Legislature(2003 - 2004)
02/25/2004 01:35 PM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
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ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 25, 2004
1:35 p.m.
TAPE (S) 04-6
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator Thomas Wagoner, Vice Chair
Senator Gary Stevens
Senator Kim Elton
Senator Georgianna Lincoln
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 25
Recommending that certain federal funding restrictions be eased
so that more villages in Alaska would qualify for assistance
relating to flooding and erosion.
MOVED SJR 25 OUT OF COMMITTEE
SENATE BILL NO. 238
"An Act relating to initiative and referendum petitions; and
providing for an effective date."
MOVED SB 238 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 25
SHORT TITLE: FLOODING AND EROSION CONTROL ASSISTANCE
SPONSOR(s): SENATOR(s) OLSON
02/06/04 (S) READ THE FIRST TIME - REFERRALS
02/06/04 (S) CRA, STA
02/25/04 (S) CRA AT 1:30 PM FAHRENKAMP 203
BILL: SB 328
SHORT TITLE: NATIONAL FOREST INCOME PROGRAM/DCED REGS
SPONSOR(s): SENATOR(s) STEDMAN
02/13/04 (S) READ THE FIRST TIME - REFERRALS
02/13/04 (S) CRA, FIN
02/23/04 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/23/04 (S) CRA, FIN
02/25/04 (S) CRA AT 1:30 PM FAHRENKAMP 203
WITNESS REGISTER
Senator Donny Olson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor SJR 25
Tony A. Weyiouanna Sr.
Shishmaref Village Transportation Planner
P.O. Box 72100
Shishmaref, AK 99772
POSITION STATEMENT: Gave a presentation on SJR 25
Luci Eningowuk
Chairperson,
Shishmaref Erosion and Relocation Coalition
P.O. Box 72100
Shishmaref, AK 99772
POSITION STATEMENT: Gave a presentation SJR 25
Kelly Eningowuk
Shishmaref Erosion and Relocation Coalition
P.O. Box 72100
Shishmaref, AK 99772
POSITION STATEMENT: Gave a presentation SJR 25
JULIE BALTAR
Director, Kawerak Transportation Project
P.O. Box 948
Nome, AK 99762
POSITION STATEMENT: Responded to questions on SJR 25
Art Ivanoff
Executive Officer of the Native Village of Unalakleet
Unalakleet, AK 99684
POSITION STATEMENT: Testified on SJR 25
DICK COOSE
Staff to Senator Bert Stedman
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Introduced SSSB 328
BILL ROLFZEN
National Forest Receipt Program Administrator
Department of Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Answered questions on the national forest
receipt program as it relates to SSSB 328
ACTION NARRATIVE
TAPE 04-6, SIDE A
CHAIR BERT STEDMAN called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:35 p.m. Present
were Senators Gary Stevens, Wagoner, Elton and Chair Stedman.
Senator Lincoln arrived a minute later.
SJR 25-FLOODING AND EROSION CONTROL ASSISTANCE
CHAIR BERT STEDMAN announced SJR 25 to be up for consideration.
He asked Senator Olson to come forward to introduce the bill.
SENATOR DONNY OLSON, sponsor of SJR 25, read the sponsor
statement.
SJR 25 is a resolution requesting the Army Corps of
Engineers (Corps) ease their cost and benefit analysis
for projects in rural Alaska.
I have proposed this resolution in response to many
concerns voiced by my constituents with regard to the
erosion and flooding problems that plague western
Alaska. Currently many of the villages in western
Alaska do not receiving the assistance needed for the
protection of life and property.
On November 8, 2003 a winter storm hit western Alaska.
This storm caused considerable damage to Unalakleet,
Shishmaref, and some of Nome's surrounding areas.
While the governor has declared a state of disaster
because of this storm, the continued effects of
erosion on the villages of Alaska are not going to be
solved by emergency disaster.
SENATOR GARY STEVENS asked him to speak to the cost benefit
analysis and how the Corps determines projects and what is wrong
with their method.
