Legislature(2011 - 2012)SENATE FINANCE 532
02/29/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB140 | |
| SB144 | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 140 | TELECONFERENCED | |
| += | SB 144 | TELECONFERENCED | |
| += | SB 160 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
February 29, 2012
9:04 a.m.
9:04:50 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:04 a.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
Senator Kevin Meyer; Christine Marasigan, Staff, Senator
Kevin Meyer; Darwin Peterson, Staff, Senate Finance
Committee; Senator Cathy Giessel; Jim Cantor, Deputy
Attorney General, Department of Law; Susan K. Bell,
Commissioner, Department of Commerce, Community and
Economic Development; Jo Ellen Hanrahan, Director, Division
of Administrative Services, Department of Commerce,
Community and Economic Development
PRESENT VIA TELECONFERENCE
Sara Fisher-Goad, Executive Director, Alaska Energy
Authority
SUMMARY
SB 140 CATHINONE BATH SALTS
CS SB 140 (JUD) was REPORTED out of committee
with a "do pass" recommendation and with four
previously published fiscal notes: FN1 (LAW), FN2
(DPS), FN3 (DOC), and FN4 (DOA).
SB 144 STATE IMMUNIZATION PROGRAM
CS SB 144 (FIN) was REPORTED out of committee
with a "do pass" recommendation and with a new
fiscal impact note from the Senate Finance
Committee for the Department of Health and Social
Services.
SB 160 BUDGET: CAPITAL
SB 160 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 140
"An Act classifying certain substances as schedule IIA
controlled substances; and providing for an effective
date."
9:06:07 AM
SENATOR KEVIN MEYER, recalled prior legislation regarding
synthetic marijuana, and stated that synthetic cathinone
"bath salts" were sold on the street much like cocaine. He
stressed that using the cathinone bath salts had very
harmful effects, and felt that they should be made illegal.
He explained that cathinone bath salts were not currently
detected by drug testing, so if they were to be made
illegal, he hoped the crime lab would test for them. He
explained that there were some minor changes that had been
made to the bill in the Judiciary Committee. Originally,
the bill had been introduced on behalf of the City of
Anchorage, but the problem is state-wide. The City of
Anchorage wanted "possession at any amount" to be
classified a felony, but the Judiciary Committee determined
that possession would only be considered a felony at large
quantities. A first-time user of the bath salts with a
small quantity would be considered a class-A misdemeanor.
9:08:32 AM
Senator Olson wondered if bath salts would be considered a
schedule 1-A controlled substance.
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, replied
that the Drug Enforcement Agency had emergency-scheduled
bath salts, so it would be considered a class-1 drug under
federal law. However, in order for the bath salts to be
considered illegal in the state, legislation needed to be
passed.
Co-Chair Hoffman noted the four previously published fiscal
notes. He closed public testimony.
Senator Ellis MOVED to report CS SB 140 (JUD) out of
committee with individual recommendations and the
accompanying fiscal note(s). There being NO OBJECTION, it
was so ordered.
CS SB 140 (JUD) was REPORTED out of committee with a "do
pass" recommendation and with four previously published
fiscal notes: FN1 (LAW), FN2 (DPS), FN3 (DOC), and FN4
(DOA).
SENATE BILL NO. 144
"An Act temporarily reinstating the child and adult
immunization program in the Department of Health and
Social Services; and providing for an effective date."
9:11:14 AM
Senator Ellis MOVED to ADOPT the proposed committee
substitute for CS SB 144 (FIN), Work Draft 27-LS1068\R
(Mischel, 2/21/21). Co-Chair Hoffman OBJECTED for purpose
of discussion.
DARWIN PETERSON, STAFF, SENATE FINANCE COMMITTEE, discussed
the sectional changes in the work draft. He pointed out
page 3, line 3, and explained that the previous version of
SB 144 stated that for children under 19 years of age, the
Commissioner may approve any vaccines that had been
specifically prohibited. He noted that page 3, line 4
included new language that said for a child under 19 years
of age, all vaccines required for school attendance would
be provided. Also, there was a specific inclusion of
meningococcal, human papillomavirus (HPV), and rotavirus.
The previous version of the bill specifically included
influenza, pneumococcal, and TDAP vaccines. The proposed
work draft, on page 3, line 7, added the Shingles vaccine.
He explained that the previous version allowed for the
Commissioner to add or subtract vaccines for inclusion in
the program based on nationally recognized public health
standards and the availability of funding. The work draft
changed that language by stating that the Commissioner can
add vaccines for inclusion based on recommendations and the
availability of funding, and only allowing the Commissioner
to subtract vaccines from the program if the disease had
been declared eradicated by the Centers for Disease
Control. He stated that it would be incumbent on the
legislature to be sure the program is fully funded for
three years, since the Commissioner was not allowed to
subtract vaccines. He noted the new fiscal note had
increased the cost of the program to $4.632 million.
