Legislature(2013 - 2014)ANCH LIO Rm 220
06/25/2013 01:00 PM House ARMED SERVICES COMMITTEE
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| Alaska Military Industry Strategic Plan Findings and Recommendations | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT ARMED SERVICES COMMITTEE
Anchorage, Alaska
June 25, 2013
1:08 p.m.
MEMBERS PRESENT
Representative Dan Saddler, Co-Chair
Senator Pete Kelly, Co-Chair
Representative Eric Feige - via teleconference
Representative Doug Isaacson
Representative Bob Lynn
Representative Geran Tarr
Senator Fred Dyson
Senator Anna Fairclough
Senator John Coghill
Senator Bill Wielechowski
PUBLIC MEMBERS
Lieutenant General Tom Case - (retired) (via teleconference)
Major General Jake Lestenkof - (retired)
Brigadier General George Cannelos - (retired)
Colonel Tim Jones - (retired) (via teleconference)
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Shelley Hughes (via teleconference)
COMMITTEE CALENDAR
Alaska Military Industry Strategic Plan, Summary Briefing of
Findings and Recommendations
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MCHUGH PIERRE, Deputy Commissioner
Department of Military and Veterans Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Participated in the discussion about the
Alaska Military Industry Strategic Plan.
STEVE HYJEK, Consultant
Hyjek and Fix, Inc.
Washington, D.C.
POSITION STATEMENT: Presented the Alaska Military Industry
Strategic Plan findings and recommendations.
ACTION NARRATIVE
1:08:07 PM
CO-CHAIR DAN SADDLER called the Joint Armed Services Committee
meeting to order at 1:08 p.m. Present at the call to order were
Senators Dyson, Fairclough, Coghill, Wielechowski and Co-Chair
Kelly; and Representatives Isaacson, Lynn, Tarr, Feige (via
teleconference) and Co-Chair Saddler. Public members in
attendance were Lieutenant General (retired) Tom Case (via
teleconference), Major General Jake Lestenkof (retired),
Brigadier General George Cannelos (retired), and Colonel Tim
Jones (retired) (via teleconference).
^Alaska Military Industry Strategic Plan Findings and
Recommendations
Alaska Military Industry Strategic Plan Findings and
Recommendations
CO-CHAIR SADDLER reviewed the history of the Joint Armed
Services Committee (JASC). He stated that JASC was established
in the 1990s in response to one of the first rounds of Base
Realignment and Closure Commission (BRAC). The committee is
comprised of five Senators, five Representatives, and six public
members with a mission to monitor and address potential
realignments of military facilities in Alaska; to advocate for
the National Missile Defense System in Alaska; to seek ways to
attract new missions to Alaska bases; and to support increased
joint military training in the state. The mission is
particularly timely as the country faces tremendous budget
pressures brought about by the planned budget reductions, forced
reduction and strategic reorientation toward the Pacific
theatre, the process of budget sequestration, the possibility of
future BRAC rounds, and the hollowing of Alaska forces as is
seen with the proposed transfer of F-16s from Eielson Air Force
Base (AFB) to Joint Base Elmendorf-Richardson (JBER).
He reminded everyone that Alaska's military services and
agencies are essential for national defense, for force
protection, for joint training and preparedness, the stability
of the state's economy, and the safety of its citizens. In
recognition of these facts, the legislature last year funded a
contract to hire a leading national consulting firm to advise
the state on how to soften the blow of reductions and how to
take advantage of the changing defense environment. He said the
committee would hear a presentation from consultant Steve Hyjek
of Hyjek and Fix, Inc. He is joined by McHugh Pierre the Deputy
Commissioner of the Department of Military and Veterans Affairs.
He asked Mr. Pierre to provide opening remarks and introduce Mr.
Hyjek.
1:10:35 PM
MCHUGH PIERRE, Deputy Commissioner, Department of Military and
Veterans Affairs, Fort Richardson, Alaska, extended regards from
General Katkus who was delivering the State of the State at the
National Guard Bureau. He relayed that General Katkus is pushing
hard to get an associate unit with the KC-135s (refueling
tankers) at Eielson AFB. He reported that there is considerable
support for this from the National Guard Bureau and Pacific Air
Forces (PACAF). Now it is a matter of gaining support from the
Air Mobility Command (AMC). He said it's critical to get all the
pieces lined up in order to get more manpower at Eielson AFB and
then set the stage for more airplanes.
MR. PIERRE discussed the national environment. He explained that the
Department of Defense (DOD) is going through an historic after-
conflict drawdown and a 25-30 percent reduction in the overall DOD
budget can be expected. Procurement is generally the first to go in
this situation and basing needs are part of the discussion.
MR. PIERRE explained that the state is exiting the contract with Hyjek
& Fix, Inc. because of internal changes in that company. He said the
DMVA will address the new concerns and needs when it issues a new
Request for Proposal (RFP) in July. He opined that the state is on a
great path forward to benefit the military community in Alaska.
MR. PIERRE introduced Mr. Hyjek with the explanation that he is the
author of the report and that he was invited to talk about what he did
working with the DMVA, Alaska Military Force Advocacy and Structure
Team (AMFAST), and the Governor's Office to develop the strategic
plan.
1:13:12 PM
STEVE HYJEK, Consultant, Hyjek and Fix, Inc., discussed the 2011
Budget Control Act, the actions of the congressional super
committee, and the current situation called sequestration to
help explain what led to some of the actions that are proposed
in the Alaska Military Industry Strategic Plan. He said
sequestration sets out budget ceilings on an annual basis for
the period of FY13-FY21. FY13 is a particularly difficult year
because the DOD and most agencies decided to operate as though
sequestration would not occur.
1:15:34 PM
He addressed the process of sequestering work. He explained that
the Budget Control Act requires the defense budget to find $42.7
billion in savings between April 1, 2013 and September 30, 2013.
Because DOD was operating as though sequestration would not
occur, it has to now find a way to squeeze those savings out of
the last five to six months of the fiscal year. It also means
that all the defense budgetary resources are being cut 7-8
percent. That has resulted in the grounding of aircraft and the
reduction of training exercises except for overseas deployment.