SENATOR OLSON explained that the Corps looks at what it would
cost to remedy a situation and then they look at what it will
benefit. In this case, the erosion has gone on for many years
and the benefit will be to a relatively small population.
As they ask questions, he charged, the Island of Shishmaref is
eroding. Unfortunately the Corps doesn't take into consideration
the culture, lifestyle and the social benefits associated with
maintaining the integrity of the community.
CHAIR STEDMAN said the committee would look at a Power Point
presentation then return with questions.
[A copy of the Shishmaref Erosion and Relocation Coalition
booklet may be found in the bill file.]
TONY WEYIOWANNA SR., Shishmaref Village Transportation planner,
identified himself.
LUCY ENINGOWUK, chairperson of the Shishmaref Erosion and
Relocation Coalition, identified herself and advised that they
have been working on the coalition since 1997 when they
experienced the first damaging storm. The three entities in
Shishmaref have joined together to work at solving this problem.
She explained that Shishmaref is located on a barrier island and
the immediate concern is to get help providing erosion
protection for the community. Beyond that, their goal is to move
and reestablish Shishmaref on the mainland.
Shishmaref is one of the 18 to 20 communities in the Bering
Strait region and the village is farther north than any other
village. Transportation consists of a few trucks, snow machines,
ATVs, small aircraft, and small boats.
LUCI ENINGOWUK continued to show pictures of community life,
subsistence living and a number of different damaging storms.
SENATOR LINCOLN asked where the erosion is worst and whether any
houses have been lost.
SENATOR OLSON pointed out that a number of houses have been
moved back away from the water, but some have already gone in.
It's of particular concern that the bulk fuel tanks are ever
closer to the edge. This is a threat to the community and the
environment.
KELLY ENINGOWUK added they have already moved 18 homes. She
continued to show pictures and outline what isn't there anymore.
SENATOR GARY STEVENS asked if this is the result of major
climatic changes.
KELLY ENINGOWUK replied they believe it is a result of a warming
trend that is noticeable in her lifetime.
SENATOR GARY STEVENS remarked the situation probably won't get
better in that case.
KELLY ENINGOWUK agreed and explained that the bluffs are sandy
so all that is holding it is the permafrost. Wave action melts
the permafrost and the bluff fails, she said and proceeded to
show examples including the near loss of their power supply.
Other pictures showed that the community airstrip has been
jeopardized as well.
SENATOR WAGONER asked to see a map showing the current location
of the village and the proposed relocation site.
MR. WEYIOWANNA SR. produced a map showing that Shishmaref is
located on Sarichef Island in the Chukchi Sea, about 120 miles
north of Nome. The community voted to relocate to the mainland
about 13 miles away - 10 miles across Shishmaref Inlet and about
3 miles inland.
SENATOR ELTON asked how fuel would be delivered to the new site
and whether it would be possible to get a fuel barge inside the
barrier islands.
MR. WEYIOWANNA SR. explained the study that relates to the
placement of the fuel facility, the size needed and delivery
particulars is a work in progress.
SENATOR OLSON added that fuel barges would travel up the river
channel to a marina and a pipeline would run from there to the
new village site.
SENATOR GARY STEVENS asked whether they expect that the barrier
islands will one day be gone altogether at which time Shishmaref
Inlet would be less protected from weather from the Chukchi Sea.
SENATOR OLSON pointed to shallow shoals offshore and explained
that they help break wave action.
