Legislature(2011 - 2012)SENATE FINANCE 532
03/15/2011 03:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 15, 2011
3:06 p.m.
3:06:38 PM
CALL TO ORDER
Senator Stedman called the Senate Finance Committee meeting
to order at 3:06 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None.
ALSO PRESENT
Marc Luiken, Commissioner, Department of Transportation and
Public Facilities; Pat Kemp, Deputy Commissioner,
Department of Transportation and Public Facilities; Laura
Baker, Director, Administrative Services, Department of
Transportation and Public Facilities; Jean Davis, Director,
Support Services Division, Department of Natural Resources;
Dan Fauske, CEO/Executive Director, Alaska Housing Finance
Corporation; Ray Utter, Budget Manager, Alaska Housing
Finance Corporation; John Anderson, Weatherization Project
Officer, Alaska Housing Finance Corporation; Stacy
Schubert, Director, Governmental Relations and Public
Affairs, Alaska Housing Finance Corporation; Sara Fisher-
Goad, Executive Director, Alaska Energy Authority; Ed
Fogles, Deputy Director, Department of Natural Resources;
Joe Dubler, Director, Finance Department, Alaska Housing
Finance Corporation, Department of Revenue;
PRESENT VIA TELECONFERENCE
SUMMARY
SB 46-BUDGET: CAPITAL
SENATE BILL NO. 46
"An Act making and amending appropriations, including
capital appropriations and other appropriations; making
appropriations to capitalize funds; and providing for an
effective date."
Co-Chair Stedman discussed housekeeping.
Department of Transportation and Public Works (DOT&PW)
LAURA BAKER, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, spoke to an
earlier question posed by Senator Hoffman concerning the
Newtock Evacuation Shelter and Access Road. She informed
the committee that a project request had been made under
the Department of Commerce, Community, and Economic
Development for $2.5 million, and was not listed in the DOT
budget requests. She proceeded to discuss the DOT project
listings.
RN 49136
Fairbanks: Potter Road Surfacing
$250,000
Brief Summary and Statement of Need:
Pave Potter Road from Rosie Creek Road to Cripple Creek
Road to reduce risk of injury due to seriously degraded
gravel surface. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
Ms. Baker explained that the request would fund road
resurfacing on Potter Road in Fairbanks.
AMD RN 49093
DELETE: Fairbanks South Cushman - Mitchell Expressway to
Sanduri Street - to be moved to the supplemental
Brief Summary and Statement of Need:
This project is being moved to the FY11 Supplemental
request to take full advantage of the entire summer 2011
construction season. Resurface South Cushman Street from
the Mitchell Expressway to Sanduri Street. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
Ms. Baker elucidated that the amendment would move the
South Cushman - Mitchell Expressway to Sanduri Street
project request in to the FY2011 supplemental budget.
Co-Chair Stedman requested further clarification. Ms. Baker
replied that the budget amendment removed the South Cushman
- Mitchell Expressway to Sanduri Street project from the
capital budget to the FY2011 supplemental budget. Co-Chair
Stedman reminded the committee that it had yet to be
determined which capital projects would be moved to the
supplemental.
Ms. Baker continued to list the project requests.
AMD RN 42995
Galena - Campion Road Erosion Protection
$9,000,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project aims to relocate a
portion of Campion Road to avoid erosion of approximately
two miles of road that is threatened by the Yukon River.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
AMD RN 43227
Gamble: Evacuation Road Repairs and Extension
$11,000,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. The project Gambell Evacuation
road project will improve 2.5 miles of the existing
evacuation route, construct a new route to Akeftapak and
Tevleghak Bays, approximately 3.5 miles, and construct
access to the community cemetery, approximately .8 miles.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
AMD RN 41539
Geographic information System (GIS) Development (IWAYS)
$1,000,000
Brief Summary and Statement of Need:
This amendment adds $450,000 federal funds for a new total
of $1,000,000 due to project cost estimate increases. This
project aims to develop the Highway Analysis System -
Geographic Information System (HAS-GIS) concept of
operations, systems architecture, and long-term systems
deployment. Project work includes road centerline/inventory
data collection and processing, business process
development (data quality, linear reference system, highway
data warehouse, HAS-GIS Interface), a spatial geodatabase,
GIS software, network systems, GIS tools, a highway data
warehouse, training, and technical support.
RN 49146
Glenn and Parks Highways Corridor ITS Project
$1,500,000
Brief Summary and Statement of Need:
Develop and implement Intelligent Transportation Systems
(ITS) for the Glenn Highway and Parks Highway commuter
route between Anchorage and the Matanuska-Susitna Valley.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
AMD RN 47838
Glen Highway: Milepost 172 to 189 Rehabilitation
$3,500,000
Brief Summary and Statement of Need:
This amendment adds $6.5M federal authority for a new
federal request of $10 million. Original request: This is a
new capital request resulting from a STIP amendment that
occurred after the December 15 release of the Governor's
FY2012 budget. This project aims to rehabilitate the
existing roadway from Glenn Highway MP 172 to the
Richardson Highway junction (MP 189), replace Tolsona
Creek Bridge (#552), and construct a bicycle/pedestrian
path from Moose Creek east, with an extension to the
school.
RN 51544
Hatcher Pass: Scenic Overlook and Trailhead Construction
$1,000,000
Brief Summary and Statement of Need:
Construct scenic overlooks, rest stops, and trailheads
along the Hatcher Pass road corridor. Most of the sites
will be paved viewing areas with covered kiosks and
interpretive panels. Sanitary facilities will be installed.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
RN 45523
Homer: East End Road Rehabilitation - Milepost 3.7 to 12.2
$3,500,000
Brief Summary and Statement of Need:
Provide for rehabilitation and safety improvements on East
End Road from the intersection with Kachemak Drive (MP 3.7)
to Waterman Street (MP 5.5). The work will include shoulder
widening, realignments, slope flattening, and other safety
improvements. This project contributes to the Department's
Mission by reducing injuries, fatalities and property
damage and by improving the mobility of people and goods.
3:12:03 PM
Ms. Baker continued with the project listings.
AMD RN 49180
Intelligent Transportation Systems Border Infrastructure
$1,250,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project aims to develop and
deploy ITS systems within 100 miles of the US/Canada border
on the Haines, Klondike, Taylor and Alaska Highways.
Technologies may include but are not limited to: dynamic
message boards, temperature data probes, weather cameras
and sensors, weigh-in-motion and traffic counters. Upgrade
communications along the corridor as necessary to support
ITS applications. This will integrate with the new
generation 511 road weather information system.
Co-Chair Stedman asked for further details of the request.
Ms. Baker responded that the project pertained to the
United States and Canadian border area.
Co-Chair Hoffman asked when the project had first appeared
on the Statewide Transportation Improvement Plan (STIP).
Ms. Baker said that the department would get back to the
committee with the information. She divulged that the
amendment had been processed after December 15, 2010.
Co-Chair Stedman questioned the time delays and numeric
increases in project costs after the December 15, 2010
budget deadline. Ms. Baker replied that some of the changes
were the result of projects that had either been in the
STIP and were in the original FY2012 budget, or had been on
prior STIP lists. The delay of some projects could be
attributed to environmental work. She added that in some
instances, projects had come in at lower cost than
expected, and in an effort to ensure that the federal
receipts did not go to other states more projects were
added from the STIP to the capital budget. Co-Chair Stedman
wondered the Sitka Halibut Point Project would be added as
an additional STIP project to the capital budget.
PAT KEMP, DEPUTY COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, replied that the department would
get back to the committee on the issue of Halibut Point.
Ms. Baker continued with the next request.
AMD RN 51537
Juneau: Fritz Cove Road Rehabilitation and Repair
$4,000,000
3:15:39 PM
Ms. Baker continued to Page 151-1.
AMD RN 51535
Juneau: Glacier Highway - Widen and Resurface Eagle Beach
to Bessie Creek
$11,300,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project aims to widen,
straighten and resurface Glacier Highway from the north
Eagle Beach kayak launch site to Bessie Creek to improve
safety and provide shoulders. Project includes spot sub-
base improvements and drainage improvements as needed. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
Co-Chair Stedman noted that the project was new. Mr. Kemp
agreed. Co-Chair Hoffman queried when the project had first
appeared in the STIP. Mr. Kemp clarified that the project
had been in the STIP for over five years.
Ms. Baker continued to list the department's capital budget
requests for FY2012.
