▶ 0:22:43Chair Sullivan: Good morning. I want to welcome our distinguished witnesses. I apologize for my tardiness. I think at least three of you understand. I just got in from alaska last night. You know what that's like. Welcome, specialty, to the alaskans.
▶ 0:23:07Chair Sullivan: This is a subcommittee hearing that examines the importance of america' is blue economy and opportunities it presents for economic growth, innovation, job creation, and national security. The blue economy encompasses the industry's activities and the communities that rely on our oceans, coasts, great lakes and create economic opportunities, strengthen national security, and sustain
▶ 0:23:39Chair Sullivan: Coastal communities, including american fishermen. The blue economy is central to america's economic strength. In 2022, it generated more than $470 billion in goods and services and supported 2.4 million jobs.
▶ 0:23:55Chair Sullivan: It is one of the fastest growing sectors in america, our economy, and of the world, encompassing commercial fisheries and seafood, support fisheries, maritime transportation, ports, tourism, recreation, and more. The united states and coastal states, like my state, the great state of alaska, these industries and community are not optional. They are essential.
▶ 0:24:25Chair Sullivan: I always do a little bragging about the great state of alaska it here. Talking about coastline, we have more coastline than the rest of the country combined. I have a colleague from minnesota who I respect a lot. She talks about her state having 10,000 lakes. My state has 3 million lakes. America is a maritime nation.
▶ 0:24:48Chair Sullivan: Our economic success, food security, supply chains, and national defense depend on safe, healthy, productive oceans. This hearing comes at a critical time as our nation races to strengthen our maritime industries and secure our place in the global blue economy, but so are other countries. The federal government is making significant investments and taking steps to ensure america remains competitive and our coastal communities continue to thrive.
▶ 0:25:18Chair Sullivan: Seafood and our fishermen and coastal communities remain one of the pillars of the blue economy. Alaska is the superpower of seafood, I like to say. Producing -- harvesting more than 60% of all commercial, sport, and a subsistence seafood in america providing roughly 10 billion meals of healthy protein, wild alaskan fish, each year. Our fishery support thousands of jobs, sustain coastal communities, and help feed our nation and the world.
▶ 0:25:52Chair Sullivan: President trump's executive order on restoring american seafood competitiveness act recognizes an important reality. Seafood competitiveness is economic security and national security. At the same time, illegal, unreported, unregulated fishing remains a major threat not just a global fish stocks and fair competition, but to the economic and national security of the united states.
▶ 0:26:16Chair Sullivan: That is why my bipartisan fighting for an illegal seafood harvests, the fish act, would strengthen enforcement, improve international cooperation and target foreign bad actors, particularly china, it is so important to stop this illegal fishing. What senator whitehouse calls pirate fishing. We passed that in the senate recently and I believe it will be passed in the house soon.
▶ 0:26:42Chair Sullivan: That will be the most comprehensive iuu fish legislation in the history of the country. This builds on the bills that senator whitehouse and I passed, the save our seas act and 2.0 act, the most comprehensive ocean cleanup legislation in history. We are working on my comprehensive bycatch bill I introduced last year.
▶ 0:27:12Chair Sullivan: That would be the most comprehensive bycatch legislation in american history. Healthy oceans are an environmental priority and economic necessity. Tourism, charter fishing, wildlife viewing, and countless small businesses depend on sustainable fisheries and healthy marine ecosystems. Alaska is also seeing exciting innovation through our growing mariculture industry.
▶ 0:27:39Chair Sullivan: Kel andop -- kelp and shellfish growers. Data is essential to the long-term success of the american blue economy. Fishery surveys and stock assessment support sustainable fisheries management. That is noaa's key mission. This committee reminds them of that regularly.
▶ 0:28:04Chair Sullivan: Hydrographic services including coastal mapping, charting, and biometric surveys are essential for safe navigation, commerce, and maritime operations across every sector of the american blue economy. Advancing our blue economy requires strengthening america's maritime transportation network.
▶ 0:28:25Chair Sullivan: Ports, marine highways, vessels, terminals, and logistics systems are essential to moving goods, supporting coastal states, maintaining supply chains while enhancing our national security. That is why the administration's maritime action plan is so important.
▶ 0:28:42Chair Sullivan: Strengthening america's maritime transportation will require long-term investment, workforce development, and a strong public-private partnerships that improve port capacity, modern infrastructure, support domestic operators, and ensure reliable transportation networks for coastal communities within and across states.
▶ 0:29:00Chair Sullivan: Tourism is another driver of the american blue economy.visitors bring significant revenue directly to our local communities, making it important that america remains competitive as a global destination. That is why I introduced the visit usa act to fully fund the public-private partnership responsible for promoting the united states as an international travel destination. Ultimately this comes back to people.
▶ 0:29:31Chair Sullivan: The blue economy supports millions of americans, fishermen, processors, mariners, sport fishermen, scientists, engineers, military personnel, charter operators, tourism operators, and small business owners across the united states. Workforce shortages remain one of the big challenges across almost every sector.
▶ 0:29:52Chair Sullivan: If we are serious about advancing the blue economy we must advance education, apprenticeships, and training to prepare the next generation of maritime professionals. The united states possesses some of the richest ocean resources in the world, the best managed fisheries in the world.
▶ 0:30:10Chair Sullivan: With the right investments, policies, and partnerships we can unlock the full potential of america's blue economy while strengthening our economic and national security, and supporting coastal communities for generations to come.
▶ 0:30:24Chair Sullivan: I look forward to hearing from our witnesses today, many of whom traveled far from the great state of alaska, like I did last night, and to opportunities ahead, challenges they face, and the policies needed to ensure a strong, prosperous maritime future and blue economy for america. I now recognize the ranking member for any opening statements she may have.
▶ 0:30:53Sen. Blunt Rochester: Thank you, chairman sullivan, and to our witnesses for being here. We look forward to your testimony. Delaware may be small. You mentioned you have millions of lakes. Our colleague from minnesota has thousands of lakes. We have tens of lakes. We are small but mighty. Urban, suburban, rural, and coastal. Because of that this conversation is particularly important to my state as well as our country.
▶ 0:31:21Sen. Blunt Rochester: Coastal communities like the ones that call delaware home rely on the maritime or blue economy. My home state sits on the atlantic ocean between the chesapeake and delaware bays putting us in a perfect location to drive innovation and opportunity in the blue economy. We do.
▶ 0:31:43Sen. Blunt Rochester: The university of delaware, delaware state university, delaware technical community college collaborate on groundbreaking maritime marine research. Underwater robotics and coastal infrastructure, our growing aquaculture industry continues to create new jobs while providing healthy, sustainable sources of food.
▶ 0:32:06Sen. Blunt Rochester: Thanks to funding from a port infrastructure development program grant the port of wilmington is about to begin a historic expansion that will quadruple -- quadruple -- its capacity. Millions of visitors go to the first state each year to enjoy our pristine beaches, bays and cosine.
▶ 0:32:31Sen. Blunt Rochester: The delaware coastal economy supports over 100,000 jobs, generates over 22 billion dollars in economic output, and is growing over five times faster than the rest of our state. But this isn't unique to my state. The blue economy is a huge driver of economic growth and job creation across the united states.
▶ 0:32:53Sen. Blunt Rochester: Noaa estimates that the marine economy contributes over half a trillion dollars in gdp annually. Unfortunately, the administration has stifled and in some cases refused to provide our coastal communities with the support they need to thrive, proposed noaa budget cuts of over $1 billion, which will undercut the agency's critical mission to support sustainable
▶ 0:33:24Sen. Blunt Rochester: Fisheries and give coastal communities the tools they need to thrive. The administration terminated or withdrew roughly $672 million in port infrastructure development grants meant to support the offshore wind industry, delaying critical investments in my state and the expansion of cheap, sustainable energy at a time when americans need it most.
▶ 0:33:50Sen. Blunt Rochester: They pushed an unprecedented jones act waiver that will further undermine american shipping competitiveness while doing little to address the inflation and energy crisis americans are experiencing. While this administration has correctly identified our vulnerability to chinese-made port equipment, they imposed tariffs without plans to support domestic industries and bring
▶ 0:34:20Sen. Blunt Rochester: Critical manufacturing jobs home. While I commend the administration for trying to set a vision to maintain economic competitiveness and ensure national security, the actions that I've seen missed the mark for our country and needs right now. We can all agree we need to invest in and grow our maritime industrial base.