MR. WEYIOWANNA SR. reported that the community has been working
with:
· The Natural Resource Conservation Service to select a
relocation site,
· The U.S. Army Corps of Engineers - most recently to provide
beachfront protection for teacher's quarters
· Tribal partnership program grant to assess current erosion
and teacher relocation
· Alaska Division of Emergency Services
· Federal Emergency Management Agency (FEMA) and Alaska
Community and Economic Development
· HUD Housing Authority to relocate homes
· Denali Commission
2:10 pm
KELLY ENINGOWUK said the request for state assistance is two
fold:
· The immediate goal is to provide erosion control at the
current village site
· The long term goal is to relocate the community
Recently the school underwent a $10 million, state funded,
renovation. Additionally, the Corps has authorized a Section 14
project to protect the school property with the proviso that the
village provides up to $400,000 in local match dollars. The
village doesn't have that money and they are asking the state to
help in any number of ways:
· Help the village receive a waiver so that the program would
be 100 percent federal
· Ask the Army Corps of Engineers to consider the Kawerak
Transportation Project of a riprap seawall as the local
match
· Authorize state funds - up to for the local match
SENATOR GARY STEVENS asked if it makes sense to do temporary
fixes when the long-term fix is to move the village.
KELLY ENINGOWUK said it does make sense because the village
needs protection now. She said she doesn't foresee the move
happening inside of five years.
SENATOR ELTON asked how much federal money the $400,000 match
would bring.
KELLY ENINGOWUK replied the cap is $1 million for the Section 14
contract then cautioned that is just for the school property
because those projects are limited to public facilities.
MR. WEYIOWANNA SR. pointed to pictures of single and double line
gabions and explained that they typically last just one storm.
The Corps of Engineers has admitted that even though the riprap
project is designed to last 25 years, it might last just 10
years because of the rising sea level. Although this may appear
to be a band-aid fix, it would allow them time to work on a plan
to move the community.
KELLY ENINGOWUK said they have done research and believe this is
the best cost effective solution.
SENATOR WAGONER asked how many people currently live in
Shishmaref.
KELLY ENINGOWUK reported the population is about 600.
Continuing her presentation, she said the riprap seawall project
to protect the main road starts in March, but they need erosion
protection in other areas of the town as well. She noted they
have local material and previously used gabions from failed
seawalls that they are prepared to use.
TAPE 04-6, SIDE B
2:20 pm
Relocation, she repeated, is the long-term goal and they
specifically ask for state help to:
· Request the federal government enact special measures to
ensure Alaska villages qualify for and receive federal
assistance for erosion protection and relocation
· Coordinate effort between federal and state agencies
· Ask (FEMA) to take the lead
· Request the federal government enact legislation that
establishes Shishmaref as a demonstration project for both
erosion and relocation assistance
· Request that various state agencies are fully involved and
engaged in establishing a new community
· Full cooperation and coordination with federal agencies
and local entities
· Ask various state departments to provide technical
assistance and funding for establishing the new community
SENATOR GARY STEVENS noted there are between 150 and 200
communities that are facing erosion problems several of which
are on Kodiak Island. He asked if they were actually asking the
Legislature to support the request that is going through U.S.
Senator Ted Stevens and the Corps.
KELLY ENINGOWUK agreed that is basically correct.
MR. WEYIOWANNA SR. repeated that the section-14 project requires
a 35 percent match for a $1 million project so the village needs
between $350,000 and $400,000. Because they have no economic
development and no tax base in their area, they don't have that
money.
2:25 pm
SENATOR GARY STEVENS questioned how many millions of dollars
would it take to satisfy both the immediate and the long-term
goals. What would it cost to slow the erosion in the village and
also to relocate the village?
KELLY ENINGOWUK said they don't have an estimate for Shishmaref,
but for Kivalina the estimate is $110 million.
SENATOR GARY STEVENS asked how many people live in Kivalina.
[Indiscernible answer - the 2003 state demographer estimate is
388]
SENATOR GARY STEVENS asked how much the temporary fix would
cost.
KELLY ENINGOWUK replied they have pieces of it being done
including the Kawerak Transportation Project, the Section 14
project, and several others. They do have equipment on site, but
they need $3.4 million for the section that isn't funded.
SENATOR ELTON referenced the request that the federal government
enact special measures so that Alaska villages qualify for
federal assistance and suggested an additional resolve that
might read:
Be it further resolved that the Alaska State
Legislature request that the federal government enact
special measures to ensure Alaska villages qualify for
and receive federal assistance for erosion protection
and relocation and that a coordinated effort between
the federal and state agencies be led by FEMA.