RN 51540
Juneau: Auke Lake Trail and Wayside
$1,200,000
Brief Summary and Statement of Need:
Construct a wayside with picnic shelter, restrooms and
interpretive amenities. Construct trailhead parking. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 47845
Juneau: Brotherhood Bridge and Industrial Boulevard
$17,500,000
Brief Summary and Statement of Need:
Replace Brotherhood Bridge. Reconstruct approach roadway as
required to tie into new bridge alignment and lane
configuration, including intersection improvements with
Industrial Blvd. Construct new, multi-use pathway from
Brotherhood Bridge to UAS. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
RN 51562
Juneau: Mendenhall Valley Street Dust Control
$2,000,000
Brief Summary and Statement of Need:
Pave select streets in the PM 10 maintenance area. Paving
may include various streets, including Blueberry Lane, Gene
Street, Goat Hill Road, Powers Street, Spring Way, Sasha
Avenue, and Tongass Avenue. The Diamond Park parking lot
may also be paved. Purchase a street sweeper to clean
valley streets of sand and dirt to control airborne dust
particulate matter in the PM 10 maintenance area. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 51533
Ketchikan: South Tongass Highway Widening - Saxman to Surf
Street
$1,000,000
Brief Summary and Statement of Need:
Reconstruct South Tongass Highway from Saxman to Surf
Street. Construct a recreational path through this segment
on the water side. Construct guardrail and drainage
improvements as needed. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods
AMD RN 49137
Livengood - Livengood Creek Bridge Replacement
$1.4 million
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project will raise the grade
and replace the Livengood Creek Bridge with a culvert. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 40358
New Seward Highway: Rabbit Creek to 36th Avenue
$2,000,000
Brief Summary and Statement of Need:
Design and construct improvements in the Seward Highway
corridor between Rabbit Creek Road and 36th Avenue.
Improvements may include, but are not limited to: widening
from four to six lanes; modifying existing interchanges;
constructing a grade separation at 36th Avenue; extending
western frontage road between Diamond Boulevard and
O'Malley Road; constructing overcrossings at 68th, 76th and
92nd Avenues; and pedestrian and bike facilities. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 51542
Ninilchik: Village Bridge Replacement
$2,200,000
Brief Summary and Statement of Need:
Replace the Ninilchik River Bridge (Bridge No. 0427)
leading to Ninilchik Village with a two lane bridge.
Reconstruct the approaches to the bridge. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 49135
Nome: Nome-Council Road - Milepost 4 to 16
$4,500,000
Brief Summary and Statement of Need:
Repair, resurface and raise the grade between MP 4-16.
Project will include slope flattening at MP 10 and MP 12,
realignments at MP 6 and MP 8, grade raise between MP 15-
16, and other snow control features. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 41700
Northern Region: National Highway System and Non-National
Highway System Pavement and Bridge Refurbishment
$32,000,000
Brief Summary and Statement of Need:
Project includes crack sealing, surface treatment drainage,
signage, guardrail, illumination and other refurbishments
to prolong the life of road pavement and bridges and their
safety related structures. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
RN 51552
Nulato: Airport Road Improvements
$4,500,000
Brief Summary and Statement of Need:
Raise the grade, replace the Mukluk Creek Bridge #1382, and
resurface the lower portion of the airport access road
(approximately 1,500 feet). This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
RN 49178
Parks Highway: Milepost 239 to 263 Reconstruction - Nenana
Canyon to Bear Creek
$27,000,000
Brief Summary and Statement of Need:
Rehabilitate, resurface, and construct passing lanes on the
Parks Highway between MP 239 - 263. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
AMD RN 51536
Prince of Wales Island: Klawock to Hollis Pavement
Rehabilitation and Culvert Replacement
$20,000,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project aims to resurface
highway pavement between Klawock and the Hollis Ferry
Terminal, including paving the parking and staging areas of
the ferry and seaplane terminal. Reconstruct sections of
failing sub-base where large settlements are occurring.
Replace deteriorated culverts along the length of the
Klawock Hollis Highway and mitigate perched pipe culverts
for a number of anadromous fish streams. Also, recondition
ditch, replace signs, and improve guard rail.
AMD RN 51834
Revise Alaska Traffic, Environmental, and Right-of-Way
Manuals and Standard Specifications
$500,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget.
AMD RN 51555
Richardson Highway: Milepost 201 Phelan Creek Bridge
Replacement
$6,000,000
Brief Summary and Statement of Need:
This amendment to the Governor's FY12 capital budget adds
$3,500,000 federal funds for a new requested total of
$6,000,000 due to project cost estimate increases. This
project will replace the Phelan Creek Bridge #0579 at MP
201 of the Richardson Hwy. The annual bridge inspection
concluded the bridge has a low sufficiency rating and is in
need of replacement.
Co-Chair Hoffman opined that the public had voted on
building a bridge at Aleknagik over four years ago, and
that the project had yet to begin. He noted that students
crossing the water to get to school were doing so in 16
foot Lund boats, and he stressed that the building of the
bridge was necessary to maintain safe crossing for the
students. He wondered why the department would pursue
funding to build more, or other, bridges when bridge
projects that had already received funding had yet to be
completed. Mrs. Baker responded that the department was
requesting federal authorization for the FY2012 capital
projects and that the projects were already in a STIP plan.
She said that the federal dollars that the department
received were limited, and that there were more projects in
the capital budget with federal authorization, than the
department had surface transportation funding for to
complete projects within one year. Co-Chair Hoffman
countered that there were no federal requirements
pertaining to the project because the bridge was to be
built with general funds as voted on by the public. Mr.
Kemp said that the project would be advertised in the
summer of 2011, and that the project had been delayed due
to a native allotment right-of-way issue. He believed that
the department had requested help from Senator Hoffman's
office in working out an agreement. Co-Chair Hoffman
projects put forth by the administration were taking
precedent over voter approved, legislature generated
projects. Ms. Baker assured the committee that the
department was working to address the concerns raised by
the senator from Bethel.
3:24:11 PM
Senator Olson reiterated that from a health and safety
standpoint there was no reason to delay the Aleknagik
project. Mr. Kemp clarified that right-of-way clearance
would be necessary before the project could be constructed.
Ms. Baker continued to list the FY2012 capital requests.
RN 40330
Richardson Highway: Milepost 357 - Fairbanks New Weigh
Station
$3,000,000
Brief Summary and Statement of Need:
Construct north and southbound weigh stations near the Fort
Wainwright Three-Mile Gate, between Fairbanks and North
Pole. The weigh stations are needed by the Alaska Division
of Measurement Standards and Commercial Vehicle Enforcement
to enforce commercial vehicle regulations and to protect
public safety. This project contributes to the Department's
Mission by reducing injuries, fatalities and property
damage and by improving the mobility of people and goods.
RN 41384
Safe Routes to Schools
$1,000,000
Brief Summary and Statement of Need:
On-going federally funded program used to fund school
educational programs to promote safety and encourage
students walking or bicycling to school, and to identify
construction projects that will facilitate pedestrian or
bicycle traffic from neighborhoods to schools. Provide
outreach and education about safe pedestrian and bicycle
travel near schools. Implement construction projects
identified in the planning process. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage.
RN 43315
Seward Highway: Anchorage to Portage Glacier Road ITS
Project
$750,000
Brief Summary and Statement of Need:
This is an amendment request to the Governor's FY2012
budget to change the title of this project to read Seward
Highway: Anchorage to Portage Glacier Road ITS Project. The
original request was the result of a STIP amendment that
occurred after the December 15 release of the Governor's
FY2012 budget. Develop and implement Intelligent
Transportation Systems (ITS) for the Seward Highway
commuter route between Anchorage and Portage Glacier Road.
RN 45625
Seward Highway: Milepost 104 to 115 Passing Lanes - Indian
to Potter
$15,000,000
Brief Summary and Statement of Need:
Construct passing lanes and a trail between Indian and
Potter Marsh to address high traffic accident rates in the
corridor. Includes Windy Corner project to expand and
improve the existing pullout and add pedestrian/wildlife
viewing, interpretation and landscaping. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
3:25:50 PM
AMD RN 49150
Sitka - Halibut Point Road Resurfacing, Drainage
Improvements
$4,000,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project aims to conduct
pavement rehabilitation from Sawmill Creek Road to the end
of the pavement just beyond the ferry terminal. Two bridges
(#0327 and #0328) will be replaced. Culverts and storm
drain will be replaced as required.
Ms. Baker informed the committee that the project was a new
listing.
Co-Chair Stedman queried the details of the project. Ms.
Baker replied that the project would reclaim and replace
the pavement along Halibut Point Road. Co-Chair Stedman
queried and additional $16 million rumored to be needed to
fund the project. Mr. Kemp believed that the project would
be adequately funded by the $4,000,000 request. Co-Chair
Stedman elaborated that the budget already contained some
funding for Halibut Point Road, but that issues concerning
the cost of the project had arisen. He hoped the department
could clarify the actual cost of the project.
Ms. Baker continued to list the FY2012 capital requests.
RN 41701
Southeast Region: National Highway System and Non-National
Highway System Pavement and Bridge Refurbishment
$5,000,000
Brief Summary and Statement of Need:
Crack sealing, surface treatment drainage, signage,
guardrail, illumination and other refurbishments to prolong
the life of road pavement and bridges and their safety
related structures. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
AMD RN 51865
Statewide: Air Quality Mobile Source Modeling
$1,200,000
Brief Summary and Statement of Need:
This is a new capital request because of a STIP amendment
that occurred after the December 15 release of the
Governor's FY2012 budget. This project will develop a
statewide framework for Motor Vehicle Emissions Simulator
(MOVES) modeling in Alaska that ensures consistent
development, application, and approval of modeling
workflows (e.g., input data collection and processing,
model setup and execution requirements, post-processing of
outputs, etc.) in all regional mobile source inventory
applications envisioned within the state.
