Legislature(2013 - 2014)FAIRBANKS
07/11/2013 01:00 PM House ARMED SERVICES COMMITTEE
| Audio | Topic |
|---|---|
| Start | |
| Fairbanks Community Efforts to Support the Military | |
| Update on Association of Defense Communities Conference | |
| Discussion of Hyjek & Fix, Inc. Recommendations | |
| Updated Draft Eis for Eielson Air Force Base | |
| 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
Fairbanks, Alaska
July 11, 2013
1:13 p.m.
MEMBERS PRESENT
Representative Dan Saddler, Co-Chair
Senator Pete Kelly, Co-Chair
Representative Doug Isaacson
Representative Geran Tarr
Representative Bob Lynn
Senator Fred Dyson
Senator Anna Fairclough
Senator John Coghill
PUBLIC MEMBERS
Charles "Chick" Wallace
Colonel Tim Jones - (retired)
MEMBERS ABSENT
Representative Eric Feige
Senator Bill Wielechowski
COMMITTEE CALENDAR
- Fairbanks Community Efforts to Advocate for Eielson Air Force
Base
- Update on Association of Defense Communities (ADC) Conference
- Discussion of Hyjek & Fix, Inc. Short-Term Recommendations
- Long-Term Action Items for the Legislature
- Updated Eielson Draft EIS Regarding the Transfer of the 18th
Aggressor Squadron to JBER
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
LUKE T. HOPKINS, Mayor
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Discussed the Fairbanks North Star Borough's
top five military legislative priorities.
MCHUGH PIERRE, Deputy Commissioner (via teleconference)
Department of Military & Veterans Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Provided information relevant to the
discussion about supporting the military in Alaska.
BARBARA JOHNSON, Special Assistant
Office of the Mayor
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Provided information about Section 331
contracting between local governments and the military.
MAJOR GENERAL THOMAS H. KATKUS (via teleconference)
Adjutant General and Commissioner
Alaska Department of Military & Veterans Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Provided information relevant to the
discussion about supporting the military in Alaska.
COLONEL TIMOTHY P. O'BRIEN
Assistant Adjutant General and Commander
Alaska Air National Guard
Fort Richardson, Alaska
POSITION STATEMENT: Provided information relevant to the
discussion about supporting the military in Alaska.
DIANE HUTCHISON, Presiding Officer
Fairbanks North Star Borough Assembly
Fairbanks, Alaska
POSITION STATEMENT: Discussed the importance of joint land use
studies to minimize land use conflicts.
ACTION NARRATIVE
1:13:15 PM
CO-CHAIR DAN SADDLER called the Joint Armed Services Committee
meeting to order at 1:13 p.m. [Due to technology difficulties,
there is no audio recording of the beginning of this meeting.]
Present at the meeting were Senators Coghill, Dyson, Fairclough,
and Co-Chair Kelly; and Representatives Isaacson, Tarr, Lynn,
and Co-Chair Saddler. Public members present were Charles
"Chick" Wallace and Colonel Tim Jones.
^Fairbanks Community Efforts to Support the Military
Fairbanks Community Efforts to Support the Military
1:13:55 PM
CO-CHAIR SADDLER stated that this meeting is a follow up to the
presentation from consultant Steve Hyjek of Hyjek & Fix, Inc. on
June 25th in Anchorage. He laid out an ambitious agenda to
defend Alaska's military missions and facilities in an era of
budget cuts, Base Realignment and Closures (BRACs), and
sequestration. That agenda will take a lot of hard work and
cooperation by Alaskans to maintain a healthy and necessary
military presence in Alaska. This committee and Alaskans are
capable of this work as evidenced by the good work by the people
in Fairbanks. He thanked Mayor Hopkins for inviting the
committee to Fairbanks and the leadership at Eielson Air Force
Base (AFB) for hosting a tour of the base.
CO-CHAIR SADDLER relayed that this meeting is intended to be
more of a work session than a formal committee meeting to cover
the items laid out on the expanded agenda. He asked Mayor
Hopkins to introduce himself and his aide and give a
presentation on what Fairbanks is doing to defend the F-16s at
Eielson AFB.
1:15:45 PM
LUKE T. HOPKINS, Mayor, Fairbanks North Star Borough, Fairbanks,
Alaska, introduced himself and Special Assistant Barbara
Johnson.
