Legislature(2003 - 2004)
03/25/2003 09:02 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 25, 2003
9:02 AM
TAPES
SFC-03 # 29, Side A
SFC 03 # 29, Side B
SFC 03 # 30, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:02 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lyda Green, Co-Chair
Senator Con Bunde, Vice Chair
Senator Lyman Hoffman
Senator Ben Stevens
Senator Donny Olson
Senator Robin Taylor
Also Attending: KEVIN BROOKS, Director, Division of Administrative
Services, Department of Fish and Game; MIKE MAHER, Director,
Division of Statewide Public Service, Department of Environmental
Conservation; KRISTIN RYAN, Acting Director, Division of
Environmental Health, Department of Environmental Conservation
Attending via Teleconference: From Wrangell: JULIE DECKER, Regional
Director, Southeast Alaska Dive Association; From an Offnet Site:
TOM CHAPPLE, Director, Division of Air & Water Quality, Department
of Environmental Conservation
SUMMARY INFORMATION
SB 100-APPROP: CAPITAL PROJECTS
The Committee heard presentations from the Department of Fish and
Game and Department of Environmental Conservation. The bill was
held in Committee.
SENATE BILL NO. 100
"An Act making capital appropriations and reappropriations;
capitalizing a fund; making appropriations under art. IX, sec.
17(c), Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
This was the sixth hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken distributed a financial summary titled "FY 04
Distribution of Alaska's NPR-A Royalties" [copy on file] that his
office prepared as result of the discussion on this matter during
the Department of Community and Economic Development presentation
at the March 24, 2003 Committee meeting.
Department of Fish and Game
Deferred Maintenance Facilities
$ 400,000 general funds
Reference No.: 30128
Project Type: Deferred Maintenance
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
This project will provide for repair, maintenance and
renovation of department facilities statewide.
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, explained that this is the first of
five deferred maintenance capital project requests, totaling $1.8
million in general funds, that the Department would be presenting.
Mr. Brooks stated that this annual deferred maintenance request
would address deferred maintenance needs for such things as
bunkhouses, warehouses, laboratories, and offices in more than 40
communities, statewide. He communicated that while a total deferred
maintenance need of $4 million has been identified, the projects
that have been deemed "critical needs" are included in this request
and are listed in the backup information. Furthermore, he attested,
these projects would be addressed on an "urgent" repair need basis
with consideration being given to life, health and safety code
issues. He specified that the goal of upgrading a facility is to
provide it with an additional twenty-year life.
Vessel and Aircraft Repair and Maintenance
$ 300,000 general funds
Reference No.: 30129
Project Type: Renovation and Remodeling
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
This project will provide funding to maintain the department's
research vessels and aircraft, which are used to support
fishery monitoring efforts and stock assessment programs.
Maintenance work to be done includes replacing the gensets,
sandblast and paint, overhaul engines, general yard work and
inspection, and replacing fishing gear and aircraft manuals. A
portion of this CIP will be used to replace the O'Kisutch, and
unstaffed vessels used in SE Alaska.
Mr. Brooks stated that this deferred maintenance request would
address the needs of aircraft and five research vessels that are
used in the Division of Commercial Fisheries. He stated that this
request would address large maintenance projects as he specified
that routine maintenance needs are included in the Department's
operating budget.
Senator Olson asked the number of aircraft operated by the
Division.
Mr. Brooks specified that the Division operates four aircraft, and
charters aircraft and uses commercial planes as needed. He
communicated that the costs associated with the chartering of
commercial aircraft and vessels has historically exceeded $2.5
million annually.
Senator Olson clarified, therefore, that the Division contracts
with private pilots.
Mr. Brooks confirmed.
Senator Olson asked whether the State has recently changed contract
requirements.
Mr. Brooks stated that no changes have occurred. He noted that the
Department maintains a list of private airline companies that meet
the Department's specified requirements.
Senator Olson voiced the understanding that these eligibility
requirements have been expanded at the request of private pilots
who are currently under contract with the State.
Mr. Brooks replied that he is unaware of any recent changes. He
asked that specifics be provided.
Senator Olson communicated the understanding that the requirements
being mandated for contract pilots now exceeds the requirement
levels of State employed pilots.
Mr. Brooks stated that he would investigate this concern.
Senator Olson asked the number of State employed pilots.
Mr. Brooks stated that he would supply this information.
Senator Olson asked the number of accidents that have been
experienced by State aircraft to warrant this $300,000 request.
Mr. Brooks noted that no aircraft accidents have occurred recently,
and he communicated that this request is "weighted toward" State
vessel maintenance as opposed to aircraft repair. He stated that
the purpose of this request is to avoid accidents that might result
from maintenance needs.
Senator Olson asked for confirmation that aircraft engine overhauls
are included in this request.
Mr. Brooks expressed that although the majority of this funding
would be used to support vessel maintenance, aircraft engine
overhaul would be provided if necessary.
Senator Olson stated that overhauling an engine is detailed work
and requires extensive equipment. He asked whether this procedure
would be conducted in house.
Mr. Brooks specified that in addition to Department employees, the
State contracts with commercial providers to perform maintenance
when the scope of the work exceeds the abilities of employees or
equipment. He stated that contract work is conducted on both
aircraft and vessel repairs.
Senator Bunde observed that the State maintenance facility where
this work is usually conducted is capable of providing fabric and
sheet metalwork; however, he concurred with Senator Olson that
engine overhaul capabilities might be limited.
Senator Olson opined that the specialized type of equipment that is
required for engine overhauls is not available in the State
facility.
Senator Taylor asked whether the Department would be purchasing any
new equipment in FY 04.
Mr. Brooks responded that no vessel replacement is being requested
in this budget; however, he reminded that the Department received
authority in FY 03 to purchase a replacement vessel.
Senator Taylor asked whether the reference in the backup material
specifying that $100,000 of this request would be used toward the
replacement of the M/V O'Kisutch, is a continuation of the FY 03
vessel replacement authorization.
Mr. Brooks replied no as the FY 03 authorization would provide for
a larger manned vessel. He clarified that the M/V O'Kisutch is an
older "unmanned" vessel.
Senator Taylor asked for further information pertaining to the
purchase of a gillnet boat used for patrol in the Petersburg area.
Mr. Brooks clarified that this vessel, the M/V Kittiwake, was
purchased a few years prior. He stated that there were two
respondents to the Department's solicitation for a vessel, and that
a purchase transpired. He stated that "extensive" documentation
regarding this purchase is available.
Senator Taylor declared that the "vessel was purchased out of
personnel funds." He communicated that the response to his inquiry
regarding how the Department could use personnel funds in this
manner was that because the Department's management believed that
the Legislature was not going to appropriate funds for the boat,
they used personnel funds to purchase it. This action, Senator
Taylor attested, prompted him to ask whether the Department has
plans to purchase another boat.