▶ 0:34:41Sen. Blunt Rochester: When I am hoping to get out of today's hearing is a bipartisan path forward to better support our coastal communities and improve our national and economic security. I look forward to the conversation. I yield back.
▶ 0:34:59Chair Sullivan: I speak in an national economic and national security we have the chairman of the armed services committee here. I am honored. Would you like to say a few words? Also the senator from mississippi. A little about the blue economy. >> it is hard to tell dan sullivan no. I had declined to make a statement that I think I will make a five-minute statement in its entirety.
▶ 0:35:28Chair Sullivan: [laughter] indeed, the domestic maritime industry has everything to do with national security, as I hope our distinguished panelists will point out in some of their testimony. I have a few points to make. I may try to do those during questions. I do appreciate the comments of the distinguished chair and ranking member. The yield. -- I guild.
▶ 0:35:57Chair Sullivan: We have distinguished witnesses, Mr. tommy sheridan, the distinguished director of the alaska blue economy center. He has lived in alaska for two decades focusing on the commercial fishing industry and other elements of the blue economy. As the director Mr.
▶ 0:36:16Chair Sullivan: Sheridan focuses on growing the alaska blue economy center through balancing stewardship and sustainable use of our marine resources, including growing more development and mariculture developments across the state. Next Mr. jeremy woodrow, executive director of the alaska seafood marketing institute. Mr.
▶ 0:36:39Chair Sullivan: Woodrow was born and raised in alaska, his family commercially fished in southeast alaska for more than five decades. He has practiced marketing and public relations in the fields of seafood, state, and local government throughout alaska since 2002. We also have Mr. nathan wardwell, managing partner of joa surveys. Mr.
▶ 0:37:06Chair Sullivan: Wardwell has more than 20 years of experience measuring water levels and vertical data, he brings coastal surveying, an essential part of navigating our coast in waterway safely. Finally, we have the vice president and global of government relations at crowley marine maritime corporation.
▶ 0:37:31Chair Sullivan: He leads the company's engagement with federal state, local, international government stakeholders on policy and regulatory matters affecting the transportation, logistics, and energy and maritime operations. Welcome to our witnesses. You will have five minutes to deliver an oral statement, and a longer written statement will be included in the record and we will begin from left to right. Beginning with Mr. sheridan. You have the floor.
▶ 0:38:01Mr. Sheridan: Thank you, chairman sullivan, ranking member blunt rochester, distinguished members of the committee for this opportunity. It's an honor to be here today. My name is tommy sheridan, I serve as the director for the alaska blue economy center that the university of alaska for. However, the testimony is provided in my personal capacity as the parent of two alaskan schoolchildren and resident of coastal alaskan communities these past 24 years.
▶ 0:38:32Mr. Sheridan: Several years ago, deep in the alaskan bush, I was attacked by a brown bear. When a bear charges instinct screams at you tow run, but if you run you could die. Survival depends on preparation, tools, and the grit to stand your ground. I survived the attack and fundamentally changed how I look at resilience. Today, our coastal towns face their own existential crisis.
▶ 0:38:59Mr. Sheridan: We are losing young families to economic stagnation and rising costs. Right now, the instinct for the next generation is to do what makes sense in a panic. Turn around and leave. When families leave coastal alaska, we don't just lose a line on a census report. We lose a classroom, volunteer firefighter, or future. For over 20 years I worked in fisheries management and workforce development in alaska.
▶ 0:39:36Mr. Sheridan: My wife and I are raising our kids in coastal alaska. This is not an abstract policy debate for us. It is survival. To stop the flight, we must change the horizon. We must imagine alaska where science, fisheries, workforce development, and innovation work together so the next generation can build thriving futures in coastal communities. For decades, we viewed alaska's blue economy largely through resource extraction. It is our backbone.
▶ 0:40:04Mr. Sheridan: The future is a knowledge-based economy driven by data, technology, and collaboration. Our crisis is not just tied to an abundance of fish. It's a gap in connectivity. We have incredible traditional industries along side of emerging frontiers like mariculture and marine technology. To bridge them I believe we must start at the beginning with k-12 education. A quiet revolution is already happening in alaska.
▶ 0:40:36Mr. Sheridan: Tribal partners, schools, community, industry leaders are joining forces. Programs like science olympiad, teaching through technology, and prince william sound college prove when you give a k-12 student a drone or data set they don't just learn stem they see a career. They realize marine science happens on the boats and docks right outside their front door. When we invest in local education we actively build the world we need to see.
▶ 0:41:08Mr. Sheridan: But a bridge cannot stand without colors. -- without pillars. Our fishery management relies on world-class data. To keep alaska lead and we must solidify partnerships between the, universities, and tribal organizations. Senator sullivan, your focus has laid the foundation, and now we must build the superstructure. I urge this subcommittee to support four pillars.
▶ 0:41:37Mr. Sheridan: First, investment in k-12 stem and local workforce development. Second, funding for fisheries science and noaa partnerships. Third, expanded community-based education and applied research. Fourth, innovation to ensure our communities remain economically unshakable. I don't crisis by running away. You survived by equipping yourself to face it head on.
▶ 0:42:06Mr. Sheridan: We don't need to abandon our heritage to embrace the future. We need to arm our youth with the tools to build it. Let us choose to invest and let us finalize a reality where we no longer have to just imagine in alaska, where science, fisheries, workforce development, and innovation work together so the next generation can build thriving futures in coastal communities. Thank you. I welcome your questions.
▶ 0:42:34Chair Sullivan: Thank you. Mr. woodrow.
▶ 0:42:37Mr. Woodrow: Thank you, chairman sullivan, ranking member blunt rochester, members of the subcommittee. I serve as the acting director for the alaska seafood marketing institute known as asmi. Our mission is to increase economic value with alaska see the resource through marketing, education, outreach.
▶ 0:43:03Mr. Woodrow: We work domestically and in more than 50 international networks to build alaska's sustainable seafood strengthening the global reputation of the alaska seat brand. As the chairman said, the alaska seat industry is foundational not just to alaska's economy but the nations blue economy. Seafood is alaska's largest private-sector employers supporting over 40 thousand jobs and generating $5 billion in economic value.
▶ 0:43:31Mr. Woodrow: Nationally come alaska counts for roughly two thirds of the U.S. commercial seafood and supports more than $10 billion in economic activity. What truly sets alaska apart is our dedication to sustainability. Fisheries are managed under a science-based precautionary system enshrined in alaska's constitution. Sustainability is a commitment to the future. It is reflected in every part of our industry from the multigenerational fishing families to strict practices, resource utilization, and rigorous third-party certification.
▶ 0:44:01Mr. Woodrow: The model allowed alaska to avoid resource depletion and remain a global leader in responsible fisheries. To alaskans, sustainability means way of life will continue to thrive for generations to come. Alaska seat is also a major contributor to global food security. Alaska seat can be found in more than 90 countries providing wild quality -- high-quality wild protein to consumers.
▶ 0:44:29Mr. Woodrow: Key markets like the european union and japan rely on alaska products while other countries like china and southeast asia play important roles in processing global distribution. However, the global seafood alliance of place is ever evolving and increasingly competitive. Alaskan producers face pressure from a foreign competitors, particularly russia, where lower costs and less stringent regulations allow products to enter through artificially low prices and frequently indirect channels. At the same time U.S.
▶ 0:44:57Mr. Woodrow: Producers face a web of tariff and non-tariff barriers. Complex certification requirements and use systems like the european union trace platform create additional burdens for responsible producers without effectively targeting bad actors often. At home alaska seat must compete against imported products frequently produced under weaker environmental and labor standards.
▶ 0:45:22Mr. Woodrow: Maintain a fair and competitive domestic market is critical to our nation's food security and supply chain integrity. Federal programs have been essential in helping address these challenges. The usda seafood purchasing programs provide stability during market disruptions while delivering seafood to american families. Marketing investments like the market access program helped expand global demand and build brand recognition. Grants have supported innovation, efficiency, and product development across the industry.
▶ 0:45:51Mr. Woodrow: The america first trade promotion program offers additional opportunity to increase demand for alaska seat and other products globally. We also appreciate the establishment of the usda office of seafood which represents an important step towards better coordination and recognition of seafood within federal policy. Looking ahead, continued federal engagement and support will be critical.