MCHUGH PIERRE, Deputy Commissioner, Department of Military &
Veterans Affairs (DMVA), Fort Richardson, Alaska, reported that
he and General Katkus were attending the meeting telephonically.
MAYOR HOPKINS said that the community has never shied away from
supporting the military, specifically Eielson AFB and Fort
Wainwright. For example, during the 2005 BRAC Commission meeting
in Fairbanks the community showed that the Commission was
relying on inaccurate numbers. Although the A-10s were removed,
the F-16s stayed. Through the years the community positioned
itself to push back future BRACs. He cited the Joint Land Use
Study as an example.
MAYOR HOPKINS discussed the actions to counter the announcement
six months ago to move the F-16s from Eielson AFB as a budget
saving action. The borough hired consultants, started the Tiger
Team, and engaged congressional delegation staff both local and
in Washington, D.C. The three mayors packaged a response that
pointed out the faulty numbers in the Site Activation Task Force
(SATAF) report, and the congressional delegation collectively
sent a request to the Air Force to include all the effects of
relocating the F-16s in the environmental impact statement
(EIS), not just the dollars. He explained that the draft EIS
will be on the agenda in a public hearing next week, and the
three mayors and community leaders will be delivering the
message that it relies on inaccurate data.
He mentioned the public/private solution group that contracted
to supply a SWOT (Strengths, Weaknesses, Opportunities, and
Threats) analysis for how the community should respond. He
declined to distribute copies and instead offered to provide a
brief outline. He described a recent meeting with General Brooks
and General Carlisle to discuss the issues in the SWOT analysis.
At the very top of the list is the cost of energy at military
installations within the FNSB.
1:31:10 PM
MAYOR HOPKINS noted that Senator Kelly asked him to discuss the
borough's top five legislative priorities for supporting the
military.
MAYOR HOPKINS said the top priority is to lower base operating
costs at Eielson AFB and other installations within the borough.
According to the Defense Logistics Office, the contract cost for
coal delivered to Fort Wainwright and Eielson AFB has risen from
$57/ton to $75-$78/ton. If the state were to agree to pay down
part of that cost, it would reduce base operating costs, he
said.
MAYOR HOPKINS discussed the effect that replacing the boilers at
Eielson AFB will have on air quality, the proposed regulations
for air quality mitigation control measures, and the EPA
decision to not back away from the ambient air quality standard
for particulate matter. He suggested moving the air quality
issue forward and submitting a state implementation plan that
has control measures that are scientifically documented and show
attainment by 2014. The Department of Environmental Conservation
(DEC) is working on a plan that will be submitted to the EPA by
December 2013. He emphasized the need to address air quality
before the federal government has made a decision about basing
because of it.
MAYOR HOPKINS deferred to Ms. Johnson to discuss Section 331
intergovernmental service agreements. He relayed that she and
McHugh Pierre met with representatives from the bases in the
Interior and JBER for a kickoff meeting in early June.
1:42:55 PM
BARBARA JOHNSON, Special Assistant, Office of the Mayor,
Fairbanks North Star Borough, Fairbanks, Alaska, said she
learned about Section 331 contracting between local governments
and the military at a conference she attended in Monterey,
California. She described the joint powers agreement and
contracts that Monterey and the adjacent community of Seaside
have to provide services to the military. The contract started
small and 14 years later has grown to more than $3 million. She
noted that the Section 331 law was broadened recently to include
contracts of almost any kind.
She explained that on June 6, 2012 a core group of three mayors,
lead military officials from local bases, and the state military
officials met to discuss Section 331 joint powers agreements.
Eight workgroups were identified to focus on the specific areas
of public works, procurement, emergency services,
transportation, family support services, communications, human
resources, and the airport. She noted that although the core
group initially wanted three small ideas that could be
implemented quickly, any idea that's brought forward is placed
in a database that can be referenced later.
MS JOHNSON described some of the ideas generated to date. The
public works group proposed starting with a small elevator
contract. Another proposal is to contract with Fort Wainwright
to use the vehicle maintenance facility that the City of
Fairbanks is currently building. She highlighted that the base
needs one right now. A more long-term proposal is to jointly
find a way to dispose of coal ash. One suggestion is to put the
ash in the borough landfill and have each entity pay a prorata
share.
