Legislature(2009 - 2010)BARNES 124

03/30/2010 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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08:06:49 AM Start
08:07:22 AM Overview: Community Services Block Grant
08:54:08 AM HCR22
09:51:54 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ FY2011 Community Services Block Grant TELECONFERENCED
State Plan
*+ HCR 22 ALASKA NORTHERN WATERS TASK FORCE TELECONFERENCED
Moved CSHCR 22(CRA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         March 30, 2010                                                                                         
                           8:06 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Herron, Co-Chair                                                                                             
Representative Cathy Engstrom Munoz, Co-Chair                                                                                   
Representative John Harris                                                                                                      
Representative Wes Keller                                                                                                       
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Charisse Millett                                                                                                 
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Neal Foster                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  COMMUNITY SERVICES BLOCK GRANT                                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 22                                                                                              
Establishing and relating to the Alaska Northern Waters Task                                                                    
Force.                                                                                                                          
                                                                                                                                
     - MOVED CSHCR 22(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HCR 22                                                                                                                  
SHORT TITLE: ALASKA NORTHERN WATERS TASK FORCE                                                                                  
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
03/24/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/24/10       (H)       CRA, FIN                                                                                               
03/30/10       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JILL DAVIS, Grants Supervisor                                                                                                   
Fairbanks Office                                                                                                                
Division of Community & Regional Affairs                                                                                        
Department of Commerce, Community, & Economic Development                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Provided an overview of the Community                                                                    
Services Block Grant program.                                                                                                   
                                                                                                                                
SARAH SCANLAN, Deputy Director                                                                                                  
RurAL Cap                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided an overview of RurAL CAP and its                                                                
CSBG-supported programs.                                                                                                        
                                                                                                                                
DAVID HARDENBERGH, Executive Director                                                                                           
RurAL CAP                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During overview of CSBG and RurAL CAP,                                                                   
answered questions.                                                                                                             
                                                                                                                                
ELIZABETH HENSLEY, Staff                                                                                                        
Representative Reggie Joule                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HCR 22.                                                                                       
                                                                                                                                
REPRESENTATIVE REGGIE JOULE                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HCR 22.                                                                                        
                                                                                                                                
CHRISTINE HESS, Staff                                                                                                           
Representative Reggie Joule                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of HCR 22, answered                                                                       
questions.                                                                                                                      
                                                                                                                                
TRACY FOSTER, Executive Director                                                                                                
Alaska House                                                                                                                    
New York, New York                                                                                                              
POSITION STATEMENT:  During hearing of HCR 22, testified in                                                                   
support of the proposed task force.                                                                                             
                                                                                                                                
MEAD TREADWELL, Chair                                                                                                           
U.S. Arctic Research Commission                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Endorsed HCR 22.                                                                                         
                                                                                                                                
BILL NOLL, Owner                                                                                                                
Major International LLC                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
DENISE MICHELS, Mayor                                                                                                           
City of Nome                                                                                                                    
Nome, Alaska                                                                                                                    
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
TOM OKLEASIK, Planning Director                                                                                                 
Northwest Arctic Borough                                                                                                        
Kotzebue, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
BOBBY SCHAEFER, Public Services Director                                                                                        
Northwest Arctic Borough                                                                                                        
Kotzebue, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
KATIE BALDWIN                                                                                                                   
Alaska House                                                                                                                    
New York, New York                                                                                                              
POSITION STATEMENT:  During hearing of HCR 22, related support                                                                
for the proposed task force.                                                                                                    
                                                                                                                                
ANDERW MACK, Assistant                                                                                                          
Office of the Mayor                                                                                                             
North Slope Borough                                                                                                             
Barrow, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
REPRESENTATIVE ALAN AUSTERMAN                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HCR 22.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:06:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  CATHY ENGSTROM  MUNOZ  called the  House Community  and                                                             
Regional  Affairs Standing  Committee  meeting to  order at  8:06                                                               
a.m.  Representatives Munoz, Herron,  Harris, Keller, and Gardner                                                               
were  present  at  the  call to  order.    Representative  Cissna                                                               
arrived as the  meeting was in progress.  Also  in attendance was                                                               
Representative N. Foster.                                                                                                       
                                                                                                                                
^Overview:  Community Services Block Grant                                                                                      
           Overview:  Community Services Block Grant                                                                        
                                                                                                                              
8:07:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MUNOZ announced  that the first order  of business would                                                               
be  an overview  of the  Community Services  Block Grant  (CSBG).                                                               
She  explained that  in order  for RurAL  CAP to  receive federal                                                               
funding  in   the  anticipated  amount  of   $2.7  million,  it's                                                               
necessary to have a public hearing before the legislature.                                                                      
                                                                                                                                
8:08:04 AM                                                                                                                    
                                                                                                                                
JILL  DAVIS, Grants  Supervisor,  Fairbanks  Office, Division  of                                                               
Community & Regional Affairs,  Department of Commerce, Community,                                                               
& Economic  Development, paraphrased  from the  following written                                                               
testimony [original punctuation provided]:                                                                                      
                                                                                                                                
     Thank  you,   Co-Chairs  and   other  members   of  the                                                                    
     Community and Regional Affairs Committee.                                                                                  
                                                                                                                                
     I am pleased to  participate in this hearing concerning                                                                    
     the Draft  State Plan for the  Community Services Block                                                                    
     Grant Program for Federal Fiscal Year 2011.                                                                                
                                                                                                                                
     The  Department of  Commerce,  Community, and  Economic                                                                    
     Development  would like  to  accept  comments from  the                                                                    
     public on  the proposed  use and distribution  of these                                                                    
     funds.                                                                                                                     
                                                                                                                                
     Community Services  Block Grant funds are  allocated to                                                                    
     the Department  from the U.S. Department  of Health and                                                                    
     Human Services.   We get a yearly  allocation, of which                                                                    
     the state is authorized to keep  a maximum of 5% of the                                                                    
     funds to  cover administrative  costs.  The  balance is                                                                    
     made available to RurAL CAP.                                                                                               
                                                                                                                                
     The purpose  of the  Community Services Block  Grant is                                                                    
     to impact  the causes and  conditions of poverty.   The                                                                    
     Draft  State Plan,  on which  we are  accepting comment                                                                    
     today,  outlines  how  the Department  administers  the                                                                    
     CSBG  program  and  the   activities  which  RurAL  CAP                                                                    
     proposes   to  undertake   during  fiscal   year  2011.                                                                    
     Because  the  State Plan  is  lengthy,  I will  briefly                                                                    
     outline the  major components which the  Department and                                                                    
     RurAL CAP have identified for the program.                                                                                 
                                                                                                                                
     RurAL CAP  will utilize CSBG funds  to serve low-income                                                                    
     people   throughout  the   State  in   several  program                                                                    
     components.    These include  Administrative  Services;                                                                    
     Anchorage   Services;   Child  Development;   Community                                                                    
     Development;  Rural Housing  and  Planning; and  Public                                                                    
     Policy  and Advocacy.   Each  of  these components  are                                                                    
     described in detail in the State Plan.                                                                                     
                                                                                                                                
     The   Administrative   Services  component   ultimately                                                                  
     increases the  agency's capacity to achieve  results by                                                                    
     broadening  the  resource  base.     It  does  this  by                                                                    
     providing   agency-wide    fund   development,   public                                                                    
     information and research  services, database management                                                                    
     of  partners  and  potential  supporters,  as  well  as                                                                    
     agency planning,  opportunities for  staff development,                                                                    
     and program  evaluation.  Funds  are used to  build the                                                                    
     capacity of  the agency to  better develop,  manage and                                                                    
     evaluate the  direct services which lead  to measurable                                                                    
     results  of program  customers  moving  out of  poverty                                                                    
     into self-sufficiency.                                                                                                     
                                                                                                                                
     The  Anchorage  Services  Division  component  provides                                                                
     emergency  services to  the chronic,  public inebriate,                                                                    
     homeless  population of  Anchorage.   In addition,  the                                                                    
     Anchorage   Services   Division   provides   affordable                                                                    
     housing   to  low-income   people   in  Anchorage   and                                                                    
     graduates  of transitional  housing  programs, such  as                                                                    
     Homeward Bound. It does this  by collaborating with the                                                                    
     network  of  housing   and  alcohol  treatment  service                                                                    
     providers   and   building   and   maintaining   strong                                                                    
     partnerships and linkages.                                                                                                 
                                                                                                                                