Mr. Brooks responded that the vessel in question was purchased with
a combination of operating and capital funds. He stated that the
Division of Commercial Fisheries annual budget is approximately $45
million, and he furthered that upon a fourth quarter budget review
of the year in question, it was determined that operating funds
were available to supplement capital funds that were appropriated
toward the purchase of a replacement vessel.
Senator Taylor asked whether the Department would leverage
personnel funds in this manner again.
Mr. Brooks communicated that operating funds were leveraged in this
purchase. He could not confirm that personnel funds were used.
Senator Taylor avowed that they were and that he could produce
documentation to substantiate this.
Mr. Brooks responded that $100,000 is a very small percent of the
Department's overall $45 million operating funds budget, and he
stated that it would be difficult to ascertain whether the monies
that Senator Taylor is referring to were used to refurbish the
vessel, purchase the vessel, or to provide maintenance funding. He
stated that, as historically conducted, the Department includes
vessel replacement requests in its capital budget requests, and, in
conclusion, he specified that the vessel appropriation that has
been granted to the Department would be used toward that purpose.
Senator Olson voiced that it is "almost disturbing" that the
testifier is "justifying" the Department's action in this matter.
Furthermore, he voiced concern that the Department might be
utilizing its operating budget appropriation "indiscriminately" and
without regard "to Legislative oversight." With that in mind, he
asked whether the Department has plans to purchase any new aircraft
in FY 04.
Mr. Brooks responded that no new aircraft would be purchased in FY
04. He responded to Senator Olson's comments by stating that the
Department respects the authoritative position of the Legislature
and does not spend its funds in an indiscriminate manner.
Senator Olson asked to be provided a copy of the documentation that
Senator Taylor referenced.
Mr. Brooks stated that documentation regarding the purchase of the
vessel would be provided.
Co-Chair Wilken asked Senator Taylor to provide a copy of the
aforementioned documentation to Senator Olson.
Co-Chair Wilken summarized the testifier's comments to be that, to
Mr. Brooks' "knowledge, there is no plan in the FY 04 budget to
leverage operating funds to purchase capital equipment, and if
there is," the testifier would inform the Committee of the
situation.
Mr. Brooks concurred and stated that, other than the equipment
specified in the operating budget request, no other equipment would
be purchased.
Senator Hoffman noted that the backup material indicates that other
Departments utilize some of the Department of Fish and Game's
aircraft and vessels. He asked how often this occurs.
Mr. Brooks responded that the Department permits other Departments
and agencies such as the Department of Public Safety to use its
aircraft and vessels "in the off-season," when fishery research is
not being as heavily conducted. He stated that detailed "charter
day" information could be provided.
Dock Repairs, Maintenance & Replacement
$ 300,000 general funds
Reference No.: 6916
Project Type: Deferred Maintenance
Category: Health/Human Services
Location: King Salmon
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project
Safe and functional docks and waterfront facilities are
critical for the department to perform many of its primary
missions. The department has identified structural
deficiencies at its King Salmon, Cordova and Petersburg
facilities. The scope and magnitude of the needed repairs has
resulted in separate funding requests apart from our annual
deferred maintenance project for facilities. The department
has taken a phased approach to these projects and has received
funding in each of the past three fiscal years. Continued
funding in the FY 2004 CIP budget should provide for
completion of the King Salmon project and initiate the design
phase for the Cordova dock project, to be completed in FY 04-
06.
Mr. Brooks explained that while this is a deferred maintenance
need, the cost of some projects, such as this King Salmon dock
repair project, would utilize the majority of the historical
deferred maintenance appropriation. Therefore, he noted that these
projects are being presented separately from the deferred
maintenance multi-project request. He stated that in addition to
providing funds for the final phase of the King Salmon dock
facility, which is also used by the Division of Fish & Wildlife
Protection in the Department of Public Safety, this request would
provide funds to conduct design work for the Cordova Dock, and
address the refurbishment of the Petersburg dock facility.
Warehouse/Bunkhouse Replacement Cordova, Bethel
$ 450,000 general funds
Reference No.: 37932
Project Type: Health and Safety
Category: Development
Location: Cordova
Election District: Cordova/Southeast Islands
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project
Previous deferred maintenance CIP Budgets have routinely
listed major projects necessary to upgrade and maintain
compound facilities in Cordova and Bethel as well as other
statewide compounds. Due to the size of the projects needed in
these locations, they no longer fit into a general deferred
maintenance request. This proposal will fund the replacement
and upgrade of employee housing and warehouse facilities at
Cordova and Bethel. Both of these installations are long-time
ADF&G compounds and have reached the point where maintenance
is not an option. Replacement and upgrades to the facilities
are now warranted.
Mr. Brooks specified that this project would replace "very old and
dilapidated" mobile homes and trailer bunkhouse facilities in
Cordova and Bethel with commercial modular style units that are
specifically designed for the Alaskan environment in order to
provide safe and dry accommodations to field season workers. He
stated that this is a phased project with a total estimated cost of
$1.3 million. He stated that because the Department conducts "joint
missions", it would work collaboratively with other agencies and
departments such as the Department of Public Safety.
Senator Taylor asked whether these facilities provide seasonal or
year-round housing.
Mr. Brooks clarified that these facilities operate seasonally and
would house approximately twelve employees during peak times.
Senator Taylor clarified that both the Cordova and King Salmon
facilities would be used seasonally.
Mr. Brooks concurred.
Kenai River Sonar Site Bunkhouse and Lab
$ 350,000 general funds
Reference No.: 37808
Project Type: Renewal and Replacement
Category: Natural Resources
Location: Kenai
Election District: Kenai/Soldotna
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
This CIP request will replace the aging trailer house at the
Kenai River mile 19 sonar site. The new facility would be a
modern modular house similar to the one recently installed at
King Salmon.
Mr. Brooks specified that this funding would allow the construction
of a new facility to replace the 30-year old, 1200 square foot
seasonal-use mobile home that currently serves as a bunkhouse, a
laboratory, and a storage facility at the Mile 19 Kenai River sonar
site.
Senator Bunde asked how this facility, as well as the King Salmon
and Cordova facilities, are mothballed and maintained during the
off-season.
Mr. Brooks responded that winterization of these well-insulated
"Alaska Pack" designed facilities would be conducted in the fall by
"basically draining the pipes." He noted that while the bunkhouses
would not be utilized during the winter, year-round Department
staff would be able to monitor any maintenance needs that might
arise.
Co-Chair Wilken asked the number of people who could be housed at
the Kenai River site.