She said another idea is to find ways to share use and costs of
the new emergency operations center in Fairbanks. These sharing
ideas include: dispatch capabilities, specialty certifications
for maintenance of police and fire systems, standards for
purchase of equipment that's used in Alaska, and specialized
response capabilities like a dive team.
MS. JOHNSON explained that on July 22, 2013 a representative
from each of the work groups will meet and present the ideas
that their work group developed. She said she will pass to the
core group the information from that meeting.
She reported that Katherine Hammack and Kathleen Ferguson both
made it clear that Section 331 contracts are very important to
the military, and that Alaska is ahead of the curve.
1:50:05 PM
SENATOR FAIRCLOUGH asked what a realistic timeframe would be on
an intergovernmental service agreement.
MS. JOHNSON replied it depends on the idea that's selected. For
example, if the elevator maintenance contract is selected it
will be necessary to work through the existing contracts, each
of which ends at a different time.
SENATOR FAIRCLOUGH relayed that the base representatives appear
ready to look at those contracts and try to find cost savings,
but it may take some time for the regulations to trickle down.
CO-CHAIR SADDLER commented that Alaska is moving faster than a
lot of communities and from his perspective the push is
worthwhile.
MAYOR HOPKINS highlighted that the Air Force and Army have
different procurement requirements. The Assistant Secretary of
the Army said that in 30 days the regulations will be out and
ready to use, whereas the Air Force is still looking at how the
regulations will work. He suggested moving forward on the
elevator contract.
SENATOR FAIRCLOUGH cautioned that the state needs to be
realistic as a partner, because the DOD has a structure that is
beyond the direct control of the state.
1:54:44 PM
MS. JOHNSON offered to share an article about Section 331s, and
noted that Katherine Hammack cautioned that it's a slow process.
She expressed enthusiasm going forward.
SENATOR FAIRCLOUGH offered her belief that other government
agencies are also enthusiastic, but they don't want to have the
bureaucracy of writing regulations get in the way of the
enthusiasm to accomplish the task.
CO-CHAIR SADDLER mentioned a conversation about how the military
had tried to contract with private businesses and that those
would be competition for Section 331 government-to-government
relationships.
UNIDENTIFIED SPEAKER clarified that because DOD, SECAF, and
PACCOM have separate decision-making processes, General Kelly
isn't certain of the timeframe.
REPRESENTATIVE ISAACSON asked Mayor Hopkins if the Air Force
would see a significant savings if there was a Section 331
agreement for the coal contracts. He noted that the current coal
contract extends to 2015.
MAYOR HOPKINS said yes, and added that his attitude on the coal
issue is to keep pushing and moving as fast as possible.
REPRESENTATIVE ISAACSON said the briefing today indicated that
to bring the coal to new environmental standards through
injections may double the cost.
1:58:25 PM
REPRESENTATIVE TARR asked Mayor Hopkins if he was suggesting the
legislature subsidize coal to reduce the cost of energy at
Alaska bases.
MAYOR HOPKINS answered yes, and added that Alaska is competing
with what other states are doing for their military bases.
1:59:51 PM
MAYOR HOPKINS said the next item of priority is the
privatization activities at Eielson AFB that Fairbanks utility
providers can participate in. He noted that General Hoog has
started looking at how to manage the cost of energy production
at Fort Greely, Eielson AFB, Fort Wainwright, and Clear AFB.
The next priority is land use in the Fairbanks North Star
Borough, which gets into the existing joint land use actions.
Generals from both the Army and the Air Force have said that
limiting and working on encroachments at Eielson AFB and Fort
Wainwright is a top priority. Part of that discussion is buying
property to restrict future activity, zoning regulations for
impact zones, and the issue of noise overlay.
CO-CHAIR SADDLER asked him to speak briefly about the joint land
use process.
MAYOR HOPKINS explained that in late 2005 or early 2006 the FNSB
received a grant for a joint land use study that looked at
working cooperatively to reduce encroachment by a community on
the military, and the effect of military operations on the
community. The study was done and eventually the borough formed
a policy group and a technical group similar to Anchorage
Metropolitan Area Transportation Solutions (AMATS) and Fairbanks
Metropolitan Area Transportation Solutions (FMATS). The policy
group worked to resolve the 58 items that were identified in the
study, and nearly two-thirds of the items have been addressed. A
second $175,000 grant put people to work on the remaining, more
difficult issues associated with the joint land use process. He
noted that there have been public participation meetings this
week.