     Within  the Child  Development Division  are the  rural                                                                  
     Head  Start and  Early Head  Start programs,  the Child                                                                    
     Development  Center,   and  the  Parents   as  Teachers                                                                    
     Program.    The  Child  Development  Division  operates                                                                    
     under   strict  federal   and  state   regulations  and                                                                    
     guidelines  which  require  a well  trained  staff  and                                                                    
     close monitoring  of its programs.   Their outcomes for                                                                    
     improvements  in child  health,  school readiness,  and                                                                    
     parenting and  family functioning are  achieved through                                                                    
     ongoing   higher   education   requirements   for   the                                                                    
     classroom   and  childcare   staff,  through   capacity                                                                    
     building with  parents and families,  and participation                                                                    
     on local  Parent Committees  and Councils  and Advisory                                                                    
     Boards.                                                                                                                    
                                                                                                                                
     Within  the  Community  Development Division  are  four                                                                  
     national  service  programs,   wellness  programs,  the                                                                    
     Rural Providers'  Conference and  environmental action.                                                                    
     Cooperative   relationships    are   established   with                                                                    
     regional and village  organizations, rural councils and                                                                    
     other  community-based   organizations  to   place  the                                                                    
     locally   hired  Members   who,   through  their   host                                                                    
     organizations, identify the  community's needs to their                                                                    
     projects.    Opportunities  for youth  involvement  are                                                                    
     increased, and the overall  well-being of the community                                                                    
     is improved by the  identified projects.  Additionally,                                                                    
     capacity  is maintained  beyond  the  program year  for                                                                    
       these local hires who learn new skills through in-                                                                       
     depth training and service.                                                                                                
                                                                                                                                
     The  Rural Housing  and  Planning  Division provides  a                                                                
     full-range   of    construction,   rehabilitation   and                                                                    
     planning services.   Funds will  be used to  expand the                                                                    
     range  of  technical  assistance  and  direct  services                                                                    
     provided to  rural housing  entities to  increase their                                                                    
     capacity to conduct  local needs assessments, planning,                                                                    
     rehabilitation and new construction  for their own low-                                                                    
     income housing customers.   The division also maintains                                                                    
        oversight of RurAL CAP's Weatherization, Fee-For-                                                                       
     Service Housing Rehabilitation,  Self-Help Housing, and                                                                    
     Community Planning programs.  It  is able to do this by                                                                    
     brokering  partnerships  among   various  agencies  and                                                                    
     villages  to maximize  leveraging  of  funds.   Through                                                                    
     these collaborations the  Division maintains an ongoing                                                                    
     collection of  needs assessment information  to improve                                                                    
     its quality and accuracy.                                                                                                  
                                                                                                                                
     The Public Policy and Advocacy  component's focus is on                                                                  
     expanding the number of  organizations the agency works                                                                    
     with  for  the  purpose  of  increasing  resources  and                                                                    
     opportunities    for    individuals,   families,    and                                                                    
     communities.    It  provides opportunities  for  target                                                                    
     area Board  members to share information  on the status                                                                    
     of  their  constituents  along  with  opportunities  to                                                                    
     learn   about    best   practices,    provides   public                                                                    
      information and education on issues which affect low-                                                                     
     income  people in  Alaska.   These issues  are directly                                                                    
     related to the use  of traditional, sustainable natural                                                                    
     resources  through hunting,  fishing  and gathering  as                                                                    
     well  as issues  affecting  tribal  government and  the                                                                    
     ability  of remote  rural  communities  to become  more                                                                    
     self-sufficient.         This     component    provides                                                                    
     opportunities  for  low-income  people to  advocate  on                                                                    
     their own behalf.   It also includes  the production of                                                                    
     the  Village Voices  newsletter.   It is  through these                                                                    
     efforts  to create  an understanding  by others  of the                                                                    
     situations  in  Alaska's  communities  that  RurAL  CAP                                                                    
     increases opportunities for low-income people.                                                                             
                                                                                                                                
8:15:15 AM                                                                                                                    
                                                                                                                                
     Also included in this year's  Plan are Outcome Measures                                                                    
     for each  of the  program components.   Program results                                                                    
     are tracked and reported on  a quarterly basis in terms                                                                    
     of  the   number  of  clients   who  achieve   a  given                                                                    
     milestone.   Progress is reviewed  by staff who  use it                                                                    
     to evaluate results and make changes when necessary.                                                                       
                                                                                                                                
     Both  the  Department  and RurAL  CAP  place  a  strong                                                                    
     emphasis  on promoting  maximum participation  by rural                                                                    
     people in the elimination  of the causes and conditions                                                                    
     of poverty.   I have  personally worked with  RurAL CAP                                                                    
     in  the delivery  of CSBG  programs for  over 8  years.                                                                    
     They have  demonstrated a  sincere interest  in helping                                                                    
     low income Alaskans and are  recognized nationally as a                                                                    
     leader in providing not  only innovative programs which                                                                    
     meet  the  needs  of  their   clientele,  but  also  in                                                                    
     developing exemplary Outcome Measures.   They are to be                                                                    
     commended for their hard work and their success.                                                                           
                                                                                                                                
     Thank you  for your interest in  the Community Services                                                                    
     Block Grant  program.  Again,  our purpose today  is to                                                                    
     educate  the public  about the  program  and to  accept                                                                    
     comment on the proposed use and distribution of funds.                                                                     
                                                                                                                                
8:16:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA  expressed   interest  in   strengthening                                                               
communities,  many  of  which are  working  on  renewable  energy                                                               
programs.  With  regard to renewable energy, she  opined that the                                                               
state hasn't  put in place  financial help  to grow ideas  to the                                                               
point of reaching a market and trading.                                                                                         
                                                                                                                                
MS. DAVIS related her understanding that [the department] has                                                                   
been weatherizing homes in 19 communities.  The residents are                                                                   
taught the energy  efficiency measures that can be  done in their                                                               
own homes, which result in savings.                                                                                             
                                                                                                                                
8:18:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA clarified  that  she is  referring to  the                                                               
commercial side.   She said  there are some  potential commercial                                                               
efforts,  but no  piece to  further the  process.   She mentioned                                                               
Ruby as an  example of where [commercial  efforts are proceeding]                                                               
due to the help of a grant program from the Tanana Chiefs.                                                                      
                                                                                                                                
MS. DAVIS responded  that she wasn't aware of such  in the [CSBG]                                                               
program.   However, within the  Division of Community  & Regional                                                               
Affairs  there   are  other  grant  programs   that  are  capital                                                               
projects.   There  is help  provided through  legislative grants.                                                               
In  fact, there  are wind  turbine projects,  but those  projects                                                               
wouldn't necessarily fall under CSBG.                                                                                           
                                                                                                                                
8:19:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS related his  understanding that the federal                                                               
government will give  [CSBG] $2.6 million.  Of  the various areas                                                               
in  which the  funds will  be parsed,  $660,000 is  allocated for                                                               
administrative services.  He inquired  as to what is accomplished                                                               
in administrative services.                                                                                                     
                                                                                                                                
MS. DAVIS explained that the funds  go to RurAL Cap in Anchorage,                                                               
which administers the program.   Those funds are used to advocate                                                               
with other agencies and build partnerships to run the programs.                                                                 
                                                                                                                                
8:20:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS surmised  then that  the $660,000  goes to                                                               
pay salaries.  He then  recalled Representative Cissna's comments                                                               
advocating   for   renewable   energy   projects   that   provide                                                               
sustainable jobs in rural Alaska.   He expressed concern that the                                                               
$660,000  for  administrative  services  pays  for  employees  in                                                               
Anchorage and the money never funnels out to rural Alaska.                                                                      
                                                                                                                                
MS.  DAVIS reiterated  that RurAL  CAP  acts as  the entity  that                                                               
gathers information  and performs the partnership  in the various                                                               
communities  throughout  the  state.    In  further  response  to                                                               
Representative  Harris,  Ms.  Davis   confirmed  that  RurAL  CAP                                                               
employs  people  who live  in  rural  communities throughout  the                                                               
state and those  employees are providing services  in those rural                                                               
communities.                                                                                                                    
                                                                                                                                