RN 49147
Statewide: Bicycle/Pedestrian Facilities Rehabilitation and
Improvements
$500,000
Brief Summary and Statement of Need:
Provide funding for preventative maintenance and
rehabilitation activities that cost-effectively extend the
useful life of pedestrian walkways and bikeways.
Improvements will address safety hazards and correct
deficiencies. This project contributes to the Department's
Mission by reducing injuries, fatalities and property
damage and by improving the mobility of people and goods.
Co-Chair Stedman requested further description of the
project. Ms. Baker explained that the project would improve
walkways and bike paths damaged by Alaska weather and
vegetation.
RN 36185
Statewide: Civil Rights Program
$200,000
Brief Summary and Statement of Need:
Ensure department compliance with FHWA grant assurances
with Title VI of the Civil Rights Act of 1964. This is
implemented through: reviews of agency policies, procedures
and practices; the federally mandated Disadvantaged
Business Enterprise (DBE) Program; the federally mandated
Alaska Unified Certification Program (AUCP); the DBE
Support Services Program; the On the Job
Training (OJT) Program; the federally mandated Contractor
Compliance/External Equal Employment Opportunity Review
(ExEEO)Program; and federally mandated compliance with the
Rehabilitation Act of 1973, Section 504/American with
Disabilities Act (ADA) compliance program.
RN 40312
Statewide: Comprehensive Highway Safety Plan
$400,000
Brief Summary and Statement of Need:
Create a Strategic Highway Safety Plan that complies with
Section 1401 of the Safe Accountable Flexible Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
RN 36196
Statewide: Highway Data Equipment Acquisition and
Installation
$1,500,000
Brief Summary and Statement of Need:
Purchase of equipment, software and installation of traffic
detection devices (inductance loops and piezoelectric
sensors) and to implement requirements of the State Traffic
Monitoring System for Highway. This project contributes to
the Department's Mission by reducing injuries, fatalities
and property damage and by improving the mobility of people
and goods.
RN 36446
Statewide: Highway Fuel Tax Enforcement
$100,000
Brief Summary and Statement of Need:
A continuing program to enforce the collection of motor
fuel taxes in compliance with federal law. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
Co-Chair Hoffman asked how the fuel tax would be enforced
throughout the state. Mr. Kemp replied that tax returns
would be audited. Co-Chair Hoffman wondered how the
department would determine who would be audited; the
distributors, the gas stations, and how would it be
determined that businesses were accurately reflecting their
returns. Mr. Kemp replied that the gas stations would be
audited. He was not clear on how they were selected. He
offered to provide the information to the committee at a
later date.
3:30:07 PM
Ms. Baker continued to list the department's capital
requests.
RN 36817
Statewide: National Highway Institute and Transit Institute
Training
$750,000
Brief Summary and Statement of Need:
Technical training in engineering, planning, and
administration related to federal highway and transit
programs and funding. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
RN 36189
Statewide: Planning Work Program
$8,000,000
Brief Summary and Statement of Need:
State Transportation Improvement Program, State
Transportation Plan, and area/regional plans preparation,
data collection, and management systems as included in the
Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU). This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage, by improving the
mobility of people and goods and by increasing private
investment.
Ms. Baker explained that this was an annual request that
allowed department staff to plan for upcoming projects that
were eligible for federal reimbursement.
RN 36191
Statewide: Research Program
$1,700,000
Brief Summary and Statement of Need:
Special studies are selected by the Statewide Research
Board for funding through this federal highway program. For
example, the board may fund a study about reduction in
roadway surface wear caused by studded snow tires. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage, by improving the
mobility of people and goods and by increasing private
investment.
Ms. Baker elaborated that the annual request allowed the
DOT research board to conduct special studies concerning
transportation issues.
RN 36450
Statewide: Scenic Byways Grants
$750,000
Brief Summary and Statement of Need:
This program identifies and designates segments of the road
corridors that are outstanding for their scenic,
recreational, historic, cultural, natural and/or
archaeological qualities. Projects are then developed to
display these qualities. This project contributes to the
Department's Mission by increasing private investment.
Ms. Baker said that the grants were given to communities to
promote tourism and economic development.
RN 36188
Statewide: Seismic Retrofit - Bridges
$2,000,000
Brief Summary and Statement of Need:
Structural enhancements to bridges that are determined to
be seismically vulnerable in earthquake zones. This project
contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 36192
Statewide: Urban Planning Program
$1,500,000
Brief Summary and Statement of Need:
Federal highway program funding for local government
planning and special studies. Preparation of the Anchorage
and Fairbanks Transportation Improvement Programs (AMATS-
TIP and FMATS-TIP) and Long Range Transportation Plans are
required elements of this program. This project contributes
to the Department's Mission by reducing injuries,
fatalities and property damage, by improving the mobility
of people and goods and by increasing private investment.
Ms. Baker stated that the annual request would fund work
with the Metropolitan Planning Organization, the Anchorage
Metropolitan Area Transportation Solutions (AMATS) and the
Fairbanks Metropolitan Area Transportation Study (FMATS),
and to enable local governments to meet federal planning
requirements.
RN 40311
Statewide: Weigh-in-Motion Equipment
$2,000,000
Brief Summary and Statement of Need:
The project includes purchase and installation of Weigh-in-
Motion (WIM) systems. This project includes WIM data
retrieval, archiving and processing software and web access
and database development. Currently there are nine
operational WIM sites (see WIM Table 1 on the next page),
all located on the National Highway System. The WIM sites
provide near real time secondary weight enforcement data
and vehicle volume/classification, speed and truck weights
data for planning. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
Ms. Baker stated that the funds would allow the trucking
industry to be weighed by the passing of an electronic
card, rather than stopping at each weigh station.
RN 36366
Surface Transportation Preconstruction
$45,000,000
Brief Summary and Statement of Need:
The request funds preliminary engineering costs and Right-
of-Way and utility costs that are less than $750,000 per
project. This project contributes to the Department's
Mission by reducing injuries, fatalities and property
damage, by improving the mobility of people and goods and
by increasing private investment.
Ms. Baker shared that the funding would provide for the
preconstruction of department projects.
RN 51551
Top of the World Highway: Milepost 0 to 13 - Rehabilitation
$1,500,000
Brief Summary and Statement of Need:
This amendment increases the FY2012 request by $10.7
million for a new total of $12.2 million to include the
construction phase. This project is being included in the
FY2012 amended request due to changes in the scheduled
obligation of federal funds to other DOT&PF projects that
occurred after the release of the budget on December 15,
2010. This project will rehabilitate, restore, and
resurface the Top of the World Highway between MP 0-13,
including minor realignment.
RN 38304
Whittier: Maintenance and Operations
$2,200,000
Brief Summary and Statement of Need:
Provide federal-aid funds for the eligible portion of costs
to operate and maintain the Whittier Tunnel Facility. The
project will provide funding on an annual basis for the
duration of the VMS, Inc. Operations Contract, 2009 to
2014. This project contributes to the Department's Mission
by reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
RN 51320
Deferred Maintenance
$27,100,000
Brief Summary and Statement of Need:
Funding is requested to address deferred maintenance needs
in the following categories: Aviation, Harbors, Statewide
Facilities and Highways and Alaska Marine Highway System.
The Department has identified over $725,000,000 in deferred
maintenance needs. This appropriation of $27,100,000 will
be allocated across modes in the Department.
Ms. Baker broke down the allocations for the appropriation:
Aviation: $3,500,000
Statewide Facilities: $3,100,000
Harbors: $600,000
Highways: $16,900,000
Alaska Marine Highway System: $3,000,000
RN 51683
Alaska Marine Highway System Deferred Maintenance
$3,000,000
Brief Summary and Statement of Need:
Funding is requested to address Alaska Marine Highway
System's deferred maintenance needs.
Co-Chair Stedman queried if the request was part of the
governor's $100,000,000 statewide maintenance plan. Ms.
Baker responded that the $27,100,000 was included in the
$100,000,000 governor's request. Co-Chair Stedman asked
what the department had originally requested. Ms. Baker
replied that the original deferred maintenance request had
been approximately $700 million. Ms. Baker added that the
original total had not included "major" projects. Co-Chair
Stedman understood that the request for next year would be
approximately $27,000,000. Ms. Baker replied yes.
Co-Chair Hoffman asked if the all of the projects were for
state owned facilities and did not reflect the needs of
particular municipalities or boroughs. Ms. Baker replied
that that was correct. She pointed to the committee that
the project costs and details could be found in the
proposed budget. Co-Chair Stedman suggested expediting the
request hearing. He assumed that the department had listed
the deferred maintenance projects by priority. Ms. Baker
replied that the items listed were the department's highest
priorities.