Although he wasn't sure that the sponsor is comfortable with
FEMA as the lead agency, he thought that was key in the
presentation; the village needs assistance that is provided in a
coordinated way. Perhaps, he said, subsequent testifiers would
comment on that.
CHAIR STEDMAN opened the floor to public testimony.
JULIE BALTAR, director of Kawerak Transportation Project,
explained that Kawerak is the regional nonprofit corporation in
the Bering Strait region and Kawerak supports Senator Olson's
resolution.
She said they have had direct interaction with NRCS, the U.S.
Army Corps of Engineers and a bit of contact with FEMA. After
working with the Corps for over three and a half years, their
observation is that the Corps isn't in a position to respond to
an emergency because of cumbersome regulations and policies.
For example, U.S. Senator Ted Stevens got about $1 million into
Corps appropriations for assistance for Shishmaref for an
expedited EIS in February 2002. It's now February 2004 and the
Corps has just determined how they can expend those funds.
Because of that inability to respond, Kawerak believes that if
there were to be a joint agency response, FEMA is better
positioned to take the helm.
Shishmaref coalition members met with U.S. Senators Stevens and
Murkowski in January and a high-level multi agency meeting was
suggested. They are waiting for a date to be set for that
meeting, but believe the results of the meeting will provide
great benefit to everyone that is working with erosion.
Shishmaref has plans and would like to relocate by 2009, she
said, but at the current rate of erosion, there will be no
village left to move unless more permanent erosion measures are
put in place.
SENATOR LINCOLN noted that the federal government would have
responded quickly with emergency help if the villagers had done
nothing and let the houses and other structures fall into the
water. The villagers were proactive in trying to save both
buildings and money and unfortunately, because of current
federal regulations, their action disqualifies them from
receiving the emergency help they need so badly.
She agreed with the resolution, but wondered whether there is
any discussion in Washington D.C. to remedy the situation
outlined above. Certainly it is cost effective to take care of
the problem now.
SENATOR OLSON apologized that the Shishmaref delegation had to
leave, but advised he would stay and answer questions. He
described the working relationship between the city, the Native
corporation and the IRA (Indian Reorganization Act) Council as
the epitome of a successfully coordinated effort. Although
Shishmaref illustrates the extreme problems that villages in
Bush Alaska encounter with erosion, others such as Kivalena and
Koyuk are similarly affected. He then asked Ms. Baltar to
address Senator Lincoln's question about what is happening in
Washington D.C.
MS. BALTAR reported that the president of Kawerak was in
Washington D.C. and working on the issue of how the current
regulations were not working. During discussions with the Alaska
Delegation they learned that there is opportunity for
considerable flexibility in interpreting the current regulations
in statute. They hope that a multi agency meeting will provide
the opportunity to exercise that flexibility and move forward
without trying to make legislative changes.
SENATOR LINCOLN expressed the desire to have in hand the speech
that U.S. Senator Stevens made to the joint body and noted that
he spode to the fact that he is concerned about erosion. She
asked whether addressing the issue means that he intends to
change some regulations.
MS BALTAR thought he was trying to do that and then remarked
that the Corps' burdensome process adds millions of dollars to
the cost estimates for these projects. That should be taken into
consideration because Kawerak believes that it would cost much
less to move a village than the amount that is currently
projected.
CHAIR STEDMAN called on Art Ivanoff.
ART IVANOFF, executive director of the Native Village of
Unalakleet, participated via teleconference and concurred with
statements made by the Kawerak and Shishmaref representatives.
He said it is significant that of the 213 villages in Alaska,
flooding and erosion impact 184 and four are immanently
threatened. Because global warming is occurring he wondered
where the villages would be in 10 to 20 years.
He reported that the various entities have been working to
change the federal cost benefit policy because most villages
don't have the economies of scale or population base to justify
the Corps spending money in the communities.
