ALASKA STATE LEGISLATURE  HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TOURISM, AND  ARCTIC POLICY  February 5, 2015 11:30 a.m. MEMBERS PRESENT Representative Bob Herron, Chair Representative Craig Johnson Representative Louise Stutes Representative Dan Ortiz Representative Adam Wool Representative Cathy Tilton MEMBERS ABSENT  Representative Charisse Millett OTHER MEMBERS PRESENT    Representative David Guttenberg COMMITTEE CALENDAR  HOUSE BILL NO. 1 "An Act declaring the Arctic policy of the state." - MOVED CSHB 1(EDA) OUT OF COMMITTEE OVERVIEW: ALASKA ARCTIC POLICY COMMISSION - HEARD PREVIOUS COMMITTEE ACTION  BILL: HB 1 SHORT TITLE: STATE ARCTIC POLICY SPONSOR(s): REPRESENTATIVE(s) HERRON 01/21/15 (H) PREFILE RELEASED 1/9/15 01/21/15 (H) READ THE FIRST TIME - REFERRALS 01/21/15 (H) EDA, STA 01/27/15 (H) EDA AT 10:15 AM BARNES 124 01/27/15 (H) Heard & Held 01/27/15 (H) MINUTE(EDA) 02/05/15 (H) EDA AT 11:30 AM BARNES 124 WITNESS REGISTER ROB EARL, Staff Representative Bob Herron Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the committee substitute (CS) for HB 1 on behalf of Representative Herron, sponsor. NILS ANDREASSEN, Executive Director Institute of the North; Commissioner, Alaska Arctic Policy Commission Anchorage, Alaska POSITION STATEMENT: Speaking as a commissioner on the Alaska Arctic Policy Commission representing international Arctic organizations, provided comments. JAY BUTLER MD, Chief Medical Officer Office of the Commissioner Department of Health and Social Services (DHSS) Anchorage, Alaska POSITION STATEMENT: Provided a comment during the presentation on the Alaska Arctic Policy Commission Final Report and Implementation Plan. ACTION NARRATIVE 11:30:47 AM CHAIR BOB HERRON called the House Special Committee on Economic Development, Tourism, and Arctic Policy meeting to order at 11:30 a.m. Representatives Johnson, Wool, Stutes, Ortiz, and Heron were present at the call to order. Representative Tilton arrived as the meeting was in progress. Representative Guttenberg was also present. HB 1-STATE ARCTIC POLICY  11:31:24 AM CHAIR HERRON announced that the first order of business would be HOUSE BILL NO. 1, "An Act declaring the Arctic policy of the state." 11:32:18 AM REPRESENTATIVE STUTES moved to adopt the proposed committee substitute (CS) for HB 1, labeled 29-LS0013\P, Nauman, 2/3/15, as the working document. 11:32:46 AM CHAIR HERRON objected for the purpose of discussion. He noted that some of the changes in the CS are grammatical, and asked Mr. Earl to review the significant changes. 11:33:43 AM ROB EARL, Staff, Representative Bob Herron, Alaska State Legislature, directed attention to section 1 on page 2, lines [10-14], which read: the United States, other nations, and international bodies, including the Arctic Council, are rapidly developing Arctic strategies and policies, and therefore it is essential that both the state and the nation communicate the reality, richness, and responsibility that comes with being in the Arctic, including communicating the need to provide safety, security, and prosperity to the region; MR. EARL said [section 1, paragraph (7)] was deleted. On page 3, lines 6-7, to section 1, subparagraph (D), the following was added: and adapt to the challenges of coastal erosion, permafrost melt, and ocean acidification; MR. EARL continued to page 3, line 11, and said to section 1 the following subparagraph (F) was added: maintain a strong, sustainable fisheries industry and increase fisheries research and monitoring; MR. EARL continued to page 3, lines [24]-26, which read: (D) strengthen support for and collaboration with Arctic Council Permanent Participant organizations that include indigenous peoples of the state; MR. EARL explained that the foregoing language "refers to the permanent participants with Alaskan members." 11:35:03 AM CHAIR HERRON removed his objection. [Before the committee was Version P.] 11:35:32 AM CHAIR HERRON opened public testimony on HB 1. After ascertaining no one wished to testify, public testimony was closed. 11:36:43 AM REPRESENTATIVE STUTES moved to report CSHB 1, Version 29- LS0013\P, Nauman, 2/3/15, out of committee with individual recommendations and the accompanying four zero fiscal notes. Without objection, CSHB 1(EDA) was moved from the House Special Committee on Economic Development, Tourism, and Arctic Policy. 11:37:21 AM The committee took an at ease from 11:37 a.m. to 11:40 a.m. ^OVERVIEW: ALASKA ARCTIC POLICY COMMISSION OVERVIEW: ALASKA ARCTIC POLICY COMMISSION    11:40:21 AM CHAIR HERRON announced that the final order of business would be an overview of the Alaska Arctic Policy Commission (AAPC) Final Report and Implementation Plan. He directed attention to the AAPC final report, pointing out the opening letter is a foreword from the co-chairs of the commission, which provides background information and explains that Alaskans have a "people-first approach" to many initiatives and policies. This view is an important vision for Alaskans. The report introduction contains a strong conversation about the legislature's position in discussions related to Arctic policy; although other branches of government have important roles, "the legislature as the purse string-holders and as people that make the laws for the citizens of Alaska and, of course, develop policy," should know what it means to be an Arctic resident. He stressed that the legislature should "think Arctic." The report also provides information on the members of AAPC, who were chosen due to their expertise. Chair Herron turned to the Implementation Plan, and explained that is a set of initiatives, projects, and recommendations to guide the legislature, the executive branch and the federal government. He observed the AAPC report is important because recent events have indicated that others "want to dictate to us what's best