FY14 is also a very difficult year because "it is the bottom of
the trough as it pertains to cuts between now and the end of the
Budget Control Act, which is FY21."
MR. HYJEK displayed statistics from the Congressional Research
Service to show that the reduction in the last six months of
FY13 is 7.2 percent and the annual reduction in FY14 is 3.4
percent. DOD has the ability to plan for reductions after FY14,
which will make it easier. He said the takeaway message is that
DOD will take hits on the order of more than $40 billion this
year. The President's budget that was submitted to Congress does
not reflect sequestration so Congress will have to cut the FY14
defense appropriation to $475 billion or sequestration will
provide automatic cuts across the defense accounts.
1:17:02 PM
MR. HYJEK warned that while life will get slightly brighter for
DOD and other agencies after FY14, the longer sequestration goes
the harder it will be to get rid of.
He displayed a graph showing the budget ceilings to illustrate
that defense spending won't be outside the norm in the out
years. He described the process of sequestration as difficult
but manageable. He displayed a slide showing budget trends and
personnel impacts to illustrate that defense is a cyclical
business. However, DOD and Congress have to be cognizant that
they have to provide sufficient flexibility for the future. Mr.
Hyjek said those are some of the arguments for supporting Alaska
military installations. He clarified that the numbers include
modernization, operations and maintenance, infrastructure,
personnel, and healthcare costs. Overseas contingency operations
are also included.
MR. HYJEK displayed a slide to give an idea of the various
elements that the Department of Defense can cut, and how they
will likely occur. He emphasized that modernization gets cut
first, because it is the largest account in terms of funding.
However, the largest savings comes from cutting personnel
because that saves money into the out years. There are structure
reductions today and more program cuts will come in the future.
1:21:47 PM
MR. HYJEK reviewed the places that DOD can cut: base closures,
reduce force structure, cancel weapons systems, close contractor
operated towers, cut food inspectors.
He said the administration characterized sequestration as "the
sky is falling" but that hasn't happened. What occurs is that
Congress now has the ability to say the dire consequences that
were promised didn't occur, so there is no reason to believe
that some of the other dire consequences that were projected
will actually happen.
He discussed the flight reductions for operational and training
aircraft. There are significant reductions in terms of
operations and maintenance, which is taking care of facilities
and training. In Alaska that means impacts to the Red Flag
exercises. He said two issues arise when training doesn't occur
on a regular cycle. The ability to deploy quickly and
efficiently is impacted, and there is a 3-6 month lag to get
back to the readiness ratings a field commander would want to
have. He highlighted that DOD is looking at a $1.2 billion
defense cut in terms of spending, well over 130,000 personnel
reduction, and a zero percent reduction in infrastructure.
1:24:47 PM
MR. HYJEK stated that the Air Force and Army are big presences
in Alaska and they are the biggest drivers behind the desire for
a BRAC within the administration. The Air Force is big business
in Alaska. It has a lot of assets and it takes a lot of money to
manage the many moving parts. He said they have to find ways to
be more efficient and cut the cost of running their physical
plant.
He credited the Air Force with looking beyond physical
encroachments to things like spectrum encroachment, waste water
treatment, and other impacts. Sixteen areas of potential
encroachment have been identified in what is called the
Installation Complex Encroachment Management Action Plans
(ICEMAP). He noted that the Air Force is about a year ahead of
the Army in this area but the Army is looking to replicate this
capability. He noted that at this point there are no ICEMAP
plans for Alaska.
1:26:59 PM
REPRESENTATIVE ISAACSON asked how the Joint Land Use Study
(JLUS) in the Fairbanks North Star Borough supplements the
efforts to save Eielson AFB.
MR. HYJEK replied that JLUS is for both Army and Air Force
installations. The Army has a program called the Army
Compatibility Use Buffer (ACUB) program that allows them to look
at how to manage potential future encroachment. The JLUS for
Eielson AFB provides the baseline to be able to ensure there are
no physical airspace encroachments today. JLUS will not cover
the new full spectrum items that are part of ICEMAP, but it is
an important foundation for managing encroachments into the
future.
REPRESENTATIVE ISAACSON asked if that supports the argument for
keeping Eielson AFB.
MR. HYJEK replied it's a plus without a doubt, but it isn't the
key. The Air Force is looking for ways to create
intergovernmental partnerships that benefit both the community
and the installation. The Air Force is basically asking what the
community can do to help it stay the community because it will
be mutually beneficial.
1:29:52 PM
MR. HYJEK said the Air Force has begun tabletop exercises at 15
installations. Part of the discussion with the Air Force two
weeks ago was to make sure that Alaska is on the FY14 tabletop
manifest.
MR. PIERRE added that the Air Force hasn't said that Alaska
needs that as a gateway and it is well ahead of what would
normally be done for a tabletop exercise, but to help out it can
do the tabletop with Alaska. If Alaska continues to move along
without needing the exercise, he said the state will implement
shared services in coordination with the borough with the
borough in the lead. That can be moved from the Fairbanks North
Star Borough to the Municipality of Anchorage to allow shared
services to work there as well. Shared service can help all
regions of the state that have military facilities and save
costs for both entities.
CO-CHAIR SADDLER asked for examples of the kinds of services
that are shared with communities.
1:31:24 PM
MR. HYJEK displayed a list of the shared services the Air Force
is evaluating within the tabletop exercises. He noted that one
that isn't on the list but is worth looking at is commissary
services in Class VI (liqueur) stores. The question is whether
that's a government function that needs to be retained by the
government; is that a way to create benefits to the community,
the installation and the military community including retirees.
He noted that the Air Force has said that the state's only
constraint is the ideas it comes up with. The Air Force is just
beginning to release a public policy letter and the Secretary of
the Army indicated she would issue a policy letter in the next
few weeks. They hope to have guidelines for Army installations
by the end of the year.
MR. HYJEK said the point of spending so much time on shared
services is to emphasize that the state needs to be proactive,
because DOD is looking for partnerships in this budget
constrained environment. The more the state is intertwined and
in mutually beneficial partnerships, the harder it will be for
DOD to walk away.
CO-CHAIR SADDLER recognized that Representative Shelley Hughes
was online.
