    
                                                                                                                                
4:52:05 PM                                                                                                                    
MS. PETERSON  shared her experience  with FFA over the  past four                                                               
years, including working  on a peony farm and  aspiring to become                                                               
an agriculture  teacher. She expressed  her excitement  about the                                                               
potential  impact of  agriculture education  on shaping  Alaska's                                                               
future. She acknowledged the challenges  faced in Alaska but also                                                               
the incredible  resource of the  next generation  and highlighted                                                               
their resilience and determination.                                                                                             
                                                                                                                                
MS.  PETERSON  concluded  by stressing  the  importance  of  food                                                               
security and sustainability for the  future of Alaska. She shared                                                               
her belief  that a Department  of Agriculture would help  write a                                                               
sustainable legacy for future generations.                                                                                      
                                                                                                                                
4:54:26 PM                                                                                                                    
CHAIR GIESSEL concluded invited testimony  on EO 136 and directed                                                               
Commissioner Boyle  and Deputy  Commissioner Goodrum  to continue                                                               
the presentation on EO 136.                                                                                                     
                                                                                                                                
4:54:39 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 12:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Timeline                                                                                                                 
                                                                                                                                
     Jan. 21, 2025       Executive Order 136 introduced                                                                         
                                                                                                                                
     March 22, 2025      Legislature has 60 days to                                                                             
                         disapprove                                                                                             
                                                                                                                                
     March 2025          Begin implementing transition                                                                          
                         plans                                                                                                  
                                                                                                                                
     July 1, 2025        Department of Agriculture is                                                                           
                         official                                                                                               
                                                                                                                                
4:55:23 PM                                                                                                                    
MR. GOODRUM moved to and narrated slide 13:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Transition work includes:                                                                                                
                                                                                                                                
        • Stakeholder engagement / education                                                                                    
        • Employee town hall                                                                                                    
        • Prepare and submit documents for position                                                                             
          reclassifications                                                                                                     
        • Post, hire and train new positions                                                                                    
        • Governor appoints new commissioner                                                                                    
        • Public-facing website updated and launched                                                                            
        • Update signage, public-facing access points on                                                                        
          buildings                                                                                                             
        • Work with the Division of Finance on changes to                                                                       
         Integrated Resource Information System (IRIS)                                                                          
        • Information Technology transitions                                                                                    
        • Plan inter-departmental coordination with DNR /                                                                       
          lands                                                                                                                 
        • July 1, 2025  Department of Agriculture is legal                                                                      
          operating entity                                                                                                      
                                                                                                                                
4:55:48 PM                                                                                                                    
MR. GOODRUM moved to slide 14:                                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Executive Order 136  Sectional Analysis                                                                                  
                                                                                                                              
     Section   Pg   Provision                                                                                                 
                                                                                                                              
     1         1         Uncodified law with Governor's                                                                         
                         findings in support of                                                                                 
                         establishing a new department                                                                          
     2-21      2-8       Amendments to Title 3,                                                                                 
                         Agriculture, Animals, and Food,                                                                        
                         effectuating the reorganization                                                                        
     22        8         Amendment to Title 9, Code of                                                                          
                         Civil Procedure, effectuating                                                                          
                         the reorganization                                                                                     
     23        8         Amendment to Title 37, Public                                                                          
                         Finance, effectuating the                                                                              
                         reorganization                                                                                         
     24-29     8-12      Amendments to Title 38, Public                                                                         
                         Land, effectuating the                                                                                 
                         reorganization                                                                                         
     30-36     13-15     Amendments to Title 41, Public                                                                         
                         Resources, effectuating the                                                                            
                         reorganization                                                                                         
     37-40     15-17     Amendments to Title 44, State                                                                          
                         Government, effectuating the                                                                           
                         reorganization                                                                                         
     41        17        Repeal of 3 statutes, effectuating                                                                     
                         the reorganization                                                                                     
     42        17        Revisor's instructions to conform                                                                      
                         titles and catchlines                                                                                  
     43        18        Transition measures to ensure                                                                          
                         division employees, board                                                                              
                         members, legal proceedings,                                                                            
                         contracts, regulations, records,                                                                       
               equipment and so forth are carried                                                                               
                         forward to the new department                                                                          
     44        18        Sets a July 1, 2025, effective                                                                         
                         date                                                                                                   
                                                                                                                                
4:56:12 PM                                                                                                                    
SENATOR HUGHES complimented Ms. Peterson and enthusiastically                                                                   
noted the growth in student participation with FAA.                                                                             
                                                                                                                                
4:56:58 PM                                                                                                                    
CHAIR GIESSEL invited closing remarks by the commissioner of                                                                    
Department of Natural Resources (DNR).                                                                                          
                                                                                                                                
4:57:01 PM                                                                                                                    
COMMISSIONER  BOYLE  summarized  the presentation  and  testimony                                                               
advocating  for  a  Department of  Agriculture,  emphasizing  its                                                               
importance  for  rural  Alaska's  access  to  fresh  produce.  He                                                               
highlighted  the  challenges  faced   by  remote  communities  in                                                               
obtaining  fresh food  and the  potential benefits  of government                                                               
support  for local  agriculture. He  cited an  example of  Alaska                                                               
Range Dairy,  which transitioned from waste  to supplying Walmart                                                               
with  fresh   milk  through  state  support.   He  advocated  for                                                               
government intervention to create  market opportunities for local                                                               
dairies, farmers,  and producers,  arguing that this  would boost                                                               
the state's  economy, food security,  and allow for  economies of                                                               
scale, ultimately  benefiting consumers  and producers  alike. He                                                               
thanked the committee for the discussion.                                                                                       
                                                                                                                                
5:00:38 PM                                                                                                                    
CHAIR GIESSEL held EO 136 in committee.                                                                                         
                                                                                                                                
5:00:49 PM                                                                                                                    
CHAIR GIESSEL  noted that the  Arctic Affairs Committee  would be                                                               
hearing about off-grid farming.                                                                                                 
                                                                                                                                
5:01:19 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Giessel  adjourned the Senate Resources  Standing Committee                                                               
meeting at 5:01 p.m.