2:07:02 PM
MAYOR HOPKINS said another item on the list is force structure
additions. This refers to adding planes to the missions of the
168th refueling wing and working toward getting an active
association so that more Air Force personnel can support the Air
National Guard operations. He said this is on his short list
because the Guard currently has to turn away about 40 percent of
the mission requests.
REPRESENTATIVE ISAACSON commented that it would be helpful to
hear from General Katkus' office regarding the complex
agreements for who pays for the assets, and what supporting role
the legislature might play.
MAYOR HOPKINS mentioned the Unmanned Aircraft System, Gray
Eagle, and cautioned against passing laws and taking actions
that would encumber flying new programs in new areas, because
that affects military decisions. He said the decision to keep
the segregated airspace over Eielson AFB as it leads into JPARC
is a priceless venture that the state should continue to
support. He noted that the legislature took a very sensible
action in the last session to establish a [task force] to look
at how unmanned aerial systems are used.
Another force structure addition that's under discussion is
forward basing Coast Guard fixed wing aircraft at Eielson AFB in
response to Arctic activities and issues. The last major item on
the SWOT analysis is more opportunities for the Royal Canadian
Air Force to be forward based at Eielson Air Force Base.
2:18:16 PM
CO-CHAIR SADDLER asked General Katkus if he had a response to
Mayor Hopkins comments.
MAJOR GENERAL THOMAS H. KATKUS, Adjutant General and
Commissioner, Alaska Department of Military & Veterans Affairs
(DMVA), Fort Richardson, Alaska, deferred to Colonel O'Brien to
discuss the 168th Air Refueling Wing.
COLONEL TIMOTHY P. O'BRIEN, Assistant Adjutant General and
Commander, Alaska Air National Guard, Fort Richardson, Alaska,
stated that force structure additions to the 168th Air Refueling
Wing at Eielson Air force Base is the right thing to do. They
currently have more missions than they can do on a day-to-day
basis; they're operating at full capacity and have a 24/7 alert
for North American Aerospace Defense (NORAD). He noted that both
NORAD and NORTHCOM have asked to have a second tanker on alert,
but that's not possible because it would take too much time away
from training. Because about 40 percent of the requests are
turned away, the proposal is to bring in an active associate. He
explained that he is laying the groundwork to enlist the help of
a proponent and it seems that General Silva would be the
appropriate person. However, new missions will be very difficult
to acquire because of the budget, he cautioned.
2:20:31 PM
SENATOR COGHILL asked General Katkus to comment on the issue
that Representative Isaacson brought up regarding who would pay
for the planes.
GENERAL KATKUS replied their efforts will be directed to AMC
[Air Mobility Command].
REPRESENTATIVE ISAACSON asked him to follow up with specific
suggestions regarding where the committee could direct its
"cheerleading" efforts and whether it involves a discussion of
dedicated funds.
2:22:37 PM
GENERAL KATKUS agreed to prepare a paper with talking points.
CO-CHAIR SADDLER asked him to direct the letter to his office.
GENERAL KATKUS agreed.
CO-CHAIR SADDLER asked Colonel O'Brien if he had any further
comments.
COLONEL O'BRIEN offered to share a small talking paper on what
it would take to put an associate against the 168th, how it
would be structured and how it would be phased in.
GENERAL KATKUS thanked the committee and expressed gratitude for
the level of engagement.
2:23:52 PM
CO-CHAIR KELLY asked Mayor Hopkins if he discussed with General
Katkus the FNSB's top five priorities for the legislature to
support the military at Eielson Air Force Base and Fort
Wainwright, and if they meshed with his priorities.
MAYOR HOPKINS replied the priorities probably don't mesh
exactly, but many goals are common.
CO-CHAIR KELLY offered his understanding that Mr. Pierre and
General Katkus didn't have the five points available for
disclosure, but that would be forthcoming.
GENERAL KATKUS responded that it would be one of the topics of
discussion for the meeting this afternoon.
CO-CHAIR KELLY asked him to convey to the Alaska Force Advocacy
and Structure Team (AMFAST) that he wants the efforts of Mayor
Hopkins's office, General Katkus's office, and the JASC
committee to mesh with what AMFAST is doing. He added that the
project he is most interested in is the hanger at Barrow.