8:22:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  inquired as  to  how  many Alaska  Native                                                               
shareholders are employed through these funds.                                                                                  
                                                                                                                                
MS.  DAVIS  deferred  to  RurAL   Cap  representatives  for  that                                                               
information.                                                                                                                    
                                                                                                                                
8:23:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  recalled that Ms.  Davis had said  that 5                                                               
percent [of the funds] are allocated for administrative costs.                                                                  
                                                                                                                                
MS.   DAVIS   clarified   that  those   funds   are   for   state                                                               
administrative costs.   The state can use that 5  percent and the                                                               
remaining funds go to RurAL CAP.                                                                                                
                                                                                                                                
8:23:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MUNOZ  inquired as to  what portion of the  $670,000 for                                                               
the Child Development  Division funds goes toward  the Parents as                                                               
Teacher (PAT) program.                                                                                                          
                                                                                                                                
MS. DAVIS  said she  didn't know, but  directed attention  to the                                                               
budget sheets in the back of the booklet for that information.                                                                  
                                                                                                                                
8:24:03 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  MUNOZ  asked  if  the  PAT money  is  the  same  amount                                                               
requested or funded in the past.                                                                                                
                                                                                                                                
MS.  DAVIS replied  that it's  probably  very close  to the  same                                                               
amount.   She opined that  the budget amounts didn't  change much                                                               
percentage wise.                                                                                                                
                                                                                                                                
8:24:43 AM                                                                                                                    
                                                                                                                                
SARAH SCANLAN,  Deputy Director, RurAL Cap,  paraphrased from the                                                               
following prepared statement [original punctuation provided]:                                                                   
                                                                                                                                
     Good morning  Co-Chairs Herron  and Munoz,  and members                                                                    
     of the CRA committee.  My  name is Sarah Scanlan.  I am                                                                    
     the  Deputy  Director  of the  Rural  Alaska  Community                                                                    
     Action Program,  also known  as RurAL CAP.   One  of my                                                                    
     responsibilities   is   oversight  of   the   Community                                                                    
     Services Block  Grant, the federal  funds that  come to                                                                    
     the State of  Alaska with the goal  of reducing poverty                                                                    
     through  community-based  activities  which lead  to  a                                                                    
     greater  degree  of   self-sufficiency  for  low-income                                                                    
     people.                                                                                                                    
                                                                                                                                
     Joining  me   here  today  is  RurAL   CAP's  Executive                                                                    
     Director, David Hardenbergh.                                                                                               
                                                                                                                                
     The  CSBG funding  comes to  the Division  of Community                                                                    
     and  Regional  Affairs  of  the  Alaska  Department  of                                                                    
     Commerce,  Community and  Economic  Development and  is                                                                    
     administered by Grant Manager Jill  Davis.  She does an                                                                    
     excellent job handling  the day-to-day responsibilities                                                                    
     of the CSBG program  including preparing and monitoring                                                                    
     the State Plan.                                                                                                            
                                                                                                                                
     As the  only Community  Action Agency in  Alaska, RurAL                                                                    
     CAP  is the  only  eligible recipient  for  90% of  the                                                                    
     state's CSBG funds.   In FY 2011, RurAL  CAP expects to                                                                    
     receive  approximately $2.6  million in  CSBG funds  to                                                                    
     support programs and services for low-income people.                                                                       
                                                                                                                                
     RurAL   CAP  is   a   private,  statewide,   non-profit                                                                    
     organization with  501(c)(3) tax exempt status.   It is                                                                    
     one  of more  than 1,000  Community Action  Agencies in                                                                    
     the  nation which  all work  to build  self-sufficiency                                                                    
     and empowerment  among low-income people who  desire to                                                                    
     pull themselves up out of poverty.                                                                                         
                                                                                                                                
     RurAL  CAP   is  governed  by  a   24-member  Board  of                                                                    
     Directors  representing  every   major  region  of  the                                                                    
     state.   The tripartite  board is  a balance  of target                                                                    
     area village representatives,  elected public officials                                                                    
     and private sector organizations.                                                                                          
                                                                                                                                
     The  board  meets  quarterly, identifies  major  issues                                                                    
     affecting  low-income people  and  sets agency  policy.                                                                    
     The staff  implements board  policy through  an applied                                                                    
     strategic  plan and  oversight of  agency programs  and                                                                    
     services.                                                                                                                  
                                                                                                                                
     RurAL  CAP will  use  this core  funding  from CSBG  to                                                                    
     leverage approximately $30 million  in other public and                                                                    
     private  sector funds  to benefit  low-income Alaskans.                                                                    
     The  agency has  roughly 400  regular positions  across                                                                    
     Alaska.   In  FY  2009,  with increased  Weatherization                                                                    
     activities  and temporary  hires in  Child Development,                                                                    
     RurAL CAP employed  a total of 859  people and provided                                                                    
     services in  79 communities across Alaska  through Head                                                                    
     Start,   Early  Head   Start,   Parents  as   Teachers,                                                                    
     AmeriCorps,   VISTA,    Housing,   and   Weatherization                                                                    
     programs.                                                                                                                  
                                                                                                                                
     As  an  organization  focused on  alleviating  poverty,                                                                    
     RurAL  CAP applies  the majority  of  its resources  to                                                                    
     rural  communities where  poverty  rates are  typically                                                                  
     three times  higher than in  urban Alaska.  Yet  as the                                                                    
     only community action agency in  Alaska, and one with a                                                                    
     mandate  to  serve  people statewide,  RurAL  CAP  also                                                                    
     provides:                                                                                                                  
                                                                                                                                
     Head Start  services to  pre-school children  and their                                                                    
     parents in Ketchikan;                                                                                                      
     Home weatherization to  qualifying low-income residents                                                                    
     in Juneau;                                                                                                                 
     Affordable   housing  opportunities   to  families   in                                                                    
     Anchorage; and                                                                                                             
     Community planning  efforts based  out of an  office in                                                                    
     Fairbanks.                                                                                                                 
                                                                                                                                
     The  State  Plan  before you  today  contains  detailed                                                                    
     examples of  outcome measures for  each of  RurAL CAP's                                                                    
     CSBG-supported  programs.     This  system  of  Results                                                                    
     Oriented  Management and  Accountability, or  ROMA, has                                                                    
     received  national recognition  within  the network  of                                                                    
     social  service  and  community action  agencies  as  a                                                                    
     model of comprehensive outcome evaluation.                                                                                 
                                                                                                                                
     With attention  focused on identifying  and documenting                                                                    
     measurable changes  in the conditions and  behaviors of                                                                    
     the  people we  serve,  RurAL CAP's  system of  program                                                                    
     evaluation and accountability keeps  both our human and                                                                    
     financial resources  focused on improving the  lives of                                                                    
     low-income  Alaskans in  ways  that produce  measurable                                                                    
     results.                                                                                                                   
                                                                                                                                
     Here are samplings of the difference we made.                                                                              
                                                                                                                                
     1,569  children were  served in  29 communities  across                                                                  
     Alaska  in Head  Start,  Early Head  Start, Parents  as                                                                    
     Teachers, and child care.                                                                                                  
                                                                                                                                
     During  the  2009  program  year,  we  conducted  1,168                                                                  
     developmental  screenings through  our early  childhood                                                                    
     education  programs.    Through these  early  detection                                                                    
     screenings  we were  able to  identify if  a child  had                                                                    
     difficulty  with hearing,  vision,  language, or  other                                                                    
     potential learning  barriers so  that we  could provide                                                                    
     them  with the  services  they need  before they  enter                                                                    
     kindergarten.                                                                                                              
                                                                                                                                
     During the 2009 fiscal  year, 343 low-income households                                                                  
     with  1,319 family  members experienced  an average  of                                                                    
     over 30%  savings in their  annual energy  costs during                                                                    
     the first year after their  homes were weatherized.  We                                                                    
     have seen savings in the 50+% range in rural Alaska.                                                                       
                                                                                                                                
     Members of our  Community Development Division provided                                                                    
     solid waste management assistance to 40 communities.                                                                     
                                                                                                                                
     Ten families  in Kenai became  home owners  through the                                                                  
     Self-Help Housing program.                                                                                                 
                                                                                                                                
     Our   AmeriCorps   members   organized   nearly   3,000                                                                  
     community volunteers  who contributed more  than 16,000                                                                
     hours of volunteer service.                                                                                                
                                                                                                                                