Mr. Brooks responded that there are two bunks in each of the two
bedrooms and that on a temporary basis, the facility could house up
to eight people.
Co-Chair Wilken surmised therefore that the bunkhouse would
accommodate between four to eight people.
Mr. Brooks concurred.
Senator Taylor asked pertaining the need to double the size of
these facilities at a per-cost of approximately $300,000 when
traditional facilities have been much smaller and less costly.
Mr. Brooks responded that the Department recognizes that the
current facilities are "inadequate" and do not properly protect the
State's personnel and modern sonar and laboratory equipment. He
stated that the modular units being proposed, while expensive,
should be considered as an investment because they would function
efficiently and would protect personnel, equipment, and information
for the long-term. He noted that transportation costs additionally
contribute to the expense.
Senator Taylor voiced that the expense is unwarranted.
Co-Chair Wilken announced, for the record, that the Fairbanks,
Wrangell, and Anchorage Legislative Information Offices (LIOs) are
on teleconference.
Senator Taylor requested that the Committee's Department of Fish
and Game subcommittee investigate the effectiveness of the sonar
equipment and the data that is being generated. Furthermore, he
understood that the equipment is unable to differentiate between
fish species effectively.
Co-Chair Wilken commented that Senator B. Stevens is the chair of
the Department of Fish and Game subcommittee.
Mr. Brooks noted that while older sonar technology has difficulty
detecting differing types of species, "the new technology is much
improved in that regard."
Waterfowl Conservation and Enhancement Program
$ 256,700 Fish/Game
Reference No.: 35896
Project Type: Planning
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
Reauthorize and appropriate funds to continue the Waterfowl
Conservation and Enhancement Program for five years. This
program was established through the state duck stamp act (Ch.
71 SLA 1984) and operates in accordance with AS 16.05.826 and
AS 16.05.130(b). By legislative intent and specified purposes,
it funds conservation projects that provide benefits to
waterfowl and public use of waterfowl. This CIP is intended to
sustain a long-term program of land acquisition and easements
to secure valuable waterfowl habitats and public access,
resource enhancement projects and a variety of conservation
activities to increase public appreciation of waterfowl and
their habitats.
Mr. Brooks stated that, to date, $1,270,000 of the total $1,526,700
proceeds generated from the sale of duck stamp art prints, has been
appropriated to support waterfowl conservation projects in the
State. He explained that this request would allow the remaining
$256,700 to be appropriated to the Department via proposed
accompanying operating budget companion language that would specify
that this money be transferred from the general fund to the Fish &
Game Fund, as he noted, that while the revenue from the prints is
earmarked in this manner, the proceeds from the sale of duck stamps
are deposited into the general fund.
Senator Bunde voiced appreciation for the Department's efforts in
this endeavor; however, he noted that marketing efforts promoting
the sale of these prints have "been less than enthusiastic." He
asked whether the issue of promoting sales would be addressed.
Mr. Brooks acknowledged that waterfowl print revenue has been
declining since its inception fifteen years prior. He noted that
while the prints continue to be popular with collectors, promoting
single sales to new consumers has been challenging. In addition, he
explained that only one vendor sells the prints.
Senator Bunde asked whether other marketing opportunities, such as
utilizing the prints' artists' marketing venues, are being
considered.
Mr. Brooks acknowledged that a successful marketing plan is
important; however, he stated that the program coordinator would be
required to provide further information regarding these efforts.
Senator Olson asked whether economic factors might result in the
program being discontinued.
Mr. Brooks voiced that the waterfowl stamp program would continue;
however, he stated that in order to continue the print program, it
must to "self-supporting."
Senator Taylor asked what specific land acquisitions have been
realized as a result of the program.
Mr. Brooks stated that specific information would be supplied to
the Committee; however, he noted that, in general, the land that
has been acquired includes such things as small estuaries, small
parcels of prime habitat, and other areas that are unsuitable for
development. He identified the Palmer Hay Flats as one of these
land acquisition enhancement areas.
Senator Taylor asked whether these funds would be utilized to
provide access routes to other lands or whether the land that is
purchased would be acquired and then "locked up."
Mr. Brooks responded that the Department manages a separate access
program. He furthered that this funding is specified to further
habitat enhancement, and that, while some small parcels are
purchased, that is not the primary purpose of the program.
Senator Taylor inquired as to the definition of habitat
enhancement.
Mr. Brooks replied that habitat enhancement efforts include such
things as controlled burns.
Senator Bunde voiced that it is important to note that duck hunting
is encouraged rather than discouraged or prohibited in these areas.
He exampled that the funds have allowed the Department to actually
improve access routes in such places as the Palmer Hay Flats State
Game Refuge.
Senator Hoffman asked what the average acquisition cost per acre is
for these habitat enhancement areas.
Mr. Brooks noted that this information is included in the backup
material.
Senator Hoffman expressed that the amount of $41 per acre, that is
referenced, appears to be a low price.
Mr. Brooks specified that $41 an acre was the price paid for the
Palmer Hay Flats area. He furthered that the price per acre would
vary from parcel to parcel. He verified that the purpose of these
acquisitions in not to purchase land and "set it aside," but is
create areas and access to areas to provide areas where people
could hunt.
Senator Hoffman requested that the average price per acre for the
previous three years of these land acquisitions be provided to the
Committee.
AT EASE 9:41 AM / 9:41 AM
Sport Fish and Recreational Boating and Non-Boating Access
Projects
$ 2,600,000
$1,950,000 Federal Receipts
$ 650,000 Fish/Game
Reference No.: 30432
Project Type: Construction
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
State Match Required
This project will provide funds to the Division of Sport Fish
to construct boating and sport fishing access facilities
throughout the state. The Sport Fish Restoration (SFR) program
requires that 15% of the federal funds available to Sport Fish
be used for recreational boating access development. SFR funds
may also be used to develop access facilities for non-boating
anglers.
Mr. Brooks explained that Fish & Game funds would provide the 25
percent match that is required for this program, which would
provide access to fishing sites throughout the State.
Senator Taylor asked which specific projects would be conducted
this year.
Mr. Brooks responded that the Department would supply a list to the
Committee.
Co-Chair Wilken asked whether the State match would be funded by
revenue generated from the sale of State fishing licenses.
Mr. Brooks responded in the affirmative.
Transient Boat Moorage Facilities
$ 500,000 Federal Receipts
Reference No.: 35714
Project Type: Construction
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
This project will provide funds to the Division of Sport Fish
for new transient moorage docks for large recreational
boaters. The work will be accomplished by working
cooperatively with local communities.