GENERAL KATKUS replied that is a moving target because the
center of the offshore drilling may change, but it's still
viable to evaluate. He agreed that the strategic approach that
AMFAST provides is much larger than just the approach towards
the immediate problem with Eielson AFB. He committed to work
cooperatively with all stakeholders.
2:27:13 PM
REPRESENTATIVE TARR requested that the DMVA notice upcoming
meetings for the public.
MR. PIERRE said DMVA is reaching out to city council members and
has hired a grass roots consulting company in efforts to get
Anchorage to participate and ask on the EIS for a position of
"no action" regarding the F-16s. This has been somewhat
successful. Mayor Sullivan has given tentative support, folks in
the MatSu Borough are generally supportive, and efforts are
underway to get borough officials to support the "no action"
clause. He asked the committee members to help spread the word.
MR. PIERRE listed the times and locations of upcoming meetings:
Monday, 6 pm at the Palmer Fairgrounds; Tuesday, 6 pm at the
Mountain View Boys and Girls Club; Wednesday, 6 pm at the
Westmark; and North Pole, 6 pm at the North Pole Worship Center.
CO-CHAIR SADDLER thanked General Katkus and Mr. Pierre for
joining the meeting.
MAYOR HOPKINS summarized the Fairbanks North Star Borough (FNSB)
five priority points to support the military:
1) Buy down the price of coal - FNSB is seeking legislative
support for reducing coal prices for Alaska military
installations so they're competitive with military installations
nationwide.
2) Energy infrastructure financing - FNSB is seeking legislative
support for providing financing for energy infrastructure that
is more efficient or providing a means of sharing energy between
installations.
3) Pioneer roads within the Joint Pacific Alaska Range Complex
(JPARC) - FNSB is seeking legislative support to expand access
to training grounds within JPARC.
4) Unmanned Aircraft Systems (UAS) - FNSB is seeking continuing
legislative support for UAS and has partnered with the
University of Alaska Fairbanks (UAF) seeking FAA approval for
the borough to be designated one of six test sites nationwide
for UAS.
5) Local tax exemptions within a military facility zone - The
FNSB is seeking JASC support for legislation to create a local
tax exemption for up to 10 years for property in a military
facility zone that creates or supports development of industry
and educational or training opportunities that support
operations and missions of the military.
MS. JOHNSON explained that the FNSB offers a tax exemption
and/or deferral to businesses for up to five years, and the
current proposal is to offer a 10 year deferral and/or
exemption. The intent is to increase the number of businesses in
the community that support the military at Eielson AFB. She
anticipates that the Gray Eagle will be based at Eielson AFB and
that the borough will be selected as one of the six FAA test
sites nationally.
2:39:05 PM
MAYOR HOPKINS responded to a question from Co-Chair Saddler and
explained that there is no new financing specifically for a
military facility zone. He continued to say he would support the
State of Alaska giving special benefit for activities that are
associated with a military base.
REPRESENTATIVE TARR asked if the businesses located in the tax
exempt zone are civilian owned support services for the military
complex or any business located within that geographic area.
MAYOR HOPKINS answered that the legislation identifies the
business as an enterprise associated with military
installations.
2:42:06 PM
MS. JOHNSON added that the legislation doesn't force local
government to do something; it provides a tool for an option for
tax deferral or exemption.
SENATOR FAIRCLOUGH asked if this would be revenue neutral for
the state, or if the Mayor was asking to have a pot of money
available to help finance new businesses.
MS. JOHNSON clarified that the proposal is revenue neutral to
the state. It would be a local decision for the local government
to give up the tax revenue.
MAYOR HOPKINS added that the first part of the proposal is for
state support of UAVs (Unmanned Aerial Vehicles) in support of
military operations. The second part is a proposal to change
state statutes relating to optional exemptions and exclusions
available to local governments.
SENATOR FAIRCLOUGH observed that there is a potential request
for additional money, and because of Fairbanks' experience with
revenue shortfalls she wonders if this is Fairbanks' priority or
the Mayor's priority for how to help the military. She said
she'd like to know if Fairbanks is willing to forego other
opportunities or requests of the State of Alaska for
participation in the articulated priority list.
