Legislature(2009 - 2010)BARNES 124
01/22/2009 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Overview: Department of Commerce, Community, & Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
January 22, 2009
8:01 a.m.
MEMBERS PRESENT
Representative Bob Herron, Co-Chair
Representative Cathy Engstrom Munoz, Co-Chair
Representative Wes Keller
Representative Charisse Millett
Representative Sharon Cissna
Representative Berta Gardner
MEMBERS ABSENT
Representative John Harris
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY, & ECONOMIC
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
EMIL NOTTI, Commissioner
Department of Commerce, Community, & Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided an overview of the Department of
Commerce, Community, & Economic Development.
MICHAEL BLACK, Deputy Commissioner
Department of Commerce, Community, & Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided an overview of the Department of
Commerce, Community, & Economic Development.
ACTION NARRATIVE
8:01:55 AM
CO-CHAIR CATHY ENGSTROM MUNOZ called the House Community and
Regional Affairs Standing Committee meeting to order at 8:01
a.m. Representatives Munoz, Herron, Keller, Millet, and Gardner
were present at the call to order. Representative Cissna
arrived as the meeting was in progress.
8:02:52 AM
CO-CHAIR MUNOZ introduced support staff to the committee.
^Overview: Department of Commerce, Community, & Economic
Development
8:03:39 AM
CO-CHAIR MUNOZ announced that the only order of business would
be an overview from the Department of Commerce, Community, &
Economic Development (DCCED). She reviewed Commissioner Notti's
background, including that he served as the first president of
the Alaska Federation of Natives (AFN) and was a major player in
the establishment of the state's Native corporations.
8:04:29 AM
EMIL NOTTI, Commissioner, Department of Commerce, Community, &
Economic Development (DCCED), began by relating that DCCED is a
diverse department that touches the lives of many Alaskans on a
great many issues. In fact, the mission of DCCED is to promote
a healthy economy and strong communities. The aforementioned is
accomplished by regulating existing industry to protect
consumers and to help create a stable business climate, by
assisting local governments with self-governance and
sustainability training, and by coordinating, promoting, and
developing economic growth of new or expanding businesses.
Commissioner Notti then informed the committee that a number of
independent agencies report through DCCED as their budgets flow
through DCCED. The department consists, he opined, of a very
talented and dedicated group of division directors. He then
specified the divisions within DCCED and the six agencies that
report through DCCED. The department also has a seat on or is
highly involved in the boards of 23 commissions. Commissioner
Notti then highlighted that he has two position control numbers
(PCNs) for deputy commissioners, but only one position is funded
and filled. He said that he needs both positions to be filled.
Last year, when there were two deputy commissioners one
addressed rural Alaskan communities.
8:08:35 AM
COMMISSIONER NOTTI, in response to Representative Gardner,
clarified that DCCED has two PCN numbers for the deputy
commissioner position, but has only received funds for one
position and thus only one deputy commissioner position is
filled.
8:09:29 AM
COMMISSIONER NOTTI, continuing his overview, told the committee
that the department has office locations throughout the state.
He then reviewed the divisions and their responsibilities. The
Division of Administrative Services provides professional
services for the department and is responsible for the
department's budget issues, procurement, and property control.
A large part of the Division of Administrative Services is
information technology, which keeps the division very busy.
Furthermore, the Division of Administrative Services works with
the Office of Management & Budget regarding the audits for which
the division receives requests. Commissioner Notti then
informed the committee that Serve Alaska was established in 1994
to establish the state's ability to receive AmeriCorps funding.
AmeriCorps volunteers perform a great number of projects,
including development projects for young Alaskans such as life
skills, job readiness, or education. Moreover, AmeriCorps
addresses the needs of rural Alaska through health projects and
environmental youth development. AmeriCorps also does a large
amount of work to meet Alaska's social needs, including prison
re-entry, domestic violence, and drug and alcohol dependency.
