Legislature(2021 - 2022)SENATE FINANCE 532

04/19/2022 09:00 AM Senate FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

Audio Topic
09:13:46 AM Start
09:15:19 AM SB241
10:23:51 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 241 APPROP: SUPPLEMENTAL; CAPITAL TELECONFERENCED
Heard & Held
Continued from 4/13/22
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 241                                                                                                           
                                                                                                                                
     "An  Act   making  appropriations  for   the  operating                                                                    
     expenses  of  state  government and  certain  programs;                                                                    
     making   capital    appropriations   and   supplemental                                                                    
     appropriations; capitalizing  funds; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:15:19 AM                                                                                                                    
                                                                                                                                
NEIL STEININGER, DIRECTOR, OFFICE  OF MANAGEMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, introduced himself.                                                                                     
                                                                                                                                
MILES   BAKER,    INFRASTRUCTURE   INVESTMENT   COORDINATOR,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Mr.  Baker  discussed  the presentation  titled,  "State  of                                                                    
Alaska;    Office    of   the    Governor;    Infrastructure                                                                    
Appropriation  Bill SB241;  Senate Finance  Committee; April                                                                    
6,  2022" (copy  on file).  He displayed  slide 9,  "Federal                                                                    
Programs and Match":                                                                                                            
                                                                                                                                
     Fish and Game                                                                                                              
          ?Wildlife      Restoration     (Pittman-Robertson)                                                                    
          $24,000.0 ($18,000.0 Fed, $6,000.0 F and G Fund)                                                                      
                                                                                                                                
Co-Chair Bishop asked for a detailed list of projects.                                                                          
                                                                                                                                
9:17:22 AM                                                                                                                    
                                                                                                                                
DAYNA MACKEY,  ADMINISTRATIVE SERVICES  DIRECTOR, DEPARTMENT                                                                    
OF  FISH AND  GAME, JUNEAU  (via teleconference),  agreed to                                                                    
provide that information.                                                                                                       
                                                                                                                                
Mr. Baker continued with slide 9:                                                                                               
                                                                                                                                
     Health and Social Services                                                                                                 
          ?Low   Income  Home   Energy  Assistance   Program                                                                    
          (LIHEAP) $314.0 Fed                                                                                                   
     Military and Veterans' Affairs                                                                                             
          ?State  and  Local Cybersecurity  Grants  $2,404.4                                                                    
          ($2,164.0 Fed, 240.4 UGF)                                                                                             
                                                                                                                                
Senator   Wilson  wondered   how  many   local  and   tribal                                                                    
governments  that  the  state planned  to  assist  with  the                                                                    
funding.                                                                                                                        
                                                                                                                                
Mr. Baker replied that he did not know.                                                                                         
                                                                                                                                
9:21:42 AM                                                                                                                    
                                                                                                                                
Mr. Baker continued with slide 9:                                                                                               
                                                                                                                                
     Natural Resources                                                                                                          
          ?National   Geological    and   Geophysical   Data                                                                    
          Preservation  Program (NGGDPP)  $3,290.0 ($2,290.0                                                                    
          Fed, $1,000.0 UGF)                                                                                                    
          ?Critical   Minerals    Mapping   -Earth   Mapping                                                                    
          Resources Initiative (MRI) $7,500.0 Fed                                                                               
          ?Abandoned   Mine    Lands   Reclamation   Program                                                                    
          $1,333.0 Fed                                                                                                          
                                                                                                                                
Co-Chair  Bishop   surmised  that   the  $1.3   million  was                                                                    
additional to the $3 million  for the abandoned mine section                                                                    
in the Department of Natural Resources (DNR) budget.                                                                            
                                                                                                                                
Mr. Baker agreed.                                                                                                               
                                                                                                                                
Mr. Baker continued with slide 9:                                                                                               
                                                                                                                                
          ?Community Wildfire Defense  Grants (NEW) $3,000.0                                                                    
          Fed                                                                                                                   
                                                                                                                                
Co-Chair  Bishop wondered  whether there  was any  helium in                                                                    
the associated gas in the state.                                                                                                
                                                                                                                                
9:27:40 AM                                                                                                                    
                                                                                                                                
MELANIE   WERDON,   GEOLOGICAL    SCIENTIST,   DIVISION   OF                                                                    
GEOLOGICAL AND  GEOPHYSICAL SERVICES, DEPARTMENT  OF NATURAL                                                                    
RESOURCES, FAIRBANKS  (via teleconference), deferred  to Mr.                                                                    
LaPain.                                                                                                                         
                                                                                                                                