MR. HYJEK displayed a slide from Assistant Secretary of the Army
Katherine Hammack's presentation at the Association of Defense
Communities. It illustrates the dramatic drop in base operation
support costs. He noted that the numbers are based on the
President's budget request before the $45 billion cut so the
number will get even smaller.
CO-CHAIR SADDLER asked what the acronym stands for.
MR. HYJEK explained that BOS stands for base operations support,
MILCON stands for military construction, O&M stands for
operations and maintenance, SRN stands for sustainment,
restoration and modernization (minor military construction), and
FP stands for family programs.
SENATOR DYSON asked which category acquisition of weapons
systems would fall under.
MR. HYJEK clarified that he was only showing the Army
installations portion of the budget.
He displayed a slide from Ms. Hammack that shows the cyclical
nature of Army end strength. He acknowledged the announcement
today that as part of their force structure adjustment, the Army
would reduce their end strength by 72,000 people by 2019, which
has an Alaska impact. He said the Army and Air Force desperately
need BRAC, but the problem is that BRAC 2005 was very poorly
executed. It was not a cost saving.
Mr. Hyjek said he is not advocating BRAC, but the Air Force
Force Structure Adjustments hit Eielson AFB last year and the
Army force structure adjustment has some impacts in Alaska
today. The Air Force has already indicated that if a BRAC isn't
authorized for 2015, there will be another force structure
adjustment released in February 2014 as part of the Air Force
FY15 budget process. That raises the question of whether to
operate with the risks and benefits and process that is open and
transparent and has an independent review, or leave it to
unelected officials in the DOD to decide where to make cuts,
where to starve installation budgets, and where to reduce
personnel or take missions away. The latter choice leaves no
other course or alternative but for Congress to block the entire
force structure adjustment, and that is unlikely to happen.
1:36:13 PM
MR. HYJEK said he is making no recommendations but there are
certainly two sides to the coin that's the BRAC process. He
directed attention to a slide that articulates the need for
BRACs from the perspective of the Air Force.
1:36:43 PM
GENERAL LESTENKOF asked if there were any savings for the Army
or Air Force as a result of joint basing.
MR. HYJEK replied that the anecdotal information is that there
hasn't been a significant savings, but the belief is that it
will ultimately lead to cost savings. Similarly, there's still a
belief that there will eventually be significant savings from
BRAC 2005.
MR. PIERRE added that local reports indicate there has been an
increase in costs at JBER. The reason is that the individual
installations at both Fort Richardson and Elmendorf Air Force
Base had much lower than required base operating costs. The
requirements that were identified during the joint basing
process increased the overall budget of the joint base but
through the sequestration process the costs have come back down.
1:38:34 PM
MR. HYJEK described the strategic plan that Hyjek & Fix, Inc.
developed in conjunction with the Alaska Military Force Advocacy
and Structure Team (AMFAST) group. He noted that the AMFAST group
reviewed and approved the items in the presentation. He reiterated
that the Budget Control Act reductions particularly constrained
personnel costs modernization costs, and operations and
maintenance.
MR. HYJEK addressed force structure adjustments. He explained
that last year when the Air Force released their force structure
adjustment proposal it was met with significant resistance by
Congress. The Army learned a lesson from that and when they did
their force structure adjustment they developed a process. They
went through the Programmatic Environmental Assessment process
and identified 21 installations and the effect of losing or
gaining personnel, including the economic impact. Listening
sessions were held in each location and the public and public
officials came in for comment. He noted that the Air Force
learned from that and will be using the same process for
preparations for next year.
MR. HYJEK described the information that he received today that
is very positive overall for Alaska. Fort Wainwright will gain
approximately 552 people, the 4th Brigade and the 25th Brigade
will gain an enhanced engineer and mission command elements, and
Fort Richardson will lose approximately 894 military personnel
spaces. Although Alaska will lose about 345 personnel spaces,
the average loss in states that have military installations is
1,500. This validates the points about Alaska's tremendous
training environment, its current infrastructure, and its
strategic location.
Alaska has done a good job of holding its own, but it has to be
prepared for what comes next.
CO-CHAIR SADDLER asked if those decisions are "done deals" for
which there is no appeal.
MR. HYJEK replied the final decisions were announced today and
there will be a press release tomorrow. Absent legislation from
the U.S. Congress, there will be no changes.
CO-CHAIR SADDLER thanked members of the committee and others in
the state that took part in the comments on the "Defend Alaska"
position. It's a good example of how it works to pull together.
1:42:40 PM
REPRESENTATIVE ISAACSON directed attention to the two handouts
he distributed thanks to the Tiger Team and the Fairbanks
Economic Development Corporation. He said the Air Force already
has their Strategic Basing Process and it doesn't appear to have
been followed at all so the document is convoluted and
contradictory to known facts. He asked if that might be a leg to
stand on in this battle.
1:44:01 PM
MR. PIERRE asked for clarification about the document he was
referencing.
MY. HYJEK said he wasn't defending the Air Force, but the
strategic basing plan is a process that's used for new missions
versus force structure adjustments. The latter are the ability
to move manpower or equipment that is not subject to either 10
USC 2687, which is the BRAC law or 10 USC 993, which constrains
the realignment of installations. The Air Force Strategic Basing
Process is primarily designed for purposes evaluating bases to
come up with a preferred alternative. He said his personal
experience is that the process has sometimes recommended course
A and the Air Force has selected course B, because the trump
card in all these actions is military judgment. If military
judgment supersedes the strategic basing analysis, that will be
the deciding factor by Air Force leadership. The Air Force
describes this as a defendable, transparent, repeatable process.
1:46:06 PM
REPRESENTATIVE ISAACSON summarized that the state is
misinterpreting the strategic basing process application to the
F-16 move even though the Air Force is looking for a home for F-
16s
MR. HYJEK said correct. If it's a mission that is already there,
what's being done is an internal force structure operational
cost analysis. Separately, Pacific Air Force (PACAF) General
Carlisle is doing a strategic assessment within his command of
Eielson AFB and how it fits into the Air Force for the future.
He clarified that is a command review and not part of the
strategic basing process.
REPRESENTATIVE ISAACSON said his testimony to the Air Force
information seeking group was that the SATAF came at the wrong
time.