Senator Olson wondered if the proposed committee substitute
had the support of the Commissioner of the Department of
Health and Social Services (DHSS). Mr. Peterson replied
that a representative from DHSS was available to testify
regarding their support. He explained that DHSS had
expressed concern regarding the flexibility of the
Commissioner to add or subtract vaccines. The
Commissioner's oversight was restricted in order to prevent
political influence to add or subtract vaccines. He
stressed that the change made for the children vaccines
allowed some flexibility for the Commissioner, because
there was a statute that declared,
In the judgment of the Commissioner of Health and
Social Services, if it is necessary for the children
and general public, then vaccines can be administered
to children.
Senator Olson wondered if the parents had the option of
opting out of the HPV vaccine. Mr. Peterson replied that
parents had that option.
Co-Chair Hoffman removed his objection. There being NO
further OBJECTION, it was so ordered.
SENATOR CATHY GIESSEL, introduced herself.
Co-Chair Hoffman requested a review of the SB 144. Senator
Giessel stated that in previous years the federal
government had provided the State of Alaska with $4.3
million for the vaccine program, and the amount had
currently decreased to $700,000. She stated that the
governor had included an additional $700,000 for the
vaccination program in his proposed budget. SB 144 was
designed to provide state funding for the remainder of the
cost of for the vaccine program. She stressed that there
would be a loss of preventative medicine in Alaska, if the
bill did not pass.
Senator Olson wondered if Senator Giessel was in favor of
the proposed committee substitute. Senator Giessel replied
that she was in favor of the proposed committee substitute.
Senator Ellis MOVED to report CS SB 144 (FIN) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SB 144 (FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact note from
the Senate Finance Committee for the Department of Health
and Social Services.
SENATE BILL NO. 160
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
9:18:20 AM
Department of Law
JIM CANTOR, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW,
explained that the main budget request was to set up a
computerized system for the Department of Law's (DLAW)
charitable trust registration. It was the non-profit
organization for professionals who helped the individuals
raise money. There were $2500 charities in Alaska who were
required to undergo a paper-driven registration process,
which take an attorney and paralegal 750 hours a year to
manage. He felt that the computerized system would benefit
the charities and the public, but also free up DOL work
hours to focus on other consumer-protection work for
Alaskans.
Senator Egan wondered if the program would be set up like
the MyAlaska portal. Mr. Cantor replied that he did not
know what portal would be used. Senator Egan felt that the
MyAlaska was a very effective and easy portal. Mr. Cantor
agreed to look into it.
Senator Thomas wondered if this legislation would be
related to the PickClickGive program. Mr. Cantor replied
that many of the same charities were connected with the
PickClickGive program.
Senator Thomas surmised that the request was for money to
automate or hire a contractor to advise DLAW on how to
automate the program. Mr. Cantor affirmed Senator Thomas's
declaration.
9:22:22 AM
Department of Commerce, Community and Economic Development
SUSAN K. BELL, COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, introduced herself.
Commissioner Bell stated that the Department of Commerce,
Community and Economic Development's (DCCED) capital budget
request totaled $178 million. She felt that the proposed
projects would help DCCED achieve their mission of
promoting a healthy economy, strong communities, and
protecting consumers in Alaska. She stated that the
organization of the requests begain with the department
priorities. She noted that there were more than $60 million
in energy projects and $10 million in community development
projects.
RN 54070
Economic Development Initiative
$1,770,000
Commissioner Bell explained that the project would augment
marketing tactics including increased presence at industry
trade shows, developing new online/web content, interactive
media tools, outreach to the business community to identify
new market potential and increase sales of Alaska products.
Building on the Alaska Product Preference program housed in
DCCED, we will work with Alaska-owned assets (i.e. the
Alaska Railroad, Alaska Marine Highway, state prisons, the
university system, and other Alaska institutions) and other
commercial and institutional buyers to Buy Alaska. Through
this effort, DCCED will focus on marketing core and
emerging industries, natural resource endowment, strategic
global location and the state's emerging Arctic Frontier as
an opportunity for economic investment. She stated that his
initiative will add much needed strategies and tactics to
the state's marketing programs. First, it will leverage and
include existing state programs now underperforming in
their marketing efforts. Secondly, it will add value to
general economic development programs in Alaska by matching
businesses with potential markets. And, finally, it will
begin to allow DCCED to extend Alaska's brand in the global
marketplace. A fraction of the state's investment in the
tourism and seafood industries, this investment allows
DCCED to significantly expand awareness, value, and sales
in other industry sectors.
Commissioner Bell stated that in preparation for the
state's five-year comments on Tongass Land Use Management
Plan (TLMP), DCCED will review timber sales in Southeast
Alaska for economic value, evaluate market demand, and
develop recommendations that optimize Tongass resources and
job creation potential.
Co-Chair Hoffman queried the time of the last analysis for
the evaluation of TLMP. Commissioner Bell replied that an
analysis of TLMP was run five years prior.
Commissioner Bell explained that DCCED will study potential
for Alaska as an Arctic gateway for container ships, oil
tankers, cruise ships, and other vessels to Asia, Europe,
and other global destinations. The department's economic
development specialists will contribute their resource
development expertise and gather business and community
leader opinions for the Tongass and Arctic projects.
