03/06/2012 09:00 AM Senate STATE AFFAIRS

         SB 222-APPROP: BASE CLOSURE/REALIGNMENT STUDY                                                                      
                                                                                                                                
9:25:41 AM                                                                                                                    
CHAIR  WIELECHOWSKI   announced  that  SB  222   was  before  the                                                               
committee. The  bill proposes to  appropriate $300,000 to  hire a                                                               
consulting  firm  to  develop   strategies  to  protect  military                                                               
installations  in Alaska  from possible  closure  as the  federal                                                               
government  begins  its  Base   Realignment  and  Closure  (BRAC)                                                               
process.  The closure  of any  Alaskan base  should concern  both                                                               
state and federal  officials as Alaska plays a vital  role in the                                                               
nation's security.                                                                                                              
                                                                                                                                
KENDRA KLOSTER,  staff to Senator  Bill Wielechowski,  sponsor of                                                               
SB  222, introduced  the  bill. She  related that  SB  222 is  an                                                               
appropriation  from  the  general   fund  to  the  Department  of                                                               
Military and  Veteran's Affairs (DMVA).  The bill will  allow the                                                               
state to hire a consulting  firm from Washington, D.C. to address                                                               
recent budget  cuts of  $487 billion over  ten years,  which were                                                               
announced  by  Defense  Secretary  Panetta. The  firm  will  also                                                               
examine pending BRAC closures in 2013 and 2015.                                                                                 
                                                                                                                                
MS. KLOSTER  referred to articles  in members'  packets regarding                                                               
what other states are doing about the cuts.                                                                                     
                                                                                                                                
CHAIR WIELECHOWSKI noted the bill  came about because of meetings                                                               
with  DMVA  and  Senator  Murkowski. He  called  the  legislation                                                               
critical  for  Alaska's economy,  as  well  as for  the  nation's                                                               
security.   He  noted   the  funding   is  in   the  Supplemental                                                               
Appropriations bill currently in the Senate.                                                                                    
                                                                                                                                
9:28:48 AM                                                                                                                    
MCHUGH PIERRE,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department of  Military & Veterans  Affairs (DMVA),  testified in                                                               
support of  SB 222.  He voiced  appreciation for  the legislation                                                               
because it  was of  critical importance  to Alaska.  Other states                                                               
are taking  significant action on  infrastructure issues  for the                                                               
military. He pointed  out that the first step is  to see what the                                                               
Department of  Defense considers as Alaska's  needs and determine                                                               
how to partner with other entities.  He gave an example of a need                                                               
at  Eielson Air  Force  Base  to refurbish  the  power plant  and                                                               
privatize energy.                                                                                                               
                                                                                                                                
CHAIR   WIELECHOWSKI  requested   information   about  the   Base                                                               
Realignment and Closure (BRAC) process, both past and current.                                                                  
                                                                                                                                
MR. PIERRE  spoke of the number  one priority of BRAC,  a formula                                                               
model  used to  determine the  cost of  base relocation  (COBRA),                                                               
which  identifies  key  mechanisms  for  "racking  and  stacking"                                                               
various base operations.  He stressed that Alaska  must make sure                                                               
it is not in the top five of  the list. The goal is to use pieces                                                               
from the COBRA  model to rate each installation  and offset risky                                                               
issues before  BRAC begins.  Two BRAC's  have been  proposed, one                                                               
for 2013 and  one for 2015. Congress has to  take action for them                                                               
to  happen. He  did not  believe  Congress would  take action  to                                                               
create one in 2013, but will for 2015.                                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI noted DMVA hired  a consultant for the Eielson                                                               
BRAC in the past.                                                                                                               
                                                                                                                                
MR. PIERRE recalled that in  2005, DMVA hired the Lundquist Group                                                               
from Washington,  D.C. for $2  million. They worked  closely with                                                               
the  Fairbanks  North Star  Borough  and  the Fairbanks  Economic                                                               
Development  Corporation   in  order  to  display   to  the  BRAC                                                               
Commission the  military strategic  importance case  for Eielson.                                                               
That effort  will have to be  repeated for the upcoming  BRAC. He                                                               
noted that there was only one  installation in the 1993 BRAC that                                                               
was saved  due to the economic  impact on the community  and that                                                               
was Whidbey  Island in Washington.  It was the  only installation                                                               
saved  because of  the "economic  impact" argument.  He concurred                                                               
with Chair Wielechowski  that for the 2015 BRAC  the focus should                                                               
be on "military strategic importance."                                                                                          
                                                                                                                                
9:33:33 AM                                                                                                                    
DOUG ISAACSON,  Mayor, City of  North Pole, testified  in support                                                               
of SB  222. He  related that  Eielson was  vital to  the Northern                                                               
Edge exercise last  year as well as to Red  Flag. He stressed the                                                               
strategic importance  of Eielson  and the  need for  a consultant                                                               
for the  BRAC process. He  spoke of the devastation  to Fairbanks                                                               
North Star  Borough if jobs at  Eielson are lost. He  described a                                                               
picture of what  would happen to North Pole as  a result of BRAC.                                                               
He called the legislation a necessary first step.                                                                               
                                                                                                                                
CHAIR  WIELECHOWSKI requested  a  motion to  move  the bill  from                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR  PASKVAN  moved  to  report   SB  222,  version  M,  from                                                               
committee  with  individual   recommendations  and  the  attached                                                               
fiscal note.                                                                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI  announced  that without  objection,  SB  222                                                               
moved from the Senate State Affairs Standing Committee.