Senator Ellis referred to p.44, RN: 41923, Other Federal
Program Match, $1,050,000. He understood that the fund
included a projected $300,000 in federal government transit
grants for local communities. He stated that Alaska was the
only state that does not have a formalized transit
operating fund account at the state level. Lack of the fund
left the state ineligible for federal operating funds at
the local level. He expressed curiosity concerning the
future plans of the account that would be set up through
the request. Ms. Baker replied that the department had
budgeted $100,000 for the Motor Carrier Safety Assistance
Program Grants Match and $950,000 for the Federal Transit
Administration Grants Match. She said that the department
would follow up with the senator in the issue. Senator
Ellis voiced an interest in working with the department in
order to increase opportunities for local transit
organizations to qualify for more federal operating money.
Co-Chair Stedman referred to Page 196, RN: 51547, Harbors
Deferred Maintenance, $600,000. He pointed out to the
committee that the Page 196 listed the cost of the Port
Alexander project at $600,000, but the deferred maintenance
inventory list the total read $690,000. Ms. Baker said that
the department would follow up with the committee on the
discrepancy.
Co-Chair Hoffman referred to dust control projects. He
stated that primarily dirt and gravel was used in the
construction of roads in rural areas of the state, which
made dust control programs one prime necessity. He hoped
that department could create a program that would address
the issue using federal dollars. Mr. Kemp replied that the
department would work with the co-chair's office in the
issue.
Co-Chair Stedman stated that the governor's $600,000
deferred maintenance request for harbors had mirrored the
previous year. He shared that the committee had added $2.5
million to the request and that the governor had cut the
request back down to $600,000. He hoped that the department
would look into the governor's reasoning behind the
decreased funding request for deferred maintenance for
Alaska's harbors.
Department of Natural Resources
JEAN DAVIS, DIRECTOR, SUPPORT SERVICES DIVISION, DEPARTMENT
OF NATURAL RESOURCES, detailed the project review listings.
RN 38872
Unified Permit Project and Document Management
$2,500,000
Brief Summary and Statement of Need:
The continuation of the Unified Permit Project is designed
to support and streamline the permit process, raising
productivity and setting known response times for
applicants. The system integrates mapping and documents to
case and project related data. The goal is to modernize the
entire DNR case and project management system by delivering
an interactive application system that guides
individuals and businesses to the correct questions and
helps them to supply answers and content; provides tools to
guide adjudicators on permit authorization process; and
implements automation of DNR paper case and project files
by converting them to digital format via scanning based
upon state standards.
Ms. Davis explained that the requested funds would be used
to streamline the state land and water use permit
application process. The system would integrate mapping
systems and electronic documents with case files and
provide effective research tools for adjudicators.
Co-Chair Stedman asked how the program would help the 2000
plus backlog of permit requests.
ED FOGLES, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, stated that the backlog of authorizations was
significant. The department hoped that by offering more
resources to the mining division, and automating the
permitting system, the backlog could be lessened. Co-Chair
Stedman noted that the funding request for $2.5 million was
for a process that began in 2004 with $683,700. Prior
funding history indicated that funding of $1,000,000 had
been appropriated in 2005, and $800,000 in 2006 - 2010. Co-
Chair Stedman queried the improvement of permit processing
since the initial 2004 appropriation.
3:49:49 PM
Mr. Fogles divulged that the backlog had continued to grow
over the years. The department had made strides in
automating departmental business processes, but there was
more work to be done to simplify the permitting process.
Co-Chair Stedman asked if the lingering backlog was the
reason for the increased funding request. Mr. Fogles
replied that the backlog was part of the reason. Co-Chair
Stedman asked if appropriating the funds for FY2012 would
result in the backlog numbers going down over the next
year. Mr. Fogles stated that the department intended to
eliminate the backlog entirely within the next three years.
Co-Chair Stedman stated that the committee would examine
the backlog in more depth in 2012.
Senator Thomas referred to Page 2, RN 38872:
"Currently, there are approximately 50 different permit
types and many are requested with inaccurate or incomplete
information on the initial application, which lengthens the
request and authorization process. This makes the process
slow and inefficient, ultimately causing our customers
frustration, and increasing the cost to the state to review
and make determinations."
Senator Thomas wondered if the initial application could be
changed to relieve problems of inaccuracy. Mr. Fogles
replied yes. He explained that the department was
attempting to streamline the process and make the
applications easier to navigate.
Ms.Davis continued to list the department's FY2012 capital
requests.
RN 41415
Gas Pipeline Corridor Geologic Hazards and Resources -
Final Phase
$200,000
Brief Summary and Statement of Need:
In anticipation of construction of a natural gas pipeline,
the Division of Geological and Geophysical Surveys (DGGS)
is evaluating the geology, geologic hazards and resources
of the proposed corridor from Delta Junction to the Canada
border. Maps and reports already published have provided
critical data to pipeline companies and state/federal
regulatory agencies. The requested funding will support
final geologic mapping, hazard assessment and resource
evaluation for the corridor via analyzing newly-acquired
Light Detection and Ranging (LiDAR) data to identify and
characterize additional potential hazards, follow-up field
work, and data synthesis for the entire project.
Ms. Davis explained that the funding would support the
final geologic mapping hazard assessment and resource
evaluation for the natural gas pipeline corridor between
Delta Junction and the Canadian border.
RN 49185
Assessment of In-State Gas Energy Potential Phase 2 and 3
$500,000
Brief Summary and Statement of Need:
This 3-year project, (FY12 is phase 2), provides critical
data for evaluating natural gas potential in prospective
unexplored basins near transportation corridors and
population centers. Many basins in Alaska have geology
conducive for natural gas, but the lack of data hinders
evaluation of their gas potential. Some basins will not
only have sufficient resource for local use, but may have
volumes that justify export. Relevant data bearing on the
gas potential of these areas will promote informed
decisions regarding energy options and spur exploration.
Funds will be used to evaluate existing data and gather new
data on gas potential in selected basins and improving
results for a Geological Development strategy.
Ms. Davis stated that this three-year project, (FY2012 is
phase two), provides critical data for evaluating natural
gas potential in perspective unexplored basins near
transportation corridors and population centers.
RN 45272
Matanuska- Susitna Borough Hydrogeology Assessment Phase 3
of 3
$345,000
Brief Summary and Statement of Need:
Water resource allocations are an exclusive mandate of DNR,
and management of water resources for protection of
Alaskans requires knowledge of controlling hydrology. In
portions of the Matanuska- Susitna Borough (MSB),
increasing demands on groundwater are causing concern for
the aquifer's ability to provide sufficient high-quality
water to meet demand. This is the final phase of funding
for an assessment/study with an ultimate goal to provide
DNR's Water Management section with knowledge to
effectively manage MSB ground water resources for the long-
term.
Ms. Davis relayed that this was the final phase of funding
for an assessment/study with an ultimate goal to provide
DNR's Water Management section with knowledge to
effectively manage MSB ground water resources for the long-
term.
Co-Chair Stedman requested further explanation of the
project. Ms. Davis explained that portions of the Mat-Su
Borough had seen increased demand for groundwater, which
has caused concern for the aquifer's ability to provide
sufficient high quality water for development and general
water use. Water levels had been tested in 100 wells, water
level recorders had been installed in ten major lakes, two
stream gages had also been installed to analyze data and
evaluate the long term potential for the aquifer.
RN 51196
Completion of Recorder's Office Digital Image Conversion
and Implementation of Electronic Recording
$400,000
Brief Summary and Statement of Need:
This appropriation includes two allocations to complete
Recorder's Office projects including the conversion of
recorded documents to digital images, and improvement of
image quality and referencing ability to make records
easier for customer research; and implementation electronic
recording (eRecording) in Alaska.
Ms. Davis explained that the appropriation consisted of two
allocations:
RN 45283
Complete Implementation of Electronic Recording
$100,000
Brief Summary and Statement of Need:
The mission of the Recorder's Office/ Uniform Commercial
Code (UCC) component is to provide a secure, accessible and
impartial place to record and preserve the permanent public
record of Alaska. Electronic Recording will enable a
variety of users within Alaska and around the country to
securely submit electronic documents for recording in
Alaska which will expedite real estate transactions. The
project addresses the use of more efficient technology and
will facilitate and expedite recording services across the
state.
RN 41483
Complete Conversion of Recorded Media to Digital Images
$300,000
Brief Summary and Statement of Need:
A statutory function of the Recorder's Office/Uniform
Commercial Code (UCC) component is to provide customers
with easy access to Alaska's public record. This project
completes the conversion of all recorded media to digital
format, and providing for completion of an online index of
all recorded instruments in the Recorder's Office database
back to 1970. Project funding will enable us to add
enhancements to the existing historical book user interface
for search and retrieval of documents recorded prior to
1970. The result is a significant improvement to document
image research and retrieval timeframes, and ultimately
improved customer service and staff efficiencies when
performing research in the public record.