Mr. Brooks explained that this project would provide transient
moorage specifically geared for vessels 26 feet or longer. He noted
that this "safe harbor" moorage would provide vessels in transit
with "rest stop" amenities along the water, particularly in
Southeast Alaska, that would be similar to "rest stops along a
highway."
Co-Chair Wilken asked that a list of proposed FY 03 and FY 04
projects be supplied to the Committee.
Senator Taylor questioned whether the Department would be
coordinating these moorage facilities with the Division of Parks &
Outdoor Recreation in the Department of Natural Resources, as he
understood that there is not currently a single buoy or mooring
facility, picnic table, or outhouse at any of these 17 designated
marine parks in Southeast Alaska.
Mr. Brooks responded that the Department "works hand in hand" in
coordinating both the on-land access projects referenced in the
Sport Fish and Recreational Boating and Non-Boating Access
Projects, Reference No. 30432 and this transient moorage project.
Senator Taylor asked that a list of the moorage facilities that
would be constructed within these 17 marine parks be provided to
the Committee.
Mr. Brooks stated that this information would be provided.
Co-Chair Wilken asked whether this type of federal funding support
is anticipated to continue.
Mr. Brooks responded that the access projects would continue to
receive federal funding because 15 percent of those funds is
designated to support access projects; however, he noted that the
federal transient boat moorage funding is inconsistent. He surmised
that, in the future, it might be allocated on a biennial basis.
Equipment for Wildlife Conservation Programs Statewide
$ 100,000 Fish/Game Funds
Reference No.: 35794
Project Type: Equipment
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
Wildlife Conservation deferred equipment replacement and
maintenance for several years in order to more fully fund
management and research programs necessary for responsible
resource management. Division staff in 23 locations have a
constant need to replace outdated and broken equipment for
field research and management. In some cases this outdated
equipment is no longer safe or reliable under normal field use
and conditions. Needed equipment includes: snow machines,
printer/plotter, all-terrain vehicles, outboard motors &
boats, and aircraft engines.
Mr. Brooks stated that this project would provide standard
equipment replacement for such things as snowmobiles and skiffs as
required in the operation of the Department's management programs.
Senator Bunde asked the Department's involvement in the land mobile
radio (LMR) system.
Mr. Brooks responded that while the Department has been involved in
discussions being conducted by the Department of Administration and
the Department of Military and Veterans Affairs, its involvement
could be characterized as a "small player." He attested; however,
that the Department would benefit from the implementation of the
LMR communications system.
Senator Bunde encouraged the Department to calculate the expense of
implementing that system and "when appropriate" supply that
information to the Committee.
Senator Taylor noted that this request would fund aviation safety
helmets and aircraft engine repair. He asked whether these safety
helmets are a new requirement.
Senator Olson voiced support for utilization of aviation helmets.
SFC 03 # 29, Side B 09:49 AM
Senator Olson voiced that the maintenance of aviation headsets and
other equipment is important.
Senator Taylor inquired why aircraft engines are included in this
request, as he noted they are also specified in Reference No.
30129, Vessel and Aircraft Repair and Maintenance.
Mr. Brooks responded that the Reference No. 30129, Vessel and
Aircraft Repair and Maintenance, pertains to equipment for the four
aircraft operated by the Division of Commercial Fisheries, while
this request refers to the two aircraft operated by the Division of
Fish & Wildlife.
Senator Olson voiced support for providing Department personnel
with aviation headsets, as he attested, this allows them to provide
their own equipment when using contract aircraft.
Senator Taylor voiced support for the use of headsets.
Senator Taylor asked that a complete inventory of State aircraft
and their usage areas be provided to the Committee. He calculated
that, in addition to the six aircraft owned by the Department of
Fish and Game, approximately 46 are operated by the Department of
Public Safety, and one is owned by the Department of Natural
Resources.
Mr. Brooks stated that the Department would supply a list of its
aircraft. He noted that in addition to the aircraft owned by the
Department, contract aircraft and vessels, at an expense of two
million dollars a year, are also used by the Department.
Senator Olson declared that that the cost of contract aircraft is
justified, as the expense the State would incur from aircraft
maintenance on a year-round basis, is exorbitant.
Co-Chair Wilken asked Senator Taylor to clarify his question
concerning the total number of State-owned aircraft.
Senator Taylor voiced that the information regarding the type,
quantity, and usage of State-owned aircraft should be compiled. He
echoed Senator Olson's earlier concern regarding whether the
Department has recently increased the number of qualifying hours
that a pilot must have in order to be considered for a State
contract.
Co-Chair Wilken asked the Department to compile a list of the
aircraft that it owns and has under contract. He stated that this
information would be requested from other Departments as well. He
noted that the Department would also supply information pertaining
to private pilot contracts with the State.
Senator Olson also voiced concern regarding the State's mandated
insurance coverage per seat per aircraft, as he understood that the
required coverage has increased from $150,000 per seat to $300,000
per seat.
Mr. Brooks replied that rather than the per seat insurance increase
being initiated by the Department, the change was dictated either
by federal or State law. He stated that he would investigate the
situation.
Senator Olson declared that $300,000 is "an odd number" as some
aircraft certificates require $500,000 per seat coverage as opposed
"to this seemingly arbitrary" $300,000 requirement.
Nearshore Marine Research Studies - V
$ 998,000 Federal Receipts
Reference No.: 38484
Project Type: Planning
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Funds from the National Marine Fisheries Service (NMFS) will
be used to develop nearshore commercial fisheries that foster
economic development of coastal communities.
Mr. Brooks stated that this is a federally funded project whose
goal is to enhance and promote small nearshore fisheries. He stated
that previous nearshore species that have been economically
developed include sea urchins, sea cucumbers, razor clams, and
geoducks.
Co-Chair Wilken noted that four million dollars has been spent
during the previous two years, and he asked how the program's
results are being measured.
Mr. Brooks responded that usually this type of program would be
included in the operating budget; however, he continued its "three-
year horizon" funneled it to the capital budget. Nonetheless, he
stated that the Committee's Department of Fish & Game operating
budget subcommittee has discussed this program. He furthered that
the success of the program is gauged by whether a fishery could be
developed and thereby, provide an economic opportunity to
fishermen.
Co-Chair Wilken asked whether this federal funding is expected to
continue.
Mr. Brooks stated that this is the fifth year that the funds have
been made available; therefore, he believed the program would
continue.
Senator Hoffman asked the "Department to report what activities
have taken place along the Aleutian chain and north of that."
[Note: There was no verbal response from the Department.]