CHAIR STEDMAN asked Senator Olson if he wanted the committee to
consider the suggested change.
SENATOR OLSON replied the recommendation was good, but the
additional resolve could be inserted in another committee.
SENATOR LINCOLN made a motion to move SJR 25 from committee with
individual recommendations and attached fiscal note. There being
no objection, it was so ordered.
SB 328-NATIONAL FOREST INCOME PROGRAM/DCED REGS
CHAIR BERT STEDMAN announced SB 328 to be up for consideration.
He said he was the sponsor and the bill was titled, "An Act
relating to the national forest income program in the Department
of Community and Economic Development and to the authority of
the department to adopt regulations; and providing for an
effective date." He asked his staff member to introduce the
bill.
DICK COOSE, staff to the sponsor, Senator Bert Stedman,
explained that, "This legislation makes the statutory changes
required for the Department of Community and Economic
Development to disburse the funds commonly referred to as the
timber receipts." The original act dates to 1908 and calls for
25 percent of national forest timber receipts to be distributed
to counties, boroughs, cities and rural school districts.
The "Secure Rural Schools and Community Self-Determination Act
of 2000," substantively changed the timber receipt program he
said,
The payments to the state under the "Secure Rural
Schools Act" are stabilized for that period of 2002 to
2007 rather than fluctuate the way it had been and
dropping rather significantly due mainly to the
reduction of timber sales on the national forest.
The distribution to the boroughs, the cities and the
rural education attendance areas changed only in the
fact that the new federal act required a 15 to 20
percent special projects out of that money and the
balance of it be spent on the traditional schools and
roads type things.
Special projects are defined in the Act and SB 328
allows the Department of Community and Economic
Development to prepare the regulations that reflect
this distribution and the accounting of the special
projects and makes the technical corrections to the
regulations.
SENATOR KIM ELTON asked him to elaborate on the special projects
mentioned in the federal act.
MR. COOSE explained there are Title II and Title III special
projects. Title II projects are accomplished by the Forest
Service using a resource advisory committee while Title III
special projects are controlled by the local borough through the
local elected body. He added it is the local government that
makes the choice with regard to which entity controls and does
the project.
SENATOR ELTON asked if this is a new distribution of the timber
receipts.
MR. COOSE said it is new because under the original legislation,
100 percent went to the local entities for schools and roads.
That changed with the new act and now up to 15 percent of the
total can be directed to special projects. The limitation is
that any body receiving less than $100,000 doesn't have to
specially allocate 15 percent.
SENATOR ELTON asked if that means that now the only guarantee
for schools and roads is 85 percent and the Forest Service or
the local government determines the remaining 15 percent.
MR. COOSE said, "That's true."
SENATOR LINCOLN advised her wasn't sure what she was asking
because the question came from a community. She read, "What is
the federal community development quota program and how does it
relate to the forest receipts program?"
MR. COOSE replied they aren't related. Community development
referred to in SB 328 relates to technical conforming changes
and has nothing to do with national forest receipts.
SENATOR LINCOLN said she had a second question that asks, "Does
this bill give the state authority to charge administrative
costs to the forest receipts program over which they charge
now?"
MR. COOSE said he too had that question and he isn't aware that
it does give that authority, but he would defer to Mr. Rolfzen.
SENATOR LINCOLN noted that the new act changed the allocation
for schools and roads from 100 percent to 85 percent. She
continued, "I always get a little concerned when my colleague
from the other side of the aisle is constantly asking, well what
do we contribute in the rural areas towards schools." She didn't
want to further erode funding for schools and then have to
defend doing so at a later time. She asked Mr. Coon if he could
help her respond.
MR. COOSE replied, "The positive thing about the Secure Rural
Schools Act is it stabilized it at a higher level than what we
were getting the last say 6 or 8 years because it was going
down."
For example, as a result of the new act the Ketchikan Gateway
Borough went from roughly $100,000 to $400,000 in forest
receipts. Even though the federal law requires that they put 15
percent into special projects, they have had an overall gain.