▶ 0:46:16Mr. Woodrow: Investments in science, innovation, market development, infrastructure, trade equity are necessary to ensure that U.S. seafood producers can continue to compete on a level playing field. Alaska seat tells a uniquely american story of stewardship, resilience, and leadership.
▶ 0:46:33Mr. Woodrow: With a continued partnership of congress and federal agencies we have an opportunity to sustain success and build upon the incredible maritime history through supporting jobs, strengthening food security, and reinforcing the united states position as a global leader in the production of wild, sustainable seafood. Thank you for your time and commitment to our nation seafood industry. I look forward to working together to address these opportunities and challenges and welcome any questions you have.
▶ 0:46:59Chair Sullivan: Thank you, Mr. wardwell.
▶ 0:47:04Mr. Wardwell: Chairman sullivan, ranking member blunt rochester, distinguished members of the subcommittee, thank you for the opportunity to testify today. I was born and raised in alaska and raised in a family there and have a small business in anchorage employing 15 people. I have worked in the sector that wraps the sea floor, water levels, and foundational data that make safe navigation possible.
▶ 0:47:33Mr. Wardwell: The work has taken my company to every coast of the united states, from the arctic to the caribbean to the great lakes. It provides the foundational data -- excuse me. Almost always in partnerships with federal agencies. The experience gave me a broad perspective on how many industries depend on this data and how much is missing. The simple truth is, the blue economy cannot function without hydrographic services. Without accurate maps of the seafloor and real-time water level information mariners cannot safely navigate.
▶ 0:48:05Mr. Wardwell: The same data that guides vessels safely in the port is used it tsunamis, forecast storm surge, identify critical mineral resources, undersea fiber cables, and monitor long-term change. It's the foundation beneath every sector of the blue economy. Fishing, shipping, recreation, national security alike. As of 2024, 46 percent of U.S.
▶ 0:48:35Mr. Wardwell: Coastal, ocean, great lakes water remained unmapped to modern standards. In alaska the figure is even more striking. 62% of more than one point 2 million square nautical miles are unmapped. For a state with more than 33,000 miles of shoreline and the nation's only access to the arctic ocean, the gap is not just a data problem. It's an economic constraint. A safety risk in national security vulnerability.
▶ 0:49:04Mr. Wardwell: In closing it will require not only sustained investment and strong partnerships but continued innovation and how we collect, integrate, deliver hydrographic data at a scale that traditional methods alone cannot achieve. Closing the gap requires government and private industry working together. The 2019 presidential memorandum on ocean mapping in the U.S.
▶ 0:49:29Mr. Wardwell: Exclusive economic zone and shoreline and near shore of alaska was an important point in building a plan, but not every port in america has the real-time water levels that mariners need to navigate safely while maximizing their low capacity -- load capacity. As muscles grow larger than need only intensifies. -- as vessels grow larger, that need only intensifies. I want to thank you for your work to bring more icebreakers to alaska.
▶ 0:49:55Mr. Wardwell: I had the privilege of ceiling in the arctic during graduate school. I had an experience that changed my understanding of how icebreakers underpin our national security, emergency response, and scientific capabilities and weighs nothing else can replace. I want to thank you, senator murkowski and senator cantwell, for introducing the tsunami warning research and education act of 2026.
▶ 0:50:20Mr. Wardwell: In august of 20 25, and landslide in a fjord in southeast alaska generated a mega-tsunami with run-up region 1600 feet above sea level. My company operated a water level station in an adjacent fjord installed on behalf of the alaska department of natural resources to provide data for our noaa program. The station captured the tsunami in real time and the data is part of the scientific record.
▶ 0:50:48Mr. Wardwell: It exists because someone invested in putting an instrument they are in because a state agency, federal program, and private company were working together. I will leave you with three points. First, hydrographic data isn't a government overhead cost. Is the infrastructure the blue economy is built on.
▶ 0:51:09Mr. Wardwell: Second, delivering hydrographic data at the scale of alaska requires demand, strong public-private partnership, and continued investment and innovation. From technologies to frameworks to real-time observing networks that can operate year-round in ice-affected environments.
▶ 0:51:29Mr. Wardwell: Third, alaska's 30 3000 miles of shoreline and its position as america's arctic gateway presents an extraordinary blue economy opportunity that we can only realize if we invest in what lies beneath the waters. Thank you. I look forward to further discussion.
▶ 0:51:44Chair Sullivan: Stay tuned on the icebreakers. I might have more announcements coming up from the coast guard on icebreakers in alaska. Which is the place that you would think the coast guard would have done that 50 years ago, putting icebreakers in the state with the ice, but that has never happened. So, we are working on that one. Mr. heil.
▶ 0:52:09Mr. Heil: My name is clay heil. Thank you for the opportunity to testify. Crowley is a privately held U.S. maritime logistics and energy company founded in 1892 in jacksonville, florida.
▶ 0:52:31Mr. Heil: More than 130 years crowley served commercial and government customers and some of the most difficult environments in the world including logistics, fuel transportation, escort services, vessel construction management, government services. We are also deeply committed to alaska where crowley has operated for more than 70 years.
▶ 0:52:50Mr. Heil: Crowley employs hundreds of alaskans and supports communities by purchasing, transporting, storing, distributed fuels needed heat homes, operate schools and businesses, flight aircraft, and how are the vessels that support alaska's fishing economy. Western alaska operates coastal barges for maritime transportation, not just a convenience but the supply chain. Crowley's work in alaska demonstrates why this matters. The blue economy is not an abstract concept.
▶ 0:53:19Mr. Heil: The daily work of fishermen, mariners, shipyard workers, port employees, tug and barge operators, seafood processors, and families in communities that depend upon them. The jones act is essential to that system and enters cargo moving between american ports are carried on vessels that are american built, crewed, and flagged.
▶ 0:53:48Mr. Heil: The reliability is especially important for the fishing industry and for the world markets. Fishing operations depend on steady fuel deliveries, functioning ports, trained mariners, and vessels that can safely operate in difficult environments. Those capabilities don't appear overnight. They are built through long-term private investment in the jones act gives companies the confidence to make those investments.
▶ 0:54:13Mr. Heil: Crowley supports the administration's maritime executive order and bipartisan ships for america act, both recognize the united states must rebuild its maritime industrial base, expand american-flagged shipping, grow the pool of mariners, strengthen domestic shipbuilding, and ensure our nation has the commercial airtime capacity needed for economic security and national defense. Those are the right goals and crowley is prepared to meet them.
▶ 0:54:37Mr. Heil: For decades we have invested in american shipyards come U.S.-built vessels, american mariners, and the domestic maritime services that support american communities. With those investments depend on stable, predictable policy environments. The current jones act waiver undermines those efforts. Crowley recognizes that true emergencies may require a carefully tailored way of waivers. Congress provided a process for that purpose.
▶ 0:55:04Mr. Heil: The maritime industry has understood that national defense and emergency response come first. Crowley is proud of its long-standing role supporting national security missions, commercial operations employ and train american mariners and pride access to vessels, logistics capabilities, global transportation efforts to support military readiness and crisis response when the nation needs them. Broad or recurring waivers not tied to a specific vessel need, specific cargo need, and nonavailability of U.S.
▶ 0:55:33Mr. Heil: Vessels creates a very different problem. Such waivers send the wrong message at the wrong time. At the moment the administration and congress are calling for U.S.-flagged vessels come american mariners, shipyard capacity, partnership, the waiver invites foreign-flagged vessels into domestic trades and weakens the market certainty needed to build capacity. The current waiver is also not solving the underlying industry -- energy problem.
▶ 0:55:58Mr. Heil: It doesn't create new supply or a global taker markets less volatile pureness that ships cargo away from american vessels and crews. Weakening the long-term business case for the domestic maritime capacity we will need in the next crisis. Crowley stands ready to work with this committee and administration and our partners across the country to strengthen america's maritime economy, support our fishing and coastal communities, and ensure that the united states remains an maritime nation. Thank you for the opportunity to testify in look forward to your questions.
▶ 0:56:28Chair Sullivan: Thank you to all of the witnesses. That was a great overview of many of the important topics. The topic of the blue economy itself is kind of broad. Esther sheridan, why don't we start with you, since you focus on this a lot at uaf. They have a great program with fisheries and other things. You work across many sectors of alaska's blue economy.
▶ 0:56:56Chair Sullivan: How do you define the blue economy and where do you see the greatest opportunities for growth over the next decade? Not just alaska but throughout the united states?