Senator Taylor voiced concern regarding nearshore stock
assessments, and he recommended that the Committee's Department of
Fish & Game subcommittee consider contracting stock assessments out
to qualified personnel as, he asserted it requires "significant"
training and experience to conduct stock assessments. He declared
that the State "has spent a fortune" on training and outfitting
divers who do not have the required stock assessment skills. He
stated that while the fisheries have been expanded, the expansion
should have been larger. Furthermore, he noted that as time goes
by, the State's divers have gained more experience; however, he
continued to voice disappointment in the growth of the nearshore
"dive industry." He suggested that in addition to the option of
subcontracting out the dive assessment responsibility, the
University of Alaska Marine Science program should be considered to
conduct the work. He stated that some marine fishery resource
stocks such as the red stickleback have been "almost decimated" as
a result of the slow response and interpretation of current stock
assessment methodology. He stressed that the stock assessment
program should be re-evaluated.
Co-Chair Wilken suggested that discussions on this matter should
include the recently appointed Commissioner of the Department of
Fish and Game.
Mr. Brooks agreed that this would be beneficial. He noted that the
Department contracts with commercial divers for the very reason
Senator Taylor spoke of, and he suggested that Senator Taylor
should also be involved in the discussions.
Bering Sea Crab Research- FY 04
$ 1,000,000 Federal Receipts
Reference No.: 38485
Project Type: Planning
Category: Natural Resources
Location: Kodiak
Election District: Kodiak
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Funds from the National Marine Fisheries Service (NMFS) will
be used to conduct research on various crab species in the
Bering Sea.
Mr. Brooks noted that this is the second year this federal funding
has been made available to conduct king and tanner crab stocks
research in the Bering Sea and Aleutian Islands. He noted that the
State manages this resource and coordinates activities with the
National Marine Fisheries Service (NMFS).
Senator Olson asked whether any research activity would be
conducted to address the crab fishery in Norton Sound.
Mr. Brooks responded that although he is unavailable to attend
today's meeting, Doug Mecum, the Director of the Division of
Commercial Fisheries could provide the answer to that question.
Senator Olson avowed that nothing is being done in that area. He
shared the Norton Sound Economic Development Council's comments
that attested that, as a result of no research being conducted,
"fairly conservative" limitations are being placed on the crab
fishery in the area.
Mr. Brooks commented that the information regarding research plans
for the Norton Sound area would be provided.
Senator Bunde asked that the total amount of State and federal
funding that has been spent to subsidize commercial fishing in the
last three years be provided to the Committee. He stated that he
interprets the phrase "develop commercial fisheries" to equate to
"subsidize commercial fisheries."
Co-Chair Wilken responded that Senator Bunde's question would be
addressed.
Senator B. Stevens informed the Committee that, due to funding
constraints, crab stock assessments have not been conducted on an
annual basis in several areas, including Norton Sound, and he
understood that the funding in this request would be used to
conduct assessments on the large red and tanner crab fisheries in
the central Bering Sea area. He communicated that, for several
years, only two of the seven types of crab fisheries in the Bering
Sea have received annual in-season stock assessments.
Senator Olson stated that this affirms that nothing is being done
in the Norton Sound area.
Senator B. Stevens agreed that, in addition to the Norton Sound
area, many areas have not received any research funding.
Wildlife Conservation Laboratory Remodel
$ 150,000 Fish/Game Funds
Reference No.: AMD 38528
Project Type: Renovation and Remodeling
Category: Development
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Amendment
The Division of Wildlife Conservation has a need for
additional research laboratory space in Anchorage. There is
existing space within the Anchorage Regional Office that can
be remodeled, and combined, while upgrading an existing lab
that will result in a dual function research laboratory to
meet our needs. Funds will be utilized for professional design
services, construction, and the purchase and upgrade of
necessary equipment. Some new laboratory equipment planned for
the remodeled facility will be acquired with existing federal
project funds. The department has received a positive
preliminary permitting and code compliance review from the
Municipality of Anchorage/
Co-Chair Wilken identified this request as an amendment that was
received on March 24, 2003.
Mr. Brooks explained that some square footage in the Anchorage
Regional Office that is currently being used as a warehouse could
be remodeled to accommodate needed wildlife research laboratory
space.
In response to a question from Senator Bunde, Co-Chair Wilken
explained that the NPR-A handout that he distributed at the
beginning of the meeting reflects his calculations regarding the
NPR-A FY 04 allocation of royalties as follows.
FY 04 Distribution of Alaska's NPR-A Royalties
Federal NPR-A Receipts $67,200,000
Alaska's Gross Receipts (50% of federal receipts) $33,600,000
Grants to Municipalities (First Priority)
($25,011,457)
Net (Gross Receipts less Grants) $8,588,543
Deposit to Permanent Fund (25% of Net)
($2,147,135)
Deposit to the Public School Trust Fund
(.5% of Net) ($42,942)
Amount available for appropriate to the Power Cost
Equalization and Rural Electric
Capitalization Fund ($6,398,466)
Deposit to the General Fund $0
Co-Chair Wilken communicated that NPR-A's obligation to fund Grants
to Municipalities first, renders it unable to contribute to the
State's general fund account. Continuing, he communicated that this
presents "a problem" in that the State's Constitution specifies
that 25 percent of all State royalties must be contributed to the
Permanent Fund. However, he clarified that, in NPR-A's case, 25
percent of the net, or the amount remaining after the Grants to
Municipalities is allocated, is contributed. He stated that this is
"disturbing" because it is contrary to language in the State's
Constitution. He pointed out that this situation indicates that
"our State statutes and our federal law have trumped our State
Constitution, and indeed, today, we are spending the next
generation's monies out of NPR-A on ourselves, and not putting any
aside as our Constitution says we should." He noted that while he
has no solution to the situation, he believed the "problem" should
be "highlighted." Continuing, he stated that, "we should all be
concerned about the way that we have interpreted NPR-A development
as it doesn't benefit the general funds nor the Permanent Fund to
the degree that people of Alaska think it does or should."
Senator Bunde declared that "the Alaska Constitution trumps all
statutes," and therefore, he asked whether a legal opinion been
requested.
Co-Chair Wilken stated that an existing legal ruling specifies
that, "in this particular case, because of federal law" the deposit
to the Permanent Fund is net receipts. However, he stated that this
ruling should be questioned, because he "can't square this with the
Constitution."
Senator Bunde questioned, therefore, whether the State should
continue to promote development that is done at the State's
expense.
Senator Taylor noted that the handout specifies that NPR-A funds
the Public School Trust and the Power Cost Equalization (PCE)
program.
Co-Chair Wilken responded that the Legislature could determine
whether the funds would support PCE or the general fund.
Senator Taylor opined that because the Public School Trust predates
the Constitution, funds to it are allowed to be dedicated funds.
However, he stated that the funds could be dedicated, instead, to
education. Continuing, he noted that the Legislature could specify
that the funds currently being allocated to PCE could be allocated
elsewhere; however, he recalled that the allocation of NPR-A funds
to the PCE program was the result of a [unspecified] commitment to
provide a funding mechanism for the PCE foundation.