He informed the committee that in the last year AmeriCorps
volunteers served 275,400 volunteer hours. In fact, through
AmeriCorps' educational opportunities 373 people received
general equivalency diplomas (GEDs). During March 1994-March
2008 there have been 2,558 AmeriCorps members who have provided
$3.2 million worth of service.
COMMISSIONER NOTTI then turned to the Division of Banking &
Securities, which provides oversight of the state's banking
institutions of which there are 71 in the state that are subject
to regulation by the division. Last year, the division
conducted examinations of more than half of the institutions.
By state law, each institution is required to be examined every
18 months. Due to investigations into licensed activities, the
division acquired a refund of approximately $10,000 in finance
charges. This past year the division approved four new licenses
to conduct pay day lending, four new licenses to conduct premium
finance business in Alaska. The Division of Banking &
Securities enforces the Alaska Securities Act and the associated
regulations. The enforcement functions include handling
complaints and investigations of registered entities and
regulated offerings as well as investigating unregistered
activities/scams. The primary mission of the Securities section
of the division is to protect Alaska residents from financial
harm. Commissioner Notti highlighted that in fiscal year 2008
the division generated over $13 million in revenue with a budget
of about $2 million. As is the case with most of the
department, this division is funded by fees to it. He pointed
out that the division conducted over 50 security investigations,
which are turned over to the attorney general if laws are
broken. The division's job is to protect investors and Native
shareholders. One of the largest investigations occurred due to
the failure of auction rate securities. The division received
complaints totaling almost $100 million in invested funds. The
Division of Banking & Securities has oversight of the Alaska
Native Claims Settlement Act (ANCSA) corporations, which are
required to send annual reports to the state. The division
investigated 35 complaints, implemented the following two new
laws including the Alaska Mortgage Rate Lending Regulation Act,
which licenses and examines regulated mortgages, originators,
brokers, and lenders. The other new law the division
implemented is the Alaska Uniform Money Services Act.
8:17:17 AM
COMMISSIONER NOTTI moved on to the Division of Community and
Regional Affairs, which addresses rural Alaska and local
government. This division, through the Rural Utilities Business
Advisor (RUBA) Program, performs a lot of rural training for the
management of water and sewer systems as well as record keeping.
Last year the [RUBA Program] made 182 trips to 172 communities
for a total of 470 days of onsite assistance for the areas of
utility management, financial management, personnel issues, and
election and adoption of ordinances. Within the division is the
Local Boundary Commission (LBC), which incorporated a new
borough in Wrangell and performed an annexation within the
Ketchikan Gateway Borough. He noted that the aforementioned is
accomplished by the LBC and its small staff. The [division] is
also responsible, due to the requirement of village corporations
to give land to communities. When land claims pass, those who
are on the land receive the land at no cost. The department
does the mapping of the aforementioned. One of the big things
the department does is deals with grants. In fact, the
department has over 900 grants in various stages of completion,
which amount to close to over $1 million in state money for
projects across the state.
8:19:39 AM
COMMISSIONER NOTTI continued by addressing the Division of
Corporations, Business and Professional Licensing, which
implemented the Alaska Mortgage Licensing and Regulation Act and
Prescription Drug Monitoring Project. The division licenses 39
professional occupation programs and regulates over 100,000
individuals, businesses, and corporations that offer services in
the state. Commissioner Notti then turned attention to the
Division of Insurance, which licenses Alaska-based insurance
companies and provides oversight of agents for compliance with
Alaska Statutes. The [division] enforces the statutes and
regulations and conducts the examinations of insurance
companies/agencies. The Financial Reports and Audits compliance
section performs financial reports and audits, which enforce
statutes and regulations on tax and surplus lines and collect
premium tax revenue for the state. In 2007 54 fraudulent
insurance cases were investigated. Since 2006 there have been
eight criminal investigations. Commissioner Notti opined that
the division does a lot of public outreach to inform [the
public] of its rights and prevent fraud from insurance
companies. There are over 20 investigators within the
department. Commissioner Notti then moved on to the Division of
Investments, which is very active in providing low interest
loans to upgrade diesel engines in the fishing fleet in an
attempt to reduce carbon emissions. He recalled that the
Division of Investments has performed about 170 audits on the
fishing fleets to determine the amount of carbon placed in the
atmosphere during the fishing process. Last year the division
began making loans to pilots for the upgrade of navigation
equipment, which has reduced the accident rate in Southeast
Alaska by almost 47 percent. He related that based on the
state's commitment to make low interest loans available to
airplane owners, the Federal Aviation Administration (FAA)
committed over $400 million of equipment. He noted that [these
loans to pilots for navigation equipment upgrades is a Capstone
program, from which early numbers indicate that it's good for
safety.