▶ 0:57:06Mr. Sheridan: Thank you for the question. I think your introduction on the blue economy was good and inclusive. The blue economy is a very broad expansive term. I like to describe it as everything that happens in places like cordova and valdez where I've lived for 16 years.
▶ 0:57:25Mr. Sheridan: In both communities we have one of north america's largest salmon aquaculture programs, renowned commercial fisheries, certainly associated marine shipping. Valdez is the terminus for the trans-alaska pipeline. Energy is a big industry in that region.
▶ 0:57:48Mr. Sheridan: With its access to the road system, valdez is positioned to be a significant port for national defense and security. It runs the gamut in coastal alaska. Some of the areas of opportunity that we have been involved with and have been tracking include making better, more full use of the existing infrastructure and resources that we have.
▶ 0:58:16Mr. Sheridan: With the seafood industry, there has been a lot of interest on icelandic models and of the work being done there through the iceland ocean cluster to make more full utilization, better cod fishery resource. I think there is an opportunity to do that in alaska. One example we been involved with is the discussion around the potential to integrate mariculture into alaska salmon hatchery system, for example.
▶ 0:58:43Mr. Sheridan: That is something folks are interested in and in addition to the development of energy in the vicinity of those sites. Tourism is rapidly becoming one of the largest sectors in alaska's blue economy. There have been significant port developments in cordova, valdez, whittier, all in our neighborhood of prince william sound, with additional significant investments to come. I think we will see a growth of that industry in that direction.
▶ 0:59:17Mr. Sheridan: In general, to answer your question, it's a significant opportunity. Estimates are for the global ocean economy to grow to or beyond $3 trillion by 2030.
▶ 0:59:30Chair Sullivan: The U.S. or globally?
▶ 0:59:31Mr. Sheridan: Globally, and more so in the next decade. Those are a few things we are tracking.
▶ 0:59:38Chair Sullivan: Mr. wardwell, you talk about when people hear hydraulic or fee and ocean mapping they may not immediately connect that to economic growth. Can you explain how investments in mapping directly support jobs and economic activity and additionally you mention not having mapping done is a national security vulnerability.
▶ 1:00:05Chair Sullivan: I'm sure that you recall a lot of alaskans, last summer we had a chinese research fleet off the coast of alaska all summer that was a spy operation. Trying to map the floor, find our cables, and may be sub routes. They weren't doing research. It wasn't friendly. They were spying on us. Can you talk a little about the national security vulnerability?
▶ 1:00:31Mr. Wardwell: Yeah. The ocean mapping and blue economy are obviously tied it together. You can't do anything in the ocean without needing to know something about the water depth. Whether you are doing construction for coastal facilities or trying to identify an area to preserve.
▶ 1:00:59Mr. Wardwell: I think the collapse of the francis scott key bridge is a good example. To open commerce you had to map the seafloor to find safe routes for vessels coming in and out. Every foot of a vessel equates to more revenue and efficient commerce. Those are directly tied to ocean mapping.
▶ 1:01:26Mr. Wardwell: All of the work from the fisheries and everything else is fundamental to achieving those goals. From a national security standpoint, I read the news. In alaska I see the articles about the boats from foreign countries. Without understanding our coasts and the seafloor, we can't safely navigate or move commerce.
▶ 1:01:54Chair Sullivan: We need to understand our coasts and seafloor more than the chinese do. Isn't that an imperative? Figure out what we have before they do? Those guys were out all summer last summer trying to figure it out. As you know.
▶ 1:02:07Mr. Wardwell: Agreed. As someone in the mapping industry it has blown me away that the moon is mapped better than our oceans on earth. I think there is some value there.
▶ 1:02:19Chair Sullivan: Thank you. Senator blunt rochester.
▶ 1:02:23Sen. Blunt Rochester: Thank you, Mr. chairman. I want to start talking about aquaculture. The united states has one of the world's largest ocean economies, yet we still import the majority of our seafood that we consume. Shellfish aquaculture offers economic, environmental, food security benefits for coastal communities. I would like to start with you, Mr. woodrow.
▶ 1:02:51Sen. Blunt Rochester: How can shellfish aquaculture strengthen america's blue economy in supporting production, coastal jobs, and healthy marine ecosystems?
▶ 1:03:01Mr. Woodrow: Thank you, ranking member blunt rochester, for that question. I will try to answer as best I can. I'm a wild fisheries expert when it comes to marketing. We are growing, no pun intended, our aquaculture sector in alaska in terms of oyster aquaculture and seaweed aquaculture. I will say the investment in those industries is beginning.
▶ 1:03:30Mr. Woodrow: They have been around for decades. They did receive a significant build back better grant that was about $50 million several years ago to heavily invest more into that industry. As Mr. sheridan said, we are looking at how we can bridge the gap between our growing aquaculture and mariculture industry in coastal economies with hatcheries and fisheries. What is interesting as we have a lot of seafood processing plants that are empty throughout the year.
▶ 1:04:00Mr. Woodrow: They are really busy throughout the fisheries and vacancies where those could be filled with other fisheries. That would keep the lights on in the economy going in those small communities. And, frankly, it's an opportunity for growth. That's one area we need to explore and something alaska is trying to be a leader in.
▶ 1:04:23Mr. Woodrow: I will say in terms of aquaculture, when it comes to wild capture of fisheries, for the most part we looked globally. Our wild capture fisheries are maxed out doing a good job for the most part of sustainably managing those fisheries. If we need to continue to feed the world we need to do it responsibly. We need to look at areas where we could do that responsibly.
▶ 1:04:48Mr. Woodrow: That is one thing alaska is doing and why aquaculture fisheries we are looking at, like shellfish, or where we are starting.
▶ 1:04:54Sen. Blunt Rochester: You mentioned the growing demand domestically as well as globally . We still see the industry faces some significant barriers. Can you talk about some of the biggest challenges that are limiting the responsible growth of shellfish and what actions that we as congress or federal agencies like noaa or usda can take to better support the industry?
▶ 1:05:22Mr. Woodrow: For alaska, probably our greatest challenges our greatest strength. Our remoteness. The economy of scale in alaska is always challenging. We are far from the rest of the world. Being able to move our product is costly. Getting product to alaska to start investing is costly. So, we are always looking at ways to try to expand that efficiency, but we need to start small and continue to grow from there.
▶ 1:05:52Mr. Woodrow: I can't speak to the rest of that industry across the U.S., I am an alaska expert, but that has been the most difficult aspect to growing aquaculture industry in alaska. The economy scale and remoteness. It's really expensive to do business in alaska in these remote areas.
▶ 1:06:09Sen. Blunt Rochester: I will turn to the jones act. I'm concerned by recent actions the administration has taken to undermine the maritime industry and our global competitiveness in response to energy price inflation caused by the iran war. We have taken some unprecedented steps in creating a prolonged jones act waiver. I think it was you, Mr. heil, who said limited, targeted, that makes sense.
▶ 1:06:39Sen. Blunt Rochester: After issuing a 60-day waiver in march the president decided to extend the labor and additional 90 days as the work continues on. When it is currently set to expire is mid august. The 150-day waiver will be the longest in modern history. We are seeing the impacts of this waiver. It is reported that it is halting a $1 billion investment.
▶ 1:07:06Sen. Blunt Rochester: Last week we saw a vessel with ties to the chinese government carrying cargo between U.S. ports. Mr. heil, how have jones act waivers chilled investment in our domestic maritime industry, and how will this affect the workforce?
▶ 1:07:22Mr. Heil: Well, thank you for the question, senator. On the workforce part, I will start with that. We are hearing from our own mariners, U.S. citizens, who are asking, what does this mean for our jobs long-term? If waivers are to continue and reoccur, what does that mean for me and my employment? That is a concern for us and our workers. You mentioned the chinese vessel that moved asphalt from louisiana to connecticut last week.
▶ 1:07:54Mr. Heil: A chinese crude vessel and built a vessel operating in our territorial waters under a national security waiver. Moving asphalt. That is concerning on a variety of levels. When waivers are extended like this there is no historical parallel for this duration or this many products. It causes investment to pull back.
▶ 1:08:25Mr. Heil: Shipyards will short not see severe impacts. It is more the long-term of future investments. Companies like ours are looking to recapitalize our fleets. If the jones act looks unstable, we are not going to do that. For shipyards, U.S. shipyards, they may see orders being canceled. They may see their order book dry up for jones act vessels.
