Legislature(1999 - 2000)
01/31/2000 12:12 PM Senate ASC
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT ARMED SERVICES COMMITTEE
January 31, 2000
12:12 p.m.
SENATE MEMBERS PRESENT
Senator Tim Kelly, Co-Chair
Senator Drue Pearce
Senator Gary Wilken
Senator Loren Leman
HOUSE MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative Gene Therriault
Representative Reggie Joule
Representative John Harris
PUBLIC MEMBERS PRESENT
Dean Owen
Alan Walker
George Vakalis
Jake Lestenkoff (via teleconference)
John Hoyt (via teleconference)
OTHERS PRESENT
Senator Randy Phillips
Representative Sharon Cissna
Representative Alan Austerman
COMMITTEE AGENDA
Activities Report
Military Issues Update
Special Presentations: Coast Guard Update, Adak Reuse Update
WITNESS REGISTER
Rear Admiral Thomas Barrett
Commander 17th Coast Guard District
P.O. Box 25517
Juneau, AK 99802
ACTION NARRATIVE
TAPE 00-01, SIDE A
Number 001
CO-CHAIR TIM KELLY called the Joint Armed Services Committee
meeting to order at 12:12 p.m. Committee members present were Co-
Chair Tim Kelly, Senator Drue Pearce, Senator Gary Wilken, Senator
Loren Leman, Co-Chair Eldon Mulder, Representative Lisa Murkowski,
Representative John Harris, and Dean Owen, Alan Walker, and Colonel
George Vakalis and, General Lestenkoff and General Hoyt via
teleconference.
INTRODUCTION OF MEMBERS AND GUESTS
CO-CHAIR KELLY introduced the following guests: Phil Oates, the
Adjutant General of the Department of Military and Veterans
Affairs; Brigadier General George Cannelos, Commander of the Alaska
Air National Guard; General Westfall, the Commander of the Alaska
Defense Force; Rear Admiral Barrett, Commander of the 17th District
Coast Guard; Chris Gates and Paul Romoff from the Adak
Redevelopment Authority; and Major Brian Piltery of the Public
Affairs Office, US Army at Ft. Richardson.
MAJOR HILFERTY introduced the members of his party.
CO-CHAIR KELLY introduced Janice Neilsen, the legislative liaison
from the US Army Pacific, Rex Blazer, special assistant to Governor
Knowles, and Mead Treadwell (who was participating via
teleconference).
REAR ADMIRAL BARRETT introduced Rob Barker, Commanding Officer of
the Coast Guard Cutter "Melon," which will be en route to the
Bering Sea soon.
PAT CARRUTHERS of the Veterans Advisory Group introduced Judith
DeSpain, Robert Cashen, Elmer Johnson, Gordon Severson and Steve
Sweet.
CO-CHAIR KELLY acknowledged the presence of former Senator Ed
Willis and Laddie Shaw of the Department of Military and Veterans
Affairs.
APPROVAL OF MINUTES
CO-CHAIR ELDON MULDER moved to approve the minutes of the meetings
held on September 23 and October 4, 1999. There being no
objection, the minutes were approved.
ACTIVITIES REPORT
CO-CHAIR TIM KELLY asked Dean Owen to brief the committee on the
Federal Aviation Administration (FAA) Conference on Military
Airport Joint Use.
MR. DEAN OWEN informed committee members that a copy of his report
is contained in committee packets and made the following
statements.
The focus of the various discussions at the conference was to
assist those communities and installations that were confronted
with Base Realignment and Closure (BRAC) action and about how to
convert airfields to joint use facilities. Joint use of airfields
is a pertinent issue for the State of Alaska and it is a course of
action with several potential benefits for both the military and
civilian communities. Joint use activities at airfields offer
additional protection against future BRACs and they provide
business opportunities for the civilian community. Such activities
might qualify an airfield for funding through the military airport
program and they allow maintenance costs to be shared.
Alaska has three army airfields which are good candidates for joint
use activities: Allen Army Airfield at Ft. Greeley; Bryant Army
Airfield at Ft. Richardson; and Wainwright Army Airfield at Ft.
Wainwright. Any proposals for joint use must be initiated by the
civilian community. If the proposal does not interfere with Air
Force security or the Air Force's mission, the community may enter
into a long term agreement for joint use of the airfield.
MR. OWEN stated the Joint Armed Services Committee (JASC) can
assist both the military and civilian community in this arena.
Representatives from Ft. Greeley and Delta attended the conference
and expressed interest in joint uses at Allen Army Airfield. He
noted that the remainder of the information on the conference is
contained in his report.
Number 130
CO-CHAIR KELLY noted the presence of Representative Cissna. He
asked Mead Treadwell to speak to the committee on the Institute of
the North Conference.
MR. MEAD TREADWELL thanked committee members for member
participation in the November conference sponsored by the Institute
of the North on Missile Defense in the Pacific. He reiterated for
the committee the following ideas that came out of the conference.