Additionally, the Division of Economic Development will
contract for professional services to obtain the technical
expertise needed on global market demand, industry trends,
competition, and infrastructure development.
9:26:57 AM
Co-Chair Hoffman felt that the subject was an important
aspect to ensure that the rest of the United States
identified Alaska as an Arctic nation. He wondered how much
of the $1.77 million would be expended on the Arctic
gateway item. Commissioner Bell replied that when the
budget was initially drafted, $1.4 million would be used
for the marketing initiative and $300,000 for the Arctic
TLMP. She furthered that she was currently working with
other agencies to determine the best distribution of money.
Co-Chair Hoffman noted that Senator McGuire had informed
the Arctic caucus that Alaska needed to be brought to the
forefront as an Arctic nation.
Co-Chair Hoffman stressed that the budget for FY 13
included a request for $1.77 million, but subsequent years
to 2017 there was a projection of returning to the status
quo of $400,000. He wondered why there would be a reduction
in funding. Commissioner Bell replied that the first
required much more funding due to market research, public
relations efforts, and new marketing materials. She stated
that completion of the scope of work for the Arctic and
TLMP was anticipated in FY 13. Therefore, additional
funding would not be needed.
Senator Ellis commented that there were many opportunities
for film companies to come to Alaska. He felt some
frustration that there may not be enough staff in DCCED to
accommodate the demand. He noted that he had encouraged the
administration to increase the funds to meet the staffing
requirements. He requested a comment on the film and
television industry impact on DCCED. Commissioner Bell
responded that DCCED had focused on working as a team, as
well as with other agencies. Whereas, in previous years,
there were specific people assigned to specific areas, so
it was difficult to achieve full success in all that was
required in economic development. She remarked that the
film and television aspect of the department was
highlighted as an initiative in order to evaluate the
distinctive successes.
9:32:38 AM
Senator Ellis commented that Alaskan product placement was
integral to the film and television industry, and felt that
cross-promoting was "brilliant."
Senator Thomas wondered what portion of the marketing
request would be expended for the potential of marketing
Alaska's gas to Japan and other Asian nations. Commissioner
Bell replied that there was work with other oil and gas
industry executives to refine ways to bolster visibility in
the oil and gas industry.
Senator Thomas wondered if there was a concerted effort
regarding oil and gas industry visibility, and felt that
someone should focus more on that marketing potential.
Commissioner Bell remarked that DCCED would keep Senator
Thomas's concerns in mind as they continue to refine their
planning.
Senator Thomas stressed that Japan and other nations were
looking to purchase gas from the east coast of the United
States, and transporting it to Japan-which was almost half
way around the world. He declared that Alaska was much
closer to Japan, and felt that there needed to be a
vigorous effort to sell gas to Japan.
RN 54793
Strategic Minerals Implementation
$450,000
Commissioner Bell explained that this project would provide
funding to develop and begin to implement a strategy for
developing the State of Alaska's vast rare earth element
resources. The goal would be to have mineral development
underway in 2-3 years. Alaska has an opportunity to pioneer
research and industry development related to mineral
extraction, processing, and value-added services. Given our
mineral resources, strategic location, and access to
national and international markets, Alaska can gain
significance to a wide array of manufacturers and
industries including renewable energy, automotive, and
personal electronics. Developments related to rare earth
elements and other strategic minerals will be applicable to
Alaska's broader mining industry in terms of cost-effective
recovery of metals and purification.
9:37:55 AM
RN 38946
Community Block Grants
$6,060,000
JO ELLEN HANRAHAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, stated that the program was a long-term
federally funded program that allowed the state to provide
grants to communities and non-profit organizations. The
grant recipients then provide services or benefits to low-
or moderate-income individuals. The focus of the grants was
to provide health and safety of local residents; reducing
the cost of essential community services; and preventing
poverty through education.
Ms. Hanrahan explained that the federally funded community
services block grant, which was $3 million in federal
money. That federal money passed through the state to a
community action agency: Rural Alaska Community Acton
Program (RurAL CAP). RurAL CAP's mission is to protect the
heritage of, while also improving the quality of life for,
low-income rural Alaskans. This is accomplished through
educational programs such as alcohol and drug abuse
prevention programs, fetal alcohol syndrome prevention
programs, and child development programs; adult training;
affordable housing programs; advocacy for low-income
individuals and instruction on how to advocate for
themselves.
Co-Chair Hoffman felt that the request was high, and
queried if there was an upper limit on the grants. Ms.
Hanrahan replied that the community services grants did not
have an upper limit, and the community development block
grants had an upper limit. Co-Chair Hoffman furthered that
the upper limit of the community development block grants
was $850,000.
Ms. Hanrahan looked at the community development block
grants, and stated that the program provided grants not to
exceed $850.0 to municipalities for planning activities,
infrastructure projects, and economic development
activities which benefit low to moderate-income
individuals. This program has been in existence since 1983.