for us." 11:43:41 AM NILS ANDREASSEN, Executive Director, Institute of the North; Commissioner, Alaska Arctic Policy Commission, informed the committee he served as a commissioner on the AAPC representing international organizations. Mr. Andreassen said the Implementation Plan is very different from the policy. The policy consists of high level principles; the Implementation Plan provides a suite of options for state policy makers, the executive branch, and others. It is not directive, but suggests what AAPC feels are important recommendations to advance state policy. Strategic recommendations are sorted into the following four lines of effort to support and strengthen the policy: promoting economic and resource development; addressing the response capacity gap; supporting healthy communities; strengthening science and research. Within each line of effort are further recommendations that are direct. Mr. Andreassen highlighted the following: · Within strategic line of effort number 1 - The state will promote economic and resource development by continued support for oil and gas development, mineral exploration and development, maritime and fisheries activities, and exporting knowledge in microgrid deployment. · Within strategic line of effort number 2 - the state will address the response capacity gap in Alaska's Arctic by sufficient response capacity in place to respond to search and rescue, natural disasters, and oil spills; improving mapping, charting, and bathymetry; better public and private investment in search and rescue, oil spill response, and emergency response infrastructure ranging from ships to ports, communications, and technology; preparation by the Alaska Spill Prevention and Response program, Department of Environmental Conservation (DEC). 11:50:01 AM CHAIR HERRON, in regard to recommendation 2E, suggested inviting the U. S. Coast Guard to provide testimony related to the Arctic Council Agreement on Cooperation on Marine Oil Pollution Preparedness and Response in the Arctic before certain legislative committees. Returning to strategic line of effort 1, he said recommendation 1B calls for the development of a mechanism for resource production-related revenue sharing to impacted districts, thus relevant testimony to the House Community and Regional Affairs Standing Committee would be to consider options on how offshore revenue sharing benefits affected communities. Also in strategic line of effort number 1, recommendation 1F relates to topics of the House Special Committee on Fisheries; the aforementioned three recommendations are examples as to "how other legislators can get involved." MR. ANDREASSEN continued to strategic line of effort number 3 - the state will support healthy communities by delivery of water and sanitation; reduce power costs; public education and outreach on natural resource management; workforce development. Strategic line of effort number 4 - the state will strengthen Alaska's Arctic science and research by leveraging response to the state's interest by University of Alaska (UA) research in the Arctic; data integration and baseline data collection; support resource development and response capacity. Mr. Andreassen noted each strategic line of effort is structured in a similar manner. On page 8 of the report was a recommendation to create a committee on Arctic issues in each house of the legislature. Page 9 provided additional narrative in order to "scope out" strategic line of effort number 1. On page 10 begins the text of recommendation 1A, entitled, "Facilitate the development of Arctic port systems in the Bering Strait region to support export and regional development." He advised that these are potential recommendations that policymakers and others can adjust and expand. Also in recommendation 1A: the Department of Transportation & Public Facilities (DOT&PF) was identified as the lead state agency to study an Arctic port system; the reasons an Arctic port system is needed; the resources needed; a description of the execution of the recommendation; legislative actions needed; and an evaluation of the recommendation. Each strategic line of effort follows the aforementioned format and provides a robust approach to proceed. Speaking from his experience, Mr. Andreassen said AAPC has advanced further than other Arctic nations in the clarity of its Implementation Plan. He noted there are 35 recommendations and pointed out that a number of the recommendations are process- oriented and do not depend entirely on state funding. Mr. Andreassen concluded that the Implementation Plan contains a significant list of recommendations, not to be taken "all in one bite." CHAIR HERRON asked for an opinion from the Department of Health and Social Services on recommendation 3F which read: Enforce measures that protect and help further understanding of food security in Arctic peoples and communities. 12:00:15 PM JAY BUTLER MD, Chief Medical Officer, Office of the Commissioner, Department of Health and Social Services (DHSS), addressed the importance of food security in Arctic Alaska, especially for those living off of the road system. Many Alaskans live by a subsistence lifestyle thus hunting and fishing is required to provide a good source of protein and micronutrients. He pointed out that the Alaska Department of Fish & Game (ADF&G) is the lead agency on recommendation 3F and he could not speak for ADF&G; however, DHSS recognizes that the concept of maintaining food security is as important as that of food safety, if not more. CHAIR HERRON stated that the AAPC Implementation Plan has "many layers;" for example, food security promotes a healthy lifestyle. 12:03:12 PM ADJOURNMENT  There being no further business before the committee, the House Special Committee on Economic Development, Tourism, and Arctic Policy meeting was adjourned at 12:03 p.m.