     We  have filled  64  affordable  housing apartments  in                                                                  
     Mountain  View with  residents who  might otherwise  be                                                                    
     homeless.                                                                                                                  
                                                                                                                                
     RurAL  CAP  strives  to be  a  responsible  steward  of                                                                    
     public  funds.   We run  some of  the most  scrutinized                                                                    
     federal  and state  programs  in  the nation  including                                                                    
     Head   Start,   Alaska  Housing   Finance   Corporation                                                                    
     programs, AmeriCorps, and CSBG.   We pride ourselves on                                                                    
     being  a  grantee  in  good standing  for  all  of  our                                                                    
     programs  and  services.   We  place  a high  value  on                                                                    
     getting  clean financial  and  program  audits, and  we                                                                    
     strive  to  provide  cost-effective services  that  get                                                                    
     results.                                                                                                                   
                                                                                                                                
     Again  I want  to thank  our grant  administrators from                                                                    
     the  Department  of  Commerce, Community  and  Economic                                                                    
     Development for  participating in this hearing  and for                                                                    
     your interest in the Community  Services Block Grant FY                                                                    
     2011 State Plan.                                                                                                           
                                                                                                                                
     Thank you.                                                                                                                 
                                                                                                                                
8:31:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  asked if there  is a piece that  links the                                                               
private sector and the granting  agencies that are working at the                                                               
commercial level to build businesses in communities.                                                                            
                                                                                                                                
MS. SCANLAN  related that RurAL  CAP does extensive  training for                                                               
all  who  are   hired.    The  CSBG  funds  can't   be  used  for                                                               
infrastructure  things  that  can't  be taken  from  a  building.                                                               
However,  RurAL  CAP does  a  great  deal of  community  planning                                                               
through which  projects the community  believes are  feasible are                                                               
identified.    RurAL  CAP  then   assists  the  communities  with                                                               
identifying  the appropriate  funds  to  realize those  projects.                                                               
For example, RurAL CAP in  partnership with the Denali Commission                                                               
and  other  funds  has  made good  progress  with  health  issues                                                               
related  to dump  sites.   With  regard to  energy projects,  she                                                               
noted that  RurAL CAP  is at  the table  at the  various meetings                                                               
about infrastructure for  energy.  However, she  pointed out that                                                               
RurAL CAP hasn't yet become  involved in funding such projects as                                                               
wind turbines.                                                                                                                  
                                                                                                                                
8:34:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA expressed  interest  in  meeting with  Ms.                                                               
Scanlan to  identify where  linkages need  to be  strengthened in                                                               
order to  ensure DCCED  works with its  partners in  an effective                                                               
manner.                                                                                                                         
                                                                                                                                
MS. SCANLAN acknowledged that rural  Alaska struggles with how to                                                               
sustain  its   communities  and   noted  that   the  organization                                                               
discusses that regularly.   In fact, RurAL CAP has  well over 200                                                               
partners throughout the state to develop and connect linkages.                                                                  
                                                                                                                                
8:36:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  MUNOZ  restated  her  earlier  question  regarding  the                                                               
amount of funds the Parents as Teachers program receives.                                                                       
                                                                                                                                
MS. SCANLAN  answered that RurAL  CAP has had a  three-year grant                                                               
through the  American Native  Education program  out of  the U.S.                                                               
Department  of Education.   Unfortunately,  that grant  is ending                                                               
this year  and it's  not being offered  for competitive  bid this                                                               
year.  Therefore, RurAL CAP  will have to eliminate five programs                                                               
in  five communities.   The  loss of  those programs  will impact                                                               
about 100  children.   RurAL CAP has  requested funds  to sustain                                                               
the aforementioned programs.                                                                                                    
                                                                                                                                
CO-CHAIR  MUNOZ   related  her  understanding  that   the  budget                                                               
includes funds to make up for the loss of federal funds.                                                                        
                                                                                                                                
MS.  SCANLAN  agreed, but  noted  that  the funds  are  currently                                                               
billed  as Best  Beginnings and  PAT and  thus the  Department of                                                               
Education  and  Early Development  would  receive  the funds  and                                                               
determine how best to distribute the funds.                                                                                     
                                                                                                                                
8:37:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  noted that  he is  the House  of Representatives                                                               
representative  on the  RurAL  CAP board.    He highlighted  that                                                               
recently RurAL  CAP has been  in the news regarding  safe housing                                                               
for inebriates.   He requested that Ms. Scanlan  explain how such                                                               
housing is important to those in Anchorage.                                                                                     
                                                                                                                                
MS. SCANLAN  informed the  committee that  in Anchorage  about 78                                                               
percent  of RurAL  CAP's homeless  customers are  Alaska Natives.                                                               
With the influx of [Native  Alaskans] into Anchorage, these folks                                                               
face  many  problems.   Ms.  Scanlan  acknowledged that  [housing                                                               
inebriates] is a  controversial issue, but pointed  out that it's                                                               
a community issue  that needs to be addressed.   Therefore, RurAL                                                               
CAP  wants   to  [move  forward   with  a  project   that  houses                                                               
inebriates] while  being sensitive  to the  community.   She then                                                               
deferred to Mr. Hardenbergh regarding the funding issues.                                                                       
                                                                                                                                
8:40:29 AM                                                                                                                    
                                                                                                                                
DAVID HARDENBERGH,  Executive Director,  RurAL CAP,  reminded the                                                               
committee that  CSBG funds can't  be used for any  direct capital                                                               
projects,  while  it  can  be  used to  RurAL  CAP's  ability  to                                                               
leverage other funds.   He told the committee that  RurAL CAP has                                                               
been  working  with  the  long-term  chronic  alcoholic  homeless                                                               
population  since starting  the Homeward  Bound program  based in                                                               
Mountain  View.   About 78  percent of  those who  have used  the                                                               
Homeward Bound  program, which is  a 25-bed facility,  are Alaska                                                               
Natives from rural Alaska.   Although the program targets some of                                                               
the hardest to serve of  the homeless population, the program can                                                               
only get 25  people off the street  at any given time.   About 10                                                               
years  ago  RurAL  CAP  started  [acquiring]  affordable  housing                                                               
properties for  Homeward Bound graduates  to move into.   Through                                                               
the mayor's  task force on  homelessness, the concept  of Housing                                                               
First evolved.   RurAL  CAP pioneered  the aforementioned  with a                                                               
10-unit facility in  Mountain View on Park Street.   The facility                                                               
provides  on-site  case  management   support  for  those  coming                                                               
straight off the street into  housing.  This opportunity with Red                                                               
Roof Inn with which RurAL CAP  proposes to convert into a Housing                                                               
First model  has received much  press because of the  concerns of                                                               
the Mountain  View Community Council  as well as  the neighboring                                                               
businesses and residents.   The concern is  about concentrating a                                                               
48-unit  project  in  an  area in  Anchorage  that  offers  other                                                               
similar  social  services that  draw  a  similar portion  of  the                                                               
population.   For  RurAL CAP  it's  an opportunity  to move  many                                                               
people  off the  street and  into affordable  housing that  would                                                               
cost just  over $20,000 a  unit for  acquisition.  Over  the past                                                               
decade,  RurAL  CAP has  found  its  average  cost per  unit  for                                                               
acquisition of affordable housing  properties to be about $50,000                                                               
per unit.   For new construction for which tax  credits are used,                                                               
the  cost  per unit  can  increase  to  over $200,000  per  unit.                                                               
Therefore, the  Red Roof  Inn was  considered a  low cost  way to                                                               
move folks off  the street.  He clarified that  no CSBG funds are                                                               
going into this Red Roof Inn  affordable housing project.  If the                                                               
project is  funded at  all, it  would be  funded entirely  with a                                                               
special  need housing  grant administered  by the  Alaska Housing                                                               
Finance  Corporation   (AHFC).    RurAL  CAP   has  submitted  an                                                               
application and  the expectation  is to hear  whether it  will be                                                               
initially funded by the end of March.                                                                                           
                                                                                                                                
8:44:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  thanked Mr.  Hardenbergh and  his staff  for all                                                               
the hard work they do.                                                                                                          
                                                                                                                                