MR. HYJEK explained that SATAF is a group of Air Force officers
that are tasked with finding out how to execute a basic plan
that has been provided to them. In the case of Representative
Isaacson's testimony before SATAF, the Air Force made an
internal analysis that resulted in the force structure process
announced in March 2012 for FY13, which included the 18th
Aggressor Squadron move from Eielson AFB. As a result of the
announcement, the Air Force has to have an implementation plan
to execute the movement that was part of the force structure
process. To develop the Plan, a Site Activation Task Force
(SATF) is sent out and their defined mission is to figure out
how to execute the answer. They went out of the norm for
purposes of the 18th Aggressor SATF because of the concerns
expressed by the community, the state, and the Alaska
delegation. Normally they wouldn't take public testimony for a
SATF because it's an internal review. This was an exception to
the rule because of the contentiousness of this particular
action.
He reiterated that the foregoing is separate from the Strategic
Basing Process, which is also an internal Air Force process done
at Air Force headquarters with input from the bases and various
major commands.
1:48:44 PM
REPRESENTATIVE ISAACSON asked if the validity of the EIS is
compromised if it's basically the same document as the SATF.
MR. HYJEK discussed the basic difference between an EIS and
SATF. He explained that the EIS has a public process where new
input is taken and if that is substantial and shows there's been
a clear deviation from fact leading to the preferred
alternative, the Air Force would be compelled to modify the
preferred alternative in their final EIS. The SATF doesn't need
public input; it basically identifies the end point and how to
get there.
REPRESENTATIVE ISAACSON expressed frustration that none of that
is reflected in the document, and relief that all public
communication has to be included in the final EIS.
1:52:08 PM
MR. HYJEK highlighted that not every record of decision reflects
the preferred alternative. He cited an example and emphasized
that those who have concerns must put together solid, fact-based
data and substantiated arguments to show the flaws in an EIS.
MR. HYJEK discussed the Strategic Plan Development. He relayed
that the process included gathering input from multiple database
resources such as DOD budget materials, lessons from BRAC 2005
and subsequent Force Structure analyses, and information from
Alaska installations and their surrounding communities. The
participants in the analysis included: the Alaska installations,
AMFAST, ADMVA, DOD, the Alaska Congressional Delegation, the
State of Alaska and its consultant. The objective is to protect
what Alaska has and look for opportunities to expand. Efforts
were focused on partnering with DOD on shared services.
He highlighted that this version of the presentation has been
sanitized to a certain extent to protect against out-of-state
competitors. A more detailed document is available for review,
but not in a committee hearing.
1:56:33 PM
MR. HYJEK said that overall the Strategic Plan stresses Alaska's
strategic location and unencumbered training space. This is a
military friendly state whose military defense role is growing.
Alaska has good will and that translates to real advantage in
times of constrained budgets. That message has to be taken out
to the major commands that oversee the installations in Alaska
as well as the DOD.
He discussed the prospect of expanding training for U.S. Army
units from the Lower 48. Prepositioning equipment in Alaska will
make it easier and more likely to attract interest versus
hauling all the equipment themselves at huge cost.
REPRESENTATIVE ISAACSON asked for specifics.
MR. HYJEK replied that the forces are being drawn down by 72,000
people and some of the equipment those people used will remain
in Alaska. Also, the U.S. Army Pacific and PACOM are looking at
prepositioning stores in either Hawaii or Alaska. Part of the
Strategic Plan is to help define what the package would look
like and identify where to secure those assets. Further, the
Alaska delegation can help convince the Army leadership to help
provide the tools to help others to come here and train, because
it's a cost savings.
REPRESENTATIVE ISAACSON asked if the legislature needs to
appropriate funds to build storage structures.
2:01:06 PM
MR. HYJEK replied that's a measure of good faith that the state
should consider, but it's a question of risk management and
whether it's putting the cart before the horse.
REPRESENTATIVE ISAACSON questioned whether Alaska might be
behind the power ball, because some states, like Louisiana, are
already building in hope of the mission.
MR. PIERRE said that is the point he and Mr. Hyjek are trying to
make; is that other states are doing it and Alaska needs to
figure out how to compete. What Alaska has to offer that's
better than any other state is training space. The next step is
to identify how much to spend and where to spend it to get the
best bang for the buck.
REPRESENTATIVE ISAACSON added that the key might be to identify
the amount of prepositioned equipment.
MR. HYJEK suggested the target should be a battalion size. He
reiterated that the more the state steps up to the plate and
makes an offer, the more difficult it will be for DOD to say no.
Returning to the presentation, Mr. Hyjek said there is some hope
that there will be some positive movement involving F-35 actions
that could impact the state. He opined that Alaska is very well
positioned for purposes of Outside the Continental United States
(OCONUS) basing.
MR. HYJEK discussed the importance of the U.S. Coast Guard to
Alaska. He relayed that Rear Admiral Underwood has been very
active working with the AMFAST team and the state on what to do
to support the Coast Guard including modernization of the light
combat rescue helicopter. He noted that Mr. Pierre has plans
regarding Coast Guard leadership visiting the state.
MR. PIERRE mentioned the legislature's support that allowed
AIDEA to lend to federal entities. In particular, a building is
under construction on Joint Base Elmendorf Richardson for
Anchorage Sector to be co-located with ADMVA. This will provide
Alaska with the search and response nexus that no other state
has. He relayed that he would accompany Secretary Napolitano on
a tour of the facility and would also promote adding a squadron
of C-27J Spartan aircraft on JBER or Eielson AFB. Existing
infrastructure could be utilized and allow the Coast Guard to
patrol the Arctic while keeping the C-130s in Kodiak to police
the biomass. He noted that the Coast Guard, thankfully, is not
under the same budget cuts.
2:06:28 PM
MR. HYJEK discussed the priority actions that have been
identified for purposes of the Strategic Plan. He identified
energy cost reductions to the DOD in Alaska as a priority action
item for maintaining Alaska's bases and military missions in a
constrained budgetary environment. A long-term solution may
require the state to execute a strategy for conversion of coal-
based energy generation in northern Alaska to natural gas based
power generation to address military, community and economic
development needs for lower life-cycle utility costs. He asked
Mr. Pierre to talk about a recent conversation with Mr. Bridges
on the issue of energy and the potential for the use of natural
gas for power generation versus coal.