9:28:13 AM                                                                                                                    
                                                                                                                                
DAVID  LAPAIN, DIRECTOR  AND  STATE  GEOLOGIST, DIVISION  OF                                                                    
GEOLOGICAL AND  GEOPHYSICAL SERVICES, DEPARTMENT  OF NATURAL                                                                    
RESOURCES, FAIRBANKS  (via teleconference), replied  that he                                                                    
was not  aware of  helium in  substantial quantities  in the                                                                    
state. He  deferred to the  Alaska Oil and  Gas Conservation                                                                    
Commission (AOGCC), who may track that data.                                                                                    
                                                                                                                                
Mr. Baker addressed slide 10, "Federal Programs and Match":                                                                     
                                                                                                                                
     Environmental Conservation                                                                                                 
          ?Village Safe Water and Wastewater Projects                                                                           
          $45,000.0 Fed                                                                                                         
               o First Time Service $27,000.0 Fed                                                                               
               o Existing Service $18,000.0 Fed                                                                                 
          ?Drinking Water Fund Capitalization $39,972.2                                                                         
          ($38,176.7 Fed, $1,795.5 UGF)                                                                                         
          ?Drinking Water Capital Subsidies                                                                                     
               o Regular Program $6,246.5 Other (Drinking                                                                       
               Water Fund)                                                                                                      
               o   Emerging   Contaminant   $5,353.4   Other                                                                    
               (Drinking Water Fund)                                                                                            
               o Lead Line Service $9,836.9 Other (Drinking                                                                     
               Water Fund)                                                                                                      
          ?Clean   Water   Fund   Capitalization   $21,857.4                                                                    
          ($19,850.9 Fed, $2,006.5 UGF)                                                                                         
          ?Clean Water Capital Subsides                                                                                         
               o Regular Program $9,241.9 Other (Clean                                                                          
               Water Fund)                                                                                                      
               o Emerging Contaminant $ 989.8 Other (Clean                                                                      
               Water Fun                                                                                                        
                                                                                                                                
9:33:13 AM                                                                                                                    
                                                                                                                                
Mr. Steininger  stated that each  item was in  the operating                                                                    
budget, but the details were within the capital budget.                                                                         
                                                                                                                                
Senator  von   Imhof  wondered  how  many   years  that  the                                                                    
Department of  Environmental Conservation (DEC)  could spend                                                                    
the money. She  remarked that it was going  to take manpower                                                                    
and planning to distribute the money.                                                                                           
                                                                                                                                
Mr. Steininger replied that some  of the projects could take                                                                    
as long as ten years, and deferred to Mr. Bates.                                                                                
                                                                                                                                
Senator  von  Imhof stressed  the  importance  of there  not                                                                    
being a time limit and guideline for the projects.                                                                              
                                                                                                                                
Mr. Steininger deferred to Mr. Bates.                                                                                           
                                                                                                                                
9:35:20 AM                                                                                                                    
                                                                                                                                
RANDY BATES, DIRECTOR OF  WATER, DEPARTMENT OF ENVIRONMENTAL                                                                    
CONSERVATION, JUNEAU (via  teleconference), replied that the                                                                    
federal government stated that the  money could be spent for                                                                    
up to twelve years or more.                                                                                                     
                                                                                                                                
Senator  Wilson queried  the number  of  communities in  the                                                                    
state that were still using landlines.                                                                                          
                                                                                                                                
Mr. Bates agreed to provide that information.                                                                                   
                                                                                                                                
Mr.  Baker  highlighted  slide  11,  "Federal  Programs  and                                                                    
Match":                                                                                                                         
                                                                                                                                