8:44:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA turned to the  out migration of people from                                                               
rural Alaska.  She related that  her district includes an area to                                                               
which people come for health reasons.   The result is that people                                                               
accompany  [family members  who are  present for  health reasons]                                                               
and  they can't  afford a  place to  live.   These people  end up                                                               
living in the surrounding forest.   Although many of these people                                                               
return  home,   unfortunately  they   often  return   home  dead.                                                               
Representative Cissna  inquired as to  what [RurAL CAP]  has been                                                               
using for  its information and  whether there are ways  to obtain                                                               
better information to understand better what is happening.                                                                      
                                                                                                                                
MS. SCANLAN informed the committee  that several recent well-done                                                               
reports  have been  conducted after  a year's  worth of  meetings                                                               
held  by  the Denali  Commission,  the  Institute of  Social  and                                                               
Economic  Research  (ISER),  and the  First  Alaskans  Institute.                                                               
Therefore, there is research  and information available regarding                                                               
the in and out migration.   In further response to Representative                                                               
Cissna, Ms.  Scanlan agreed  to make  those reports  available to                                                               
the committee.                                                                                                                  
                                                                                                                                
8:47:42 AM                                                                                                                    
                                                                                                                                
MS. SCANLAN responded to  Representative Harris' earlier question                                                               
regarding  RurAL CAP's  distribution  of  payroll throughout  the                                                               
state.   She  related  that of  the 859  RurAL  CAP employees  in                                                               
fiscal year (FY)  09, just under $12 million  were actual payroll                                                               
funds   not  including   (indisc.)  that   were  paid   to  these                                                               
individuals.  She further related  that there are 61 employees in                                                               
Maniilaq Nana  Region, 52  people in  the Kawerak  Bering Straits                                                               
region, 368  employees in (indisc.)  Calista region,  8 employees                                                               
in the Bristol  Bay region, 20 employees in the  Kodiak region, 3                                                               
employees in  the Chugach region,  79 employees in the  Tlingit &                                                               
Haida Southeast  region, 17  employees in  the Copper  River Atna                                                               
region, and 30 employees in the  Tanana Chiefs Doyon region.  She                                                               
noted  that  she also  has  the  specific  amount paid  to  those                                                               
employees  for each  region.   In  the Cook  Inlet region,  which                                                               
includes  the Kenai  Peninsula,  there are  221  employees.   She                                                               
confirmed  that  amounts  to about  one-quarter  of  RurAL  CAP's                                                               
employees and is the location  of the headquarter offices as well                                                               
as other offices.                                                                                                               
                                                                                                                                
8:50:08 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:50 a.m. to 8:54 a.m.                                                                       
                                                                                                                                
8:54:05 AM                                                                                                                    
                                                                                                                                
            HCR 22-ALASKA NORTHERN WATERS TASK FORCE                                                                        
                                                                                                                                
8:54:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MUNOZ announced  that the final order  of business would                                                               
be HOUSE CONCURRENT RESOLUTION NO.  22, Establishing and relating                                                               
to the Alaska Northern Waters Task Force.                                                                                       
                                                                                                                                
8:54:20 AM                                                                                                                    
                                                                                                                                
ELIZABETH  HENSLEY, Staff,  Representative  Reggie Joule,  Alaska                                                               
State  Legislature, read  the following  prepared statement  into                                                               
the record [original punctuation provided]:                                                                                     
                                                                                                                                
     HCR 22 creates the Alaska  Northern Water Task Force to                                                                    
     facilitate  State  of  Alaska leadership  and  regional                                                                    
     coordination  in  the  ongoing  development  of  United                                                                    
     States'  policies  related  to the  opening  of  Arctic                                                                    
     waters.                                                                                                                    
                                                                                                                                
     As many  of you know,  the Arctic is changing.   Recent                                                                    
     warming trends  are depleting  the ice  pack by  9% per                                                                    
     decade.  NASA  has observed that the  rate of depletion                                                                    
     is accelerating  due to  interactions between  the ice,                                                                    
     oceans and atmosphere.                                                                                                     
                                                                                                                                
     The melting of the sea  ice is opening waters that were                                                                    
     previously frozen year-round.  Already, we have seen:                                                                      
                                                                                                                                
          - increased ship traffic, and it is projected                                                                         
            that the Bering and Chukchi seas will become                                                                        
            major marine highways in the near future                                                                            
          - an unannounced cruise ship docking in Barrow                                                                        
          - possibilities for new fisheries                                                                                     
          - increased access to natural resources                                                                               
          - questions of territorial rights                                                                                     
                                                                                                                                
     Arctic nations like Norway,  Canada, Iceland and Russia                                                                    
     are  actively promoting  and defending  their interests                                                                    
     in  increasingly ice-free  areas.   The U.S.  is taking                                                                    
     steps,  as well.   In  your bill  packet, you  will see                                                                    
     that [U.S.]  Senator Begich has introduced  7 pieces of                                                                    
     legislation  that  deal  with the  Arctic,  and  [U.S.]                                                                    
     Senator Murkowski has introduced  2 bills, one of which                                                                    
     relates  to  crating  a deep  water  port  in  northern                                                                    
     Alaska.   The  White House  has created  2 task  forces                                                                    
     that touch on northern  waters issues:  the Interagency                                                                    
     Ocean  Policy   Task  Force  and  the   Climate  Change                                                                    
     Adaptation Task  Force.  Finally,  international bodies                                                                    
     like  the  Arctic  Council and  the  Inuit  Circumpolar                                                                    
     Council  have been  working in  this area,  as well  as                                                                    
     Alaska-based [nongovernmental  organizations] NGOs like                                                                    
     the Institute of the North.                                                                                                
                                                                                                                                
     As the only  Arctic state in this nation,  Alaska has a                                                                    
     unique  role and  interest in  the development  of U.S.                                                                    
     Arctic policy.   This bill  foresees the creation  of a                                                                    
     joint   federal/state   commission  that   will   guide                                                                    
     interagency  and  inter-jurisdictional actions  in  the                                                                    
     Arctic.     It   provides   an   opportunity  for   the                                                                    
     Legislature to  take a proactive  role in  shaping this                                                                    
     commission,  and in  doing so,  ensuring that  Alaska's                                                                    
     interests are strongly represented.                                                                                        
                                                                                                                                
8:56:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON moved  to adopt  CSHCR 22,  Version 26-LS1622\E,                                                               
Cook,  3/26/10,  as  the  working   document.    There  being  no                                                               
objection, Version E was before the committee.                                                                                  
                                                                                                                                
8:57:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REGGIE JOULE,  Alaska State Legislature, presented                                                               
HCR 22.   He opined  that establishing this task force places the                                                               
state in a position to look to and plan for the future.                                                                         
                                                                                                                                
8:58:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS  expressed the  need for  Alaska to  have a                                                               
presence in  Washington, DC.   However,  the fiscal  note doesn't                                                               
include  funds  to  travel  to Washington,  DC.    Therefore,  he                                                               
proposed including such.                                                                                                        
                                                                                                                                
8:59:57 AM                                                                                                                    
                                                                                                                                
CHRISTINE HESS, Staff, Representative  Reggie Joule, Alaska State                                                               
Legislature, explained  that five  meetings of the  proposed task                                                               
force  are  planned:  two  in  Anchorage, one  in  Nome,  one  in                                                               
Kotzebue, and one  in Barrow.  The fiscal  note specifies $10,000                                                               
in  professional services,  which could  possibly be  used for  a                                                               
member  to  travel to  Washington,  DC,  or to  an  international                                                               
meeting.                                                                                                                        
                                                                                                                                
9:00:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE  related that  the original fiscal  note was                                                               
quite a bit  higher than the one in the  committee packet, but it                                                               
was scrubbed.  He opined that  if the committee feels the need to                                                               
include  more of  a  presence where  the  actual discussions  are                                                               
occurring then they could [include more funds].                                                                                 
                                                                                                                                
9:01:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS opined,  "If we're  going to  do this,  it                                                               
needs to  have the ability to  be in the places  where it's going                                                               
to make  a difference."  He  said that although he  won't suggest                                                               
the change in the fiscal note  in this committee, he will make an                                                               
appearance in the House Finance  Committee regarding the proposed                                                               
task force having  the ability to make a difference.   There's no                                                               
doubt that the Northern ice cap  is decreasing and the area needs                                                               
to be prepared for more commercial  activity.  He also added that                                                               
Alaska needs to be involved with  the Treaty of the Seas as well.                                                               
Representative Harris  reiterated the need for  the resolution to                                                               
have enough financial weight to accomplish [the goal].                                                                          
                                                                                                                                