8:24:46 AM
COMMISSIONER NOTTI moved on to the Office of Economic
Development, which publishes reports on economic performance,
net rate of return on industries, the Alaska mineral industry
report, Alaska logging history, and Society of Foresters, and
the Alaska Film Office. The Alaska Film Office will give
rebates to those companies that come to Alaska to make movies.
The rebates are allowed over the course of the next five years
and the Alaska Film Office is authorized to provide rebates
totaling $100 million. Commissioner Notti related that the
Office of Economic Development also addresses rural tourism
training. He then noted that there are now 12 Alaska Regional
Development Organizations (ARDORs), each of which receive
$57,000 annually. The aforementioned funds are matched by local
communities; the notion is that ARDORs look for business
opportunities and training in rural Alaska. He pointed out that
the Office of Economic Development monitors the Made in Alaska
program and offers a small business assistance center.
8:26:58 AM
COMMISSIONER NOTTI then reviewed the independent agencies that
report to DCCED, which include the Alaska Aerospace Development
Corporation, Alaska Energy Authority (AEA), Alaska Industrial
Development and Export Authority (AIDEA), Alaska Railroad
Corporation (ARRC), Alaska Seafood Marketing Institute (ASMI),
Serve Alaska [formerly Alaska State Community Service
Commission], and Regulatory Commission of Alaska (RCA). He
related that the main functions of the Alaska Aerospace
Development Corporation are located in Kodiak. The Alaska
Aerospace Development Corporation brings in mainly federal funds
through contracts for launches. This year the corporation is
requesting funds to construct a second launch pad. He then
informed the committee that AIDEA provides loans that were
originated by banks, which put forth 10 percent of the loan
while AIDEA puts forth 90 percent. One of the large projects in
which AIDEA is involved is the Red Dog Mine. He mentioned that
about $300 million is invested in that project. He pointed out
that AIDEA takes risks that banks wouldn't. He noted that the
committee should have copies of AEA's detailed plan, which he
characterized as a historical document that's the first
compilation of all the data for every village or community.
With regard to the ARRC, he noted that there is concern as to
whether the Flint Hills refinery will shutdown because it
represents about 30 percent of the revenue for ARRC. He then
turned to ASMI, which produces impressive publications that are
distributed worldwide. The statistics relate that these
publications have enhanced the price of Alaska salmon in the
market. In closing, Commissioner Notti reiterated how diverse
DCCED is.
8:31:53 AM
CO-CHAIR HERRON asked if Commissioner Notti could share what he
knows about the situation in Emmonak.
COMMISSIONER NOTTI informed the committee that current laws
don't allow DCCED to declare an economic emergency because the
level of economic income hasn't been impacted to the point at
which an economic emergency can be declared. However, other
things can be done as illustrated [by the efforts] through the
Division of Military Affairs, [Department of Labor & Workforce
Development], and the [Department of] Education. Last Friday
[department staff] spent two hours on the phone with
communities, Tuesday morning a team flew out to Bethel and
Emmonak. He said he expected the first written report on
Friday, which he offered to make available. Commissioner Notti
explained that although the king salmon fishery was a bust and
the income level dropped, it wasn't enough to impact the overall
income level. He opined that it's not an income level problem
as that hasn't changed for years, rather the problem is when the
price of oil went to $144 per barrel and thus food, fuel, and
transportation costs rose. He recalled anecdotes that those in
the Emmonak area were paying $7 for a gallon of milk and $12 for
two hotdogs.