SENATOR LINCOLN asked if Ketchikan could have used the full
$400,000 for schools and roads or did they lose 15 percent.
MR. COOSE said they were not able to use 15 percent, which
amounted to $60,000 in Ketchikan.
SENATOR LINCOLN said she wanted to hear Mr. Rolfzen's response.
BILL ROLFZEN, national forest receipt program administrator,
Department of Community & Economic Development, explained that
the federal legislation back in 2000 severed the tie between
sharing income from timber harvest with local communities for
schools and roads in favor of a guarantee for higher payments.
The compromise at the federal level came in the form of the 15
percent that is set aside for stewardship type projects on
federal lands.
One eligible special project is search and rescue on federal
land and Juneau has opted to set aside their 15 percent to help
fund the helipad at the hospital for rescues that occur on
federal lands surrounding Juneau.
SENATOR LINCOLN asked whether communities could use the 15
percent for education.
MR. ROLFZEN said there is one special projects category that
calls for after school forest related education opportunities
and the REAAs in particular have used their 15 percent for that
sort of activity.
CHAIR STEDMAN asked him to elaborate on the fact that there is
flexibility in the annual 15 percent allowing communities to
respond to different projects.
MR. ROLFZEN explained that boroughs and communities have the
option of setting aside a minimum of 15 percent and a maximum of
20 percent each year for special projects. So far, all entities
have selected the minimum amount, he added.
The projects themselves provide considerable flexibility, he
said, and then reiterated that this is a federal requirement
that is implemented at the state level.
SENATOR GARY STEVENS confessed he wasn't sure that he followed
the explanation entirely and asked if the forest income money
that goes to communities for education becomes tied in with the
contribution cap that boroughs have to fund education. If it's
tied to the cap then it reduces the amount of money that local
communities can contribute to education, but if it's independent
then it is in addition to the cap.
MR. ROLFZEN replied, "It adds to their total. It has no impact
on the state financial aid or the federal aid."
SENATOR GARY STEVENS said, "So a local community can put in its
cap and then this adds additional monies to education."
MR. ROLFZEN nodded his head.
SENATOR ELTON followed up saying he thought timber receipts
money figured into the foundation formula.
MR. ROLFZEN said it doesn't.
SENATOR ELTON questioned, "So it goes straight to the districts
and then are our foundation formula dollars subtracted from the
districts then, to reflect the receipt of those dollars?"
MR. ROLFZEN replied, "To my knowledge, it is not offset in any
way a local aid for school districts."
SENATOR ELTON understood differently and asked for follow up
because, "My understanding is that this reduces kind of the bite
on our foundation formula - the receipt of those timber receipts
and that has always been.... seen as a local contribution from
those rural schools..."
Referring back to the discussion on how special receipts are
used, he asked who decides how and where the local share of that
15 percent is used.
MR. ROLFZEN explained the Title III funds go straight to the
borough and the borough assembly decides how to use the money.
SENATOR LINCOLN returned to the question of whether SB 328 gives
the state authority to charge administrative costs to the forest
receipts program over and above what is currently charged.
MR. ROLFZEN stated the state doesn't charge any administrative
expense against the program and noted they submitted a zero
fiscal note indicating no administrative cost. "We pass through
every penny through to the communities," he asserted.
CHAIR STEDMAN asked Senator Elton whether he would like the bill
held until he got an answer to the foundation formula question.
SENATOR ELTON noted the bill was moving to Finance and said he
would ask his staff member who used to be special assistant on
education and staff to the State Board of Education for
clarification. He said he would pass that information he
receives along to the committee and he didn't have any problem
moving the bill forward.
SENATOR GARY STEVENS made a motion to move SSSB 328 from
committee with individual recommendations and zero fiscal note.
There being no objection, it was so ordered.
There being no further business to come before the committee,
Chair Stedman adjourned the meeting at 2:58 pm.
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