9:03:42 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON asked if the elders predicted this.                                                                             
                                                                                                                                
REPRESENTATIVE  JOULE   replied  yes,  there  are   stories  that                                                               
reference  growth.    In further  response  to  Co-Chair  Herron,                                                               
Representative Joule said that there  really isn't fear, although                                                               
there   are  concerns   regarding   the   potential  for   clash.                                                               
Therefore,  the  proposed  task   force  is  necessary  to  bring                                                               
awareness to the community rather  than have people at a distance                                                               
make decisions.   The aforementioned  is an integral part  of the                                                               
proposed task force.                                                                                                            
                                                                                                                                
9:06:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER surmised that  the proposed task force will                                                               
pay  attention to  the formation  of  the federal,  international                                                               
commission  and   ensure  that   Alaska  has   a  voice   in  the                                                               
discussions.   He then inquired  as to what  Representative Joule                                                               
envisions in  terms of  recommendations that  will be  brought to                                                               
the legislature.                                                                                                                
                                                                                                                                
REPRESENTATIVE JOULE  said he  envisioned some  entity continuing                                                               
beyond the  task force.  He  related his belief that  there needs                                                               
to be a  high level view of what's occurring  in general terms in                                                               
order to  determine what to  do and  what investments need  to be                                                               
made  investments  on  the  ground.    The  aforementioned  could                                                               
include partnerships and workforce preparedness.                                                                                
                                                                                                                                
9:08:45 AM                                                                                                                    
                                                                                                                                
TRACY  FOSTER,   Executive  Director,  Alaska  House,   began  by                                                               
explaining  that  Alaska  House   is  a  nonprofit  dedicated  to                                                               
promoting Alaska's issues  and its opportunities.   She noted her                                                               
agreement  with earlier  testimony regarding  the great  need for                                                               
the  proposed task  force.   She related  her understanding  that                                                               
there are 30 different federal  agencies and committees that work                                                               
to  regulate oceans  policy.   At this  point, there's  no single                                                               
state entity that works to  coordinate with the federal and local                                                               
governments.  Therefore,  it's imperative to have  an entity with                                                               
"some legs" and "some budget"  to set policy, lead infrastructure                                                               
development and planning efforts as well as policy.                                                                             
                                                                                                                                
9:10:02 AM                                                                                                                    
                                                                                                                                
MEAD TREADWELL, Chair, U.S. Arctic  Research Commission, began by                                                               
relating that  he endorses HCR 22.   As chair of  the U.S. Arctic                                                               
Research  Commission, he  related that  the U.S.  Arctic Research                                                               
Commission has  been involved in  this issue by funding  the U.S.                                                               
government's  work  on  the Arctic  marine  shipping  assessment,                                                               
which was  signed off on by  eight Arctic nations last  year.  In                                                               
fact,  a number  of town  meetings were  held throughout  Alaska.                                                               
However,  there's no  continuing  state role  with the  follow-up                                                               
work  for  the area  meriting  special  attention (AMSA).    Just                                                               
yesterday,  the  five  foreign  ministers  of  the  Arctic  Ocean                                                               
nations met  in Canada  where they  reiterated interest,  just to                                                               
name  a few,  in  the  following:   having  a  search and  rescue                                                               
agreement for  the Arctic; having  better hydrographic  work; and                                                               
having the international maritime  organization set standards for                                                               
Arctic ships.   He reminded  the committee that many  of Alaska's                                                               
coastal and river villages receive  their goods through a tug and                                                               
barge  system, but  pointed out  that few  have reviewed  the new                                                               
United Nations  standards for Arctic Ocean-going  vessels and how                                                               
it  may impact  the cost  of living  in Alaska.   The  U.S. Coast                                                               
Guard is performing  a high-latitude study to  determine the type                                                               
of equipment it  needs in northern Alaska.  Again,  the state and                                                               
the local communities need to  be involved in the aforementioned.                                                               
The commission is publishing a  paper on which the state weighed-                                                               
in on  heavily regarding  obtaining more Arctic  oil and  ice oil                                                               
spill funding.  Speaking as a  citizen of Alaska and the chair of                                                               
the commission, Mr.  Treadwell recalled that a few  years ago the                                                               
legislature funded a study regarding  twin ports between Adak and                                                               
Iceland.   He  noted that  he  has had  conversations in  Iceland                                                               
regarding Alaska  and Iceland  together as a  tender to  find out                                                               
what  shipping companies  would  support the  construction of  an                                                               
appropriate port at each end  for Trans-Arctic shipping.  He then                                                               
noted that noise  issues in the Arctic, in  terms of subsistence,                                                               
are fairly  significant.   The insurance  industry has  said that                                                               
without  the   appropriate  ports,  ports  of   refuge,  and  tug                                                               
capacity,  the insurance  rates  won't decrease.   Mr.  Treadwell                                                               
suggested  that  after  the  issue   is  considered  through  the                                                               
proposed  task  force,  Alaska's agenda  would  be  considerable.                                                               
There  is  legislation,  the Arctic  Marine  Shipping  Assessment                                                               
Implementation Act, that has been  sponsored by all three members                                                               
of  the  Alaska  congressional   delegation.    This  legislation                                                               
establishes  a federal  process that  could result  in the  state                                                               
having   more   involvement,   especially    if   there   is   an                                                               
[organization] that is  responsible for following the  issue.  He                                                               
commended  the  members  to  read   the  Arctic  Marine  Shipping                                                               
Assessment Implementation  Act.  Speaking  on behalf of  the U.S.                                                               
Arctic Research  Commission, Mr.  Treadwell related that  it will                                                               
do what it can to support the state's efforts.                                                                                  
                                                                                                                                
9:14:33 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON asked if Alaska,  although it's a state, becoming                                                               
more involved with the Arctic waters issue heightens the issue.                                                                 
                                                                                                                                
MR. TREADWELL pointed out that  the U.S. [government] has said it                                                               
wants to  lead in  having a safe,  secure, and  reliable shipping                                                               
system.  If the aforementioned  is done without including Alaska,                                                               
it  won't   occur  as  well.     He  opined  that  many   in  the                                                               
administration and the proposed task  force will be able to bring                                                               
lots to  the table.   Furthermore,  there are  governments around                                                               
the world  who are  ready to  set rules.   In fact,  the European                                                               
Parliament held  a large debate  over the Arctic  Northern waters                                                               
two  weeks ago.   However,  the Alaska  State Legislature  hasn't                                                               
discussed it very much.  Mr.  Treadwell opined that it's time for                                                               
Alaska to develop  its own views.  He further  opined that others                                                               
will listen to Alaska.                                                                                                          
                                                                                                                                
9:16:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE  interjected that Mr. Treadwell  had much to                                                               
do with  the genesis of  this concept [embodied  in HCR 22].   He                                                               
thanked Mr. Treadwell.                                                                                                          
                                                                                                                                
9:17:58 AM                                                                                                                    
                                                                                                                                
BILL NOLL,  Owner, Major International  LLC, related  his support                                                               
for HCR  22.  With regard  to the earlier budget  discussion, Mr.                                                               
Noll related  that in his  experience in  international business,                                                               
the goal was  to establish value prior to the  budget.  The value                                                               
of  this resolution  is  almost incalculable.    He reminded  the                                                               
committee  that  state waters  only  extend  three miles,  beyond                                                               
which  are national  waters and  then international  waters.   At                                                               
this point,  it's a  confusing situation  in terms  of who  is in                                                               
control  as  it  has  been   said  that  there  are  30  agencies                                                               
addressing this  matter in  the federal  government and  they may                                                               
not know they  all exist.  He likened this  [proposed task force]                                                               
to  the  Magnusson-Stevens  Act,   which  established  the  North                                                               
Pacific  Fishery   Management  Council  (NPFMC)   and  ultimately                                                               
provided  a forum  where both  state and  federal officials  were                                                               
mandated to work together regarding  fisheries.  He characterized                                                               
NPFMC as  a huge  success in terms  of representing  Alaskans who                                                               
work beyond  the three miles  of state  waters to 200  miles from                                                               
shore.                                                                                                                          
                                                                                                                                