8:35:52 AM
CO-CHAIR HERRON asked if the situation in Emmonak is "a canary
in a coal mine" as there are likely such difficulties related to
high energy costs in all regions of the state.
COMMISSIONER NOTTI acknowledged that the cost of energy impacts
everyone. Furthermore, low cost energy and a trained workforce
is necessary for economic development and to be competitive in a
world market. Moreover, [communities] don't have a good
transportation system unless situated by water.
8:37:36 AM
CO-CHAIR HERRON inquired as to the commissioner's take on the
situations in Healy, Fairbanks, and Homer.
COMMISSIONER NOTTI said that the Healy clean coal project has
been a problem for the state for probably 10 years and the state
has a fair amount of money in the project. He related that
AIDEA made it a goal to solve the problem and has been working
intensely on it for the past year. There's an agreement in
place, but it will take approximately six months to get the
plant running. Although the [Healy clean coal project] will
solve some of the difficulties, there will still be energy
problems in the Railbelt area. He highlighted that the
generating capacity is old and needs to be replaced, and
therefore any energy, especially of the natural gas sort, would
be helpful. He noted that four miles west of Nenana the plan is
to drill 10,000 feet in the hope of finding natural gas. The
plan is to generate 150 megawatts to feed Fairbanks and south of
Anchorage. He mentioned that the study about the six generating
companies that feed the market will be released soon.
8:41:16 AM
REPRESENTATIVE CISSNA commented that the effects of energy costs
to Alaska are profound and many departments have to address
those effects. She then inquired as to the effort of DCCED to
work in a network pattern. She recalled hearing predictions of
the many public health problems due to high energy costs and the
sharing of houses, for example.
COMMISSIONER NOTTI related that DCCED's primary effort comes
through its seat on the board of directors for AEA and AIDEA.
Furthermore, the department gathers information and compares the
cost of energy and fuel throughout Alaska. The department
encourages groups to purchase fuel in bulk, when possible. In
fact, the community development quota (CDQ) group in Nome
guarantees payment on the loan to the shipper/seller of the
fuel. As a result, the fuel costs last year for those who
purchased [via the CDQ program] and in bulk paid $1 per gallon
less. Therefore, the department encourages groups to form
cooperatives to purchase fuel in bulk. He then highlighted the
pressure the suppliers experience because they're required to
make payment on the fuel the supplier obtains, and therefore
they need immediate payment. The aforementioned highlights the
need for good credit and that part of the reason for the high
cost is the losses that have to be covered. Guaranteed loans
would help, he opined. The state has two programs, including
the low cost loans AEA/AIDEA provides to purchase bulk fuel
twice a year. The villages have to have a good credit rating to
take advantage of the aforementioned low cost loans. If the
villages can't pass the credit test, they can approach DCCED for
a zero interest loan.
8:46:35 AM
REPRESENTATIVE CISSNA surmised then that DCCED is working with
the local communities. She then related her understanding that
regional centers are facing an influx of rural residents who are
competent and have the skill sets needed to run the local
governments. She asked if anyone is reviewing the
aforementioned.
COMMISSIONER NOTTI agreed that it's a serious problem and that
the expectation is the crisis isn't over. With regard to health
problems, the director of the Yukon Kuskokwim Corporation has
expressed concern as to the results of people who don't follow a
proper diet.
8:49:31 AM
REPRESENTATIVE GARDNER recalled that last August during the
$1,200 energy rebate debate, rural legislators pointed out that
the state was heading toward a crisis. Part of the discussion
was whether it was better to give $1,200 to every Alaskan or to
invest those funds in avoiding crises throughout the state. She
inquired as to whether things could've been done differently or
whether there is new information or something that could've been
changed between last August and now.