2:07:53 PM
MR. PIERRE stated that the discussion centered on the antiquated
power plant at Eielson AFB. The 1950s era boilers are being
replaced slowly, but not quickly enough to benefit the community
and air quality. One solution is for the state to step in and
replace the boilers and send energy down to Fairbanks. It will
help the air quality in Fairbanks if the energy is generated at
Eielson AFB, and at some time in the future the boilers could be
upgraded to burn natural gas. He noted that every four boilers
would be replaced with three new ones.
MR. HYJEK addressed the action item to develop state, community
and industry partnerships that cut costs to military
installations in Alaska. He described the Patriot Power plan
that the New York Legislature implemented in 2005 to provide
military installations an economic development rate, which
resulted in reduced base operation support costs for natural gas
and electricity by 10-15 percent.
SENATOR FAIRCLOUGH asked if Eielson AFB would be allowed to
upgrade its boilers to a new coal-fired plant without new
permitting when the University of Alaska Fairbanks is facing the
same antiquated infrastructure problems with no easy solution
being offered.
MR. PIERRE replied that the new boilers at Eielson AFB were
already permitted, and he didn't know how that intersected with
the issues UAF is facing. He spoke of the challenges associated
with using coal and the importance of getting natural gas to the
area.
SENATOR FAIRCLOUGH asked if replacement boilers were so much
more efficient that only three would be needed rather than four.
MR. PIERRE agreed the new boilers are more efficient and provide
more power.
SENATOR FAIRCLOUGH asked if he was proposing that the state
invest in gas generation plants so that communities could have
better air quality. She also asked if gas plants are more
expensive.
MR. PIERRE explained that natural gas is more expensive but with
the additional filtration costs associated with burning coal it
would be cheaper overall to operate natural gas plants. He added
that he and others have emphasized to the Pentagon that there is
no way the state can invest in physical infrastructure if there
isn't an active duty mission at the base. He acknowledged that
further discussions and cost analysis was warranted.
2:14:15 PM
REPRESENTATIVE TARR asked if the recent work at JBER related to
power generation and consolidation was an example of a shared
services agreement.
MR. PIERRE said no, but it is an agreement where the
Municipality of Anchorage is using the land for the landfill and
the base has taken a green energy initiative to harvest the
natural gas that's developed by the landfill. It's been a
success; costs have been reduced and power production in the
first year is far more than projected. He relayed that Mr.
Bridges is very concerned and involved in the Alaska power
situation. He was eager to see the Eielson AFB power plant
modernized.
MR. HYJEK pointed out that Mr. Bridges is the deputy assistant
secretary for installations, and he sits on the basing committee
that looks at new missions for installations. He also has a role
with regard to the 18th Aggressor Squadron EIS. The fact that he
was engaged on the power plant replacement is an attribute for
consideration, he said.
2:16:46 PM
SENATOR FAIRCLOUGH asked if there is a breakdown on overall
costs for prepositioning assets.
MR. PIERRE answered no; this is the idea stage. Going forward
with it will be necessary to identify the cost of each idea and
what the investment will return.
SENATOR FAIRCLOUGH asked if there is a power share agreement or
some ability to actually lower utility costs for Fairbanks.
MR. PIERRE said there is an agreement where GVEA can buy excess
power and that might have to be developed further under some
type of shared services plan.
SENATOR FAIRCLOUGH suggested that if the state is going to
invest and it lowers the cost of a kilowatt of power, then the
people in the adjacent community should be able to receive that
cost benefit versus a non-profit or a for-profit electrical
utility.
MR. PIERRE said that was the number one concern when the idea
first came up, and the decision was that it wouldn't be prudent
to propose the idea if the community didn't benefit as well.
CO-CHAIR SADDLER relayed that General Hoog was working on a
jurisdictional task force that is addressing the same questions.
He asked public member Colonel Jones if he had any comments.
2:19:47 PM
COLONEL JONES said he wasn't aware of any agreement in place for
the military to sell excess power to the civilian market, but
some sort of agreement could probably be worked out. He agreed
that energy is a major cost driver for the high cost of
operations, but it isn't specific to the military installations.
He pointed out that the high cost of energy in the Interior
drives the higher costs for everything so reducing that overall
cost is what will impact the cost of base services.
2:21:35 PM
MR. HYJEK addressed the action item to promote awareness of
Alaska's strategic and operational value. He recommended a high-
level state delegation of legislators, local officials, and
others go to PACAF and the Pentagon to meet with senior Army and
Air Force officials and the Office of the Secretary of Defense.
He emphasized the importance of going to these meetings prepared
with clear objectives and credible knowledge of the issues to
show that the state is proactive and prepared to take whatever
action is necessary.
He acknowledged that it would cost money, but as part of the
strategic plan he would suggest having a well-recognized
organization like the Center of Strategic and International
Studies (CSIS) do a paper that is specific about the strategic
location of Alaska to project power quickly east and west to
Europe and the Pacific Rim. That can be used as a cost analysis
for doing business from Alaska versus any location in the Lower
48. He noted that Dr. John Hamre heads CSIS and is the former
Deputy Secretary of Defense.
CO-CHAIR SADDLER asked if a cost analysis of Alaska's strategic
location would be seen by the Pentagon as a credible counter
argument.
MR. HYJEK opined that it would help; while it may not have the
level of detail that DOD uses on installation analyses, Dr.
Hamre will provide very good metrics to show both the cost and
operational issues.
2:25:06 PM
MR. HYJEK addressed the action item to strengthen the
relationship between the State of Alaska, ALCOM, USARAK and U.S.
Coast Guard District 17. He reiterated that Admiral Underwood is
proactive and very actively engaged working on the needs of the
U.S. Coast Guard and its relationship with the state. General
[Vince] Brooks, the PACOM commander who has just been promoted
to a four star general, will also be very helpful to Alaska and
PACOM drawing together the relationships and ensuring support
for the Army.
REPRESENTATIVE FEIGE asked if Vince Brooks was promoted.
MR. HYJEK answered yes.