     Environmental Conservation                                                                                                 
          ?Administrative Services                                                                                              
               o  Water  Programs  Accounting  $417.7  Other                                                                    
               ($359.7  CIP,  $56.0   Drinking  Water  Fund,                                                                    
              $56.0 Clean Water Fund); 2 PFT                                                                                    
          ?Environmental Health                                                                                                 
               o   Drinking  Water   Program  Implementation                                                                    
               $8,126.1 Fed; 6 PFT                                                                                              
          ?Spill Prevention and Response (SPAR)                                                                                 
               o Brownfield Response $1,000.0 Fed; 5 NP                                                                         
          ?Water Quality                                                                                                        
               o   Drinking  Water   Program  Implementation                                                                    
               $4,582.7   ($4,276.9  Fed,   $305.8  Drinking                                                                    
               Water Fund); 3 PFT                                                                                               
               o   Clean    Water   Program   Implementation                                                                    
               $1,192.7  ($886.8  Fed,  $305.9  Clean  Water                                                                    
               Fund); 3 PFT                                                                                                     
               o  Indian Health  Service (IHS)  Village Safe                                                                    
               Water Support $1,585.4 CIP; 5 PFT                                                                                
                                                                                                                                
Mr.  Baker  pointed  to  slide  12,  "Federal  Programs  and                                                                    
Match":                                                                                                                         
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     ?Airport Improvement Program Increase $237,767.3 Total                                                                     
          o $ 73,400.0 FY22 ($ 70,000.0 Fed, $ 3,400.0                                                                          
          IARF)                                                                                                                 
          o $164,367.3 FY23 ($152,967.3 Fed, $11,400.0                                                                          
          IARF)                                                                                                                 
         o See attachment 2 for allocation details                                                                              
     ?Surface Transportation Program Increase $211,408.3                                                                        
     Fed                                                                                                                        
          o $ 98,756.5 FY22                                                                                                     
          o $112,651.7 FY23                                                                                                     
         o See attachment 3 for allocation details                                                                              
     ?Bridge Formula Program (New) $90,000.0 ($45,000.0                                                                         
     FY22 and FY23)                                                                                                             
     ?PROTECT Program (New) $35,800.0 ($17,900.0 FY22 and                                                                       
     FY23)                                                                                                                      
     ?Carbon Reduction Program (New) $31,400.0 ($15,700.0                                                                       
     FY22 and FY23)                                                                                                             
     ?Electric Vehicle Infrastructure (New) $15,516.4 ($                                                                        
     7,758.2 FY22 and FY23)                                                                                                     
     ?Federal Program State Match                                                                                               
          o Federal Aid Highway $46,500.0 UGF                                                                                   
          o Federal Aid Aviation $ 4,300.0 UGF                                                                                  
                                                                                                                                
Senator von  Imhof asked whether  there had been  studies on                                                                    
how  electric  vehicles fared  in  very  cold climates.  She                                                                    
wondered whether  the state's electric grid  could handle an                                                                    
expansion in the use of electric vehicles.                                                                                      
                                                                                                                                
9:46:58 AM                                                                                                                    
                                                                                                                                
CURTIS THAYER, EXECUTIVE  DIRECTOR, ALASKA ENERGY AUTHORITY,                                                                    
DEPARTMENT OF  COMMERCE, COMMUNITY AND  ECONOMIC DEVELOPMENT                                                                    
(via  teleconference),  responded  that some  electric  cars                                                                    
worked at 40  below and greater. He spoke  to the electrical                                                                    
grid and  said there was no  issue on the Railbelt  grid. He                                                                    
noted  that  Juneau  had  the  highest  number  of  electric                                                                    
vehicles, per capita, of anywhere in the country.                                                                               
                                                                                                                                
Senator  Wilson   wondered  whether   the  funds   would  be                                                                    
available for local governments  for alternative projects to                                                                    
upgrade roads.                                                                                                                  
                                                                                                                                
Mr.  Thayer responded  in  the negative.  He  said that  the                                                                    
money was marked for very specific projects.                                                                                    
                                                                                                                                
                                                                                                                                
Senator Olson  asked about funding  for programs  after they                                                                    
were  established, and  whether  the state  was required  to                                                                    
fund the projects moving forward.                                                                                               
                                                                                                                                
Mr. Baker  said that the  programs in the  presentation were                                                                    
new, so  there was  an expectation  that the  programs would                                                                    
move forward with federal funding.                                                                                              
                                                                                                                                
Co-Chair Bishop invited Mr. Carpenter to the table.                                                                             
                                                                                                                                
Senator  Wilson wondered  whether  the transportation  funds                                                                    
would   be  available   as  pass-through   funds  to   local                                                                    
governments for road resurfacing or culvert replacement.                                                                        
                                                                                                                                