COMMISSIONER NOTTI answered that he wasn't aware of anything
that could've been done differently. He pointed out that the
state is spending a lot of money on low interest loans [in rural
areas] and zero interest loans. Still, there's a risk to
sellers of fuel. Once all the facts are available, ideas
regarding how to distribute fuel will come forward, he
predicted.
8:52:02 AM
REPRESENTATIVE GARDNER then turned the discussion to the use of
renewable energy sources. One benefit or renewable energy usage
is that it creates jobs and cash income in communities that
don't have much. With regard to the RUBA program,
Representative Gardner asked if DCCED anticipates use of the
existing program to train new people for the new
projects/utilities.
COMMISSIONER NOTTI remarked that he hadn't really thought about
what would occur in the future, but characterized it as a good
template.
REPRESENTATIVE GARDNER asked if there's a problem
determining/clarifying who has responsibility for training and
maintaining a project. She asked, specifically, if the state
maintains the responsibility [for training and maintaining the
project] throughout the life of the project or is there a point
at which the local community takes over.
COMMISSIONER NOTTI related his understanding that when a city
takes ownership, it's the city's responsibility. The state, he
further related, wants to avoid returning to grant another
project. Therefore, it's in the state's interest to spend the
money on training and hope the cities take over. The larger
communities, such as Nome, Kotzebue, and Bethel, do fairly well
because there is a large enough population base to do so.
REPRESENTATIVE GARDNER surmised then that the template isn't
really effective in regard to cities taking over. Therefore,
she suggested that the state should do something to shift that.
8:55:40 AM
REPRESENTATIVE MILLETT related that Mr. Haagenson has some
interesting ideas about hedging fuel buys in order to stabilize
fuel costs in Alaska. She asked if there has been any movement
toward that.
COMMISSIONER NOTTI acknowledged that there has been discussion
of such, although he didn't know of any plans to implement it.
The situation, he opined, comes down to a workable credit
system.
8:56:32 AM
CO-CHAIR HERRON said that he has several questions that he could
format in a list to which the commissioner can respond to the
committee. He then recalled that the commissioner of the
Department of Environmental Conservation (DEC) told him that the
present stimulus package for DEC is about $81 million. He asked
if Commissioner Notti knew the amount coming from DEC's stimulus
package to DCCED.
COMMISSIONER NOTTI answered that he doesn't know. However, he
recalled seeing that DEC was going to release $350 million for
community development block grants, which would come through
DCCED.
8:58:07 AM
REPRESENTATIVE GARDNER requested detail regarding the status of
the prescription drug monitoring program.
COMMISSIONER NOTTI deferred that question.
8:58:41 AM
REPRESENTATIVE GARDNER, regarding Capstone, related her
understanding that Alaska was initially a pilot program, but the
federal government ultimately told the state it would have to
[fund it] in order for it to continue. The state did so and
provided some low cost loans and some infrastructure for the
receiving segments. She asked if anything else needs to be
done.
COMMISSIONER NOTTI opined that the FAA is committed to do it,
and he didn't believe it has any plans to change it. The
program is working, although the amount of applications for
loans that was desired wasn't received.
9:00:10 AM
REPRESENTATIVE GARDNER, recalling the Red Dog, Skagway dock, and
the Ketchikan shipyard, asked if, due to the recession, there
have already been slow downs in the aforementioned projects.
COMMISSIONER NOTTI said that the predictions are that the
activities at the ore dock in Skagway will increase. In
Ketchikan, there's a contract to do some building, and thus he
projected more work.
9:01:32 AM
CO-CHAIR MUNOZ turned attention to the power cost equalization
(PCE) program. She asked if DCCED has a position on extending
PCE to businesses until a community can be tied into an
alternative source of energy.