The U.S. Department of Housing and Urban Development (HUD)
provides the funding, which ranges from $3,000.0 to
$3,500.0 annually with a state required match of 2 percent.
RN 38943
Community Development and Assistance
$1,560,000
Ms. Hanrahan stated that this appropriation would provide
development opportunities and assistance to communities and
non-profit organizations for community development. These
programs contribute to the department's mission of
promoting a healthy economy and strong communities by
providing economic growth in the communities it serves.
9:43:19 AM
Ms. Hanrahan detailed the Community Air Photo Mapping
Grant: Since 2002, DCCED has coordinated production of
mapping products in 18 areas throughout the state. Funding
for projects came from federal programs, state funded
construction projects, regional entities, or the local
community. The Denali Commission, DOT&PF, and USDA-Rural
Development were the primary sources of matching funds to
cover approximately 50 percent of the mapping contract; the
other 50 percent came from regional or local partners. The
Division of Community and Regional Affairs' role was to
coordinate the funding partners, define the technical
criteria for the final map product, and oversee the review
of the maps as they were developed by contractors. The
three areas of the state that remain to be mapped, using
corrected orthophotos, are areas with potentially large
project impacts. 1) The Northwest Arctic Borough will be
affected by the establishment of shipping routes across
Northern Canada and the US, and possibly significant
mineral deposits. 2) North Slope Borough communities will
be impacted by northern shipping routes and future oil
development both on and offshore. 3) The Alaska Highway and
Northern Parks Highway communities will be affected by gas
line projects now in planning stages. The $1,100,000 in
general funds will provide up to 50 percent of the funding
to complete the projects. The remaining 50 percent will be
provided by regional or local entities. Alaska's Floodplain
and Erosion Management Program: This program's mission is
to reduce public and private sector damage and losses from
flooding and erosion. This is accomplished by providing
municipalities that participate in the National Flood
Insurance Program (NFIP), with program compliance technical
assistance and as a resource for municipalities looking at
joining the program. Department of Commerce, Community and
Economic Development (DCCED) and the Federal Emergency
Management Agency's (FEMA) Flood Mitigation Assistance
program (FMAP) personnel work with the municipalities on
every phase of potential projects -- applying for a
planning grant, approving the resulting plan, approving a
construction grant or contract and approving the completed
project. FEMA provides funding for, community assistance,
technical assistance, and assistance to specific
communities. In FY2013, DCCED anticipates $120,000 from
FEMA with required General Fund match of $40,000 for a
project total of $160,000. The NFIP funding for this
program requires that the state contribute 25 percent of
the total project funds. This program has existed since
1997. Hazard Mitigation Assistance Grants: The National
Flood Insurance Fund (NFIF) provides funding for Flood
Mitigation Assistance (FMA), Repetitive Flood Claims (RFC)
and Severe Repetitive Loss (SRL) programs. The grants are
available for application annually and are pass-through
grants to local communities to mitigate flood prone
buildings or other eligible activities. There are no
current specific grant requests pending; however, we expect
up to $300,000 in requests may be submitted.
Co-Chair Hoffman wondered why there was a $3 million
reduction from the previous year's funding level. Ms.
Hanrahan explained that the funding for the projects
fluctuates depending on what projects were occurring. She
noted that the funding was specific to what community
development projects were in the queue.
Co-Chair Hoffman felt that the request was the lowest it's
been in over a decade. He felt that there was a high need,
and wondered if the need did not exist and that was why the
funding was not available. Ms. Hanrahan offered to provide
information at a later date.
RN 54869
State Support for Rural Roads and Waterfront Development
Partnership
$3,000,000
Ms. Hanrahan explained that this will provide matching
funding to rural communities that have obtained federal
grants through the Denali Commission and allow them to
construct rural road and waterfront development projects.
The Denali Commission will research, vet, and decide on the
rural road projects that will be developed, and the
Department of Commerce will make the grants to the
recipients to complete funding for their project.
Potential Projects could include but are not limited to:
- Hughes - Moose Loop/Blueberry Road construction
- Chignik Lake - Culvert Replacement construction
- Craig - Community Streets Paving construction
- Huslia - Community Streets Construction
- Cherfornak - Boardwalk reconstruction design
- Buckland - Uptown Road construction
- Hydaburg - Saltry Point Road construction
- Wainwright - Access Road construction
- Kwigillingok - ATV Trail - design and construction
- Haines - Third Avenue street construction
- Toksook Bay - Community Roads construction
- Point Lay - Subdivision Roads preliminary design
- Northway - Housing Road design
- Igiugig - Float Plane Road construction
- Birch Creek - Feasibility Study
- Wrangell - Wood Street design and construction
- Pitkas Point - Main Street - preliminary design
- Selawik - Barge Landing Road and Boardwalk Improvements
Senator Olson wondered how one would become eligible to be
a part of the program. Ms. Hanrahan replied that the
proposals were run through the Denali Commission's
Transportation Committee.
9:48:54 AM
Senator Olson wondered if there was a dollar limit per
community. Ms. Hanrahan replied that funding was dependent
on the specific project and the funding source.