▶ 1:08:52Mr. Heil: I think it is concerning on multiple levels, the duration and uncertainty that it brings to the marketplace at a private capital who want to invest in unstable markets.
▶ 1:09:00Sen. Blunt Rochester: I have more questions and I don't know if you will do a round 2.
▶ 1:09:05Chair Sullivan: We will do a round 2.
▶ 1:09:12Sen. Wicker: No one has done more for this area of subject matter then senator dan sullivan of alaska and I very much appreciate the fact that he is a valuable member of the committee that I chair, the armed services committee, and realizes in his capacity as subcommittee chairman on this committee the inner workings of national
▶ 1:09:42Sen. Wicker: Security with everything that we've talked about today. I'm glad the ranking member has mentioned the jones act. I want to continue to try to delve on that. I have always been a big supporter of the jones act was a sort of considered holy writ in both parties for a long time.
▶ 1:10:11Sen. Wicker: Now we see a number of people from both ends of the ideological spectrum attacking the jones act. Mr. heil, I think you would agree that we need to step up our defense of the jones act. What is the national security aspect of ensuring we have a large enough domestic fleet?
▶ 1:10:41Mr. Heil: The department of defense, department of war, have said for decades that the jones act is critical for their efforts not only for the mariners and a search capacity needed in times of war, but the vessels needed that support our U.S. military. We are in the tanker security program. We have three tankers that support department of defense assets around the world providing fuel and supplies.
▶ 1:11:11Mr. Heil: That is one part of the U.S. commercial effort that supports our defense efforts. Also, the shipyard capabilities are extremely important. We need to maintain our shipyards. Having workers that know how to build commercial ships, those are the same workers building our military vessels. We need to maintain the whole infrastructure to counter china and others who are building their naval assets around the world and who are, in fact, inc.
▶ 1:11:39Mr. Heil: Commercial assets into their battle plans. We need to have the U.S.-flagged fleet that is able to project our worldwide and provide supplies for our country in times of war.
▶ 1:11:50Chair Sullivan: Well said. I think we would agree, all four of you, we don't have enough of a domestic fleet. What do we need to do in addition to the jones act to build more commercial-type ships in the united states of america? We are just not getting there. This point is made by people who are attacking the jones act.
▶ 1:12:18Mr. Heil: The biggest thing, the biggest help, his car go to put on the vessels. We make investments in new ships based on cargo demand.
▶ 1:12:28Chair Sullivan: During times we are not at war?
▶ 1:12:31Mr. Heil: During times we are not at war. Commercial vessels need customers and cargo to go on the best of -- to go on the vessels. One idea is a tax incentive. A tax incentive if you put cargo on U.S.-built ships. I think that would do a lot to help increase demand for U.S.-built vessels and produce more ships in our shipyards.
▶ 1:12:58Chair Sullivan: You and your testimony come the maritime executive order and bipartisan ship support -- ships for america act, but at the same time you are very troubled, as are the three of us, with the current waiver. We talk about the narrowly tailored waivers that congress has provided.
▶ 1:13:26Chair Sullivan: It is my position that there is some question as to whether the current waiver complies with the statute. Would anyone on the panel like to respond to that? Mr. heil, I think your company questions whether the administration has gone further than the statute anticipated?
▶ 1:13:52Mr. Heil: There are two parts, 501 a and b. 501 a is the national security part. "it is necessary in interest of -- when we look at the movement last week of asphalt on the chinese-built ship and crewed ship from louisiana to connecticut we fail to see the national security interests and
▶ 1:14:22Mr. Heil: There are a lot of products on that list, over 600, that we see as national security --
▶ 1:14:28Chair Sullivan: If war breaks out the chinese ship will not be available to us?
▶ 1:14:32Mr. Heil: It will not.
▶ 1:14:34Chair Sullivan: When any of the three other gentlemen agree or disagree -- would any of the three other gentlemen agree or disagree with the basic premise that Mr. heil and I have been talking about, and the distinguished ranking member about the jones act? Does anyone feel differently? Mr. woodrow, you're smiling. The chair is being lenient with the gavel.
▶ 1:15:06Mr. Woodrow: Thank you, senator wicker. What I will address in terms of our fisheries and trying to compete in the global environment, and I'll use russia as an example here. Russia is expanding its fleet of fishing vessels with government subsidies at a rate that we can't compete with, especially for our larger vessels.
▶ 1:15:27Mr. Woodrow: The cost to build a large trawler -- well, doesn't matter where they build it, china, turkey, overseas, but the cost to build a russian vessel is a third of the cost it is to build here in the U.S. I don't have a silver bullet how we fix that here at home. All I know is that we're falling behind our competitors, and it does make it very challenging for us to compete in a global state.
▶ 1:15:57Chair Sullivan: Anyone else? Mr. chairman, thank you for your indulgence.
▶ 1:16:01Chair Sullivan: We're going to round two. Senator blunt rochester, if that makes sense for you, because you have these witnesses who came for many parts of the country, but particularly far away from alaska. Let me turn to Mr. woodrow. I want to focus a little bit on the threat to the american blue economy, particularly from, you just mentioned it, from foreign governments. I'm going to focus on russia and china.
▶ 1:16:29Chair Sullivan: I'm sure you're very familiar with, we had russia ban the importation of all american seafood starting in 2014. That's an unlevel playing field. That's knowledge. To be honest, we didn't react. I was trying to get the government, obama, trump, 1.0, and biden to retaliate, and I was successful. I worked with the biden administration.
▶ 1:16:56Chair Sullivan: My team and I put thousands of hours into making sure there was a ban on the importation of all russian seafood into america. Then they tried to launder it through china, and we got that loophole closed. By the way, if anyone else says they were working it, don't believe them, because it was my team and I, and that's a fact. And then the trump administration came on board, and we said, hey, there's a lot of executive orders the biden administration did, particularly against alaska that we want you to rescind. But not this one.
▶ 1:17:27Chair Sullivan: Keep it. And the trump administration listened to us, and they've kept it. So how important is that that we finally, after 10 years, said we're not going to put up with this unlevel playing field, and oh, by the way, why should american importers, I had legislation to ban russian importation of seafood, brought it to the senate floor a few times. Unfortunately some of my colleagues blocked it, but we got through that.
▶ 1:17:55Chair Sullivan: But how important is it for americans to have american freedom fish, not russian or chinese communist fish, into sustainability, to national security, and just fairness? I mean, this country banned the importation of any fish from america for 10 years. And now we finally reacted, and isn't that benefiting our coastal communities and fisheries, not just in alaska, but throughout the country, for americans to buy american seafood from american fishermen?
▶ 1:18:26Chair Sullivan: Not rely on this communist fish from china and russia. How important has that been? >> chairman sullivan, thank you for bringing this up. Thank you for your work on this issue.
▶ 1:18:39Chair Sullivan: We worked it really, really hard. By the way, there's other people that say they had something to do with it, they didn't. It was my team and I, and we put thousands of hours. The only reason I say that, I get offended sometimes when my team works hard, and someone else comes in and saying, oh, I did it. Nothing to do with it. My team and I did it. Exclusively. >> I'll ask a -- fishermen owe you a great debt of gratitude.
▶ 1:19:12Chair Sullivan: They could not buy their fish for a single penny per pound and sell that fish on the market.
▶ 1:19:20Chair Sullivan: Weren't the russians flooding the american market with seafood, flooding, and trying to undercut and kill alaska and american fishermen?
▶ 1:19:28Mr. Woodrow: Senator, they were flooding the global market.
▶ 1:19:31Chair Sullivan: And they were doing it to try to destroy you guys, our fishermen, weren't they?
▶ 1:19:36Mr. Woodrow: They have publicly said their goal is to bring down alaska's fishers.
▶ 1:19:41Chair Sullivan: They said they were at war with alaska fishermen.
▶ 1:19:44Mr. Woodrow: You are correct.
▶ 1:19:46Chair Sullivan: When someone says war with my constituents, we fight back. And that's what we did, right?
▶ 1:19:50Mr. Woodrow: Correct. And I will say this has made a difference. We have seen prices rebound here in the U.S. marketplace.
▶ 1:19:57Chair Sullivan: Because americans are buying american freedom fish, not communist fish from russia.
▶ 1:20:02Mr. Woodrow: Correct.