9:52:28 AM                                                                                                                    
                                                                                                                                
ROB   CARPENTER,   DEPUTY    COMMISSIONER,   DEPARTMENT   OF                                                                    
TRANSPORTATION AND  PUBLIC FACILITIES  (via teleconference),                                                                    
replied  in the  affirmative, and  stated that  there was  a                                                                    
local  component in  the  bill and  that  projects would  be                                                                    
competitively scored after project submission.                                                                                  
                                                                                                                                
Senator  Wilson  wondered  whether  the  projects  would  be                                                                    
awarded to public private partnerships.                                                                                         
                                                                                                                                
Mr. Carpenter  responded that the capital  budget was broken                                                                    
into  components.   He  spoke  of  TIPS   or  transportation                                                                    
improvement  plans.  He mentioned  community  transportation                                                                    
programs                                                                                                                        
                                                                                                                                
Senator  Wilson  asked  whether the  future  projects  would                                                                    
delay current projects.                                                                                                         
                                                                                                                                
Mr.  Carpenter said  that he  could not  predict what  would                                                                    
happen in the future.                                                                                                           
                                                                                                                                
Mr.  Baker pointed  out  to the  committee  the total  match                                                                    
listed at the bottom of Slide 12.                                                                                               
                                                                                                                                
9:56:03 AM                                                                                                                    
                                                                                                                                
Mr.  Baker  addressed  slide   13,  "Additional  Support  of                                                                    
Federal Initiatives":                                                                                                           
                                                                                                                                
     Administration                                                                                                             
          ?Cyber Security Upgrades and Security Monitoring                                                                      
          Improvements $2,849.0 UGF                                                                                             
     Environmental Conservation                                                                                                 
          ?SPAR Database Upgrades and Improvements $1,300.0                                                                     
          UGF                                                                                                                   
          ?State Brownfield Sites Clean-up $1,000.0 UGF                                                                         
          ?Water Quality Additional Program Implementation                                                                      
          Support $135.4 UGF; 1 PFT                                                                                             
     Natural Resources                                                                                                          
          ?Critical Minerals Resource Mapping $3,000.0                                                                          
          ($2,750 UGF, $250 SDPR)                                                                                               
                                                                                                                                
Mr.  Baker  looked  at  slide  14,  "Congressional  Earmarks                                                                    
(FY22):                                                                                                                         
                                                                                                                                
     Alaska Housing Finance Corporation (AHFC)                                                                                  
          ?Teacher, Health Professional and Public Safety                                                                       
          Housing Program $4,000.0 ($2,000.0 Fed, $2,000.0                                                                      
          UGF)                                                                                                                  
          ?Includes $2,000.0 UGF match to specially address                                                                     
          Public Safety housing needs                                                                                           
     Natural Resources                                                                                                          
          ?Coastal and Nearshore Mapping $5,000.0 Fed                                                                           
                                                                                                                                
Co-Chair Bishop wondered whether  the Alaska Housing Finance                                                                    
Corporation  (AHFC)  had  worked   with  the  Department  of                                                                    
Education and  Early Development  (DEED) to  address teacher                                                                    
housing.                                                                                                                        
                                                                                                                                
10:02:11 AM                                                                                                                   
                                                                                                                                
JAMES  WIEDLE,  BUDGET   DIRECTOR,  ALASKA  HOUSING  FINANCE                                                                    
CORPORATION,  ANCHORAGE (via  teleconference), replied  that                                                                    
the  Teacher Housing  Program built  a number  of homes  for                                                                    
teacher housing in  rural Alaska. He stated  that there were                                                                    
some conversations with  DEED over the years,  but there was                                                                    
not yet a prioritization list.                                                                                                  
                                                                                                                                
Co-Chair Bishop felt  that teacher housing should  be made a                                                                    
priority immediately.                                                                                                           
                                                                                                                                
Senator Wilson agreed.  He looked at slide  13, and wondered                                                                    
how the  additional funding through the  infrastructure bill                                                                    
would put a strain on the program.                                                                                              
                                                                                                                                
Mr.  Steininger replied  that the  project would  enable the                                                                    
work in a more effective way.                                                                                                   
                                                                                                                                
10:05:48 AM                                                                                                                   
                                                                                                                                
Mr.   Baker   addressed    slide   15,   "Coordination   and                                                                    
Implementation":                                                                                                                
                                                                                                                                