MR. HYJEK addressed the action item to leverage opportunities
presented by the U.S. Military Force Structure Adjustments to
expand the military industry in Alaska. He said if the state is
able to prevail on the record of decision to hold the 18th
Aggressor Squadron at Eielson Air Force Base, it is important as
part of the strategy to be looking at how to make it a two
squadron wing so it is more in conformity with other units in
the Air Force. If that effort isn't successful it will be a
target for the next BRAC.
He noted that the discussion earlier with Representative
Isaacson covered the idea of providing additional equipment for
training at Fort Wainwright.
2:28:14 PM
MR. HYJEK addressed the action item to explore infrastructure
improvements needed to expand search and rescue capabilities
provided by the Alaska National Guard and the U.S. Coast Guard.
He discussed that Alaska, New York, California, Arizona, Nevada,
and Florida are not getting modernization dollars for fixed wing
assets or new rotary wing assets. Major command also instilled a
personnel requirement to fill 200-300 billets with no funding.
He said that each of the search and rescue units has tried to
solve their problems in a stove piped effort, but he recommends
the adjunct generals of each of the states and their delegations
create a coalition of those states to be able as a group of
members go to the Department of Defense and the Air Force to
fund the billets or make them go away, and put these rescue
units on the roadmap for C-130Js and make sure the rescue
helicopter program occurs. He further suggested that those
delegations include members on all four defense oversight
committees to include Chair Buck McKeon from Arizona and
minority leader, Senator Reed. He described this as an important
mission going forward.
MR. HYJEK addressed the action item to enhance quality of life
initiatives for military service members living in Alaska. He
said nobody questions the importance of this issue, but in a
constrained budget environment it is important to look for
support from local communities and industry or through non-
fiscally constrained initiatives.
2:31:13 PM
REPRESENTATIVE TARR mentioned the high incidence of sexual
assault and asked for specific suggestions to engage in family
support.
MR. HYJEK replied this isn't specific to sexual assault, but
there are interagency working groups between the garrison
commander's officer and the personnel office at the installation
along with the health and social offices of local government
that address a range of issues, particularly in the area of
behavioral sciences. Also, installations that have the Wounded
Warrior transition units work with local, public and private
sector organizations to help with transitions. He offered to
follow up with specific examples.
2:32:47 PM
MR. PIERRE stated that sexual assault is unacceptable in any
workplace, and the DMVA takes it very seriously. Every
allegation is investigated and the case is passed to local law
enforcement if there is a hint of criminal activity.
He relayed that the military has increased its definition of
sexual assault and as a result there are a lot more reports of
crime. Under every circumstance, sexual assault is inappropriate
and unacceptable, and the behavior is very appropriately
prosecutable.
2:34:53 PM
MR. HYJEK addressed the issue of recruitment and retention. He
said a top priority for the adjutant general and the state is to
get an active association in place to support full manning of
the 168th Air Refueling Wing (ARW) at Eielson AFB. Responding to
a question from Co-Chair Saddler, he clarified that an active
association takes place at a National Guard or reserve base and
is joined by a number of active duty personnel. They are housed
in the community and they co-operate the equipment of that unit.
This is a vehicle to get new platforms into the Guard with
active duty personnel around. The benefit of getting an active
association at the 168th would be more personnel, more
equipment, more ability to support operational and training
mission requirements, and it positions for a future round of KC-
46 basing that will be specifically focused on the Guard.
He explained that classic associations like the 176th at JBER
are more common. They are housed at an active duty installation
and they share air craft and perform missions together.
2:37:08 PM
MR. HYJEK discussed shared services and the ICEMAP. He
emphasized the importance of having communities actively engaged
in identifying specific missions and functions, putting together
the organizational structure to show the military department and
the community the benefits in terms of efficiencies, better
provision of services, and cost savings. He said Alaska is in
the embryonic stages but the start at Eielson AFB shows good
credibility.
He pointed out that ICEMAP only applies to the Air Force, but
will apply to the Army in the future.
2:38:46 PM
MR. HYJEK displayed a list of suggestions regarding U.S. Army
infrastructure. He clarified that these were not part of the
formal agenda approved by AMFAST, but they are tactical issues.
He said ways to help DOD save money is to consider enhanced use
lease, housing privatization, management of rent controls, and
collaboration and cooperation on regulatory issues.
He highlighted that the addition of the military operations in
urban terrain (MOUT) range at JBER was done before the personnel
impacts at Fort Richardson were known, and he wasn't sure what
effect the force structure adjustment would have.
MR. HYJEK displayed a list of suggestions regarding U.S. Air
Force infrastructure. He said some of these items were
identified during the visit to Eielson AFB last year. The basic
message is to keep the infrastructure in place with proper
maintenance. The assets should remain in place for a future
mission or reuse.
MR. HYJEK discussed new missions and mission expansion. He said
the U.S. Army has confirmed its intent to identify an
installation in the 25th Infantry Division for the Gray Eagle
Unmanned Aerial System in either Alaska or Hawaii. The timeframe
is FY15 and potentially the Gray Eagles for Fort Wainwright will
be based either from Fort Greeley or Eielson Air Force Base. The
Secretary of the Air Force just approved a site survey by the
Army and visited Eielson AFB for the purposes of that
evaluation. He said the message is that Alaska wants the
installation to be in Alaska.
Because of the recent major force structure adjustment, he
suggested setting aside the recommendation to study options to
add Air Cavalry attack elements at Fort Wainwright.
2:42:34 PM
REPRESENTATIVE ISAACSON highlighted that the basis for moving
the F-15s from Eielson AFB to JBER is that those F-15 facilities
were not demolished. He further pointed out that part of the
proposal is the possible demolition of all the affected hangers
at Eielson AFB, which then would remove any possibility of
inexpensively moving other missions to Eielson AFB that might
share that equipment.
SENATOR FAIRCLOUGH suggested that Alaska make a global
recommendation to the federal government to reevaluate the
demolition of facilities and infrastructure to make sure it's
for life and safety reasons. Those facilities might have future
value even if they have to be relocated.
MR. HYJEK said he agrees with the global perspective, but the
Air Force will say it is trying to meet the Air Force 2020
objectives regarding reductions of infrastructure and
infrastructure cost. He said he'd add this as an action to take
on.