Senator Egan wondered if each project had been vetted
through DOT/PF. Commissioner Bell replied that the proposed
projects would put state funding into projects that had
been identified through the Denali Commission Committee
Process.
Senator Egan felt that some organized boroughs did not have
the expertise to design the local service roads and trails.
He felt that DOT/PF should assist the communities to design
and assist in the construction management. Commissioner
Bell explained that there were many different funding flows
in order to provide communities with what was needed for
assistance.
Senator Thomas wondered if the specific projects would be
available for the Denali Borough. Commissioner Bell agreed
to provide that information.
RN 38950
Alaska Energy Authority - Energy Projects
$25,800,000
9:53:07 AM
SARA FISHER-GOAD, EXECUTIVE DIRECTOR, ALASKA ENERGY
AUTHORITY (via teleconference), stated that this request
addresses multiple federally funded energy programs,
including Bulk Fuel Upgrades, Rural Power Systems Upgrades,
Alternative Energy and Energy Efficiency projects 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.
RN 49734
Alaska Energy Authority - Bulk Fuel Upgrades
$7,000,000
Ms. Fisher-Goad stated that the goal of the Alaska Energy
Authority (AEA) bulk fuel program is to upgrade non-
compliant bulk fuel facilities in communities that meet
program criteria. Upgrading bulk fuel facilities reduces
the cost of energy by reducing or eliminating fuel loss
from leaks and spills. By providing enough capacity for
current and planned needs, communities may purchase fuel in
larger quantities at a lower cost per gallon.
RN 52498
Alaska Energy Authority - Rural Power Systems Upgrade
$13,000,000
Ms. Fisher-Goad explained that the program concentrates on
power production and delivery, including diesel powerhouse,
hydroelectric, and electrical distribution. Due to high
costs and limited economies of scale, most local
communities cannot make the capital investments needed to
meet accepted utility standards. Efficiency, reliability,
safety and sustainability are primary drivers throughout
the conceptual design, final design and construction
process. It is not uncommon to see a 30-40 percent increase
in fuel savings after a new powerhouse project is
completed. After completion of the project, the rural
utility is required to employ a qualified operator to
ensure that the system is properly operated and maintained.
AEA provides training and technical assistance to assist
the community with proper operation of the new facility.
$112 million is the estimated need to complete the Rural
Power System Upgrades for the remaining 47 communities
identified on the deficiency list. This is a long standing
energy program that has expanded since fiscal year 1999
with federal funding from the Denali Commission. In FY2013,
AEA anticipates $3 million in federal funds. The AEA
anticipates using approximately $10 million in state funds
for RPSU projects.
RN 49735
Alaska Energy Authority - Alternative Energy and Energy
Efficiency (AEEE) Programs
$4,800,000
Ms. Fisher-Goad announced that the objective of the program
was to lower the cost of power and heat to Alaska
communities while maintaining system safety and
reliability. The AEA alternative energy programs have
received federal funding since the 1980s from USDOE and the
EPA and recently expanded with funding from the Denali
Commission and ARRA funds. A state general fund match of 25
percent to 100 percent is required for most federal AEEE
programs.
RN 52507
Alaska Energy Authority - Alaska Energy Plan Implementation
$1,000,000
Ms. Fisher-Goad explained that this request addresses the
state funded Alaska Energy Plan Implementation. The project
contributes to the department's mission of promoting a
healthy economy and strong communities by providing
economic growth in the communities it serves. She stated
that the objective is to develop a statewide Alaska energy
plan. An estimated $1 million of general funds is required
for the continued development of the energy plan, in
particular AEA will work with regional organizations to
initiate specific regional resource assessments and project
development plans. The completion of the following
activities and work tasks are required:
- Determination of fuel usage by community for electricity,
space heating and transportation
- Determination of locally available energy sources
- Evaluation of existing technology
- Evaluation of energy delivery systems
- Evaluation and rank of energy sources
- Deployment to the private sector by providing business
plan to existing or new enterprises, and
- Organization of public workshops to assist in the
communication of the plan by gathering feedback and
providing periodic updates.
Senator Thomas remarked a prior discussion regarding some
of proposed projects. He noted that there may need to be
some attention evaluating the costs of the projects in
order reduces the cost of diesel usage. He looked at the
rural areas and the removal of old diesel tanks and the
hazards related to the removal of old diesel fuel tanks. He
wondered if that issue had been addressed in the AEA. Ms.
Fisher-Goad replied that there was a conversation about the
result of the renewable energy projects, and there was work
regarding those projects. She stated that the AEA was
working to provide information for the Senate Finance
Committee about the evaluations of the projects. She felt
that the traditional, rural energy project requests were
intended to look at the system holistically, to ensure good
quality energy and powerhouse systems.
10:00:36 AM
Co-Chair Hoffman stressed that many communities have tank
farms that need to be replaced, and requested the need of
approximately $6 million to replace the tanks. Ms. Fisher-
Goad replied that it was not her intent to suggest that
there was no need. She stated that there were some concerns
regarding the type of tanks that needed to be replaced. She
stressed that the AEA was looking into the conditions in
all the communities.