First, conference participants reviewed the threat of a missile
attack. Alaska and Hawaii face more of a threat from missiles
being developed by North Korea, China, Russia, India, Pakistan,
Iran, Iraq and other countries. The threat exists to the rest of
the nation and its allies in Europe and Asia, but Alaska's
proximity puts it more at risk. Dr. Graham, a member of the
Rumsfeld Commission, and Dr. Pfaltzgraff spoke to that threat.
The second issue that participants focused on was the U.S. response
to that threat. Military officials talked about the United State's
engagement in trade, friendship and diplomacy to help build trust
in the Pacific. Last week the U.S. and China agreed to establish a
military-to-military relationship again. Participants were also
briefed on the technology being developed in case a breakdown in
trust or an accident occurs. Dr. David Martin, the head of
International Programs, addressed what the Ballistic Missile
Defense Office is doing to develop the land and sea based systems.
General Yamaguchi, the Japanese Defense Attache, also
participated. Colonel Pete Worden spoke about air and space based
systems and theater based systems. Both the theater systems and
the land based systems are part of a defense system that will
protect Alaska.
Dr. Martin and Secretary Cohen said this morning the deployment
decision to be made this June depends on four factors: the threat;
technology; cost; and the relationship to the ABM Treaty.
Secretary Cohen believes the first three factors are covered
despite the missile test failure last week. The U.S. must still
work with its allies and with Russia for support of this effort so
that it is not seen as counterproductive to the Treaty. Since the
conference, Japan, Canada, France, China, Great Britain, and other
nations have said they hope the U.S. does not drop the Treaty which
is of concern.
MR. TREADWELL noted that during the next few months, Alaska may be
made an offer that it cannot refuse. A treaty revision may allow a
land based system to go ahead in Alaska, but limit Alaska's
interceptors, limit Alaska's opportunity to cooperate with sea
based systems and limit Alaska's ability to perfect a system with
space based radars. He advised the Legislature to keep an eye on
this issue.
Participants discussed the ABM Treaty and how it does not allow
ships, radar and planes to coordinate with the theater based
system. They learned how the Treaty is not legally binding on the
U.S. because it was signed with a nation that is no longer in
exists. The President has refused to send the Treaty to Congress
for re-ratification.
The State Department says the treaty negotiations will be a
piecemeal process but, given the nation's interest in getting this
started in Alaska, it may be unwise to let a land-based system act
alone to defend the U.S. He advised that the Legislature watch the
ongoing negotiations very carefully.
MR. TREADWELL remarked that Alaska should continue its dialogue
with Western states and Japan, and push not only for 50 state
coverage, which the Alaska Legislature was the first to call for,
but also for an integrated system with the family of missile
defense options. Alaska needs to watch what is happening with
theater-defense options in the Pacific. Taiwan is requesting that
the U.S. buy Aegis cruisers. Japan has named its developers of the
Japanese system. The Legislature needs to be aware that a
deployment decision may not fit national needs if it is too
limited. He asked legislators to review the State's own
investments to see if and where they may inadvertently be helping
proliferation. Task forces established in Colorado, California and
Texas have reviewed their public pension funds.
CHAIRMAN KELLY noted that former Governor Hickel and his wife
hosted a conference on the USS Missouri on the last evening of the
conference.
Number 246
GENERAL HOYT made the following comments about the Symposium on
Space and Missile Defense put on by the Association of the United
States Army (AUSA). The U.S. Army holds these symposiums to
provide an opportunity for the nation's political, military, and
industry leaders to interface and exchange information on items of
mutual interest and concern. The symposiums are public forums open
to anyone willing to pay the admission price. About 425 people
attended the El Paso event including part of the nation's political
leadership and representatives of every major industry involved in
the development of missile defense systems.
GENERAL HOYT highlighted portions of his report as follows. Lt.
General Kent Strube, Vice President of Education of AUSA, is an
extremely strong supporter of national missile defense and the
Alaska Army National Guard's participation in that program.
General Strube is a member of the Joint Advisory Council to the
Joint Ballistic Missile Defense Office and is a supporter of Alaska
on this issue. A video presentation was given about the successes
evident in the missile defense business last year. Representative
John Hostedtler of Indiana talked about the threat. Polling data
collected from U.S. registered voters show that 86 percent approve
of the development and deployment of the national missile defense
system. There is also very strong congressional support for
continuation of these systems.
GENERAL HOYT said that Lt. General George McDonald, Deputy
Commander in Chief of the North American Aerospace Defense Command,
presented the Canadian perspective on national missile defense. As
of the first week of December, no formal interface between the
U.S. and Canadian governments concerning the national missile
defense program occurred, therefore Canada had developed no
position on that issue. It may or may not participate in its
development and funding. Canada does not understand the concept of
national missile defense and questions whether such a threat to
Canada exists. It is more concerned about weapons of mass
destruction used by terrorists. Canada opposes abrogation of the
current ABM Treaty and it also opposes the use of weapons in space.