Co-Chair Wilken voiced that this is an issue that should be
addressed. He concluded that he has provided this information to
alert the Legislature that the NPR-A funding allocations do not
support the State's Constitution. He concluded that the words "'of
net' are what we are wrestling with today."
Pacific Coastal Salmon Recovery Fund
$ 21,857,000 Federal Receipts
Reference No.: 33647
Project Type: Planning
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
The federal fiscal year 2004 (FFY03) appropriations
legislation contains funding for the Pacific Coastal Salmon
Recovery Fund. A total of $115 million was appropriated for
the states of Alaska, Washington, Oregon, and California.
Coordination of the fund is through the respective Governor's
offices. The Alaska portion of the federal FY03 appropriation
is $21.857 million. The Alaska portion if this funding comes
to the state through a Memorandum of Understanding designating
Alaska Department of Fish and Game as the program manager.
Mr. Brooks explained that this would be the fourth year that the
federal government has allocated Pacific Coastal Salmon Recovery
Funds to the State as part of a four-state appropriation. He stated
that to date, the State has received $60 million in funding. He
clarified that, in actuality, the federal appropriation is made to
the Office of the Governor. Continuing, he noted that the purpose
of the fund is to provide for salmon habitat restoration, salmon
stock enhancement, and salmon stock research, and construction of
salmon stock research facilities. He stated that of the total FY 04
four-state allocation of $115 million, Alaska would receive
$21,857,000. He noted that the Department and the administration of
Governor Murkowski have been discussing how to best utilize these
funds.
Senator Hoffman asked when the Department and the Administration
would be able to provide "the particulars" of this request to the
Legislature.
Mr. Brooks responded that the money has been allocated to the
State, and, upon Legislative approval, the funding would be
available as of July 1, 2003. He noted that the majority of the
proposed projects would be approximately five-year programs.
Senator Hoffman acknowledged that $13.7 million of the total State
allocation would be earmarked for federally identified projects.
However, he questioned as to whether the Legislature or the
Governor's Office would make the final determination as to how the
State's portion of the money would be allocated.
Mr. Brooks responded that the State currently has a Memorandum of
Understanding with "the National Fisheries Service on the
implementation of this program" as well as "the overriding
criteria" to which the funding must be allocated. He stated that a
stakeholders project review panel determined the State funding
allocations during the previous three years.
Senator B. Stevens affirmed that a portion of this money is
federally earmarked to fund specific projects while a portion of it
could be utilized in the Governor's budget at the Governor's
discretion. He mentioned that "the stakeholder panel that reviewed
grant applications" as established by the prior administration of
Governor Tony Knowles was considered to be an "onerous application
process." Furthermore, he noted that some of the projects that were
funded, in some people's interpretations, did not fit the specified
salmon enhancement project criteria. He stated that the current
Administration is reviewing the grant procedure in order to
determine a new process through which funds would be distributed.
He mentioned that, in addition to providing funds to the four
western states, some funds are also allocated to Canada as part of
the Pacific Salmon Treaty agreement. He noted that the
Administration, and in particular, former Senator Alan Austerman
who is currently the Governor's Fisheries Policy Advisor, are
reviewing the process in order to determine the "best way" to
utilize these funds to enhance the fisheries and the industry.
Co-Chair Wilken asked whether the funding could enhance any of the
State's Salmon Task Force recommendations.
Senator B. Stevens responded that the Task Force is involved in the
discussions. However, he attested that the final determination of
how the funds would be allocated is up to the Governor, not only in
Alaska, but also in each of the four states that receive this
funding.
Senator Taylor declared that while it might be the Governor's
discretion to determine how the money would be allocated, the
Legislature, and specifically, this Committee must appropriate it.
He stated that to approve this funding request, with only the
federal portion defined, would be a policy call.
Senator B. Stevens concurred that quite a bit of money is
undesignated.
Department of Environmental Conservation
AT EASE 10:21 AM / 10:22 AM
MIKE MAHER, Director, Division of Information and Administrative
Services, Department of Environmental Conservation, noted that he
was available to assist, as needed, with the Department's
presentation.
Pre-harvest Geoduck PSP Testing
$ 250,000 general funds
Reference No.: 37713
Project Type: Health and Safety
Category: Natural Resources
Location: Southeast Alaska
Election District: Southeast Districts 1-5
Estimated Project Dates: 07/01/2003 - 06/30/2005
One-Time Project
Growth in higher priced live sales of geoduck has been
hindered by a lack of data on Paralytic Shellfish Poisoning
(PSP). No historical or trend data is available that would
allow harvesters to focus their efforts in areas or times of
year when PSP levels are low. Recognizing this shortfall in
data, a monitoring program was developed by the state,
national PSP experts, the U.S. Food and Drug Administration,
and the Southeast Alaska Regional Dive Fisheries Association
(SARDFA). This funding will pay monitoring and data collection
costs for two years.
KRISTIN RYAN, Acting Director, Division of Environmental Health,
Department of Environmental Conservation, informed that this
funding would allow the Department to test PSP levels in the
geoduck harvest areas. She stated that live sales of geoducks by
commercial harvesters have been negatively affected by the lack of
sufficient data regarding when PSP levels might be too high. She
noted that acquiring this information would financially benefit
commercial harvesters in Alaska. Additionally, she noted that
Alaskan harvesters are at a disadvantage because their live sale
competitors in British Columbia and Washington have accumulated a
substantial quantity of PSP information for their areas. She shared
that a data development plan has been formulated by the State and
other entities to address this data collection need.
JULIE DECKER, Executive Director, Southeast Alaska Regional Dive
Fisheries Association testified via teleconference from Wrangell to
voice support for this program as it would increase the opportunity
for live geoduck sales. She stated that substantial progress has
been made in the fishery and that harvests have increased from a
low of ten percent of the allowable harvest to approximately 50
percent this past year. She mentioned that the commercial fishers
continue to work with the Department of Environmental Conservation
to develop new harvest areas and further the success of the
fishery.
Ms. Decker voiced the organization's support for another Department
of Environmental Conservation project, the Seafood and Food Safety
Lab Replacement, Reference No. 37753. She noted that building the
laboratory in Anchorage would be beneficial to the fishery as water
samples and other research would be able to reach that location in
a timely and efficient manner.
Senator Taylor thanked Ms. Decker for her involvement in the
geoduck PSP testing project. Continuing, he asked her whether being
required to ship Southeast Alaska water samplings to an Anchorage
based laboratory might present logistical problems.