MAYOR HOPKINS said BRAC actions will probably continue and it's
necessary to prepare for that. This committee can have a change
in mission in support of the military statewide, and he's asking
it to look at all the possibilities. He acknowledged that he has
his opinions on how the money should be divided and everyone may
not agree, but he's looking at the short term and preparations
for a potential 2014 BRAC. Moving 800 troops away from JBER and
having 552 troops come to Fort Wainwright is just the first
amending action in a community's budget, he said.
2:49:12 PM
SENATOR FAIRCLOUGH said she supports trying to retain people and
fighting for Alaska and its fair share. There are still
opportunities to invest, but choices have to be made. With
regard to the suggestion that the state buy boilers for Eielson
AFB, she pointed out that they each cost $27 million. If the
state invests in those and the facilities move, those assets
should come back as resources to the state. However, the
Anchorage community has been given indications that some of the
military property will never become available because of the
liability associated with artillery and ordnance.
REPRESENTATIVE ISAACSON added to the discussion about what can
be done to induce private investment. He observed that a
Military Facility Zone (MFZ) isn't necessarily a creation of the
borough, because it works in any space that's assigned to induce
private businesses. He continued to talk about attracting
businesses like Boeing, McDonnell Douglas, Lockheed Martin, or
Raytheon and what it would mean to attract a plant that could
employ 50-100 people in very high-paying jobs.
MAYOR HOPKINS highlighted that the Department of Energy (DOE)
just announced it is putting out $8 billion in federal loan
guarantees for projects and developing technology that reduce
carbon emissions from extracting and burning fossil fuels. If
the state has a proposal that shows it does reduce carbon in
extracting and burning coal, there could be an application for
some of that loan guarantee. He suggested that the congressional
delegation could perhaps provide more information about the
program.
2:54:18 PM
MAYOR HOPKINS said the FNSB Assembly has committed $370,000 in
the last 15 months to push back against the reduction in mission
at Eielson AFB, while also looking for new missions. However,
there's a lot of competition from other states.
DIANE HUTCHISON, Presiding Officer, Fairbanks North Star Borough
Assembly, stated that prior to being on the assembly she worked
for Senator Ted Stevens. One particular issue she worked on was
to emphasize the importance of joint land use studies so as to
minimize land use conflicts. The Senator believed that
communities adjacent to military installations should do
everything possible to minimize land use conflicts, because it
would better the community's chance of maintaining the base. She
continued to say that as an assembly member, she is trying to
support this position and do what she can to promote the
military.
^Update on Association of Defense Communities Conference
Update on Association of Defense Communities Conference
2:59:14 PM
CO-CHAIR SADDLER said the second agenda item is an update on the
Association of Defense Communities (ADC) conference. He asked
Mayor Hopkins to review the highlights.
MAYOR HOPKINS reported that two years ago his office joined the
200 communities nationwide that are members of the ADC to voice
concern about the involvement of military in their communities.
That has paid off. The conferences he's attended have spelled
out tenant opportunities for Eielson AFB, although that will be
affected by the point discussed earlier about reducing base
operating costs for Eielson AFB and Fort Wainwright. He reminded
the committee that there is competition from other states that
are committed to attract investment and maintain missions.
At the most recent ADC conference the military asked ADC members
in the audience to encourage their congressional delegations to
bring a BRAC forward. Their view is that it is the fairest way
to evaluate which bases should be reduced, and it keeps
partisanship out of the equation. That being said, Congress is
not moving forward with any BRAC action at this time, he said.
3:05:58 PM
CO-CHAIR SADDLER discussed what he took from the most recent ADC
conference. He said the general message was that there are still
significant budget reductions ahead for the DOD. The Budget
Control Act cut a tremendous amount out of the military's
capacity. The Army cut 8 of its 45 brigade combat teams.
Sequestration extends budget cuts across half of the fiscal year
and has resulted in tremendous cutbacks. Added to that, future
BRACs will occur because there is huge excess capacity
nationwide in U.S. military facilities. The overseas force
structure has already been cut 47 percent and the budget has
been cut 55 percent. The excess capacity is a drain and the
military could operate more efficiently if it could trim the
excess.