▶ 1:20:03Chair Sullivan: Good. Listen, we're going to keep that. We worked with the president and his team, both administrations. This has been bipartisan. But again, I know we worked with all of you guys on this. It was a really, really important policy that my team is proud to have led on and delivered. Not just for alaska fishermen, american fishermen. So let's turn to china.
▶ 1:20:25Chair Sullivan: My bill, the fish act, which passed the senate unanimously just about two months ago, I've been working on that getting over the goal line for about four years, and I finally got it over the goal line. That targets fishing, unsustainable fishing, and it's aggressive. It's sanctions, chinese fleets. It sends the coast guard and the U.S. navy to go after them. It is the most aggressive bill.
▶ 1:20:53Chair Sullivan: We're hoping the house is going to pass it. Again, unanimous in the senate, which I was proud of. But you mentioned it. The chinese, I chair the congressional executive committee on china. That's a long-standing committee that was passed after china joined the w.t.o. In the congress. Senator rubio used to chair it. When he became secretary of state, now I chair it. We had a hearing recently. The chinese use slave labor on their ships.
▶ 1:21:24Chair Sullivan: How hard is it for american fishermen and alaska fishermen to compete against slave labor?
▶ 1:21:30Mr. Woodrow: Thank you, senator. It undercuts us at every aspect.
▶ 1:21:35Chair Sullivan: It's impossible, right?
▶ 1:21:36Mr. Woodrow: It undercuts us.
▶ 1:21:38Chair Sullivan: Slave labor. Force are forced to work, not paid. Human trafficked. This is china.
▶ 1:21:46Mr. Woodrow: I'll also add, we're undercut american fishermen, seafood has a challenge to enter into american homes, and it creates a barrier of confusion for consumers. Just turn away from seafood entirely.
▶ 1:22:04Chair Sullivan: Let me give you another example on china that I was proud to have led on. In last year's ndaa, I had a bill of mine that got in there, saying we should not have any imports of chinese fish into military defects, military chow halls or military commissaries. Our military cannot eat communist fish from china. You think the chinese military is eating alaskan fish? So my bill passed.
▶ 1:22:37Chair Sullivan: With no communist chinese fish in any commissary, in any chow hall in america. Believe it or not, there was a lot. There was a lot. So we stopped that. But I have another bill, I told you my comprehensive bicatch bill, which is the most comprehensive bicatch legislation ever. It says why should we import any seafood from china if they don't have the standards that we do?
▶ 1:23:06Chair Sullivan: So my next focus is trying to get that over the goal line, including a ban on chinese fish into america. Do you think that makes sense?
▶ 1:23:19Mr. Woodrow: Snore --
▶ 1:23:20Chair Sullivan: They don't have the sustainability that you do, that american fishermen do.
▶ 1:23:24Mr. Woodrow: For a seafood coming into the U.S., regardless where it may be coming from, we should be upholding the same standards here in the U.S.
▶ 1:23:32Chair Sullivan: Exactly. The same standards that we have. And we have the highest standards in the world, don't we?
▶ 1:23:37Mr. Woodrow: We certainly do.
▶ 1:23:41Chair Sullivan: Not just sustainability, environmental stewardship, but also workforce. We don't use slave labor on our ships, do we?
▶ 1:23:49Mr. Woodrow: We certainly don't.
▶ 1:23:50Chair Sullivan: Yeah. Well, that's what we're going to do, and I think we'll have bipartisan support for that. Senator cantwell, ranking member of this committee, welcome. The floor is yours.
▶ 1:24:04Senator Cantwell: Thank you, Mr. thank you to you and senator blunt rochester for holding this very important meeting on the blue economy and the competitiveness of america in the maritime sector. Very much appreciate it. I don't think you were including me on people who helped claim credit for helping you on russian fish. I think you thought I helped you, right?
▶ 1:24:26Chair Sullivan: No, I wasn't including you at all.
▶ 1:24:28Senator Cantwell: Ok.
▶ 1:24:30Chair Sullivan: You were a partner.
▶ 1:24:31Senator Cantwell: Thank you. I appreciate that. And I want to continue to be. I think this issue you've just illuminated, I just went on a trip to china with four of our colleagues, including two from our committee, and definitely brought up seafood. To the senator's point about russia moving their illegal fish through china has got to stop. And china has to become a better sustainable fishery nation.
▶ 1:24:59Senator Cantwell: We should work with them on that, or point out how that should be accomplished. But they also represent 45% of the world's seafood consumption. So I was very surprised to see a bountiful dinner that I had there of really just northwest product, crab, prawn, duck, shellfish. I'm thinking they have the best, they're eating the best that washington state has to offer.
▶ 1:25:31Senator Cantwell: So to me, they should open up --
▶ 1:25:33Chair Sullivan: Just real quick, do you think that was a propaganda dinner?
▶ 1:25:37Senator Cantwell: No, it was arranged by growers in our state. We had to push our way in, push our way in. But the point is, instead of marketing and selling illegal russian fish, trying to make money off of that, they should develop distribution and trade relations with the U.S. on seafood and better give us access to their market, because they like seafood.
▶ 1:26:02Senator Cantwell: And the fact that they consume so much, that's the big opportunity, and we're happy to depart to them what better fishery management looks like. But we have lots of fish we can sell to them, if they would just let it in the door. So I want to work with this committee and the two of you on ideas to further that. I do think that brings up a point about tariffs. I don't like the tariffs, because I don't like the tariffs being charged on fisheries.
▶ 1:26:31Senator Cantwell: And I don't know, maybe somebody might want to comment about that. But in this broader hearing being about strengthening the coastal communities and the maritime economy, I wanted to -- I'll put a longer statement in for the record that covers all of that, Mr. chairman. But I wanted to ask about the jones act, since we have a temporary waiver on the jones act, which creates a little more unis not.
▶ 1:26:57Senator Cantwell: I was very pleased that the murad director and our transportation secretary all want to have a very aggressive ship building agenda for the nation and that they want us to be more active in the kind of capacity we have for investments and vessels, ship yards, workforce training, ports, maritime infrastructure. So I wanted to know specifically from you, Mr.
▶ 1:27:23Senator Cantwell: Heil, if the waiver is extended again, what would that mean for investments in ship yards and workforce development? Does it create uncertainty? How should we communicate about this?
▶ 1:27:37Mr. Heil: Senator, thanks for the question. The current waiver has created a tremendous amount of uncertainty, now that 150 days, which is unprecedented amount of time. It's to companies like ours and the mariners that the jones act is unstable. Investment will flee. Our U.S. mariners will wonder, will they have jobs?
▶ 1:28:07Mr. Heil: This budget request for fy27 includes a large investment in the merchant marine academy, which is sorely needed. But without the jones act, we don't need a merchant marina, frankly. It's hard to see why that investment would be moving forward. The generals act supports the jobs. Those go into our commercial mariners into the U.S. military, they're critical. And the jones act is the foundation for all of that.
▶ 1:28:35Mr. Heil: So when you talk about an extended waiver, it would be extremely damaged to every part of the U.S. maritime industry.
▶ 1:28:44Sen. Cantwell: Well, we certainly don't want that. We want a strong jones act and a strong ship building. Are there other specific investments you think we should be looking at that would help the workforce development and accelerate ship building in the U.S.?
▶ 1:28:58Mr. Heil: On the workforce side, there are a lot of, we think, very good ideas that we support and the ships act, you know, on the mariner improvement side, we need to do a better job there. For a lot of high school kids, they go to their high school counselor and hear about all the service academies, but don't hear about the merchant marine academy that needs to change. It needs to be a countrywide effort, not just on the coast.
▶ 1:29:27Mr. Heil: Folks in the middle of the country need to understand that these are good jobs, good high-paying jobs, and they need to have access to that. On the ship building side, there's a lot we can do. I mentioned earlier in the hearing, perhaps a tax incentive for companies that put cargo on U.S.-built ships. That would be one way to drive demand for U.S.-built vessels, because the cargo has to go on U.S.-built ships.
▶ 1:29:55Mr. Heil: There's also various ideas about things would be more in the trade negotiation realm, but requiring certain percentage of imports or exports from countries like china that are put on U.S.-flagged vessels. That would be a tremendous help in allowing U.S. companies and U.S. flag vessels to compete in markets where they're excluded from right now.