The intention of the military and industry leadership to develop
space based laser systems is to destroy missiles on launch as close
to enemy territory as possible. The space-based system would be
backed up by a ground-based interceptor system that is being
developed now. He agreed with Mr. Treadwell that the U.S. has some
political obstacles to overcome among the world leadership on these
issues.
GENERAL HOYT pointed out that he discussed with Mr. Josh Edwards,
Director of Business Development for Boeing, the use of the Kodiak
missile launch facility for future testing. He believes the Alaska
Air and Army National Guard will benefit, as well as all of Alaska.
He concluded there is work to be done but he believes Alaska will
see success, to the benefit of Alaska and the nation.
CO-CHAIRMAN MULDER remarked that participants at the Institute of
the North Conference had the opportunity to visit with General
Smith to argue the value of Alaska's army posts. The meeting
lasted about two hours and was very beneficial.
Number 352
SENATOR WILKEN referred to item 7 on the last page of General
Hoyt's report, and asked General Hoyt to expand on the Kodiak
missile launch facility's use.
GENERAL HOYT replied that the missile launch systems currently
being used for the launch of target missiles and launch of
interceptor missiles are pointed directly at each other. If the
Kodiak system is used to shoot South, the intercept occurs at a
different angle which is beneficial from the standpoint of testing
the system. He does not know the technical aspects but he believes
it would be worthwhile for the facility managers to be in contact
with Boeing.
CO-CHAIRMAN MULDER pointed out that he visited with the Alaska
Aerospace Director, Pat Ladner, about the ability of Boeing to use
Kodiak, instead of Kwajalein Atoll, in relation to the missile
testing. As General Hoyt pointed out, it is more technically
difficult to shoot from Kodiak than to shoot from Vandenburg Air
Force Base in California. A Kodiak launch would reflect a more
real life scenario which makes it more valuable. Another strategic
value to Kodiak is that all three phases of the rocket could be
fired from there while only two can be fired at Kwajalein because
of the red zone.
CO-CHAIRMAN KELLY acknowledged the presence of Senator Phillips.
CO-CHAIR KELLY asked Colonel Vakalis to update committee members on
the NAID Conference.
COLONEL GEORGE VAKALIS informed committee members the National
Association of Installation Developers' (NAID) Conference on
Military Base Privatization occurred during the past week. Several
issues of interest to Alaskans were discussed.
First, NAID was formed in response to the last BRAC rounds to
assist communities that would be taking over bases being vacated.
The initial composition of NAID included realtors, industrial and
residential contractors, and bankers. NAID's focus has recently
changed as no BRAC rounds have occurred for several years. Most of
the changes to the bases have already occurred or are in a holding
pattern because of problems, i.e. environmental cleanup.
NAID's new focus is to look at what can be done to make posts,
camps, and stations throughout the United States "BRAC-proof." To
do that, NAID is looking at ways to make existing posts more cost
effective: privatization, outsourcing, or staying the course. In
some cases it is more advantageous to privatize the utility
functions of the bases while in other cases it is more advantageous
to outsource them. In other cases it is more cost-effective to
stay the course. The same case applies to real estate. In many
cases, especially in Alaska, downsizing has created an excess of
acreage, administrative facilities, housing, and warehousing. One
way to make the bases cost effective is to lease the excess space
available. Bases are being encouraged by the Department of Defense
to take that initiative. Ft. Richardson has an excess of warehouse
and administrative building space and, in the Anchorage bowl area,
there is a shortage of warehouse space.
The military calculates base costs by dividing the amount of square
footage and acreage available by the number of soldiers. Alaska's
bases have the highest cost per soldier.
NAID is looking into a second mechanism that may be used on an
experimental basis in San Antonio, Texas. Either the entire base
will be conveyed to the local community and the military will lease
back those facilities it needs, or operational agreements with
local governments for maintenance of the infrastructure and roads
will be entered into. If either arrangement proves to be a
success, it will reduce the costs for the military unit and it will
give the local government or other entity the option to lease out
the unused facilities or acreage.
One challenge faced by Alaska is the cost of base utility systems.
Water and sewage operations are not a problem. Electricity and
heat are problematic because all electric generating plants on the
bases are coal generation plants that produce both electricity and
steam heat for all facilities on the post. The power plants and
conduits are in poor condition and not cost effective. It will be
difficult to get any entity to take over that operation.
COLONEL VAKALIS said the more active a military base is with local
communities. State and other federal agencies, in the form of
joint uses, the more protected that installation is from closure.