9:21:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  commented  that  one of  the  reasons  he                                                               
supports HCR  22 is  it's the  state helping  itself.   He opined                                                               
that  having  30 different  agencies  in  the federal  government                                                               
through  which  one  will  have  to navigate  on  this  issue  is                                                               
confusing.                                                                                                                      
                                                                                                                                
9:23:19 AM                                                                                                                    
                                                                                                                                
DENISE MICHELS, Mayor,  City of Nome, related the  City of Nome's                                                               
support for  HCR 22.   She  told the committee  that the  City of                                                               
Nome has experienced an increase  in ocean vessel traffic in both                                                               
the  Bering  Sea and  Norton  Sound.    In  1990, there  were  34                                                               
dockings in the Port of Nome while  at the end of the season last                                                               
year there were  301 dockings.  In 2008,  three vessels traveling                                                               
the Northwest  Passage stopped in  Nome, which increased  to four                                                               
vessels  in 2009.   She  related the  various organizations  with                                                               
which the City of Nome has tracked  or worked on this issue.  She                                                               
also related  that there  are three  studies regarding  ports and                                                               
harbors that are being performed.   The U.S. Navy is conducting a                                                               
two-year study for  the deep water port its  [constructing].  The                                                               
U.S.  Coast Guard  is performing  a  high latitudes  study.   The                                                               
Corp.  of  Engineers and  the  Department  of Transportation  are                                                               
performing a  baseline survey of  ports and harbors.   During the                                                               
process, the  question arose regarding  who in Alaska  is keeping                                                               
track of all  the studies and groups.  Mayor  Michels agreed with                                                               
earlier  testimony that  all  levels of  government  needs to  be                                                               
involved, particularly those at the  local level because the laws                                                               
and   regulations   being   considered  at   the   national   and                                                               
international   level  will   directly   impact  local   [Alaskan                                                               
communities].   In  conclusion,  Mayor Michels  related that  she                                                               
looks forward to participating [with this issue].                                                                               
                                                                                                                                
9:26:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS highlighted  that HCR 22 taps  the mayor of                                                               
Nome to be part  of the task force.  He asked if  she's up to the                                                               
task.                                                                                                                           
                                                                                                                                
MAYOR MICHAELS replied yes.                                                                                                     
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
TOM  OKLEASIK,  Planning   Director,  Northwest  Arctic  Borough,                                                               
related the  Northwest Arctic Borough's  support for HCR 22.   He                                                               
reminded  the  committee  that  Arctic is  home  to  the  Inupiaq                                                               
people,  with interrelations  across  the  region and  countries.                                                               
Furthermore,  the Inupiaq  people  are closely  connected to  the                                                               
environment.    Changing  climate and  global  economic  interest                                                               
cause the  Arctic to be  viewed in  a new light,  particularly in                                                               
terms  of marine  accessibility as  well as  the exploration  and                                                               
exploitation  of  natural resources  onshore  and  offshore.   He                                                               
opined  that   in  general   there's  a   lack  of   science  and                                                               
understanding of  the unique Arctic environment.   Therefore, the                                                               
state  and  federal  policy  and  permit  decisions  need  to  be                                                               
cautionary.   At  this point,  any development  needs to  be done                                                               
correctly  and  in partnership  with  the  Inuit.   Mr.  Okleasik                                                               
pointed  out  that  there  are many  past  mistakes  with  Arctic                                                               
development that need  to be acknowledged and from  which one can                                                               
learn.   He  highlighted  that  the Arctic  is  one  of the  last                                                               
pristine  environments in  the  world, and  thus  the task  force                                                               
needs to  include indigenous people, including  the Eskimo Walrus                                                               
Commission,  the  Alaska  Eskimo Whaling  Commission,  the  Nanuk                                                               
Commission, and others that would  have an important voice in the                                                               
process.                                                                                                                        
                                                                                                                                
MR. OKLEASIK,  in the way  of background, informed  the committee                                                               
that both  the Northwest Arctic  Borough and North  Slope Borough                                                               
Planning  Commissions  have  held   a  joint  strategic  planning                                                               
session  over  the  past  year.     One  of  the  priorities,  in                                                               
recognition  of  the  Arctic  development  is  to  map  high  use                                                               
subsistence use  areas and define  deferral development  areas in                                                               
order to achieve balanced development.   Both commissions realize                                                               
the need to boost their Arctic  economies, in terms of both their                                                               
cash  and subsistence  economies.   The  aforementioned was  also                                                               
supported by the  Arctic Economic Development Summit,  which is a                                                               
summit in which both boroughs  participate.  Mr. Okleasik related                                                               
that there is recognition of  infrastructure needs, including the                                                               
development of  ports in multiple  locations.  He  then expressed                                                               
the need  for an energy  policy in order  that the region  can be                                                               
energy independent while contributing to  the energy needs of the                                                               
U.S.   At  the same,  there needs  to be  wildlife protection  to                                                               
ensure that the  subsistence economy is protected  and thrives in                                                               
the  future.     In  conclusion,  Mr.   Okleasik  reiterated  the                                                               
Northwest  Arctic Borough's  support for  HCR 22,  but encouraged                                                               
amendments  to  achieve  better  involvement  of  the  indigenous                                                               
people of the Arctic.                                                                                                           
                                                                                                                                
9:30:47 AM                                                                                                                    
                                                                                                                                
BOBBY  SCHAEFER,  Public   Services  Director,  Northwest  Arctic                                                               
Borough, began  by characterizing HCR  22 as a stepping  stone in                                                               
the  right  direction.   There  is  very little  scientific  data                                                               
regarding the Arctic ecosystem.   He related that over the course                                                               
of  the last  six  to  seven years,  the  Kotzebue  IRA has  been                                                               
tagging  the bearded  seal to  track  its movement.   The  Beluga                                                               
Commission has  been tagging Beluga  whales in order to  know the                                                               
areas they  frequent throughout the  year.  He explained  that he                                                               
mentioned  the  aforementioned tagging  in  order  to relate  the                                                               
concern for the  wildlife.  He noted that these  are animals upon                                                               
which the  people in the area  utilize to survive.   The concern,                                                               
he expressed,  is that the  increased traffic due to  the opening                                                               
up  of  the  Northwest  Arctic   passage  will  impact  wildlife.                                                               
However, the extent of the impact  is unknown, which is why he is                                                               
pushing for the  work [in the Arctic region] to  begin as soon as                                                               
possible.  Mr. Schaeffer then reiterated  support for HCR 22.  He                                                               
concluded  by   relating  his  belief   that  the   Alaska  Inuit                                                               
Circumpolar  Conference  should  have  a  representative  on  the                                                               
proposed task force.                                                                                                            
                                                                                                                                
9:33:33 AM                                                                                                                    
                                                                                                                                
KATIE  BALDWIN, Alaska  House,  began by  relating  that she  was                                                               
originally from  Bethel, Alaska.   She  then related  that Alaska                                                               
House,  which  is a  resource  to  connect Washington,  D.C.  and                                                               
Alaska, recently  hosted a  discussion on  the issues  of melting                                                               
Arctic ice  and increased shipping  traffic.  She opined  that it                                                               
has been eye-opening to participate  in these discussions.  These                                                               
shipping routes are opening and  without planning ahead, Alaska's                                                               
coastlines and  people will  be taken  advantage of.   Therefore,                                                               
establishing   this    infrastructure   protects    the   state's                                                               
coastlines, monitors  the ecological effects, and  takes measures                                                               
to   protect  the   state's  environment.     Ms.   Baldwin  also                                                               
characterized this  as an  opportunity for  economic development,                                                               
particularly in terms  of seasonal work.  Therefore,  it's in the                                                               
best interest of  Alaskans to hear about these jobs  first and to                                                               
be trained  to fill the  jobs.   The aforementioned may  mean the                                                               
need  for  training  programs,  which  she  opined  can't  happen                                                               
without  the proposed  Alaska  Northern Waters  Task  Force.   In                                                               
conclusion,  Ms. Baldwin  related  her support  for the  proposed                                                               
task force.                                                                                                                     
                                                                                                                                
9:35:27 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON inquired  as to what Ms. Baldwin  tells people in                                                               
New  York  in terms  of  describing  the  impact of  opening  the                                                               
Northern waters.                                                                                                                
                                                                                                                                