CO-CHAIR SADDLER said the 2005 BRAC gave BRACs a bad name, but
they aren't the worst thing that could happen if they include
protections, process, standards and impact aids for ways to
redevelop facilities. The budget cutbacks aren't cutting just
the fat; flying hours and training and maneuvers are all reduced
and research and development is shortchanged as well. He relayed
that he heard that it is probably more harmful to national
security to defer training and maintenance than to close
facilities. Weapons systems aren't being funded, rescue
helicopters are being deferred and the C-27 program was cut.
It's just fortunate that the military is open to innovative ways
to save money and improve efficiency. The Seaside/Monterey model
that Ms. Johnson described demonstrates this.
CO-CHAIR SADDLER discussed what the military is doing to improve
efficiency of operations by sharing power and transmission to
make every dollar count. He said there has been effort to
privatize base functions, and this may include privatizing
housing at Eielson AFB.
3:12:09 PM
SENATOR COGHILL opined that land use issues will be more
ticklish in Alaska, because of other federal land ownership
issues. If, for example, the state builds pioneer roads and
restricts hunting access, there will be significant pushback. He
suggested looking to states like Nevada and Arizona to see if
they had a solution for competing federal land issues.
REPRESENTATIVE TARR asked how much catching up Alaska has to do
to be competitive with other states.
MAYOR HOPKINS opined that Alaska isn't at the bottom but it's
nowhere near the half-way point. He offered to follow up with
figures after the next ADC conference.
^Discussion of Hyjek & Fix, Inc. Recommendations
Discussion of Hyjek & Fix, Inc. Recommendations
3:16:26 PM
CO-CHAIR SADDLER said the next agenda item is to allocate the
action items that Steve Hyjek discussed at the last meeting
according to short-term and long-term.
1) Action Item: Actively Reduce Energy Costs to the Department
of Defense in Alaska.
He asked if there was any discussion to add to the specific
actions that Mayor Hopkins and others have suggested.
SENATOR FAIRCLOUGH stated for the record that she supports
keeping the F-16s in the hangers at Eielson AFB, and she stands
with the mayor and the community of Fairbanks to ensure that
happens. That being said, she suggested asking legislative
attorneys to look at the Interstate Commerce Clause in the
context of the proposal by Mayor Hopkins to buy down the cost of
coal, and possibly the proposal for energy infrastructure
financing. She wondered whether these proposals might face the
same problems as legislation in a previous session that tried to
reduce the cost of gasoline in Alaska.
CO-CHAIR SADDLER said it's a good point and added that he's been
proud of the delegation and the legislature in general. He noted
that Mr. Hyjek emphasized that the State of Alaska has to speak
with one voice when it comes to basic decisions.
REPRESENTATIVE TARR asked if the action items were listed in
order of expected impact.
CO-CHAIR SADDLER replied he didn't believe so, and moved on to
Action Item 2.
2) Action Item: Develop State, Community and Industry
Partnerships That Cut Costs to Military Installations in Alaska.
He offered his belief that this relates to Section 331
intergovernmental agreements. He requested that the FNSB keep
the committee informed of the results of their efforts in this
regard.
REPRESENTATIVE TARR asked if this action item would apply to the
proposed statutory change to provide the option for a local tax
exemption for property in a military facility zone. [A
suggestion was made to hold the question until the discussion on
Action Item 5.]
UNIDENTIFIED SPEAKER suggested that any Section 331 partnership
with the Air Force on boiler replacement at Clear AFB should be
given number one priority because the Air Force is considering
buying power from Golden Valley Electric Association (GVEA) and
doing away with their power plant. If this occurs, GVEA will
have to generate more power with oil, which will increase the
cost of energy for everyone in Fairbanks and the surrounding
communities. He acknowledged that this doesn't do anything for
Eielson AFB but it does a lot of good for a lot of people.
3:24:09 PM
SENATOR FAIRCLOUGH asked, with regard to Action Item 2, if the
co-chairs would send a letter encouraging the DOD to write
regulations as quickly as possible to provide local military
facilities the opportunity to engage in agreements to bring
cost-cutting partnerships to fruition.
CO-CHAIR SADDLER asked Representative Isaacson if he would work
on that letter.
REPRESENTATIVE ISAACSON agreed.
CO-CHAIR SADDLER asked if there were any further comments on
Action Item 2.
REPRESENTATIVE TARR noted that part of Action Item 2 is the
recommendation to "Advance economic partnership opportunities
for the U.S. Military in Alaska through the promulgation of
military facility economic zones." She asked if the committee
should consider anything more than what was already discussed.