Ms. Decker responded that there is a 30-hour maximum time limit on
water samplings, and she detailed that getting the sample to the
Anchorage laboratory in that amount of time would require hiring a
small plane pilot to collect and carry the sample from its remote
harvesting area in Southeast Alaska to an airport served by Alaska
Airlines where it would then be transported to Anchorage. Once the
sample arrived in Anchorage, she continued, a courier would deliver
the sample to the laboratory.
Ms. Decker noted that, in a situation involving live geoducks, the
shipping must be expedited because the geoducks must reach their
destination alive. She stated that this timeframe is a maximum of
two to four days. She characterized that, in addition to the
product being "touchy," the market is "touchy" in that the
distributors must be assured that the Alaskan product would be
available on an on-going basis or they would contract with other
rival sources for the product. She stressed that a timely
laboratory testing cycle is critical to the industry.
Senator Taylor declared that it seems ridiculous that any product
from Southeast Alaska must be transported 1300 miles to a
laboratory in Anchorage for testing.
Co-Chair Wilken asked for alternatives.
Senator Taylor suggested that a laboratory be located "in close
proximity" to where the resource would be harvested. He stated that
such a location would enhance the viability of the product.
Senator Olson asked Ms. Decker whether the small percentage of
geoducks quota being harvested was the result of areas not being
permitted for harvest due to "hot" PSP levels.
Ms. Decker stated that, a few years prior, the geoduck harvest
amounted to approximately ten percent of the allowable live sale
quota. She stated that, although sufficient on-going data is
unavailable, it is believed that two of the fourteen-geoduck
harvesting areas have high or "generally hot" PSP levels. She
stated that this would affect approximately twenty percent of the
overall quota. She stated that other areas are "at times clean and
at times hot." She avowed that the purpose of this request would be
to extend the PSP testing to determine whether any trends develop
in the levels of PSP. She stated that, in addition to the
insufficient harvest area data and high PSP levels, another factor
in the ten-percent of quota harvest was that, at the time, no pre-
certification program existed. She stated that were an area pre-
certified, then a market for the product would have been
established and would have resulted in a more efficient process.
Senator Bunde asked how much is charged for the sampling tests.
Ms. Decker responded that currently the State charges $125 per PSP
test.
Senator Bunde asked whether transportation costs would be levied in
addition to the test fee.
Ms. Decker concurred.
Senator B. Stevens asked the most recent year's total harvest
weight.
Ms. Decker stated that the most recent harvest totaled 280,000
pounds, and she elaborated that the harvest has been as high as
400,000 pounds. She stated that as new harvest areas are developed,
the goal is to reach a sustainable harvest range of approximately
500,000 pounds a year. She stated that as enhancement projects and
other programs are developed, the harvest range should continue to
rise beyond the 500,000-pound level.
Senator Stevens asked the price difference between live and frozen
geoduck sale prices.
Ms. Decker responded that live geoducks sell for approximately five
to ten times the price of the frozen product. She exampled that the
price might average five to seven dollars per pound for a live sale
to one dollar per pound for a frozen sale.
Co-Chair Wilken inquired as to the location of the geoduck market.
Ms. Decker responded that the primary market for geoducks is in
Asia. She noted that the domestic market primarily consists of
Asian restaurants.
Co-Chair Wilken surmised therefore, that the primary market is
overseas in Asia.
Ms. Decker agreed.
Seafood and Food Safety Lab Replacement
$ 14,285,000
$14,145,000 COPs
$ 140,000 Misc Earn
Reference No.: 37753
Project Type: Health and Safety
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
One-Time Project
The current seafood and food safety laboratory lacks basic
infrastructure to provide a safe and secure laboratory
facility. This project contracts for services to complete
construction of a replacement Food Safety Laboratory on state
land.
Ms. Ryan explained that, in addition to certifying seafood
products, the food safety laboratory certifies commercial food
industry food products.
SFC 03 # 30, Side A 10:38 AM
Ms. Ryan informed that the laboratory works with the commercial
food industry to assure that the products are shelf-stable and
would not be harmful to consumers. Furthermore, she noted that, in
an effort to gather information to offset negative national fish
consumption advisories, the food safety laboratory evaluated
approximately 600 fish samples the prior year for such things as
heavy metal toxicity from mercury, lead, and cadmium. She stated
that the results of these tests would be forthcoming and are
eagerly awaited by fisherman. In addition, she stated that the
laboratory certifies private laboratories that conduct drinking
water testing and conducts horse and cow testing to prevent
reintroduction of diseases such as tuberculosis into the State. She
concluded that, in total, approximately 9,000 sample tests are
conducted each year. She disclosed that of that number, 6,000
sampling tests are related to PSP shellfish testing, and 4,000 of
those samplings are from Southeast Alaska.
Ms. Ryan stated that because the majority of the tests that are
conducted are in close proximity to Anchorage, it has been deemed
the appropriate "central" location for the laboratory. She asserted
that the current laboratory has been functioning for 33-years in a
substandard facility that was originally built as a grocery store
in the city of Palmer. She pointed out that while the current
laboratory lease has been extended to December 2006, there is on-
going concern about disposal of waste products, and the appropriate
sample handling. She asked that funding be allocated this year to
avoid a delay in the remodeling of the identified Anchorage
facility.
Co-Chair Green noted that the sample handling concerns are a
procedural rather than facility issue.
Ms. Ryan concurred.
Co-Chair Green asked whether the laboratory duplicates tests that
are conducted elsewhere in the State.
Ms. Ryan replied that she is unaware of any duplicate testing. She
pointed out that the testing that is conducted at the "State
certified" laboratory "is required for specific certification" such
as the PSP testing.
Co-Chair Green asked the definition of a "state certified lab."
Ms. Ryan responded that it must be United States Department of
Agriculture (USDA) certified.
Co-Chair Green asked whether a USDA employee must be on premises.
Ms. Ryan replied no. She noted that the laboratory has also
received water testing certification from the federal Environmental
Protection Agency (EPA) as well as federal Food & Drug
Administration (FDA) certification for PSP testing.
Co-Chair Green asked whether other laboratories in the State could
be certified.
Ms. Ryan affirmed they could; however, she stated that the
certifications might be limited by a facility's capabilities.
Senator Bunde asked whether the laboratory has a user fee structure
in place for the various tests.
Ms. Ryan responded that some user fees cover the cost of the
service and some do not. She noted that, while a fee is charged for
the PSP testing, no fee is being assessed for the contaminate
sample testing, which is being conducted for data gathering. She
stated that there are fees for the drinking water testing.
Senator Bunde asked whether the water-testing fee covers the cost
of the service.
Ms. Ryan would supply that information, as she was unsure whether
all its associated costs were covered.