RN 38886
Land Sales - New Subdivision Development
$3,700,000
Brief Summary and Statement of Need:
This would authorize DNR to propose, design and develop new
subdivisions. New subdivisions require surveys, appraisals,
wetlands delineations, topographical surveys,
archaeological surveys, field inspections, access location,
road building and rights-of-way brushing. DNR intends to
offer new parcels for sale in FY14, FY15 and FY16. The land
sales program contributes to the development of state land,
gives Alaskans throughout the state an opportunity to
purchase land, puts money into the private sector through
service contracts and creates an income base for the State.
Making state land available for private ownership by
individual Alaskans is part of DNR's core mission.
RN 37762
Cooperative Water Resource Program
$855,000
Brief Summary and Statement of Need:
This CIP request allows DNR to accept funds from the
private sector, and local governments and to pass funds
through to US Geological Survey (USGS) and US Natural
Resources Conservation Service (NRCS) as part of funding
agreements for cooperative water resource programs.
Industry and local government often request and pay for
USGS and NRCS to install and operate equipment to obtain
hydrologic data. These data are needed for resource
development and permitting projects such as mining,
hydroelectric, or public water supply. If gaging funding is
passed through a state agency, funds can be matched up to
100% by the federal government. This project involves only
authorization to receive and pass through funding.
4:00:04 PM
RN 51197
Lower Kasilof River Drift Boat Takeout, Phase 1 of 2
$2,000,000
Brief Summary and Statement of Need:
This project will develop a public drift boat takeout on
the lower Kasilof River in order to address increasing
demand for such a facility on this popular drift only
salmon fishing river. The total estimated cost for this
project is $3.6M. Phase I ($2M) will include property
investigation and purchasing which is estimated at
approximately $1.3M. Preliminary design, environmental
clearance, site planning, public meetings, consultant
coordination, and preliminary permitting is estimated at
$300K. The remaining $400K will result in initial property
development including clearing and utility installation.
Phase II ($1.6M) will be spent totally on constructing the
boat launch and related facilities.
Co-Chair Stedman asked why Dingell Johnson funds were not
being considered. The Dingell Johnson Act, also called the
Federal Aid in Sport Fish Restoration Act, is a U.S.
federal law from 1950 that authorizes the Secretary of the
Interior to provide financial assistance for the state fish
restoration and management plans and projects. Ms. Davis
understood that the Dingell Johnson money applied to
motorized and non-motorized, and not only non-motorized
drift boat takeout.
Co-Chair Hoffman wondered how projects of this nature were
submitted for consideration by the governor. Mr. Fogles
replied that many of the projects were brought to DNR out
of a significant need in the proposed areas. The lower
Kasilof was becoming an increasingly heavily used area due
to dip net fishing and the popularity of the area as a
drift boat fishery. The state parks system runs a drift
boat put in facility on the river but lacked a proper place
for removal. He stated that the issue had become a priority
due to safety concerns highlighted by a fatality that had
occurred during an attempt to pull a boat out with a pick-
up truck.
Co-Chair Hoffman asked if it was unusual for projects to
move forward that required the acquisition of land. Mr.
Fogles replied that a number of DNR projects would require
the acquisition of land. He shared that it had been
difficult to find suitable land on the lower Kasilof for
the launch project. Co-Chair Hoffman countered that the
state had many state owned parks that required attention as
well. Mr. Fogles said that was correct and that the
deferred maintenance backlog was significant. Co-Chair
Hoffman queried the need for new construction when the
deferred maintenance list was so significant.
Co-Chair Stedman expressed concern that the process for
determining where docks were built was flawed.
Ms. Davis continued with the department's capital requests.
RN 51042
Replace Pesticide Storage Facility-Plant Materials Center
$180,000
Brief Summary and Statement of Need:
The Plant Materials Center (PMC), a 405 acre working farm,
is in need of a safe and efficient pesticide storage
facility. This funding will allow for the purchase and
placement of properly designed storage facility and
associated wash rack for application equipment. A proper
storage facility will stop unnecessary expense due to
product loss from deterioration, and provide a secure
location to store the hazardous material.
RN 51045
Forest Access Roads for Firewood and Timber Products
$600,000
Brief Summary and Statement of Need:
This project will develop road access to forest resources
to help Alaskans meet rising energy costs through use of a
renewable fuel. A dramatic increase in demand requires
firewood access road construction to continue meeting
demand for both commercial fuel wood timber sales and
personal use fuel wood from state lands. Project
contributes to the Department's Mission to provide a
sustainable supply of forest resources to Alaskans and to
the end result of stable or increasing economic,
environmental, and social benefits from use of trees and
forests. Funds will be used for staff field location and
road design, construction project management and contract
construction of forest roads.
4:03:10 PM
Co-Chair Stedman queried the areas that would be targeted
by the project. Ms. Davis responded that the areas of
target were the Mat-Su, Kenai Peninsula, Tanana Basin, and
Copper River Basin.
RN 49203
Foothills Oil and Gas Development Infrastructure
Investigations Phase 2 of 3
$370,000
Brief Summary and Statement of Need:
This project will provide critical data for judging the
feasibility of state and federal infrastructure investment
to access both undeveloped and undiscovered oil and gas in
the central North Slope foothills. Better understanding of
undeveloped discoveries with multiple wells (e.g.,Umiat and
Gubik) will help predict resource potential of sparsely
explored areas. This will inform decisions on
infrastructure investments and spur exploration. Funding
will also be used to identify potential geologic hazards
and construction material sites along the proposed routes.
This project will focus on providing key state and federal
decision makers some of the critical information required
to make informed decisions.
Co-Chair Stedman wondered why the question of undeveloped
discovers had not been answered by the Anadarko Petroleum
Corporation during their past studies in the area. Mr.
Fogles responded that Anadarko had gathered a lot of
information but that a broader scope of the study was
needed.
Co-Chair Stedman commented that it would behoove the
department to prioritize all capital budget requests. Ms.
Davis said that a prioritized list would be provided to the
committee.
RN 51052
Rare Earth Elements and Strategic Minerals Assessment
$498,000
Brief Summary and Statement of Need:
This 3-year project will provide critical data for
assessing Alaska's Rare Earth Element (REE) potential. It
is needed now to address U.S. domestic needs for these
critical elements. Many areas of Alaska are permissible for
hosting REEs, but the lack of basic geologic data statewide
hinders evaluation of Alaska's REE potential. Conducting
field work and obtaining relevant geologic data will
advance the state's knowledge of its geologic resources,
promote informed state management decisions, spur mineral
industry exploration, and contribute to the DGGS mission of
conducting geological surveys to determine the potential of
Alaskan land for production of metals.
Co-Chair Stedman asked if the committee could expect an
equal amount to be requested for FY2013. Mr. Fogles
responded the intent of the appropriation was for the
initial study. The department planned to examine the 150
locations to identify the most promising locations.
Requested for FY2013 would depend on the findings of the
study. Co-Chair Stedman asked if the department planned to
make the FY2012 appropriation last for three years. Ms.
Davis replied yes.
4:06:45 PM
RN 51056
Copper River Fire Facility Modular Replacements
$400,000
Brief Summary and Statement of Need:
This project replaces the Copper River initial attack
trailer (32 year old trailer converted to office use),
which also has substantially deteriorated structurally.
This building houses work space for up to 20, and was
identified in the 2002 USKH Study as not cost-effective to
repair.
RN 51822
Haines Fire Facility Modular Replacements
$100,000
Brief Summary and Statement of Need:
This project provides construction funds to replace a
building in Haines used to keep fire-ready in excess of
$125.0 in firefighting tools and equipment. This small
building is also the sole facility for Haines forestry
staff to work on tools and equipment. The building has
deteriorated to the point where current use is marginal,
and replacement is the necessary step to have a viable
facility.
RN 6855
National Historic Preservation Fund
$750,000
Brief Summary and Statement of Need:
The National Historic Preservation Fund (NHPF) is a federal
program to assist states with their statewide historic
preservation programs. Also included in this request are
cooperative agreements with federal agencies and grants
from federal programs. The statewide historic preservation
program contributes to the Department's mission through the
development, conservation and use of Alaska's heritage
properties and is consistent with the public interest and
the Alaska Historic Preservation Act. The NHPF funds grants
to local governments, agencies, organizations and
individuals for restoration or stabilization of historic
properties, or survey, inventory, education, planning and
training projects.
Co-Chair Hoffman asked for a list of the projects funded
under the appropriation for the last three years. Ms. Davis
said that the department would provide the list.
RN 40474
Mental Health Trust Land Facilities Maintenance
$350,000
Brief Summary and Statement of Need:
The Trust Land Office (TLO) manages facilities owned by the
Alaska Mental Health Trust Authority. As part of our
mission to protect and enhance the value of the facilities,
and maximize revenues from Alaska Mental Health Trust land,
any improvements upon that land must be maintained
accordingly. This authorization of funding allows for
payment of short term expenses (utilities, janitorial, snow
removal, etc.) as well as deferred maintenance expenses.