     Office of the Governor                                                                                                     
          ?State  Infrastructure  Planning and  Coordination                                                                    
          $5,480.0 ($5,000.0 UGF, $480.0 CIP); 2 PFT                                                                            
     Alaska Municipal League (AML)                                                                                              
          ?Local Government Capacity  Building and Technical                                                                    
          Assistance $500.0 UGF                                                                                                 
     Alaska Federation of Natives (AFN)                                                                                         
          ?Navigator Program $2,500.0 UGF                                                                                       
                                                                                                                                
10:10:26 AM                                                                                                                   
                                                                                                                                
Co-Chair   Stedman   expressed  concern   about   multi-year                                                                    
appropriations.                                                                                                                 
                                                                                                                                
Mr. Baker  pointed to slide  16, "Investment  in Competitive                                                                    
Opportunities":                                                                                                                 
                                                                                                                                
     Electric Grid Modernization -AEA                                                                                           
          ?Grid  reliability,  resiliency  and  transmission                                                                    
          $6,000.0 ($1,000.0 UGF, $5,000.0 Fed)                                                                                 
     Clean Hydrogen Technologies -AGDC                                                                                          
          ?Clean   hydrogen    research,   development   and                                                                    
          demonstration  $6,000.0  ($1,000.0  UGF,  $5,000.0                                                                    
          Fed)                                                                                                                  
     Carbon Capture and Sequestration -DNR                                                                                      
          ?Carbon   technology    infrastructure   research,                                                                    
          development  and demonstration  $6,000.0 ($1,000.0                                                                    
          UGF, $5,000.0 Fed)                                                                                                    
     Rare Earth and Critical Minerals -UA                                                                                       
          ?Rare Earth Elements  (REE) Demonstration Facility                                                                    
          $500.0 UGF                                                                                                            
          ?Critical  Minerals   Security  Projects  $9,500.0                                                                    
          ($2,000.0 UGF, $7,500.0 Fed)                                                                                          
                                                                                                                                
Senator  Wilson queried  the  Railbelt Electric  Reliability                                                                    
organization progress.                                                                                                          
                                                                                                                                
10:16:19 AM                                                                                                                   
                                                                                                                                
CURTIS THAYER, EXECUTIVE  DIRECTOR, ALASKA ENERGY AUTHORITY,                                                                    
ANCHORAGE (via  teleconference), explained that  the council                                                                    
was   currently  underway,   and   had   filed  a   300-page                                                                    
application  and would  be approximately  18 months  to work                                                                    
through  the process  to become  an entity.  He stated  that                                                                    
there was not  that window of time, so  the guidelines would                                                                    
be  released  soon.  He  stated that  there  was  work  with                                                                    
entities to apply  for the available funding at  the time of                                                                    
approval.                                                                                                                       
                                                                                                                                
Co-Chair Stedman cautioned against  adding wind turbines. He                                                                    
wondered  why  the  carbon  capture was  not  going  to  the                                                                    
university for research.                                                                                                        
                                                                                                                                
Mr. Baker replied that the  clean hydrogen technology had $8                                                                    
billion from  the federal government to  fund clean hydrogen                                                                    
hubs. He stated  that the objective was to  put public money                                                                    
into the technology.                                                                                                            
                                                                                                                                
10:20:48 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman expressed  concern, because  there was  an                                                                    
attempt to  work with  the university on  the heavy  oil and                                                                    
hydrocarbon basin.                                                                                                              
                                                                                                                                
Mr. Baker agreed,  and stated that the  university needed to                                                                    
be a key component of the partnership.                                                                                          
                                                                                                                                
10:23:19 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:23:31 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:23:36 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop discussed the schedule.                                                                                         
                                                                                                                                
SB  241  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 241 22.04.06 GOV Infrastructure Bill SFIN FINAL.pdf SFIN 4/13/2022 9:00:00 AM
SFIN 4/19/2022 9:00:00 AM
SB 241
SB 241 Attachment 3 Capital Project for Wildlife Restoration Pittman-Roberston Funding.pdf SFIN 4/19/2022 9:00:00 AM
SB 241
SB 241 Attachment 2 Chinook Projects.pdf SFIN 4/19/2022 9:00:00 AM
SB 241
SB 241 Attachment 1 Indentified Orphan Wells.pdf SFIN 4/19/2022 9:00:00 AM
SB 241
SB 241 OMB Response to SFIN SB241 Questions.pdf SFIN 4/19/2022 9:00:00 AM
SB 241