He also pointed out that the Assistant Secretary of Defense
attended the conference and made clear that the Department of
Defense (DOD) is very serious about getting out of the utility
business, and on getting returns from unused facilities and
acreage. Colonel Vakalis warned that facilities that are not
leased out could be torn down. Participants were also informed
that the Department of Defense does not intend to do a BRAC round
in 2001 but it is pushing for BRACs in 2003 and 2005. DOD is
waiting for a change in the Administration and is devising more
appropriate criteria to use in the next BRAC rounds.
Number 520
MR. WALKER said that during the tour of Ft. Richardson, members saw
a refrigerator warehouse in outstanding condition. Discussion
ensued about the dearth of available refrigeration storage space in
the Anchorage basin yet that building has been destroyed. He
referred to a usage agreement for the land that precludes the Army
from leasing out excess land to commercial or local government
entities and he asked if that is an issue the legislature needs to
address. He noted it is ironic that Alaska is worried about losing
bases but it is hamstrung to use the facilities.
COLONEL VAKALIS replied there are two answers to that question.
First, the agreement Mr. Walker referred to is called NALA - the
North Anchorage Land Agreement. That agreement came into existence
as the result of over filings by the State, Native organizations,
and the Municipality of Anchorage (MOA) for the lands associated
with Ft. Richardson and part of Elmendorf Air Force Base if those
posts were declared excess to the needs of the military. To
preclude a legal battle if those posts were declared excess to the
military's need, the U.S. Government said if all three parties can
devise an agreement for the land prior to the closure of those
posts, the Army will transfer the lands at that point in time. The
agreement divides the lands three ways: the MOA gets a certain
amount for specific uses; the Eklutna Corporation gets a certain
amount; and the State gets a large amount of acreage.
The agreement says that the State will take an identified portion
and the excess will be either jointly managed or jointly agreed
upon by the MOA and Eklutna. The problem is, as of this point in
time, that has not been determined. The Army does not need to
declare that property as excess to its needs. It can say it has
excess capacity and, in that case, if it needs to use that property
in the future, the property will revert back to the military.
Unless the Army declares that property excess to its needs, it can
still lease it out. If the military leases a warehouse, the money
goes back into military operations so the warehouse is not
considered excess to its needs because it is revenue generating.
COLONEL VAKALIS said the second aspect of that arrangement is that
a law on the books prohibit the military from competing with
private enterprise. To get around that, three factors must be
considered. One factor is that the local government concur in the
use of land or a particular facility to compete. If the local
government has no concerns, then fair market value must be
determined and charged. Third, the use should be endorsed by the
local Chamber of Commerce.
SENATOR PHILLIPS asked whether 50 acres is available for a high
school and whether such a facility would fit the criteria.
Number 585
COLONEL VAKALIS replied that one thing that makes Ft. Richardson
valuable is its training area so 50 acres could be problematic.
Ft. Richardson intends to hold on to as much acreage as possible to
encourage other units to train there.
TAPE 00-01, SIDE B
REPRESENTATIVE MURKOWSKI referred to a letter from the Chamber of
Commerce. It's military affairs committee has recommended that
Alaska look to hire a firm to study the situation in Alaska and
recommend how Alaska can become BRAC-proof. She asked Colonel
Vakalis his opinion of that approach.
COLONEL VAKALIS said he participated in writing that letter which
was a response to a speech that Senator Stevens made in December of
1999. Senator Stevens spoke about a BRAC round in 2001, and he
mentioned that Ft. Richardson and Eielsen Air Force Base were very
vulnerable. As a result of those statements, it appeared to the
Chamber that an assessment was necessary. The necessity is still
there but the urgency is not. He pointed out that if a BRAC round
occurs in 2003, the fact gathering will occur before that year.
CO-CHAIRMAN KELLY announced that Representative Therriault joined
the committee. He then asked Chris Nelson to update the committee
on military issues.
Number 569
CHRIS NELSON, staff director to the JASC, informed committee
members that the JASC is required by statute to report its
activities to the Legislature at the beginning of the session. A
copy of the activities report from July 1, 1999 through January 10,
2000 is included in committee members' packets. A few key issues
are facing committee members. First, in the area of national
missile defense, the decision on whether and where to build the
system is still on the calendar for June of 2000. Alaska wants the
system built, and it wants the system built in Alaska. Crucial to
those goals are the flight tests of the various technological
elements of the system. The first flight in October, the test of
the exo-atmospheric kill vehicle, was a success. The second flight
in early January failed to achieve an intercept. That test was
complicated and, although the intercept failed, the other parts of
the test worked very well and proved that the architecture of the
system was valid. The military believes the intercept was not
achieved because of two failed heat sensors. A third flight test
is scheduled in April.
Alaska has a lot riding on the third test. The JASC has held the
position that more tests should be conducted but it does not see a
good reason to postpone the deployment readiness review. The JASC
wants a decision to be made in June so that the bidding process can
begin in July and August, and the construction can begin the
following summer.