Co-Chair Hoffman said strongly that he understood the tank
farms as even being hazardous to children. He felt the
communities had a better understanding of the need for safe
tank farm removal, rather than the point-of-view of AEA.
Senator McGuire queried the process regarding determining
the tank removal evaluation. She stated that she had
similar concerns to Co-Chair Hoffman, and re-iterated that
it was important to see the potential hazards in person in
order to understand the urgency to remove the tank farms.
Ms. Fisher-Goad replied that there was a process to
decommission the tanks per EPA and DEC guidelines, and
agreed to provide more information.
Senator McGuire appreciated the work of the AEA, and felt
that the AEA was under-staffed. She stressed that health
and safety issues should be a priority.
10:06:19 AM
Senator Egan wondered if there was any effort to implement
a demonstration project a bio-mass program in Southeast
Alaska. Ms. Fisher-Goad responded that the status of the
Southeast Integrated Research Plan was still in draft form,
and the public comments period would close on March 19,
2012. She stated that the Southeast Conference would have a
mid-session summit the week of March 12, 2012, and AEA
would work with the Southeast Integrated Research Plan in a
technical session. The bio-mass recommendations from
Blackened Beach had received mixed reviews, and an
implementation plan was imperative. She stated that AEA's
goal with regional plans was to ensure that the plans were
useful to the regions that helped develop the plans. She
stated that there were complications in the Southeast
Integrated Research Plan were diverse with mixed energy
systems, with a complicated cost of energy in the Southeast
region. There were small, rural communities that were
diesel-dependent, and other communities that had hydro
resources. She stated that there was a plan to use a
portion of the $2 million in the Energy Efficiency Program
toward a bio-mass project; with respect to feasibility
assessments and the technical evaluation and operating
system evaluation. She noted that there was interest in
interior Alaska to look at possible additional pellet
systems for some community facilities.
Senator Thomas looked at page 14, and pointed out the
reference to nuclear energy in a draft report. He wondered
when that final report would be available. Ms. Fisher-Goad
replied that the final report was complete, and agreed to
provide that report to the Senate Finance Committee.
10:11:11 AM
Senator McGuire felt that the Southeast Energy Plan did not
make sense. She remarked that there were existing plans for
linking hydro and other power, that were not reflected in
the Integrated Resource Plan. She wondered if AEA was
relying solely on the Blackened Beach report. She felt that
other regional assessments should be considered. Ms.
Fisher-Goad responded that there were many comments and
criticisms regarding the Integrated Research Plan. She
stated that the Blackened Beach report recommended that the
Southeast Intertie System was not economical for the
region, because of the relative light loads. She agreed
that there should be a consideration of other evaluations
and analyses. She stressed that all the regions of Alaska
wanted solid economic development plans.
Senator Olson wondered if Ms. Fisher-Goad was aware of a
legislative audit related to the procurement process, with
an attached report with conclusions and recommendations.
Ms. Fisher-Goad responded that she was aware of the report
and that she had been, and AEA had addressed the issues and
concerns in the audit.
Senator Olson asked if his constituents should be satisfied
with the procurement policies, recommendations with the
signatory authority, and the formal records had been
corrected. Ms. Fisher-Goad responded in the affirmative.
RN 50682
Alaska Energy Authority - Renewable Energy Projects Round
Five
$25,000,000
Ms. Fisher-Goad explained that 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 $176.6 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. This project provides continuation funding for
the Alaska Energy Authority's (AEA) Renewable Energy Fund
Grant program as intended by the legislature. Four
renewable energy fund application periods are complete.
There has been $176.6 million approved for 207 renewable
energy projects. By the end of 2012, AEA expects that 45
construction projects will have been completed at a total
cost of $167 million - approximately half funded by the RE
Fund and half paid for by other sources. The AEA estimates
the annual fuel savings from these completed projects will
be over 6 million gallons per year of diesel or equivalent.
In response to a question by Co-Chair Hoffman, Ms. Fisher-
Goad stated that the $25 million request would bring the
total funding for the Renewable Energy Projects program to
approximately $200 million.
10:18:12 AM
Co-Chair Hoffman stated that the legislation had a target
of $250 million when the program was initiated. The
legislature wanted to "jump-start" the program by adding
another $50 million, bringing the total to $300 million at
the conclusion of five years. Over the two prior years, he
felt that there was not as much support from the
administration for this program. He wondered if the program
was not effective. Ms. Fisher-Goad replied that the year
prior had recommended funding from the legislature through
the program for $36 million, and all the projects were
funded with $10 million having been re-allocated to a prior
round. She stressed that the issues were left to the
governor to balance the budget. She agreed that the program
was popular and effective, but there were some needs to
provide technical assistance for communities that needed
project development. The Alaska Energy Authority had
recommended funding of $43 million. She felt that the
target of $50 million was a good target, but there was
extensive evaluation pertaining to funding, regardless of
decisions based on budgetary analysis.