▶ 1:30:18Sen. Cantwell: I like that last idea, because this committee passed in response to the covid pandemic and the fact that international trade vessels were leaving U.S. products on the dock. Literally, they were just coming here and dropping stuff off and running back, not even taking product back with them. That led us to passing a reform to the federal maritime commission and new tools to ensure that we were getting access and trade.
▶ 1:30:46Sen. Cantwell: But this is an additional requirement, and I think the change, Mr. chairman, in the landscape, both the code pandemic shoddies, but now the interest in the pacific writ large has shown us that the united states needs to strengthen its capacity, and to do that, we have to strengthen our ship building capacity.
▶ 1:31:06Sen. Cantwell: I've seen both of my colleagues nod when you talked about the workforce, because they know there's young people in our state that would love to know a six-figure welding job right out of high school. Somebody is nodding in the audience. They're like, yeah, letalis know, where are those? So we can have young people who want the six-figure jobs. We could be doing that right now.
▶ 1:31:31Sen. Cantwell: Someone might say to kids in a county, a big maritime, we have military bases there, huge navy population, they do train for this. But we need, as you just said, it needs to be everywhere in the united states if we want to get the capacity for these young people.
▶ 1:31:51Sen. Cantwell: But again, I thank the two of you for holding this hearing, and I'll take my comments for the record about the tariffs, but I don't know what the number is, some big part, is it 80% of our economy comes out of coastal states? It's a big number. It's a big number of our economy comes out of coastal states. Glad you're having this hearing, and glad we continue to focus on this.
▶ 1:32:17Chair Sullivan: Thank you. Senator blunt rochester.
▶ 1:32:20Sen. Blunt Rochester: Thank you, Mr. chairman. I know votes were just called, so I'm going to try to be succinct. I want to follow up on the full conversation about workforce, because I think when we look at general, we have generally workforce challenges, but to re-shore cranes, to do all the repairs and improvements to port infrastructure, we need people to do those jobs.
▶ 1:32:48Sen. Blunt Rochester: And the department of labor estimates that the ship building industry alone may require 200,000 or more additional workers to satisfy demand. I'm going to ask the question toe Mr. sheridan and Mr. heil, and others can join in as well. But we know this affects our competitiveness. Can both of you talk a little bit about the strategy for how we deal with these workforce shortages?
▶ 1:33:18Sen. Blunt Rochester: I know the administration has a strategy to address it, if you want to talk about that. I know you focused on k-12. We've also talked about the merchant marine academy. I'll start with you, Mr. sheridan, if you could talk about how we deal with our workforce shortages in this industry, and then I'll turn to you, Mr. heil.
▶ 1:33:39Mr. Sheridan: Thank you, ranking member blunt rochester, for the question. Certainly I was all about k-12 in my comments. And we do believe that's an opportunity. We've been involved in alaska with the culture funding we've discussed, really working to engage middle school students with science, teaching through technology. But then also really intentionally partnering with programs and traditional community colleges.
▶ 1:34:07Mr. Sheridan: So, you know, for fisheries and culture in alaska, there are two programs that stand out, a college in valdez, university of alaska-southeast sitka campus. But for ship building, we do have ship building in the state as well. And u.a.s. Sketch can's campus is involved there. And I would hope.
▶ 1:34:30Chair Sullivan: I was just there it's a really impressive program.
▶ 1:34:32Mr. Sheridan: It is a great program. I've not been involved with it, but I would hope that they are really starting as young as they possibly can, because that is our near future workforce. The work that we've been doing with students in cordova, for example, those kids are already in the workforce. Our 14-year-old son is participating in a salmon commercial fishery. Today was the first day of the fishery. They start them young in alaska. So I think that we should start training them young as well.
▶ 1:35:04Sen. Blunt Rochester: That's the pipeline, and I'll come back to you, just wanted to clarify. We talked a lot about public-private partnerships, and want to make sure the resources are there to continue that good work. I'm going to turn to Mr. heil, if you could talk as well about the workforce.
▶ 1:35:23Mr. Heil: Critical issue, obviously, in lots of different areas. I think part of it is replicating models that work for workforce training and skilled training, developing high school curriculum around certain skill sets. That's something that we're doing in jacksonville right now.
▶ 1:35:44Mr. Heil: I think we'll announce soon that our partnership there to do that on the mariners side, and it's the same for the ship building sector. I know some of the companies have great partnerships with job core centers and community colleges to develop workers, to bring them in, get their skills up to a certain level, and hire them. And again, it goes back to awareness.
▶ 1:36:08Mr. Heil: We have to do a better job as a country in making sure young people understand that these opportunities exist where they are and how they access them.
▶ 1:36:17Sen. Blunt Rochester: I will ask for the record a question for equipment, as well as emerging technologies, like robotics and artificial intelligence. But I do want to ask each of you if you could be very succinct to tell me, what is the one thing that's keeping you up at night? What is the one thing that you want done to make sure we tackle? Try one. I know it's very hard, because there are a lot of things that we discussed here. Who would like to go first? Mr. woodrow.
▶ 1:36:45Mr. Woodrow: I'll be very succinct. We need to modernize our industry, catch up with the rest of the world.
▶ 1:36:52Sen. Blunt: : what do you want us to do?
▶ 1:36:55Mr. Woodrow: You mentioned a.I. And automation. I'll share a very quick story. A couple of years ago I was touring a plant in spain. The processing plant had four robots working the line. The two robots on the front were so darn efficient at their jobs, the other two robots didn't have a job. We don't have a single plant like that in alaska.
▶ 1:37:14Sen. Blunt Rochester: Thank you. Who's next? Mr. sheridan?
▶ 1:37:18Mr. Sheridan: I'll stick with the same thing. When we're talking about the technologies, automation, integrating a.I. Into seafood processing technologies, I do think that we should start young. So I'll just share an example. We brought middle school students to fairbanks for a science olympiad event. They were introduced to funders and received thousands of dollars to 3-d print their own drones, and they're developing their own skills and experience there. These young people have a lot of potential, and I think it's important to engage with them.
▶ 1:37:50Sen. Blunt Rochester: Excellent. Mr. wardwell?
▶ 1:37:52Mr. Wardwell: I spent a lot of my career trying to bring geo spatial services to communities throughout alaska. They're underserved. They can deliver goods and seafood can get out of there and get into them. So making sure there's legislation for public-private industry to be involved with bringing those services, and funding those opportunities.
▶ 1:38:15Sen. Blunt Rochester: Thank you. Mr. heil?
▶ 1:38:18Mr. Heil: My biggest concern is the jones act waiver and what it's doing to U.S. shipping and U.S. maritime industry, in terms of what we would like to see congress do, to encourage the administration to end the current waiver, and there f there has to be a waiver, used 501b process, the process, when waivers are needed, that's the process that is known to U.S. maritime and does not cause the damaging effects of the current waiver.
▶ 1:38:43Sen. Blunt Rochester: Thank you, and I yield back.
▶ 1:38:45Chair Sullivan: Thank you, senator blunt rochester. There's a vote called, so I'm going to ask one more round, but I want to thank you for aging in this hearing with so many of my constituents. It's great. I really appreciate your involvement and engagement. So I'm going to do one more quick round. Mr. heil, I haven't asked you a question yet, and it's about an opportunity, something I've thought about a lot. I don't know how you would do it, but I think it's got a great opportunity.
▶ 1:39:15Chair Sullivan: I'm a big supporter of the energy sector. We have this real big boom. It's great for america. It's great for the world in the production of natural gas. And even the export of natural gas. In alaska, we're trying to get, we're close, we've never been this close to get this very large-scale project from the alaska pipeline off the ground and into development. We've been trying to work on that.
▶ 1:39:43Chair Sullivan: We've been trying to get that done for about 50 years. Might be getting there. We are definitely getting there. So my question is this. You mentioned mandating american cargo on vessels. I've always thought about one way to get our ship building off the ground. I'm not sure the gas sector likes this idea. But toe mandate a certain amount. We are exporting all over the world, and it's going to continue.
▶ 1:40:10Chair Sullivan: And if this alaska project gets done, that will be the biggest l.n.g. Product in america, maybe in the world. The logical place, it's a six-day cargo shipment from the peninsula to tokyo. We were the first place in the world to start exporting l.n.g. To asia. We started doing that in the late 1960's.