MR. NELSON noted he has been in contact with staff at the national
missile defense office, and has indicated that the JASC would enjoy
having the opportunity to host Major General Nance, the Commander
of the National Missile Defense office. The attendance of Dr.
Pellier, Vice President of Boeing, would also be extremely helpful.
General Nance may be available during the week of April 3rd. He
asked the committee's permission to issue a formal invitation to
General Nance to visit Alaska during that week.
CO-CHAIRMAN KELLY asked if there was objection to that invitation.
There being no objection, Co-Chairman Kelly asked Mr. Nelson to
proceed.
Number 524
MR. NELSON informed committee members that although the next BRAC
round has been scheduled in 2003, the issue is still on the table
and DOD is looking hard for ways to shed itself of excess base
structure. The JASC's argument that new evaluation criteria must
be used in any future BRAC rounds has been successful. The
committee has argued that the new criteria view and weight joint
activities. Leon Panetta was the featured speaker at the NAID
conference in Jacksonville, Florida last summer. Mr. Panetta
described what people expected from BRAC and what they got. A
study of base reuse found that only one-fifth of bases closed in
the first three BRAC rounds had regained the same level of
employment in civilian reuse as that prior to closure.
MR. NELSON suggested the JASC's number one priority must be to
continue to monitor ballistic missile defense. BRAC must also be
monitored.
SENATOR PEARCE commented that Senator Murkowski pointed out that
some military facilities are more cost effective to keep open than
to close due to the cost of environmental cleanup. She asked
whether that will work for or against Alaska in another BRAC round.
MR. NELSON said that along with changes to BRAC evaluation
criteria, another analytical tool, the COBRA model, must be
changed. COBRA is a military acronym for Cost of Base Realignment
Action. That model was developed in 1988 to compute a break even
point but no environmental cleanup costs were factored into it at
all. If a 2003 BRAC round is authorized, in addition to Alaska's
efforts to ensure that joint evaluation criteria are used, it must
also insist that the COBRA model be modified to include the costs
of environmental cleanup because those costs are enormous in
virtually every base that has been closed. The DOD does not bear
those costs; many of the bases become Superfund sites.
CO-CHAIRMAN KELLY asked Mr. Nelson to work with Colonel Vakalis and
the Anchorage Chamber of Commerce on the possibility of hiring a
consultant.
MR. NELSON agreed.
Number 448
SENATOR WILKEN informed committee members that last March a number
of legislators were invited to visit the Northern Edge Training
Site. Legislators returned with an appreciation of the military's
role in Alaska and the role of Alaska in the military strategy. On
the return trip, participants discussed the need to inform other
legislators about that relationship. To that end, they decided to
establish a "Northern Edge Day" so that legislators could visit
that site on one day each session. He asked committee members to
recommend that action to the Legislative Council and legislative
leadership.
CO-CHAIRMAN KELLY asked Mr. Nelson to work with Senator Wilken on
that issue.
Number 527
REPRESENTATIVE MURKOWSKI noted that Mr. Treadwell indicated that he
was willing to work on a resolution regarding the ABM Treaty and
how it will or will not affect Alaska. She asked JASC members to
work with her on such a resolution.
SENATOR LEMAN noted the JASC report mentions the ARRC track
realignment to Ft. Richardson. He felt the report should reflect
that he and Representative Murkowski are working with the ARRC, the
Air Force and the Army on legislation to be introduced this week
regarding that land exchange.
MR. NELSON pointed out that Senator Leman will also be meeting with
officials to talk about the smoke issue.
CO-CHAIRMAN KELLY asked Rear Admiral Barrett to update the
committee on Coast Guard issues.
Number 411
REAR ADMIRAL BARRETT gave the following briefing to legislators.
Coast Guard activities in Alaska are quiet today but, even so,
three cutters are out patrolling and air stations in Sitka and
Kodiak will be running fisheries patrols in their areas. Also, the
Cutter Melon is in Juneau and is en route to the Bering Sea.
Marine inspectors are in Dutch Harbor and Nikiski checking on
commercial vessel shipping. Aside from 2000 active duty members,
the Coast Guard also has about 400 auxiliary members and over 50
reservists. The Coast Guard puts about $200 million into the
Alaska economy each year in both salaries and purchases. That
amount does not include the cutters that come from other areas and
patrol in Alaska. The Coast Guard is located in many locations in
Alaska in relatively small size. The Coast Guard operates: buoy
tenders; coastal patrol boats; small boat stations; marine safety
offices in Anchorage, Valdez, and Juneau; air stations at Kodiak
and Sitka; support centers in Kodiak and Ketchikan; and loran
stations scattered around the State.
Alaska is a maritime state with a huge coastline and a tremendous
amount of activity along that coastline. The major economic
drivers in the State include the oil industry, fisheries and
tourism - industries that move on the water. Over 14,000 vessels
are involved in commercial fishing in Alaska. Passenger vessels in
the 100 to 200 passenger size are moving further off the main
waterways.