4:09:37 PM
RN 33690
Snowmobile Trail Development Program and Grants
$250,000
Brief Summary and Statement of Need:
Snowmobiling is one of Alaska's fastest growing outdoor
recreation activities. There is a growing demand to develop
and maintain trails and trailheads to provide for safe
riding opportunities and to educate riders on safe riding
practices. The end result is a variety of safe, accessible,
well maintained snowmobile trails. Funds for this program
are provided by snowmobile registration fees paid by
Alaskans. Funds are distributed in the form of matching
grants for trail and trailhead development and maintenance,
grooming, safety education, trail identification, and to
establish legal trail easements. Grants are to
organizations, businesses, agencies, local governments, and
individuals.
RN 6855
Abandoned Mine Lands Reclamation Federal Program
$2,000,000
Brief Summary and Statement of Need:
The Legislature enacted the Alaska Surface Coal Mining
Control and Reclamation Act in 1983 (AS27.21). The main
purpose of the act was to promote the reclamation of areas
mined before enactment of the Federal Surface Mining
Control and Reclamation Act of 1977. Conditions at some of
these mined areas could endanger public health and safety,
have environmental implications or prevent the beneficial
use of or cause damage to land and water resources. All
funding for this program comes from federal grants; no
general funds required. This program will employ up to 75
Alaskans in private sector construction jobs. This program
also provides the coordination point for Alaska with the
Interstate Mining Compact Commission.
RN 40082
Alaska Coastal Management Federal Grants
$$1,360,000
Brief Summary and Statement of Need:
The Division of Coastal and Ocean Management is the
designated state agency to receive federal funds from
National Oceanic and Atmospheric Administration (NOAA), and
shares them as reimbursable service agreements (RSA) to
agencies participating in the Alaska Coastal Management
Program (ACMP). These RSA funds support the implementation
of the ACMP by the participating state agencies, coastal
districts, and other grant recipients. Effective
implementation of the ACMP by the grant recipients promotes
responsible development of the state's coastal uses and
resources, and improves the state's water use, water
quality, and aquatic habitat initiatives and grant
programs.
RN 37769
Federal and Local Government Funded Forest Resource and
Fire Program Projects
$1,800,000
Brief Summary and Statement of Need:
This project provides receipt authority for one-time
federal and local government funded projects. These
projects include competitive grant awards for hazardous
fuels reduction, Firewise education, prevention and
education, Community Wildfire Protection Planning, special
forest disease surveys and forest restoration projects,
biomass inventories, targeted community forestry projects,
and agreements for implementation of one-time local
government funded field projects including fuels
mitigation. This project meets the mission of continued
protection, development, and management of the State's
natural resources, by enlisting cooperation at the local
level throughout Alaska.
RN 32552
Land and Water Conservation Fund Federal Grant Program
$3,000,000
Brief Summary and Statement of Need:
The Land and Water Conservation Fund Federal Grant Program
(LWCF) is a 50/50 matching grant program that provides
funding for the development of outdoor recreation areas and
facilities. More than any other state in the union,
Alaskans recreate outdoors. LWCF is consistent with DNR's
mission in that it develops, conserves and maximizes
Alaska's resources consistent with the public interest. New
or rehabilitated projects increase the number of park
visits, furthering a desired end result. Privatizing the
management of a LWCF assisted site is consistent with LWCF
policy, addressing a second desired end result. Program
staff is responsible for monitoring compliance with LWCF
regulations and policies.
RN 34881
Forest Legacy Federal Grant Program
$1,000,000
Brief Summary and Statement of Need:
The Forest Legacy Program provides federal funding for
acquisition of high-value private forestland threatened
with conversion to non-forest use. Legislative intent
targets private lands adjacent to, or within, existing
conservation units (parks, refuges, etc.) used primarily
for forestry, fish and wildlife habitat, outdoor recreation
and traditional access. These uses would be disrupted,
destroyed, or
degraded if the private properties were converted to non-
forest uses. To ensure that park visitors continue to enjoy
quality outdoor recreation experiences, and interaction
with Alaska's natural and cultural world, these invaluable
state assets must be properly maintained to maximize the
use of critical areas.
RN 39042
National Coastal Westland Grant
$1,000,000
Brief Summary and Statement of Need:
The Coastal Wetlands program focuses on coastal wetlands
ecosystems including both wetlands and upland buffers.
Wetlands provide essential fish and wildlife habitat, which
in Alaska support many commercial and recreational human
uses, particularly in and near communities, parks, and
refuges.
Wetlands provide substantial contributions to water
quality, flood and storm water control as well as providing
habitat for fish and wildlife. This program provides
federal funding to the state for the long-term protection
of wetlands, which is matched with private sector
donations. The program considers acquisition, restoration,
enhancement or management of coastal wetlands.
RN 6854
National Recreational Trail Grants Federal Program
$1,500,000
Brief Summary and Statement of Need:
Alaskans rely on trails for recreation, subsistence, and
transportation. These trails need maintenance to ensure
safe passage and to ensure that they remain open and
available for use. Funds are distributed by 80-20 matching
grants for trail and trailhead development and maintenance,
and for education programs relating to trail safety and
responsible trail use. Grants are awarded to organizations,
agencies and local governments. The end result is a variety
of safe, high-quality, year-round trails.
Co-Chair Stedman wondered how the projects for grants were
selected. Ms. Davis replied.
4:15:09 PM
RN 51105
South Denali Visitors Center Design and Construction
$3,000,000
Brief Summary and Statement of Need:
The funding will be used to complete the design of the
South Denali Visitors Center. With the completion of the
EIS and the Interpretive plan we are ready to move forward
with design and construction. The total amount of state
funding needed to complete the project is $25.0 million.
This project will provide access to public lands, boost the
local economy and is estimated to receive approximately
280,000 annual visits.
Total remaining state project costs include:
$3 million for design of the visitor center and the
transportation system
$13 million for the construction of the visitor center
$3 million for construction of the transportation system
$6 million to extend power to the site
RN 51194
Natural Resources Facilities Deferred Maintenance Projects
$4,000,000
Brief Summary and Statement of Need:
This appropriation provides funding for known deferred
maintenance and critical emergency repairs for both State
Park and Division of Forestry facilities and
infrastructure.
Ms. Davis explained that the appropriation was divided into
nine allocations; eight for State Parks totaling
$2,075,000, and one allocation of 1,925,000 for Division of
Forestry.
Co-Chair Stedman asked about page the deferred maintenance
list on Page 80. He noted that the appropriation was
written to increase from $4 million in FY2012, to $35
million in FY2013. Ms. Davis replied that the Division of
State Parks has a deferred maintenance inventory of $60
million and the Division of Forestry has a deferred
maintenance inventory of $11 million, the department was in
the process of identifying additional deferred maintenance
projects. Co-Chair Stedman asked if the department intended
to request $30 million for deferred maintenance in FY2013.
Ms. Davis replied that the department would be working with
the governor on the FY2013 request.
Co-Chair Stedman asked that the requests be ranked in
priority for the consideration of the committee.
Senator Thomas hoped that the department had proper
coordination of funding, research and personnel concerning
the Roads to Resources Project. He felt that a substantial
amount of information had already been made available, and
noted that some of the planned roads were in areas of low
potential. He hoped that the department was considering the
greatest potential for the program in the spending of
appropriations.
Mr. Fogles assured the committee that the department was
coordinating closely with DOT on the project.
Co-Chair Hoffman asked how many acres the department had in
the Wood-Tikchik State Park. Mr. Fogles replied that he
would provide the information at a later date. Co-Chair
Hoffman wondered if it was one of the largest parks in the
state. Mr. Fogles believed it was the largest park in the
state. Co-Chair Hoffman referred to the request on Page 89:
RN 51720
Parks and Outdoor Recreation Deferred Maintenance - Wood-
Tikchik Area
$35,000
Brief Summary and Statement of Need:
The division is striving to protect visitor health and
safety by providing safe, clean, and well maintained parks
but State Parks has over $65.8 million in deferred
maintenance needs. This request will fund necessary
projects across the Wood Tikchik Area of the state
including upgrades, repairs or replacement of roads,
trails, shelters, outhouses, drinking water systems,
parking areas and other facilities to keep them from
becoming an urgent health and safety hazard.
Co-Chair Hoffman commented that the total request was
inadequate given the size of the park.
4:22:30 PM
Alaska Housing Finance Corporation
Co-Chair Stedman advised the corporation to prioritize the
capital requests in the event the committee made budgetary
alterations.
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, stated that the projects would be listed as
they were detailed in the proposed budget.
RAY UTTER, BUDGET MANAGER, ALASKA HOUSING FINANCE
CORPORATION, discussed the capital budget requests.
RN 40068
AHFC Statewide Project Improvements
$2,000,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds to address repairs, deferred
maintenance, and make improvements to AHFC-owned properties
throughout the state. This project will allow AHFC to keep
pace with the deterioration of existing components of the
rental properties such as roofs, sidewalks, and common
areas. It will enhance operations, allow quick response to
ordinance and code changes. The primary
function of this project is to address those major or
extraordinary work items identified annually through the
Physical Needs Assessments (PNA) by the public housing
maintenance staff and asset supervisors.