MAYOR HOPKINS said that relates to the statutory change that he
proposed.
CO-CHAIR SADDLER commented that the mayor's proposed local tax
exemption within a military facility zone may sweeten the idea
of partnership opportunities. Finding no further questions or
comments, he moved to Action Item 3.
3) Action Item: Promote Awareness of Alaska's Strategic and
Operational Value.
CO-CHAIR SADDLER noted that Mr. Hyjek recommended the state
commission a study by the Center for Strategic and International
Studies (CSIS) to discuss the strategic importance of Alaska's
location from a military, commerce, and scientific perspective,
and why the force shouldn't be reduced. He learned that a study
would take 6-9 months and cost about $150,000. He asked the
committee members whether this could be done in-house or if the
legislature might provide funding at something less than
$150,000.
CO-CHAIR KELLY offered his thoughts. [Audio indiscernible]
3:30:03 PM
REPRESENTATIVE ISAACSON agreed with the idea of getting the
governor on board and commented on the importance of visuals to
get people in Washington D.C. to understand the value of Alaska
and what they're looking at when they view a map of the state.
COLONEL JONES offered that the National Military Strategy
identifies the Pacific as the primary theatre of concern, so
there's probably nothing more important to the military in
making base decisions. To the degree that the congressional
delegations can leverage that, that's where the state's emphasis
should be. He concurred with Representative Isaacson's point and
emphasized that Alaska's value is that it can provide space in
abundance. He emphasized the importance on getting everyone to
understand that no other state can provide that.
3:33:17 PM
SENATOR COGHILL agreed with Colonel Jones and emphasized the
importance of attaching a dollar figure to every mile to show
both the strategic and economic value of Alaska.
SENATOR FAIRCLOUGH suggested one solution is to ask the federal
government to do the analysis for the state, or do it in
partnership with the state. Another possible solution is to ask
the Alaska DMVA to work with the administration to provide a
strategic analysis that the legislative leadership team could
present in Washington D.C. Then when the legislature meets next
session it could make a decision about whether to hire a
consulting firm.
CO-CHAIR SADDLER offered his understanding that the governor's
office is currently challenged with the analysis of the Arctic
National Wildlife Refuge (ANWR).
3:38:23 PM
REPRESENTATIVE TARR recalled that one reason Mr. Hyjek suggested
hiring a contractor is that it seems less self-serving when the
state isn't advocating for itself. She pointed out that one of
the recommendations under Action Item 3 is to collaborate with
the states of Washington and Hawaii for a more collective
impact.
CO-CHAIR SADDLER turned to Action Item 4.
4) Action Item: Strengthen Relationship between the State of
Alaska, ALCOM, USARAK, and U.S. Coast Guard District 17.
He deferred Action Item 4 because it isn't doable in the near
term.
REPRESENTATIVE TARR asked if this committee could host a meeting
with some of those entities in the near term.
CO-CHAIR SADDLER discussed the possibility and suggested that
AMFAST might be able to put the information together.
SENATOR COGHILL offered logistical suggestions, and highlighted
the importance of maintaining a good working relationship
between the state, the local community, and the military.
CO-CHAIR SADDLER suggested that establishing more formal
relationships might be helpful.
REPRESENTATIVE ISAACSON commended Mayor Hopkins for continuing
the tradition of having civilian/military leadership meetings.
He observed that some of the recommendations to implement the
action items should be addressed by the administration and may
be new line items in the budget.
CO-CHAIR SADDLER deferred discussion on the remaining action
items.
^Updated Draft EIS for Eielson Air Force Base
Updated Draft EIS for Eielson Air Force Base
3:44:05 PM
CO-CHAIR SADDLER said there is still time to submit formal
comments on the draft EIS for Eielson AFB, and he'd like members
to review the letter the committee sent in February and offer
suggestions for revisions. He agreed with Representative Tarr's
suggestion to have all the committee members sign the letter,
not just the co-chairs. He established a July 19 deadline to
submit comments and suggestions to his office.
3:47:10 PM
CO-CHAIR SADDLER thanked Mayor Hopkins and the assembly for the
use of the assembly chambers.
3:49:01 PM
There being no further business to come before the committee,
Co-Chair Saddler adjourned the Joint Armed Services Committee
meeting at 3:49 pm.
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