The Coast Guard's primary focus is maritime safety which includes
search and rescue. Last year the Coast Guard responded to almost
1000 rescues and directly participated in saving 255 lives. The
Coast Guard has made a practice of deploying helicopters to St.
Paul and Cold Bay during the winter months and keeps a cutter on
patrol in the Bering Sea during the worst weather to reduce
fatalities. The number of deaths in the fishing industry last year
was about 19. Overall, the number of deaths has decreased over the
years although the factors for that decrease are hard to segregate.
Fishing is a dangerous occupation. Coast Guard efforts to minimize
losses include more exams at the dock, more boardings at sea, and a
focus on whether boats are ready to go to sea in this environment.
REAR ADMIRAL BARRETT informed JASC members that over 2 million
passengers move through Alaska on passenger vessels. Last year
four vessels were grounded. The Coast Guard has a small passenger
vessel task force working with the industry to make that industry
safer. Similarly, the Coast Guard is trying to work with the small
charter boat industry to increase the level of safety on a
voluntary basis. The Coast Guard endorses a five star safety
program. If a boat meets five requirements for safety measures
such as backup communications, the Coast Guard will endorse it as
being a safe operation. The Coast Guard is also concerned about
non-commercial boating fatalities in the State - 29 occurred last
year. Alaska has the worst fatality rate in the nation. The Coast
Guard is working with the state to improve outreach and education.
REAR ADMIRAL BARRETT said the second major mission beyond safety is
protection of natural resources. Living marine resources is the
most time consuming. The Coast Guard partners with the National
Marine Fisheries Service, the Alaska Department of Environmental
Conservation, Board of Fish, and the National Oceanic and
Atmospheric Administration to protect the fisheries for the future.
A big issue is the high seas driftnet fishery which occurs in the
Bering Sea. Right now there is a U.S. moratorium on high seas
driftnet fisheries. Last year the Coast Guard cited 10 vessels
about 1500 miles West of Kodiak for violating the moratorium.
Three of the vessels were seized.
The Coast Guard patrols the maritime boundary with Russia. A large
multi-national fleet targets pollack in the Russian EEZ. Poor
catch rates on the Russian side cause Russian fishermen to push the
U.S. boundary creating both a fisheries and sovereignty issue for
the U.S. The Coast Guard patrols this mission regularly with its
largest aircraft and cutters.
REAR ADMIRAL BARRETT noted the maritime boundary in the Bering Sea
has been ratified by the U.S. Senate but not by the Russian Duma.
The catch rates on the Russian side are about one-tenth of the
rates in the U.S. EEZ which is one reason the pressure along the
boundary is high.
The Coast Guard also enforces domestic fisheries laws to keep the
playing field level for U.S. fishermen. Alaska has the largest IFQ
fishery in the world and over 200 time, area and species openings.
The Coast Guard is increasing surveillance on sea lion rookeries.
It is also taking a hard look at the impact of cruise ships in
terms of sewage, garbage, oil and chemical discharge. The Coast
Guard enforces U.S. and current international pollution laws; the
legislature needs to consider whether what the Coast Guard is doing
is adequate. Valdez is closely monitored, as is Cook Inlet,
particularly in winter months when ice restrictions have to be
imposed.
Alaska waterways are a major highway. The Coast Guard maintains
about 1300 buoys and other navigation aids. Over the next few
years, the Coast Guard will be replacing the 180 foot cutters it
has in Kodiak, Homer, Cordova and Sitka with 225 foot cutters. The
Homer pier will not accommodate the larger ship.
The Coast Guard's portion of Northern Edge is the naval component.
Over 1,000 naval exercise participants will visit and contribute
about $700,000 to the local economy of Sitka this year.
REAR ADMIRAL BARRETT commended Alaska's military services for doing
a lot of preventive work to make sure that Y2K was a non-event. He
noted that the Coast Guard is a little more "on the edge" than he
would like it to be because of maintenance accounts, spare parts
shortages, and people shortages.
REAR ADMIRAL BARRETT invited committee members to visit Coast Guard
facilities in Alaska.
Number 170
CO-CHAIRMAN KELLY told Rear Admiral Barrett the committee plans to
visit Kodiak in the near future.
SENATOR PHILLIPS asked if the 29 lives were lost in inland waters.
REAR ADMIRAL BARRETT said that number was statewide.
MR. WALKER pointed out that Rear Admiral Barrett wears a second hat
as the Maritime Defense Commander and therefore overseas the Navy
component in Alaska. He asked Rear Admiral Barrett to address that
relationship and the interaction with Alaska command and how that
relates to BRAC.