▶ 1:40:32Chair Sullivan: So my question is, would it make sense to mandate a certain amount of american cargoes or percentage of l.n.g. To be from american-made ships as this industry is really, really taking off as explosive growth? And I'm talking the american l.n.g. Natural gas industry. What's your thought on that? Have you thought about that one?
▶ 1:40:59Mr. Heil: I think that's a concept in the ships act currently. So yeah, I think that requiring a certain amount of exports of l.n.g. Be transported on U.S.-built vessels.
▶ 1:41:11Chair Sullivan: Can we build those vessels? A lot of people say, oh, yeah, we can't do this, we don't have the capability. Only the koreans and chinese. Well, actually, we do have the capability to build it. Go look at the latest american submarine or the american aircraft carrier. Those are the most sophisticated ships on the planet earth. We americans build them. So with can he build l.n.g. Ships?
▶ 1:41:35Mr. Heil: I'm not a ship builder, but from what I've observed, yes, we can, it will just take time. L.n.g. Vessels are s probably the most complicated commercial vessel.
▶ 1:41:45Chair Sullivan: Not as complicated as a boomer-class submarine.
▶ 1:41:49Mr. Heil: No, that's a different scale on the defense side. But on the commercial side, it's very complicated. We can do it. It will just take some time and training, but it's something we can do.
▶ 1:42:01Chair Sullivan: And it's an opportunity, right? Our l.n.g. Capacity has really increased, and it's great for the economy. And again, we're trying to get this alaska one off the ground. Mr. woodrow, I want to come back to you.
▶ 1:42:16Chair Sullivan: I was honored to be at the inaugural meeting of the secretary of the department of agriculture, joined by the secretary of commerce, joined by the secretary of interior, joined by the white house national economic council chairman, and me, when we announced the office of seafood policy at usda.
▶ 1:42:41Chair Sullivan: Again, that's something I've been working on for, on that one for 10 years, and we finally got it done. I have legislation on it. We're going to follow up on that. But ads you know, we got legislation of mine passed last year to fund that office. And now the administration is fully behind it. The launch of this was, we don't normally get half, about a third of the cabinet of any administration to launch something. So it was a big deal.
▶ 1:43:11Chair Sullivan: How important is that from your perspective, some of the initiatives that the secretary announced I've been working on, to essentiallien able our fishing communities, our fishermen, our coastal communities, to have access to analogous programs that american farmers have. To derisk their operation.
▶ 1:43:31Chair Sullivan: We love our american farmers, but they have bins but they have b billions and billions of dollars of programs that enable them to eliminate their risk and export capabilities. How important is that office of seafood policy at usda, and what would be the most important program we should do for our fishermen that american farmers already have?
▶ 1:44:04Mr. Woodrow: Thank you. As you said, we've been chasing this for decades now. And I joked we're like a dog chasing the car, and now that we finally caught it we aren't exactly sure what to do. But we're figuring it out very fast, and I'm thankful for the work you've done and this administration for establishing this office of seafood.
▶ 1:44:20Chair Sullivan: Did you see when we launched it? It was quite a big deal.
▶ 1:44:24Chair Sullivan: It was excellent. And being able to bridge the gap we've had between nooa, to usda, that's where seafood actually happens when it enters into the U.S.
▶ 1:44:36Chair Sullivan: And they have, no exaggeration, their programs for farmers are in the hundreds of billions of dollars, and again, we love our farmers. They get a lot of federal government support. The farmers of the sea don't. And we want them in on those programs. The secretary of usda said that was part of her goal for that office.
▶ 1:44:59Mr. Woodrow: Correct and those programs didn't all happen overnight. They happened over periods of time when we addressed challenges to our farmers, and we could also argue that our fishermen face even more challenges. The volatility of our markets, the whims of mother nature when it comes to returns of our seafood. So having those protections, having those assurances to allow them to have some sort of certainty that they can fish tomorrow is really important.
▶ 1:45:24Mr. Woodrow: To be able to take advantage and actually enter into it, what we are asking is not to replace our farmers, just be a part of it, and have the same assurances.
▶ 1:45:34Chair Sullivan: Maybe for the record on this hearing you can submit to this committee some of the areas that you would like to have prioritized, because it is a great opportunity, and again, I've been working on trying to get that done for almost a decade, and it was a real satisfying day when we did it. So Mr. sheridan, why don't we come back to you? I'm a huge u.a.f. Fan. So important to alaska. So important to our economy.
▶ 1:46:03Chair Sullivan: The blue economy center that you had brings together universities, industries, entrepreneurs, communities across alaska. Can you share examples of public-private partnerships with universities and others that you believe are successful in creating blue economy opportunities, either in alaska or maybe there's something you've seen in the lower 48 or oversea that is looks good that maybe we can emulate with that public-private partnership
▶ 1:46:35Chair Sullivan: Model?
▶ 1:46:35Mr. Sheridan: Thank you, I'm happy to have this opportunity to talk a little bit about work that we've done with the city of valdez.
▶ 1:46:42Chair Sullivan: When you say you, u.a.f.?
▶ 1:46:45Mr. Sheridan: U.a.f., it's a broad consortium. I'll go back to just describing a little bit of the origins for what became the alaska culture, the $49 million build back better challenge work grant. That was instigated by and supported by a broad group of alaskans. The city of valdez offered up a match that really made that possible. I just wanted to acknowledge that.
▶ 1:47:13Chair Sullivan: The city put up -- the city had skin in the game, $6 million? Bow, significant.
▶ 1:47:20Mr. Sheridan: That opened up opportunity for everyone across the state. Again, we're talking about shellfish farming. But u.a.f. Is the state's land grant institution. The institute of agriculture and natural resources extension. It's our agency that meets that mission. And the interesting thing about mariculture farming in particular, as we're talking about usda, is the potential for impact on agricultural markets.
▶ 1:47:52Mr. Sheridan: So for kelp in particular, there's the potential for large volume of production to support the development of live stock feeds and the development of soil applications. So I just think that's an interesting example of where a municipal university relationship supported industry development in the state in ways that we could potentially move the needle for the united states agricultural sector.
▶ 1:48:19Mr. Sheridan: Again, we have more coastline than the rest of the lower 48 combined. That's a whole lot of space to grow a whole lot of kelp and those are pretty big markets.
▶ 1:48:30Chair Sullivan: Good answer. Let me end with one more question for Mr. wardwell. I think it surprises a lot of people, your testimony that alaska still has large areas that are still uncharted in terms of water. You point about the moon being mapped, really an interesting one. Kind of crazy, to be honest.
▶ 1:49:01Chair Sullivan: What rank does it create for national security when we have such large parts of our coastal area in alaska and the rest of the country, but I think it's really acute in alaska, where we have areas that are still uncharted.
▶ 1:49:20Mr. Wardwell: Yeah, thank you for the question. It creates a major risk. There could be navigation hazards in the uncharted areas.
▶ 1:49:28Chair Sullivan: You mean like a ship running into a rock?
▶ 1:49:32Mr. Wardwell: For example, yeah, ship running into a rock. That could create loss of life and property. We're trying to have recovery of those vessels, coast guard out in the area, massive regions, just delivering commerce. Happy efficient routes for shipping and navigation.
▶ 1:50:02Mr. Wardwell: And understanding our resources, right? So if we don't know what's down there, how can we manage that and use the uncharted areas?
▶ 1:50:12Chair Sullivan: Good, thank you. Listen, we have a vote right now. I'm going to head off to that. But I really want to thank the witnesses for their testimony today and the q&a. The hearing record here will remain open until the close of business tuesday, june 9, that's a week from today.
▶ 1:50:33Chair Sullivan: For other senators or those of us like myself who want to submit additional questions for the record, we would respectfully request the witnesses to be able to answer those questions by close of business tuesday, june 3. And otherwise, I want to thank the witnesses, particularly everybody, but my fellow alaskan everybody, but my fellow alas alaskans who flew thousands of miles to come here to D.C.
▶ 1:51:00Chair Sullivan: To testify. It was enlightening. We had a good group of senators here. It's a great topic, and a great opportunity for not just alaska, but for america, and it's very bipartisan, as you can see, and the more we highlight this and have the good ideas that all of you bring to it, the more we can take advantage of it, legislate on it in a positive way.
▶ 1:51:28Chair Sullivan: So I want to thank all of you again. This is an exciting topic with a lot of potential. You guys put a bunch of brainpower and action and thought into it, and we really appreciate it. With that, I'm going to conclude this hearing. The committee stands adjourned.