MS. BALDWIN  answered that it  begins by describing  the [Bethel]                                                               
area as  it's foreign  to [those  in the Lower  48].   People are                                                               
shocked  that  Bethel  isn't  on  the  road  system.    She  also                                                               
expressed the need  to discuss the subsistence  lifestyle and its                                                               
importance  to the  Yupik  people  in the  area  as  well as  the                                                               
importance  of non  Alaska Natives  to be  able to  live off  the                                                               
land.   She opined that  people [in the  Lower 48] can  relate to                                                               
the  fact that  the  area  is unique  and  is  part of  America's                                                               
heritage.  She  further opined that people [in the  Lower 48] are                                                               
willing to protect the aforementioned.                                                                                          
                                                                                                                                
9:38:08 AM                                                                                                                    
                                                                                                                                
ANDERW  MACK,  Assistant,  Office   of  the  Mayor,  North  Slope                                                               
Borough, speaking  on behalf of  North Slope Borough  Mayor Itta,                                                               
related that the North Slope  Borough shares many of the concerns                                                               
expressed in HCR  22.  Specifically, the Arctic Ocean  ice cap is                                                               
rapidly melting and  the effects of the  aforementioned and other                                                               
symptoms of climate  change are already being  experienced in the                                                               
surrounding communities and wildlife  populations.  For instance,                                                               
coast  erosion  has   accelerated,  wildlife  migration  patterns                                                               
appear to  be changing, and  numerous species are  migrating into                                                               
Northern  waters  for the  first  time.   Moreover,  cruise  ship                                                               
activities  are expected  to increase  and commercial  fishing is                                                               
being contemplated in the Northern  waters.  He characterized the                                                               
Arctic as ground zero for climate change.                                                                                       
                                                                                                                                
MR. MACK  informed the committee that  last week the U.S.  Fish &                                                               
Wildlife  Service  asked the  North  Slope  Borough to  join  the                                                               
Arctic  Landscape  Conservation  Cooperative,  which  will  be  a                                                               
partnership  of federal,  state, and  local government  agencies,                                                               
tribes,  nongovernmental  organizations,  and other  entities  in                                                               
Arctic  Alaska  and  Northern  Canada.     The  Arctic  Landscape                                                               
Conservation Cooperative  is part of  a larger effort  to address                                                               
the impacts  of climate  change called  for in  Secretarial Order                                                               
3289, which was signed by  U.S. Secretary Salazar last September.                                                               
Additionally,  the  North Slope  Borough  holds  the position  of                                                               
chair  of  the  North  Slope  Science  Initiative  (NSSI),  which                                                               
includes federal and state agencies  focusing on science needs in                                                               
the North Slope.  The goal  is to provide more effective programs                                                               
for developing science in the  Arctic.  Perhaps most importantly,                                                               
is  the existence  of the  Interagency Ocean  Policy Task  Force,                                                               
which is  a program that  overlaps with issues identified  in HCR
22.   Since last summer,  the aforementioned task force  has been                                                               
working to develop a national policy  for oceans and coasts.  The                                                               
Interagency Ocean Policy  Task Force traveled to  Alaska and took                                                               
testimony  last August.   The  task force  has issued  an interim                                                               
report with  recommendations on human health,  economic interest,                                                               
the  adaptation   to  climate  change  and   other  environmental                                                               
concerns, foreign policy, and homeland  security.  The task force                                                               
is also  developing recommendations  for a framework  for coastal                                                               
and marine spatial planning, which  is a huge endeavor that could                                                               
impact  the borough  in  a significant  manner.   Therefore,  the                                                               
borough  is spending  much time  to understand  the process.   He                                                               
noted that the task force is  being directed from the White House                                                               
and thus he  expected that an executive order will  be signed and                                                               
issued.   Mr. Mack stated that  these are just three  examples of                                                               
major initiatives  already underway that the  task force proposed                                                               
in HCR  22 should  consider.  He  reviewed activities  by various                                                               
other organizations and  related that the North  Slope Borough is                                                               
approached on a  regular basis to participate  in various efforts                                                               
to examine the changing Arctic  environment.  "We appreciate that                                                               
HCR 22 provides a strong local  voice.  We need the local, state,                                                               
and federal agencies to be  working together to address these big                                                               
issues," he  related.   In conclusion,  Mr. Mack  related support                                                               
for  HCR  22  as  the  vehicle  for  the  state's  voice  in  the                                                               
aforementioned process.                                                                                                         
                                                                                                                                
9:43:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   HERRON  asked   if  the   approach   by  the   various                                                               
organizations is patronizing.                                                                                                   
                                                                                                                                
MR.  MACK  answered  that  in  some cases  it  feels  as  if  the                                                               
organization  wants  to  include  the local  communities  in  the                                                               
beginning, but as the process  continues it becomes apparent that                                                               
people outside of the Arctic  and Alaska are driving the process.                                                               
At that  point, it  does feel patronizing.   He  then highlighted                                                               
that  the  state territorial  waters  are  very limited,  whereas                                                               
there  are far  more  [waters] controlled  by federal  regulatory                                                               
processes.  Therefore,  it's imperative that the  State of Alaska                                                               
take an active role.                                                                                                            
                                                                                                                                
9:45:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALAN  AUSTERMAN, Alaska State  Legislature, opined                                                               
that Alaska is  behind on addressing the depletion  of the Arctic                                                               
ice  cap  and the  issues  that  will  arise with  other  foreign                                                               
countries.    Alaska  should be  involved in  what occurs  in the                                                               
Arctic and the proposed task force  is a good step with regard to                                                               
what is  going on, who  is involved,  and their plans.   Although                                                               
the state  only has control of  three miles of water,  the impact                                                               
of what occurs  in the vast territorial waters is  important.  He                                                               
recalled six to seven years ago  when he worked with fisheries in                                                               
the Murkowski  Administration when there  was a shift  in fishery                                                               
issues  such that  foreign countries  were  becoming involved  in                                                               
fish stocks  that seem to be  moving.  The aforementioned  led to                                                               
the North  Pacific Fisheries Council  closing all  fishing inside                                                               
federal waters  until they can  get a  handle on what  the stocks                                                               
are and will  be doing.  In  conclusion, Representative Austerman                                                               
related his support for HCR 22.                                                                                                 
                                                                                                                                
9:48:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MUNOZ, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
9:49:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE  thanked the  committee for  introducing the                                                               
resolution and  related that  he looks forward  to moving  HCR 22                                                               
through the legislative process.                                                                                                
                                                                                                                                
9:50:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS  mentioned that there may  be some language                                                               
issues on page  2, lines 26 through  page 3, line 3.   He related                                                               
his belief  that the President of  the Senate and the  Speaker of                                                               
the House of Representatives won't  appoint the following members                                                               
to  the task  force:   the U.S.  Coast Guard  member; the  member                                                               
representing the  state administration;  the mayors of  the North                                                               
Slope Borough,  Northwest Arctic Borough,  and the City  of Nome;                                                               
and the  U.S. Department of Interior  representative.  Therefore,                                                               
he  suggested  that  the  language  be  modified  such  that  the                                                               
appropriate appointing agency is specified.                                                                                     
                                                                                                                                
REPRESENTATIVE  JOULE agreed  to address  the necessary  language                                                               
changes as the resolution moves through the legislative process.                                                                
                                                                                                                                
9:51:16 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  moved to report  CSHCR 22,  Version 26-LS1622\E,                                                               
Cook, 3/26/10,  out of committee with  individual recommendations                                                               
and the  accompanying fiscal  notes.   There being  no objection,                                                               
CSHCR 22(CRA) was reported from  the House Community and Regional                                                               
Affairs Standing Committee.                                                                                                     
                                                                                                                                
9:51:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE concluded by relating his appreciation for                                                                 
the work performed by the staff in his office as well as                                                                        
Representative Austerman's office.                                                                                              
                                                                                                                                
9:51:54 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Community and Regional Affairs Standing Committee meeting was                                                                   
adjourned at 9:52 a.m.                                                                                                          

Document Name Date/Time Subjects
HCRA 3.30 - Draft CSBG FFY11 State Plan.pdf HCRA 3/30/2010 8:00:00 AM
CSBG
HCR 22 Bill Packet.PDF HCRA 3/30/2010 8:00:00 AM
HCR 22
CS HCR 22 (1622-E).PDF HCRA 3/30/2010 8:00:00 AM
HCR 22