REAR ADMIRAL BARRETT explained he has two bosses - he answers to
the Commandant of the Coast Guard and to General Case as the Naval
Component Commander for Alaska. In terms of impacts, whatever the
other services do impacts the Coast Guard. The fact that Adak is
transitioning out of a naval facility and into another type of
activity impacts the Coast Guard. The Coast Guard uses Attu as a
refueling spot and, to the extent that commercial fishing activity
occurs in that area, the Coast Guard will be impacted. He pointed
out if Coast Guard C-130s cannot be staged out of Galena, and they
must be flown from Kodiak or Anchorage, the operating hours on the
maritime boundary drop dramatically. All of the BRAC issues have
multiple consequences in terms of mission, growth, or the types of
missions flown everyday.
Number 120
MR. WALKER said he hopes that in the discussions about the re-
evaluation of criteria for future BRACs, that the JASC get input on
the criteria from the Coast Guard. The BRAC personnel in
Washington, D.C. have no concept of the fact that the West Coast is
closer to Washington, D.C. than Juneau is to many parts of Alaska.
CO-CHAIRMAN KELLY agreed that is another strong reason to retain
Alaska bases.
SENATOR PEARCE asked whether the Coast Guard has any authority over
all of the passenger ships, including cruise ships, regarding open
bridge policies.
REAR ADMIRAL BARRETT replied the Coast Guard has authority to
impose restrictions that are geographic based so it could not set a
policy on a general basis, but in a particularly difficult
operating area, the Coast Guard could come at it through the
captain of the Port Authority in particular areas.
SENATOR PEARCE asked whether that came up as an issue during the
small passenger vessel discussion.
REAR ADMIRAL BARRETT said it did and it was considered to be a
distraction.
SENATOR PEARCE said she has heard some horror stories about the
larger ships and she thought the problem would be intensified on
the smaller ships.
REAR ADMIRAL BARRETT agreed.
CO-CHAIRMAN MULDER indicated that during testimony by the
Commissioner of the Department of Environmental Conservation (DEC)
in the House Finance Committee, the Commissioner said that the
Coast Guard has oversight of oil discharge in Alaska. He asked
whether there is any desire on the part of the Coast Guard to
transfer that responsibility to DEC.
REAR ADMIRAL BARRETT said there is not. He noted that most of the
large cruise ships are foreign vessels and the standards for oil
discharge must meet international standards. Regarding sewage
discharge standards, there is no equivalent to the federal Water
Pollution Control Act with respect to oil discharge standards.
CO-CHAIRMAN KELLY acknowledged the presence of Representative
Austerman.
REPRESENTATIVE HARRIS thanked the Coast Guard for the work it
provides in Cordova and Valdez. He pointed out that many Coast
Guard retirees remain in Alaska and participate in Alaska's
businesses.
CO-CHAIRMAN KELLY thanked Rear Admiral Barrett for his
presentation. He noted the JASC will hold its next meeting in
Anchorage in June. He anticipates that committee members will
visit the Army Corps of Engineers and the new hospital at Elmendorf
Air Force Base. In addition, the committee hopes to visit Kodiak
and Ft. Wainwright sometime this year.
SENATOR WILKEN suggested that members send their June schedules to
Mr. Nelson so that he can arrange a meeting on a compatible date.
CO-CHAIR KELLY announced the last presentation is from Eli Gromoff
and Chris Gates of the Adak Redevelopment Authority.
TAPE 00-02, SIDE A
MR. GATES introduced Mr. Eli Gromoff, CEO of the Aleut Corporation,
and said that Adak will be transferred from the Department of
Defense and Department of the Interior to the Aleut Corporation.
MR. GROMOFF made the following comments on the transfer agreement
to move the property over to the Aleut Corporation which will be
ratified by legislation. Ownership of the infrastructure on Adak
that was produced by the Navy will be transferred to the Department
of the Interior plus 46,000 ANCSA acres on the Shumagin Islands and
Adak Island. The unique thing about this transfer is that the
Aleut Corporation is starting a community from scratch. The Aleut
Corporation is looking to finalize the agreement by March.
Some environmental issues need to be addressed, specifically with
the Navy. The Aleut Corporation does not want any liabilities that
are involved with environmental issues; the main issue is non-
exploded ordinance left there from WWII. The Aleut Corporation is
working closely with the EPA to eliminate that liability, and it
hopes to use the same criteria to remove any other non-exploded
ordinances left in its region from WWII. The Aleut Corporation
owns a lot of land on other islands that are contaminated with non-
exploded ordinances also. Once the environmental issues are
cleared up with the Navy, the transition is very close to being
finished.
Legislation will be addressed by Congress this year. Hopefully it
will be signed by Congress in November and by the President in
January. In the interim, the Aleut Corporation will take full
control of Adak and it is trying to make an early transfer of the
property. The Aleut Corporation will negotiate a lump sum with the
DOD to perform the cleanup in Adak. The Aleut Corporation can
accept contaminated lands because the corporation was able to
obtain environmental insurance as a result of the BRAC. The Aleut
Corporation will keep the legislature updated on how the transfer
is going.