COMMISSIONER NOTTI specified that although the department hasn't
taken a position on it, his personal view is that it should
happen. The businesses, he opined, need the break to survive
and without it cost to the customer increases.
9:02:40 AM
CO-CHAIR HERRON inquired as to what has surprised and
disappointed Commissioner Notti in his two years as commissioner
of DCCED.
COMMISSIONER NOTTI related that he was surprised to learn that
the Department of Commerce didn't have an economist on staff,
which meant that information had to be sought throughout state
government. An economist is now on staff and the plan is to
compile data related to business in Alaska in order that there
is one source of information. The disappointment, he specified,
is that DCCED has one deputy commissioner who is overworked.
9:05:47 AM
CO-CHAIR MUNOZ then called Mr. Black forward and reviewed his
background, highlighting that he has led the department's
efforts for affordable fuel for rural communities, municipal
revenue sharing, planning and coordination of assistance for
flood and erosion, threatened communities, and rural land
ownership issues in our smaller communities.
9:06:52 AM
MICHAEL BLACK, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community, & Economic Development
(DCCED), first noted he has been with the Department of
Commerce, Community, & Economic Development (DCCED) for 28
years. He said his background includes local government
assistance and community planning, primarily in rural Alaska,
along with economic development programs. He was director of
the former Division of Community Advocacy which is now the
Division of Community and Regional Affairs. Now, as deputy
commissioner of the Department of Commerce, Community, &
Economic Development (DCCED), he has the assignment of various
boards as well as the responsibility for economic development
and rural issues.
MR. BLACK related that the department's staff is interested,
engaged, and energetic, and deals with many issues. However, a
great deal of time is required just to understand even one of
these issues, he said, and at times it is like being a fireman
running from one crisis to another. The department plays a role
in rural energy issues primarily through loan programs, such as
the bulk fuel bridge loan program, he explained. Besides
financing there is also the problem of management, such as the
ordering and delivering of fuel. Therefore, it is a good
marriage to have the Division of Community and Regional Affairs'
local government assistance program working with the Division of
Investments' loan program. This gives the department a broad
view of problems. The efforts of the Alaska Energy Authority
(AEA) in developing an energy plan and the Renewable Energy Fund
are encouraging opportunities, he added, and the department
looks forward to allowing Alaska's communities to get off the
roller coaster of oil energy prices. Because its various
divisions assist communities on economic and other issues, the
Department of Commerce, Community, & Economic Development is the
frontline defense for ensuring that Alaska's communities remain
viable and able to endure various circumstances.
9:12:33 AM
MR. BLACK said he and Commissioner Notti are involved in
Governor Palin's recently created Rural Subcabinet. The
subcabinet is responsible for examining rural issues and making
recommendations to the governor and legislature. For example,
the subcabinet is working with First Alaskans to determine the
root cause of migration [from rural communities to urban areas]
and a report is expected soon. He said the department is also
participating in the Climate Change Subcabinet, and he is
serving as Co-Chair of the Immediate Action Workgroup that is
looking at the most critical needs and actions that need to be
taken by the State of Alaska in the next 12-18 months. Much of
that involves communities threatened by eroding, flooding, and
melting permafrost.
MR. BLACK conveyed that DCCED works with various industries on
the various economic issues and the Office of Economic
Development will be reporting to the legislature on the state of
those industries. He noted that revenue sharing is an important
part of the department's assistance to local governments. In
addition to state funds, this revenue sharing includes federal
money, such as federal forest receipts. The department is
currently administering about $900 million in grants to
communities. He said hot topics include energy, cost of living,
sustainability of communities, climate change, and how climate
change issues affect communities, individuals, and industry.
Also of interest to DCCED, he continued, are the opportunities
that climate change might represent in terms of economics and
transportation. The federal government is very interested in
Arctic issues which include resources and transportation
infrastructure in Alaska. For example, he continued, the U.S.