Senator Hoffman asked whether there is a seafood laboratory in
Unalaska, specifically one that conducts king crab tests.
Ms. Ryan responded that while there is no state laboratory there,
she was unsure as to whether there is a commercial laboratory.
Senator Hoffman asked whether the separate Certificates of
Participation (COP) bond bill legislation that would provide the
authority to fund this project has been introduced to the
Legislature.
Ms. Ryan replied that it has not, of yet, been introduced.
Senator Hoffman clarified that the appropriation for this request
is contingent upon the passage of that legislation. Therefore, he
asked why that legislation has not been introduced.
Ms. Ryan responded that, at the request of some senators that
further evaluation be conducted regarding the capacity of the
Alaska Seafood International building to hold the laboratory, the
Department has not furthered that legislation. Therefore, she noted
that the bond bill could not be introduced until the final
determination is made regarding the site of the new laboratory.
Mr. Maher concurred that the site must be identified before the
bond bill could be presented. He furthered that, in order, to
receive bond bill proceeds; the laboratory must be a stand-alone
facility.
Senator Hoffman asked whether the bond bill would have adequate
time to be approved this year, were it determined that a stand-
alone facility would be the best option.
Mr. Maher voiced optimism that the determination would be made
soon, as he noted sufficient time must be allowed to secure a
funding mechanism.
Senator Hoffman asked for a specific timeframe.
Mr. Maher responded that a determination should be available within
seven days.
Ms. Ryan noted that the cost analyses for constructing a new
laboratory or remodeling the Alaska Seafood International site has
been completed. She stated that the Alaska Industrial Development &
Export Authority (AIDEA) is currently conducting lease analyses.
She stated that the next step would be to determine which option
would be pursued. She voiced optimism that this determination would
be finalized within the next week.
In response to a question from Senator Olson, Ms. Ryan reiterated
that of the 9,000 total sampling tests conducted by the laboratory;
2,000 were PSP tests that were conducted on samples from Prince
William Sound and Cook Inlet and 4,000 were PSP tests conducted on
samples from Southeast Alaska.
Senator Taylor concluded that a final decision on the location of
the laboratory must be made before action could be taken on this
request.
Co-Chair Wilken agreed.
Defending State Primacy of the Alaska Air Permit Program
$ 150,000 general funds
Reference No.: 37764
Project Type: Health and Safety
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Funding for the cost of preparing and defending the State of
Alaska's appeal before the US Supreme Court to overturn the
9th Court of Appeals court decision in the matter of the Red
Dog mine air permit and supporting primacy of the State's air
permit program.
TOM CHAPPLE, Director, Division of Air & Water Quality, Department
of Environmental Conservation, testified via teleconference from an
offnet site. He stated that this project would allow the State to
contract with a law firm to present its appeal of the air quality
ruling before the US Supreme Court "sometime this fall."
Senator Hoffman asked the reason this request is in the capital
budget rather than in the operating budget.
Mr. Chapple responded that it is in the capital budget because it
is a one-time, short-term project. He noted that the granting of a
hearing before the US Supreme Court was a recent development.
Senator Olson asked the outcome were the State's position denied.
Mr. Chapple responded that this appeal would be the "last judicial
process" regarding the air quality permit decision by the EPA that
is contrary to the State's permitting policy. He stated that were
the EPA ruling upheld, the State's "permitting program would be
subject to second-guessing" by the Seattle office of the EPA
"unless the law were to change at some future date."
Senator Olson asked whether the level of this request would
increase in FY 05 were the State's position to not prevail.
Mr. Chapple clarified that this appeal would be a one-time
presentation to the US Supreme Court; therefore, he stated that the
request would not be presented in FY 05.
Co-Chair Wilken noted that the impact to the Red Dog Mine, were the
EPA's position upheld, is defined on page four of the backup
material. He read that "…the EPA's technology would cost up to $1.5
million more a year in operating costs and up to $10 million more
in construction cost than the state's solution." He stated that
"this is a big deal" to the State.
Senator Olson declared that it would certainly affect the district
he represents.
Environmental Monitoring and Assessment of Surface Waters
$ 1,763,495 Federal Receipts
Reference No.: 37756
Project Type: Health and Safety
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Federal funding from the EPA will enable Alaska to conduct
water qualify monitoring, with initial assessments in coastal
southeast Alaska and the Yukon River watershed, to contribute
to the development of baseline information through the Alaska
Clean Water Actions (ACEA) plan on the health of Alaska
waters. The baseline information that will be gathered from
this project will be the basis for ensuring that Alaska's
waters remain workable, fishable, drinkable and swimmable.
Mr. Chapple stated that this request would enable the Department to
utilize federal funds to conduct baseline water quality monitoring
"for sediment, aquatic species, and the water column itself." He
noted that this research is being also conducted throughout all
national coastline areas. He stated that previous monitoring has
been conducted in Prince William Sound and in lower Cook Inlet. He
stated that this funding would allow monitoring to be conducted in
Southeast Alaska and the Yukon River drainage. He noted that this
research would provide the State with pertinent information that
could be used to enhance resource development and environmental
management efforts.
Senator Bunde asked for the definition of benthic species, as
identified on page five in the Project Description language.
Mr. Chapple explained that benthic species are small organisms such
as sea lice and worms "that live in the sand in the bottom
sediment."
Senator Taylor inquired as to how the Department of Environmental
Conservation "has operated" without conducting research into water
quality.
Mr. Chapple responded that the majority of the water quality
monitoring "to date has been driven by a need to know" basis as
projects develop, as, he attested, the Department has not had the
resources with which to conduct water quality research on its vast
coastal area. He stated that, while other agencies have supplied
information to the Department, the Department "has always had a
lack of" water quality baseline information.
Senator Taylor surmised therefore that the Department, over the
past 20-year period, has "only focused" on water testing when a
need arose. He uttered "amazement that an ongoing" investigative
program has not been conducted as he voiced that arsenic and other
dangerous substances could be, for example, in water systems.
Mr. Chapple clarified that this project would be federally funded.
He stated that he is not inferring that water monitoring is not
being conducted in the State, but rather that the Department does
not have comprehensive or organized data. In addition, he noted
that pre-development baseline monitoring is conducted in areas,
primarily by prospective developers, with guidance from the State.
He commented that while some baseline monitoring has been
conducted, it has not been at the broad-based level that would be
provided by this project.
Senator B. Stevens asked whether the federal government or the
State developed the Environmental Monitoring and Assessment (EMAT)
protocols that would be used in the project.
Mr. Chapple explained that the EMAP procedures are based primarily
on a national design; however, he stated that it could be tailored
to meet the State's "unique" needs.
Co-Chair Wilken ordered the bill to be held in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:58 AM
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