2:46:23 PM
MR. HYJEK said that one of the recommendations on the issue of
total force is to look at the ability to do distance training.
There is huge potential for the National Guard in the field of
intelligence surveillance and reconnaissance (ISR). It is being
talked about in terms of the RPAs as well as cyber, but it
allows the Air Force to have the Air National Guard heavily
engaged in contingency operations without having to deploy
personnel overseas. He opined that these "reach back" missions
are fertile for expansion and Alaska needs to make sure it is
done as an additive mission not in lieu of something that's in
place.
CO-CHAIR SADDLER asked whose decision that would be.
MR. HYJEK replied the decision would be made by the Alaskan
Command (ALCOM) and the Pacific Command (PACAF) for the Air
Force and U.S. Army Alaska for the Army. The Defense Information
Systems Agency (DISA) is tasked with executing the decision.
2:48:07 PM
MR. HYJEK reviewed the list of recommendations for new missions
and mission expansion for the U.S. Air Force. He noted that he
already discussed the issue of a second squadron at Eielson AFB;
the issue of an active association to work, primarily with Air
Mobility Command, for the 168th Air Refueling Wing (ARW) at
Eielson AFB; and a Distributed Common Ground System and RPAs.
2:49:11 PM
MR. HYJEK displayed recommendations for equipment modernization
for both the U.S. Army and the U.S. Air Force/Air National
Guard. He pointed out that these are issues that the TAG and
installation commanders will work through in conjunction with
the delegation. The recommendation for the U.S. Army is to
examine procurement of additional material handling and loading
equipment needs which will enhance U.S. Army Alaska elements at
JBER to deploy more efficiently. The recommendations for the
U.S. Air Force/Air National Guard include: active support for
the standardization of the 3rd Wing's fleet to Block 17 standard
with extended range fuel tanks; initiate action to secure
National Guard and Reserve Equipment Account (NGREA) funding for
Synthetic Aperture Radar (SABRE) Arm and Sensor pods to be
integrated on the 176th Air National Guard Wing C-130s to
enhance search and rescue operations; and facilitate discussions
for the U.S. Coast Guard inclusion in purchase options for
combat rescue helicopters in conjunction with the 17th District
USCG aviation modernization. A recommendation that is not listed
is to add synthetic aperture radar (SABR) to the helicopters
that are already located in Alaska and used for search and
rescue missions. This radar can be moved from one aircraft to
another which provides flexibility for both military and
civilian search and rescue capabilities.
Responding to a question for further clarification, he explained
that synthetic aperture radar makes it possible to see what
can't be seen with naked eye during the day or night and under
adverse weather conditions.
CO-CHAIR SADDLER questioned how the state would advance these
recommendations, particularly adding SABRE capabilities.
MR. HYJEK offered to follow up with a memo that identifies a
state action for each recommendation.
2:51:27 PM
MR. PIERRE added that it's also a matter of the JASC Committee
oversight of DMVA as it works through these issues.
CO-CHAIR SADDLER recognized the presence of World War II U.S.
Army veteran Father Norman Elliot, and thanked him for his
service.
MR. HYJEK concluded the presentation emphasizing the importance
of speaking with one voice, laying out strategies to augment the
state's advocacy for each military installation in Alaska;
provide updates and regularly engage DOD authorizers and
appropriators; expand community support and engagement for
Alaska installations; and monitor potential BRAC legislation,
Force Structure Adjustments, and DOD budget impacts on bases.
He reminded members that the Department of Defense requested
authorization for another BRAC round in 2015 and that both the
Senate and House Armed Services Committees took negative action
on the request. However, it's important to recognize that the
DOD will get either a new BRAC or the equivalent through Force
Structure Adjustments. The question is which process best
enables the state to articulate its message, have situational
awareness of what is coming, what the impact is, and the
validity of the arguments.
CO-CHAIR KELLY said Mr. Pierre to follow up with a list of five
things the legislature can do in terms of statute changes and
appropriations. He requested the list before the Governor starts
budget deliberations.
MR. PIERRE agreed to do so.
REPRESENTATIVE TARR asked if there would be any opportunity for
Secretary Napolitano to engage with this committee when she
visits the state.
MR. PIERRE explained that it would be a USCG specific visit, but
there might be an opportunity for a meeting if she attends the
grand opening of Sector Anchorage.
2:58:02 PM
SENATOR FAIRCLOUGH asked about date and time specifics for the
delegation trip to Washington, D.C. and who might be asked to
attend.
MR. HYJEK said he would urge a September/October timeframe. The
rationale is that the FY13 legislative process allegedly comes
to a close. That is after the force structure adjustments and
before the decisions regarding the 18th Aggressor Squadron and
other basing actions that may impact Alaska. The services will
also have submitted their FY15 budget execution statements to
the Defense comptroller and the Office of the Secretary of
Defense will be evaluating potential adjustments.
Regarding the composition of the delegation, he suggested a
representative from the Office of the Governor or Lieutenant
Governor, the adjutant general, community leaders from each of
the major installations, state legislators, and civilian
leaders.
MR. PIERRE added that he would like to see members of this
committee go with the Governor or Lieutenant Governor or both.
MR. HYJEK clarified that before the visit he would identify the
issues to cover, develop draft questions, and identify who to
see. The DOD will receive the same information so the
conversations will be more productive.
CO-CHAIR SADDLER recognized the presence of an aide to the
Secretary of the Air Force, an aide to Senator Lisa Murkowski,
and an aide to Senator Begich.
3:01:09 PM
SENATOR DYSON emphasized the importance of not appearing to be
just another self-interested group lobbying for just their own
interests, because DOD in particular has to consider the
national interest. He continued to say that he worries that the
decision makers don't think about Alaska's geographic importance
due in large part to the Mercator projection maps. Furthermore,
they don't understand what's happening in the Arctic or Arctic
transportation. He also questioned whether federal agencies
communicate and exchange information.
MR. HYJEK provided a three point response. He acknowledged that
it's hit and miss on coordination and communication. With regard
to the concern that decision makers in Washington, D.C. may not
understand Alaska's strategic importance, he said that's part of
the reason for the recommendation to engage an independent think
tank to coherently validate Alaska's importance and back it with
empirical data. Finally, it is important to provide DOD with
information on why the installations in Alaska benefit the
Department of Defense and the down range implications if they
aren't there.