Mr. Utter stated that the purpose of the project was to
provide funding to address known and unknown conditions in
the AHFC housing stock.
RN 47069
Building System Replacement Program
$1,500,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds to address major roof replacement at
Seaview Terrace senior/disabled housing in Ketchikan:
replace siding at Glacierview senior/disabled housing in
Seward, and replacement of roofing at Sunset Manor
senior/disabled housing in Cordova.
Mr. Utter relayed that the project would address specific,
major repairs and/or replacement of items identified in a
five-year review of major projects.
RN 47066
Fire Protection Systems - Phase 3
$2,200,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds to flush, evaluate and repair fire
sprinkler and alarm systems in multi-family and
senior/disabled public housing statewide based on a fire
system engineer's equipment survey of fire protection
systems and subsequent testing of existing fire protection
systems.
RN 47068
AHFC Security Systems Replacement/Upgrades
$500,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds to be used to upgrade existing
security and door access systems to senior/disabled and
multi-family public housing. The project includes
replacement of security and door access systems that are
outdated and are no longer supported by manufacturers for
replacement parts and software.
RN 6323
AHFC Supplemental Housing Development
$7,000,000
Brief Summary and Statement of Need:
Supplemental Housing Development Program utilizes corporate
(AHFC) funds to supplement Federal (HUD) funds to construct
decent, safe and sanitary housing through regional housing
authorities. Funds are used to cover housing development
costs related to water distribution, sewer hookups,
electrical distribution systems, and road construction to
project site, site development, and energy efficiency
improvements. State laws limit the use of these funds to
20% of the HUD's total development cost per unit. These
funds are prohibited from being used for administrative or
other costs of the housing authority.
Mr. Utter explained that the funding would be split; $3
million in corporate dividends, and $4 million state
general funds.
RN 6351
AHFC Energy Efficiency Monitoring and Research
$1,000,000
Brief Summary and Statement of Need:
This request will provide corporate (AHFC) funds for a
designated grant to the Cold Climate Housing Research
Center to conduct housing construction research, analysis,
and information dissemination among the housing industry
and the public. Data gathering and analysis is being
continually related to energy efficiency technology for
homes constructed in northern building and market
conditions.
RN 6334
AHFC Senior Citizens Housing Development Program
$4,500,000
Brief Summary and Statement of Need:
AHFC's Senior Citizens Housing Development Program (SCHDP)
uses corporate (AHFC) funds for grants to municipalities
and public or private non-profit corporations, in
conjunction with other agencies, for the development of
senior citizen housing. Funds can be used for: the purchase
of building sites, site preparation, materials,
construction, and rehabilitation of existing housing.
Organizations qualified to apply include municipalities and
public or private nonprofit corporations. Additional
components include smaller grants (up to $25,000) for
nonprofit senior organizations to pay for preparation of
plans and project feasibility studies, appraisals, site
preparation and other predevelopment
activities.
Mr. Utter added that to date, the program had funded 1,209
senior units and provided accessibility modifications to
over 150 homes.
RN 6347 AHFC
AHFC Housing and Urban Development Federal HOME Program
Grant
$4,000,000
Brief Summary and Statement of Need:
This project utilizes federal (HUD) and corporate matching
(AHFC) funds for the HOME Investment Partnership Program.
The purpose of the HOME program is to expand the supply of
affordable, low and moderate- income housing and to
strengthen the state's ability to design and implement
strategies to achieve an adequate supply of safe, energy-
efficient, and affordable housing. The Municipality of
Anchorage has their own separate HOME program.
Mr. Utter stated that the program included $3,250,000 in
federal receipts and a match of $750,000 in corporate
receipts.
RN 6342
AHFC Housing and Urban Development Capital Fund Program
$3,200,000
Brief Summary and Statement of Need:
The Federal (HUD) grant provides Public Housing Authorities
(PHAs) with funds each year to help renovate and modernize
public housing units. The annual Capital Fund Program (CFP)
fund, including Replacement Housing Factor (RHF) funds, was
approximately $2.8 million this fiscal year. The current
request is intended to cover the spending authority
required for the amount of funds anticipated next year,
including any other incentives that may be available as a
high performing PHA.
Mr. Utter stated that the funds helped to renovate and
modernize public housing units.
RN 6348
AHFC Federal and Other Competitive Grants
$4,500,000
Brief Summary and Statement of Need:
This request is for Federal (HUD) and corporate match
(AHFC) funds which allows AHFC to apply for HUD, other
federal agency, and private foundation grants that target
the housing needs of low income and special needs groups
such as: senior citizens, the mentally ill, disabled or the
homeless. AHFC will also apply for energy-related grants as
they relate to housing. When required, AHFC will provide
the needed matching funds. Some of the funds received will
be passed through to local nonprofit sub-grantee
organizations who deliver housing and/or services.
Mr. Utter detailed that $3 million of the funding was
federal receipts and $1.5 million in corporate receipt
matching funds.
RN 6350
AHFC Competitive Grants for Public Housing
$1,100,000
Brief Summary and Statement of Need:
This request is for Federal (HUD) and corporate match
(AHFC) grant funds. AHFC will apply for HUD grants that
target the housing needs of low-income and special needs
groups such as: senior citizens, the mentally ill,
disabled, or the homeless. AHFC will also apply for grants
to prevent crime and substance abuse in public housing and
assist public housing families in attaining economic self-
sufficiency. When required, AHFC will provide the needed
match. Some of the funds received will be passed through to
local non-profit sub-grantee organizations that deliver
housing and/or services.
Mr. Utter stated that the request had two funding sources;
$750,000 federal receipts, and $350,000 corporate receipts.
RN 50683
AHFC Weatherization Program
$26,500,000
Brief Summary and Statement of Need:
The Weatherization Program utilizes Federal U. S.
Department of Energy (DOE) and corporate (AHFC) funds to
assist low- and moderate- income families attain decent,
safe, and affordable housing through cost effective
weatherization and rehabilitation of existing homes.
Weatherization provides for fire safety through furnace and
electrical repairs, education, chimney and woodstove
repairs, and egress windows (installed during bedroom
window replacements). In order to maintain the current pace
established in FY2008 and maintained over the past several
years, new funding is required.
Mr. Utter relayed that the two funding sources for the
request were $1,500,000 in federal DOE funds and
$25,000,000 Alaska Housing Capital Corporation funds. The
funds were used to weatherize homes and for the energy
rebate program.
Co-Chair Stedman asked if spending for the program should
be increased. Co-Chair Hoffman offered an affirmative. Mr.
Fauske added that the program what the most successful
endeavor he had ever worked on in reference to; achievement
of stated goals, amount of people served, and overall
derived benefits. He said that the program had reduced
energy costs by 33 percent on average. The average rebate
was $6,100, with and average homeowner investment of
$10,000. The program had saved 168,000 barrels of oil had
been saved due to the program. He estimated that the
program employed 4000 Alaskans. He said that the program
was currently fully encumbered on the rebate side,
$160,000,000, and was fully allocated on the weatherization
side by $200,000,000.
4:33:18 PM
Mr. Fauske stated that the AHFC was currently averaging 66
percent program usage to completion.
Co-Chair Hoffman wondered what $50 million dollars could do
for the life of the program.
JOHN ANDERSON, WEATHERIZATION PROJECT OFFICER, ALASKA
HOUSING FINANCE CORPORATION, replied that $50 million could
help to serve 2,300 homes under the rebate program and
2,000 under the weatherization program. Co-Chair Hoffman
wondered how long the funds would last. Mr. Anderson stated
that the department was currently at capacity, for both
programs, for 100 million per year. Co-Chair Stedman
wondered if the FY2012 request was $74 million light, based
on current capacity. Mr. Anderson replied yes.
RN 45389
AHFC Statewide ADA Improvements
$500,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds will be used to address
accessibility upgrades identified by a HUD Fair Housing
Inspection dated September 2006. The upgrades are to be
made over a five-year period to comply with ADA and Section
504 requirements of a Voluntary Compliance Agreement (VCA)
recently negotiated with HUD.
RN AHFC 37918
AHFC Housing Loan Program
$6,000,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds to supplement the Corporation's
popular housing programs through gap funding. Funding will
allow AHFC to continue current programs and expand business
opportunities with new Teacher Housing, Health
Professionals, Public Safety and Village Public Safety
Officers housing programs.
Mr. Utter detailed that the request consisted of $2,000,000
in general funds, $3,000,000 AHFC funds, and $1,000,000
AIDEA funds. The $2 and $3 million would be allocated to
teachers, health and public safety professionals, and the
$1 million would go to the VPSOs.
Co-Chair Stedman asked if the funding would be sufficient
to fund the increased VPSO program. Mr. Fauske stated that,
based on discussions with the Department of Public Safety,
the department believed the funding would suffice.
RN 45390
MH: AHFC Homeless Assistance Program
$10,000,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds, Mental Health Trust Authority
Receipts (MHTAAR), state general funds/mental health
(GF/MH), AIDEA dividends, and federal receipts for grants
to local communities/agencies to help develop programs to
support programs designed to reduce homelessness by
providing services that prevent housing displacement and
assist the homeless to transition back to permanent
housing. Corporate funds will be leveraged with the other
funds. All
funds will be combined and administered as one program by
AHFC.