Co-Chair Hoffman stressed that the vast majority of
projects were also initiated by the legislature and not by
the administration. He stressed that there were many
discussions regarding technical assistance. He felt there
were many areas of the state that needed technical
assistance. Ms. Fisher-Goad agreed that there was a need
regarding technical assistance, and added that there was
extensive work with traditional rural programs to ensure
that those needs were met. She furthered that there were
conversations with other entities to be sure that training
needs and basic management systems management were
addressed.
Co-Chair Hoffman felt the objective was a good start.
RN 54175
Alaska Energy Authority - AVTEC Training Systems Upgrade
$400,000
Ms. Fisher-Goad stated that funding requested for AVTEC
Training Systems Upgrade is essential to support the
state's investment in rural infrastructure. These equipment
upgrades are necessary to provide power plant operators
with current training on power plant infrastructure being
built in rural communities. She explained that AS 42.45.400
requires AEA to provide rural utilities with technical
assistance and training. Modern training facilities are
necessary to support AEA's training program.
10:25:23 AM
RN 32950
Alaska Energy Authority - Electrical Emergencies Program
$330,000
Ms. Fisher-Goad explained that 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.
Co-Chair Hoffman noted that there were two schools that had
electrical and energy problems in his district. He hoped
that they would not have to use the funds to address their
needs, because he hoped that their problems were not at the
emergency level. He wondered why their needs were not being
addressed. Ms. Fisher-Goad replied that the Alaska Energy
Authority worked with the school districts to be sure that
the needs were adequate and they tried to be sure that they
were coordinated.
Co-Chair Hoffman wondered what Gary Baldwin says about the
energy and electrical problems in Napakiak and Kipnuk. Ms.
Fisher-Goad replied that she did not have a conversation
with Mr. Baldwin. Co-Chair Hoffman wondered who had been in
contact with the communities. Ms. Fisher-Goad agreed to
provide that information with respect to the contact
information for the school districts' needs.
RN 54850
City of Fairbanks - Road Improvements
$5,000,000
Ms. Hanrahan explained that the project will provide
funding for the City of Fairbanks for road improvements and
upgrades. Road improvement projects could include but are
not limited to: roadway reconstruction, installation of new
road-base materials, pavement improvements or replacement,
dust mitigation, curb and gutter alignment, or sidewalk
construction.
10:30:43 AM
Senator Thomas requested furthered explanation of the
projects. Ms. Hanrahan replied that the municipal projects
were listed separately.
Senator Olson wondered why this request was from DCCED and
not DOT/PF. Ms. Hanrahan replied that DOT/PF dealt with
mostly federal highway projects, and the projects were
identified in the State Transportation Plan (STP). The
DCCED requests reflected locally-owned roads within the
municipalities.
Senator Olson wondered how many other municipalities were
requesting road-improvement funds. Ms. Hanrahan did not
know, but the highlighted projects had been identified in
the governor's priority package.
RN 46659
City of Kenai - Road Improvements
$3,000,000
Ms. Hanrahan explained that the project will provide
funding to be used by the City of Kenai for municipal road
improvements. Road improvement projects could include but
are not limited to: pavement improvements or replacement,
dust mitigation, roadway reconstruction, curb and gutter
alignment, installation of new road-base materials, or
sidewalk construction.
RN 54861
City of Old Harbor - Airport Expansion
$4,500,000
Ms. Hanrahan stated that the project will provide State
funds, in a joint effort with the United States Marine
Corps' (USMC) Innovative Readiness Training (IRT) program,
to plan and permit a project to extend the airstrip at the
Old Harbor Airport from its current 2,750 feet to 4,700
feet in length.
Co-Chair Hoffman noted the time.
RN 54853
City of Saxman - Saxman Harbor - Planning and Design
$350,000
Ms. Hanrahan explained that the project would provide
matching funds to the United States Army Corps of Engineers
to fund the initial planning and design phases of the
creation of a public harbor in the City of Saxman. The
Saxman Harbor will be one of a limited number of harbors in
Alaska providing year round opportunities for ice-free,
protected moorage, and will provide vital public marine
infrastructure needed for the continued growth and
development of the State's economy.
RN 54871
Fairbanks Northstar Borough - Air Quality Mitigation
$2,500,000
10:35:32 AM
Senator Thomas noted that the money for the project was to
be used for minimizing emissions and improving air quality
in the Borough, and wondered how much money was dependent
on wood stove change out program. Ms. Hanrahan replied that
did not know, and stated that there were active grants
contributing to that conversion. She stated that there was
no specific budget for the conversion.
Senator Thomas surmised that there were no specific
categories in the program that outlined intended
expenditures for the various areas of the wood stove
conversion program. Ms. Hanrahan did not have a breakdown
of that budget, but agreed to provide information regarding
availability of a budget.
RN 42004
Fairbanks Northstar Borough - Arctic Winter Games Host
Society
$500,000
Senator Thomas noted that the request was aligned with the
Arctic Winter Games request on page 50. He stressed that
there were games in 2012 in Whitehorse, and no 2013 games.