3:06:18 PM
GENERAL LESTENKOF agreed that the delegation needs to bring the
strategic picture to the leadership in Washington, D.C. and that
self-serving lobbying isn't effective.
CO-CHAIR SADDLER asked about the current status of civilian and
military relations and communication in Alaska.
MR. PIERRE described General Hoog's community advocacy group and
Mayor Hopkins' monthly meetings with mayors and the military,
and suggested that could be expanded to a state level. The
discussions could center on what's important, what isn't
working, and what can be done to fix it.
3:11:04 PM
GENERAL CANNELOS commented that he was part of a delegation
about 10 years ago and when he visited the Pentagon he naively
thought he would see a lot of polar projection maps and a lot of
understanding of the area. That wasn't the case. He warned
against assuming that decision makers understand the national
strategic importance of Alaska, and suggested diligent work on
the tools and how to present them.
SENATOR FAIRCLOUGH asked if the co-chairs would work with the
governor's office to coordinate a delegation and work on an
orchestrated event. She said she believes that requires a pre-
event to have the members ready to give a presentation. Polar
maps should be included to make it easier to speak to the
advantages of Alaska's strategic importance.
She also discussed DOD's procurement process and the issue of
the military acquiring jet fuel from countries that aren't
friendly to the U.S. She questioned whether that might be part
of the conversation.
3:15:08 PM
MR. HYJEK offered his belief that the DOD will say it's an open
competition and they will take fuel from wherever they can get
it at the right price. He suggested that is an issue for the
congressional delegation to take on, and the state delegation
should focus on the strategic location of Alaska for the first
trip.
SENATOR FAIRCLOUGH said she would be happy to leave the matter
to the congressional delegation, but it's a sensitive issue and
DOD is closed about having the conversation.
CO-CHAIR SADDLER offered his belief that some communication on
the issues outlined would be good.
REPRESENTATIVE ISAACSON opined that it should be discussed
because it's relevant to the value of Eielson AFB. The 20
million gallons of jet fuel at that installation comes from a
small refinery in North Pole, and it's the cheapest
transportation in the whole Air Force system. It is piped from
the Trans-Alaska Pipeline System through Flint Hills and Petro
Star and directly to Eielson AFB. He emphasized that Eielson AFB
is strategic to the national interest because it's at the top of
the world and in a place where fuel is readily accessible.
3:19:36 PM
REPRESENTATIVE TARR asked if the fact that Alaska has the
highest number of veterans per capita of any state works to
Alaska's advantage in terms of facility closures.
MR. PIERRE responded that has been mentioned as part of the EIS
process, because veterans utilize health facilities at bases
that could potentially be closed, but that's not part of the
discussion.
SENATOR FAIRCLOUGH added that it certainly would be an item for
the delegation talk about the importance of community and how
Alaska supports military personnel and families. Legislation
that renews that commitment annually could be cited and then the
veteran component could be brought in to support whatever
strategy the delegation brings forward.
She referenced Representative Isaacson's comment and suggested
that the state may prefer a formalized process versus an
informal force restructuring process.
MR. PIERRE highlighted that procurement costs of the military
can be lowered through shared services.
3:23:22 PM
GENERAL CASE commented [outside microphone range.]
MR. PIERRE referenced General Case's comment about the Arctic
and relayed that Stefanie Moreland is leading the discussions
about Arctic policy issues from the executive branch
perspective. She always highlights that Alaska is the reason
that the U.S. is an Arctic nation.
SENATOR COGHILL asked if the governor is already looking at CSIS
doing an independent review, and if the legislature can help.
MR. PIERRE replied it's not at that level.
SENATOR COGHILL offered his view that it should be at the top of
the priority list so that Alaska doesn't appear self-serving.
With regard to the active association, he asked if Alaska has
any advantage to highlight in the new dynamic of having the
reserves be more active in enforcement, deployment, and support.
MR. HYJEK mentioned the 168th mission to support aircraft to the
north, and said it comes back to the fact that Alaska's
geography is an asset.
SENATOR COGHILL said he was going to be looking for what the
legislature can do to make the Air Guard more attractive. He
also asked about cooperation with Canada on SAR missions, and if
there is anything the state can do better.
3:26:47 PM
MR. PIERRE replied the state can't do better; Alaska is DOD's
Arctic search and rescue effort and there is weekly coordination
with Canada.
SENATOR COGHILL asked if that asset should be put forward in
Washington, D.C.
MR. PIERRE said the Pentagon sees the search and rescue efforts
as more a civilian need than a State Department concern.
SENATOR COGHILL said he missed that the Air Mobility Command is
an important factor.
MR. HYJEK clarified that Air Mobility Command is the decision
authority with regard to the approval of the active association
and the allocation of equipment. It's a shared decision that is
driven by Air Mobility Command. The delegation should definitely
talk with them, but not necessarily in conjunction with the D.C.
visit.
3:29:59 PM
CO-CHAIR KELLY asked Mr. Pierre to provide a list of people who
have served in Alaska and currently reside in the Pentagon.
MR. PIERRE said General Troy and General Garrett immediately
come to mind.
CO-CHAIR SADDLER identified issues for the next meeting: things
the legislature can do to address the short term
recommendations; an update from Mr. Pierre and Mayor Hopkins on
the Defense Communities Association meeting; a presentation from
Mayor Hopkins and Representative Isaacson and others from
Fairbanks about their efforts to defend Eielson AFB; the long
term actions the legislature should take up going forward;
approve updated comments on the Eielson EIS; and a tour of
Eielson AFB.
REPRESENTATIVE TARR highlighted the U.S. Army Legislative Day at
JBER. She expressed hope of a report on Secretary Napolitano's
upcoming visit at the next meeting.
3:33:58 PM
There being no further business to come before the committee,
Co-Chair Saddler adjourned the Joint Armed Services Committee
meeting at 3:33 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Hyjek & Fix - Alaska Military Industry Strategic Plan (2).pdf |
JASC 6/25/2013 1:00:00 PM |