Number 095
MR. GATES stated that for four years the Aleut Corporation has been
dealing with Navy officers and the DOD on issues concerning
personal property, pilferage, use of facilities prior to transfer,
asbestos, and lead based paint. The Aleut Corporation has leased
the facilities on Adak from the Navy to work out all the issues and
about 300 people work there now. There is a huge sense of
community there. The Aleut Corporation has had to conduct two full
petitions with the Local Boundary Commission because the second
class city formation process is too slow. Most local reuse
authorities across the country are asset rich and cash poor. In
any BRAC closure the federal government holds most of the cards and
they play tough.
Adak has the second largest school in the Aleutian Chain and a
seafood processing business is on track about five years before the
State's consultants said it would be up and running. It expects
8.5 million pounds of seafood this coming year. Last year it
produced over $200,000 dollars in fish tax revenue that was paid to
the State.
For Adak to have a master lease a VPSO is needed on site. Adak
needs some of that money that it pays to the State in taxes to pay
for a VPSO on Adak. It leases 1.3 million square feet right now;
there are 4.5 million square feet of developed buildings on Adak,
some of the buildings will never be reused.
The tough issues for the Aleut Corporation are permitting and
utility transition. The regulatory agencies of the State never
anticipated the number of permits required to transition a military
base to a private community. The Aleut Corporation may need help
in obtaining all of the permits in the time frame given. It wants
to obtain complete control of that base by October 1, 2000. The
utilities of Adak have to be downsized, but the cost of the
downsize is expensive and right now it does not have the money to
do that. It expects to have our second class city classification
completed by August of 2000, and it also expects to have a
cooperative agreement with the Navy and the city by that time.
Number 213
CO-CHAIRMAN KELLY asked if the Aleut Corporation is through the
Local Boundary Commission in terms of permits.
MR. GATES said staff from LBC went to Adak and held the first
public information session on Adak. The main issue is that the
Aleut Corporation has asked for the whole island to be designated
as the City of Adak. The LBC objects to the size of the city, but
there is a 60 day federal review by the Department of Justice.
CO-CHAIRMAN KELLY asked if they were anticipating any monetary help
from the federal government.
MR. GATES replied they have received a little planning help.
Senator Stevens put money into the budget to run the airport for
five years but that money may have been misallocated.
CO-CHAIRMAN KELLY asked about the Regulatory Commission of Alaska
and if it would help if the committee sent a letter to them.
Number 250
MR. GATES said that the Commission is sensitive to the needs of
Adak. The Navy is shutting down the base on October 1, 2000 and
all of the permits need to be in place. He asked if the committee
can help by providing a safety net for the permit processing.
SENATOR PEARCE asked if all the requests are in to the Regulatory
Commission of Alaska.
MR. GATES said most of the requests are in.
MR. GROMOFF said the Navy is working very closely with the
corporation and it is looking into an administrative transfer.
Some other permits would be required, but there doesn't seem to be
a problem with the EPA. The biggest permit problem is in regard to
port operations on hazardous materials.
MR. GATES commented the sheer volume of permits is overwhelming.
SENATOR PEARCE said the RCA inherited over 500 open dockets when it
was established last year. There were almost 800 cases that hadn't
even been assigned a docket number. So far they have cleared
hundreds of those cases.
The RCA promulgated new regulations that lay out a time frame so
that scenario would not happen again. Those are now in the
Department of Law, but the process is there for a reason. The
Corporation needs to sit down with the RCA and let them know what
is coming at them, so they can make resources available. The
committee cannot help with the permit situation according to the
Administrative Code, so it is up to the RCA and the Aleut
Corporation.
MR. GATES said they have sat down with the RCA and everyone is
really overwhelmed at the magnitude of the permits needed. They
have not figured out whether it is possible to get all the permits
within the time frame available.
MR. WALKER stated that Adak is a BRAC site and the implications of
keeping it open are critical to the State. Adak is a safe haven,
not only for Coast Guard and military vessels, but our fishing
fleet, because of the severity of the weather. There is no where
else out there to offer logistic support and offer the emergency
access in that area. It is important for the State to ensure that
this site becomes a viable entity and retain those facilities.
CO-CHAIRMAN KELLY said the next meeting will be held in Anchorage
to visit Elmendorf Air Force Base and to discuss health care
issues. Another meeting will be scheduled during the session to
begin establishing the citizen's advisory committees.
CO-CHAIRMAN MULDER encouraged committee members to think about how
the committee can best utilize the civilian advisory committees,
because they are tremendous assets authorized under the statute.
Their mission is not clearly defined so it is up to committee
members to best define the mission and clarify objectives.
CO-CHAIRMAN KELLY asked for a report about the Y2K preparations
from General Oates. He suggested that the military would receive
legislative recognition for those efforts.
There being no further business to come before the committee CO-
CHAIRMAN KELLY adjourned at 2:10 p.m.
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