Coast Guard has pointed out that there are no safe ports in
Alaska for large vessels coming through the Northwest Passage
and this could possibly be a part of the forthcoming federal
stimulus package.
9:19:19 AM
CO-CHAIR HERRON remarked that he and the three other committee
members from Southcentral Alaska look forward to hearing from
the director of the Alaska Energy Authority at a later date
because their districts are all impacted by energy. He inquired
as to what DCCED is doing to assist in the dialogue with the
Alaska Railroad Corporation and Flint Hills Resources ("Flint
Hills").
MR. BLACK responded that the primary discussion regarding the
Flint Hills refinery has been through the Department of Natural
Resources and the governor's office, although DCCED has been
involved with the discussions through the community of North
Pole and the Fairbanks North Star Borough. He noted that DCCED
has pointed out the economic importance of that refinery and its
relationship to fuel supplies, especially in Western Alaska.
Additionally, his department has brought the concerns of the
municipality of North Pole to the attention of the
administration regarding the relationship of the refinery to the
waste water treatment facilities that North Pole operates. He
said that without those waste water treatment facilities being
upgraded, the refinery itself may not meet the state's
environmental standards. So, there are issues that are not
always on the surface that might put at risk the company's
ability to continue to operate that refinery.
9:21:53 AM
CO-CHAIR HERRON asked whether there should be a return to the
two previously separate departments: Department of Commerce and
Department of Community and Regional Affairs.
MR. BLACK replied that he often thinks about that question,
given he worked for the Department of Community and Regional
Affairs (DCRA) before the merger. He said the main mission of
DCRA was to focus on rural issues. It had a broad array of
programs that addressed a wide range of issues - such as labor,
housing, energy, and local government assistance - as an entire
package. However, DCRA was the weakest and most difficult
department to get resources to and thus the department was
always crying for more assistance and resources. For rural
Alaska, DCRA represented a one-stop shop up until the merger.
"We found it easier to certainly get our budget requests passed
through this legislature as the Department of Commerce, not the
Department of Community and Regional Affairs," he said. He
offered his opinion that the Department of Commerce brings with
it a broader array of interests in all sectors of the state,
whereas the Department of Community and Regional Affairs was
looked at, rightfully, as the rural department.
9:24:37 AM
REPRESENTATIVE CISSNA inquired whether the department has been
looking at more aggressive efforts to include the university in
climate change work so that Alaska could take the lead in
research on global polar issues.
MR. BLACK answered that the efforts being organized under DCCED
on the climate change strategy for the state of Alaska have
major involvement of various departments of the University of
Alaska. The DCCED is not relying solely on the University of
Alaska because there are many other universities here in the
state actively involved in looking at Arctic issues. However,
he said he believes that this effort in developing a strategy
for the state has elevated awareness that the University of
Alaska, Fairbanks is actively involved in much of the research
that DCCED will rely upon. In addition to the university, there
are other research organizations within the state. For example,
the Cold Climate Housing Research Center has been engaged in the
discussion on how to deal with permafrost melting and energy
efficiency. He said he believes the university has a grand
opportunity because "we are the point of the spear in Arctic
issues."
9:28:43 AM
REPRESENTATIVE GARDNER requested a copy of the outline for Mr.
Black's discussion. She asked whether Mr. Black is based in
Juneau and, if not, how long is he here.
MR. BLACK responded that he lives in Representative Gardner's
district and is not based in Juneau, although he is in Juneau
for the majority of session.
CO-CHAIR HERRON offered his appreciation to Commissioner Notti
and Mr. Black for their comments and said he looks forward to
working with them and the committee on all of these issues.
9:30:49 AM
MR. BLACK, at the request of Co-Chair Munoz, introduced
department staff in attendance.
CO-CHAIR MUNOZ thanked Mr. Black for his presentation.
9:34:41 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 9:34 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DCCEDOverview1.22.09.PDF |
HCRA 1/22/2009 8:00:00 AM |