He wondered what year the money was intended.
Co-Chair Hoffman declared that the information would be
distributed to the members at a later date.
RN 54889
Haines Borough - Haines Boat Harbor and Breakwater
Improvements
$4,500,000
Ms. Hanrahan explained that the project will provide
funding for the construction of a wave barrier or rubble
mound breakwater to protect the newly installed float
system at the Haines small boat harbor.
RN 45297
Kenai Peninsula Borough - Road Projects
$5,000,000
Ms. Hanrahan stated that project will provide funding for
road improvements, upgrades and modifications for the Kenai
Peninsula Borough.
RN 54852
Ketchikan Gateway Borough - Rehabilitation/Replacement of
Off-System City Bridges
$9,250,000
Ms. Hanrahan explained that project will fund the
replacement and rehabilitation of off-system city bridges
and trestles in Ketchikan. The City of Ketchikan's
municipal bridges and trestles are deteriorating at an
accelerated rate, due to weather, geography and general
exposure. Long term replacement of an aging bridge and
trestle infrastructure will mitigate public safety hazards,
provide safe access for the public and emergency services,
alleviate traffic and parking issues, and improve slop
stability and drainage issues for adjacent properties.
RN 54854
Matanuska-Susitna Borough - Road Bond Package State Match
$20,000,000
Ms. Hanrahan stated that the project will provide a 50
percent state match to a portion of the funding that was
passed as part of a Matanuska-Susitna Borough Proposition 2
for "Transportation Bonds" to construct municipal roads
throughout the Borough.
10:38:35 AM
RN 50334
Wasilla - Lake Lucille Dam Improvements
$300,000
Ms. Hanrahan explained that project would provide funding
for emergency repairs at the Lake Lucille Dam due to
structural failure at the dam. The main issue currently is
the water level of the lake and the potential impact on
property owners should the dam fail entirely.
RN 52278
Whittier - Shotgun Cove Road - Phase 4
$2,000,000
Ms. Hanrahan stated that the project funding would extend
Shotgun Cove Road 2.5 miles, from Emerald Cove Trailhead to
Trinity Point. This paved, 24 foot road will improve the
quality of life and produce much needed revenue sources for
the City of Whittier, its residents, and the local
businesses. Completion of the Shotgun Cove Road project
would open up presently inaccessible Federal, State, and
Municipal lands to recreational use and private land
ownership.
Co-Chair Hoffman listed the remaining items:
RN 45816
Alaska Air Carriers Association, Inc. - Medallion
Foundation
$250,000
RN 49915
Alaska Manufacturing Extension Partnership - State Matching
Support
$400,000
RN 54602
Alaska State Fair - Sewer System Expansion and Upgrades
$1,142,875
RN 38713
Arctic Power - Arctic National Wildlife Refuge (ANWR)
Program
$160,000
RN 41959
Arctic Winter Games State Team Alaska - State Participation
Grant
$315,000
RN 54847
Association of Village Council Presidents (AVCP) - Aviation
School Dormitory Construction
$2,470,100
RN 54846
Association of Village Council Presidents (AVCP) - Yukon-
Kuskokwim Corridor Planning and Development Project
$3,000,000
RN 54833
Copper River Native Association - Copper River Health
Clinic Construction
$8,000,000
RN 46475
Friends of the Jesse Lee Home
$5,000,000
RN 52182
Kenaitze Indian Tribe - Dena'ina Health and Wellness Center
Construction - Phase 2
$10,000,000
RN 50409
Life Alaska Donor Services, Inc. - Donor Program
$35,000
RN 48513
Marine Exchange of Alaska - Alaska Vessel Tracking System
Upgrades and Expansion
$600,000
RN 53771
Matanuska-Susitna Service for Children and Adults
$4,000,000
RN 54703
State Owned Hatcheries - Upgrades and Maintenance
$11,547,000
RN 52164
Cook Inlet Aquaculture - Trail Lakes Hatchery
$1,025,000
RN 52165
Cook Inlet Aquaculture - Tutka Bay Hatchery
$699,000
RN 52168
Kodiak Regional Aquaculture - Kitoi Bay Hatchery
$1,550,000
RN 52628
Kodiak Regional Aquaculture - Pillar Creek Hatchery
$909,000
RN 52167
Northern Southeast Regional Aquaculture - Hidden Falls
Salmon Hatchery
$1,237,000
RN 52163
Prince William Sound Aquaculture - Cannery Creek Hatchery
$5,263,000
RN 52161
Prince William Sound Aquaculture - Main Bay Hatchery
$864,000
AMD 38948
National Petroleum Reserve - Alaska Impact Grant Program
$4,896,872
Senator Olson queried the distribution on page 84, and
wondered if it was the total funds, including the $4.8
million. Ms. Hanrahan responded that $4.8 million was the
total distribution for the project.
SB 160 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman discussed housekeeping.
ADJOURNMENT
10:45:11 AM
The meeting was adjourned at 10:45 AM.
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