Mr. Utter relayed that funding for the program consisted of
$2,000,000 in federal receipts, $6.3 million general funds
receipts, $850,000 GF/Co-Chair Hawker, and $850,000 MHTARR.
RN 6360
MH: AHFC Beneficiary and Special Needs Housing
$1,750,000
Brief Summary and Statement of Need:
Corporate (AHFC) funds will provide for a continuing
program to serve populations with special housing needs.
The program provides funds to Alaskan nonprofit service
providers to increase housing opportunities for Alaska
Mental Health Trust Authority (AMHTA) beneficiaries and
other special needs populations throughout the state. The
funds may be used for housing development and/or services
designed to achieve long-term residential stability.
Mr. Utter said that $676,500 of the funding was from AHFC
corporate funds, and $1,073,500 was from the general fund.
Co-Chair Stedman requested an update in the corporation's
revenue portfolio
4:41:14 PM
Mr. Fauske expounded on the funding needs of AHFC. He
stated that there was approximately $19 million in the
budget of general fund dollars. He stated that AHFC had
suffered a $9 million dollar operating loss in FY2011 based
entirely on the fact that the corporation had lacked a safe
place to put funds in order to earn a rate of return. All
funding for the programs were short-term, and none of the
loan programs were exotic. The corporation had considered
certain amounts based on historical interest rates and the
financial collapse suffered in the housing markets in the
rest of the country had affected the AHFC. He believed that
the corporation had "turned a corner", and that the
financial picture would improve. He referred to a "white
paper" that detailed how the financial crisis had affected
the corporation.
Co-Chair Stedman requested the "white paper".
Mr. Fauske said the paper would be made available.
JOE DUBLER, DIRECTOR, FINANCE DEPARTMENT, ALASKA HOUSING
FINANCE CORPORATION, DEPARTMENT OF REVENUE, reiterated that
the information could be made available.
Mr. Fauske pointed out to the committee the request on Page
12, for $5,500,000:
RN 51753
Alaska Gasline Development Corporation - Year 2 In-State
Gas Project
$5,500,000
Brief Summary and Statement of Need:
This project utilizes State General Funds (GF) to produce
by July 1, 2011, "a project plan for developing an in-state
natural gas pipeline. The plan must specify and document
how an in-state natural gas pipeline can be designed,
financed, constructed, and made operational by December 31,
2015. This phase of the project will continue those efforts
toward fruition.
Senator Ellis wished to highlight the Alaska Craftsman Home
Program. He expressed appreciation for the support of AHFC
with the program.
4:47:02 PM
Alaska Energy Authority
SARA FISHER-GOAD, EXECUTIVE DIRECTOR, ALASKA ENERGY
AUTHORITY, discussed the project review listings.
RN 32950
Alaska Energy Authority - Electrical Emergencies Program
$330,000
Brief Summary and Statement of Need:
The Electrical Emergencies Program provides technical
support when an electric utility has lost, or will lose;
the ability to generate or transmit power to its customers
and the condition is a threat to life, health, and/or
property. This program contributes to the Department
mission of promoting a healthy economy and strong
communities as electricity is considered essential for both
community development and economic growth.
Ms. Fisher-Goad stated that the program was AEAs
longstanding emergency support when electrical utilities in
rural Alaska had safety issues. The funding allows for
response to related emergencies.
RN 38950
Alaska Energy Authority - Energy Projects
$16,000,000
Brief Summary and Statement of Need:
This request addresses multiple federally funded energy
programs, including Bulk Fuel Upgrades, Rural Power Systems
Upgrades, and the state funded energy planning project.
This program contributes to the Department's mission of
promoting a healthy economy and strong communities by
providing economic growth in the communities it serves.
Ms. Fisher-Goad stated that the request was $10 million in
state funds, $6 million in federal receipts. The federal
money was Denali Commission money, which was beginning to
decline. Of the $10 million, $1 million was to be used for
regional energy planning.
Co-Chair Stedman wondered why there was a dip in the
funding request from FY2011 to FY2012. Ms. Fisher-Goad
replied that the request for FY2013 would be reduced well.
The level of federal receipts would not be sustainable. She
suggested that in FY2013 federal receipts would be at the
$6 million level.
RN 60682
Alaska Energy Authority Renewable Energy Projects Round
Four
$25,000,000
Brief Summary and Statement of Need:
The Renewable Energy Grant Fund program was created in 2008
with the intent to appropriate $50 million annually for
five years. The Legislature has appropriated $150 million
for this program since its creation. This program
contributes to the Department's mission of promoting a
healthy economy and strong communities by providing funds
for energy projects that promote adequate, reliable,
reasonably priced, and a safe supply of energy considered
necessary for Alaska's basic infrastructure and economic
and technological development.
Ms. Fisher-Goad stated that the program was in Round 4 of 5
rounds of projects. The legislation for the grant program
requires AEA to approach the legislature to receive
funding. The AEA had provided to the legislature a list of
$37 million of recommended projects, and had approximately
$4 million in funds that would not be used for earlier
grants.
Co-Chair Stedman recalled that statute required $50 million
per year. Ms. Fisher-Goad believed that the legislative
intent had been to fund it at $50 million per year. However
this year's recommended project level was $37 million.
Co-Chair Hoffman stated that the over-all intent of the
legislature had been to spend $250 million over five years.
He wondered how that would be accomplished. Ms. Fisher-Goad
replied that in past years the AEA had had recommended
funding levels at $50 million or higher. She did not
believe that the $250 million goal could be reached using
the current project solicitation process. She thought that
for the Round 5 funding the solicitation methods would need
to be addressed. For example, a cap had been placed on
projects at $4 million for high cost areas, and $2 million
for lower cost areas. She thought a solicitation process
that enabled more projects to be examined could be
beneficial.
Co-Chair Hoffman expressed concern for the program funding.
He said many areas of the state lost enthusiasm for
submitting requests after the governor's veto of FY2011
capital projects. He said that the numbers show that the
program was working and that it should be funded at a
minimum of $37 million.
RN 45811
Alaska Energy Authority - Susitna Railbelt Energy Plan
$65,731,063
Brief Summary and Statement of Need:
This request is for environmental permitting and necessary
field work for large scale hydroelectric projects. This
project contributes to the Department mission of reducing
the cost of energy in Alaska.
Co-Chair Stedman asked about previous and future funding.
He wondered what process was underway that required a $65
million request for the next 12 months. Ms. Fisher-Goad the
$65 million would be for multi-year work. She said that the
numbers could be provided concerning the amount of funding
that would be needed in order to move the project forward
regardless of the funding source for FY2012 and FY2013. She
explained that fiscal years were in the middle of the
construction season, the intention was that the
appropriation would bridge fiscal years. The more money
available earlier, the more planning that could be done for
the multi-year project.
Co-Chair Stedman stated that the state had no shortage of
savings or revenue streaming. He requested the numbers for
the cash flow use in FY2012, 13 and 14. He said that the
committee had no interest in cutting short the funding.
4:57:54 PM
Co-Chair Stedman said that the committee would not fund the
all the available dollars in the Rail belt Energy Funds
simply because they were available. Appropriating all the
funds no would remove the legislature from the process. He
reiterated that historically, the committee had a definite
interest in the hydro-project, particularly Senator Thomas,
and had provided funding accordingly. Ms. Fisher-Goad noted
for the committee that the estimated cash flow for future
fiscal years could be charted - but the specific details
and studies would be more difficult to nail down.
RN 51767
Alaska Energy Authority - Southeast Energy Fund
$10,000,000
Brief Summary and Statement of Need:
This project provides fund capitalization of the Alaska
Energy Authority Energy Fund. This project contributes to
the Department mission by promoting strong economies and
healthy communities in Southeast Alaska.
Co-Chair Stedman asked if there were identifiable projects.
Ms. Fisher-Goad said no. Co-Chair Stedman wondered how the
funds could be appropriated without identifiable projects.
Ms. Fisher-Goad stated that AEA was heading up a Southeast
Integrated Resource Plan to identify projects that would be
potentially available for funding. She said that the AEA
would use the funds to issue grants. She believed that the
funds would be beneficial for completing the IRP process
for projects in southeast as early as possible. Co-Chair
Stedman expressed concern that the request was premature.
He said that there was no appropriation targeted by the
administration, other than the FY2012 through FY2017
appropriation of $10 million. The Susitna project carries
the same timeframe and has an appropriation of $162
million. He worried that there was a great difference
between the appropriation requests and what communities
were actually experiencing.
5:04:05 PM
Ms. Fisher-Goad mentioned that a working group for the
integrated resource plan had met and had expressed support
for supporting projects that had been FERC licensed prior
to the Technical Conference being held in April 2011.
ADJOURNMENT
5:05:20 PM
The meeting was adjourned at 5:05 PM.
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