Legislature(2011 - 2012)SENATE FINANCE 532
03/02/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 160 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
March 2, 2012
9:09 a.m.
9:09:16 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:09 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
Mark Lewis, Acting Director, Division of Administrative
Services, Department of Education and Early Development;
Sam Kito, Facilities Engineer, Department of Education and
Early Development; Thomas Cherian, Director, Division of
Administrative Services, Department of Environmental
Conservation; Bill Griffith, Village Safe Water Program,
Department of Environmental Conservation; Becky Hultberg,
Commissioner, Department of Administration; Susan Colligan,
Director, Division of Administrative Services, Department
of Military and Veterans Affairs; McHugh Pierre, Deputy
Commissioner, Department of Military and Veterans Affairs;
Ed Fogels, Deputy Commissioner, Department of Natural
Resources; Jean Davis, Director, Support Services,
Department of Natural Resources; Ed Fogels, Deputy
Commissioner, Department of Natural Resources; Senator Gary
Stevens
SUMMARY
SB 160 BUDGET: CAPITAL
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."
Department of Education and Early Development
9:10:57 AM
RN 52843
Alaska State Library, Archives and Museum Facility
$20,000,000
MARK LEWIS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
(DEED), spoke to the request. He reported that the
department adopted a "phase funding" approach to the
project. The project engineers and DEED decided to delay
construction until the facility was fully capitalized. The
department spent slightly less than $5 million on land
acquisition and planning to date. The department
collaborated with the Department of Transportation and
Public Facilities (DOT) on facility design in addition to
an RSA (reimbursable services agreement) for project
management support. The total cost of the facility was
estimated at $128.5 million and $74.5 million was
outstanding.
Senator Ellis noted that he was a supporter of the
facility. He wondered why DEED did not request the full
amount for the project at a time when the state can afford
to build it. He described the condition of the current
three buildings as "decrepit." He felt the more responsible
and cost effective approach was to request full funding and
build the facility without delay. Mr. Lewis replied that
DEED considered the capital budget funding total and other
administration priorities. The department requested an
amount that was deemed "appropriate" at the time. Phase
funding was a more affordable approach for each annual
budget.
Senator Ellis thanked the department for keeping the name
of the project SLAM (Alaska State Library, Archives and
Museum Facility) in concurrence with the legislature.
9:14:05 AM
Mr. Lewis explained that the following items were the
department's prioritized projects, which included school
construction and major maintenance grants. The major
maintenance projects were the top 14 projects from the
major maintenance list.
RN 54712
Lower Yukon - Emmonak K-12 School Addition/Renovation
$36,056,700
RN 54774
Koliganek K-12 School Replacement
$24,916,815
RN 54775
Whittier K-12 School Heating System Upgrade
$815,725
RN 54777
Kaltag K-12 School Mechanical and Electrical Upgrades
$783,193
RN 54779
Kake High School Kitchen Renovation
$25,121
RN 54780
Metlakatla High School Annex Roof Replacement
$41,345
RN 54781
Angoon High School Mechanical Upgrades
$47,818
RN 54782
Merreline A Kangas K-12 School Renovation, Ruby
$5,078,282
RN 54783
Kake High School Shower Repairs
$43,205
RN 54784
Kake Elementary School Mechanical Ventilation
Completion
$59,200
RN 54785
Shaktoolik K-12 School Renovation
$9,176,358
RN 54786
Bristol Bay School Voc Ed Wing Renovation
$1,538,395
RN 54787
Craig Elementary and Middle School Alternative Wood Heat
Installation
$161,172
RN 54788
Bethel Campus Water and Sewer Line and Utilidor Repairs
$5,994,455
RN 54789
Akutan K-12 School Siding Replacement
$66,625
RN 54790
Sand Point K-12 School Pool Major Maintenance
$72,774
Co-Chair Hoffman commented that he met with the Kasayulie
case plaintiffs. He understood that the settlement
stipulated specific funds that were eligible for use in
renovation or construction of the five highest priority
rural schools, which included Emmonak and Koliganek. He
cited wording and at the bottom of page 3 of the Capital
Budget Detail backup that referenced the settlement and the
use of REAA (Regional Educational Attendance Area) money.
He notified the governor regarding the unsuitable fund
source for construction of the Emmonak School. He noted
that the settlement was made with the Department of Law and
the plaintiffs did not support the funding source.
Senator Thomas inquired about a major maintenance school
project in Fairbanks for Ryan Junior High School. He
believed that the project was next in line for funding
after last year's cut off point. He relayed that the
project dropped from the potential top of the list to
number 43 and then back up to number 34. He wondered how
that happened.
SAM KITO, FACILITIES ENGINEER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, responded that the list was generated
annually and experienced a lot of turnover. Every year DEED
received an additional new set of projects for review. Some
of the new projects scored higher than existing projects on
the list. The Ryan project was not a top scorer on the
original list. Schools must demonstrate a worsening of
conditions or re-submit an improved application to receive
a higher score.
Senator Thomas understood the process and annual
reevaluation. He felt that it was unusual for a school to
decrease in priority by such a profound degree. He pointed
out that the City and Borough of Fairbanks considered
halting the use of the school due to life safety issues.
The roof was not designed to withstand a seismic event. He
did not accept the response from Mr. Kito.
9:20:44 AM
Co-Chair Stedman requested information that specified what
projects on the current list were on the list from the
prior year and the comparative rankings. He felt that the
situation was unusual that the school dropped so low from
the top cutoff spot and wanted to understand why. Mr. Kito
agreed to provide that information.
RN 5175
Deferred Maintenance, Renewal, Repair and Equipment -
$1,700,000
Mr Lewis offered that one DEED deferred maintenance project
was included in the capital budget. He listed phase two of
the Mt. Edgecumbe High School heating plant upgrades, siding
replacement of the girl's dormitory, and wall replacement
for the boy's dormitory as the projects selected.
Co-Chair Steadman asked for clarification of the heating
project. Mr. Kito replied that the heating plant project
separated the heating system into two zones; the upper and
lower campus's. Phase two consisted of the upper campus
work and campus connection to the main heating plant in
order to abandon the utilidor currently in use. He
explained that the utilidor was a conduit that provided
heat to the upper campus.
Department of Environmental Conservation
9:24:15 AM
RN 41376
Village Safe Water and Wastewater Infrastructure Projects
$51,500,000
THOMAS CHERIAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
reported that the project provided financial and technical
assistance to rural communities to plan, design, and
construct water and sewer system improvements.
RN 46714
Municipal Water, Sewage, and Solid Waste Facilities
$32,013,449.
Mr. Cherian indicated that the project provided grants to
communities to plan, design, and construct drinking water
and sanitation facilities for a total of sixteen projects.
RN 49697
Drinking Water Capitalization Grant - Subsidy Funding
$4,634,000
RN 49698
Clean Water Capitalization Grant - Subsidy Funding FY2013
$2,583,400
Mr. Cherian remarked that the federal government required
the state to provide Capitalization Grant subsidies as part
of the program.
RN 33826
Statewide Contaminated Sites Cleanup
$2,000,000
Mr. Cherian stated that the project funded assessment,
cleanup and monitoring activities at high-risk contaminated
sites, state-owned facilities and sites where the
responsible party was unknown.
RN 54473
Village Safe Water New Technology Approaches
$1,000,000
Senator Egan wondered what the new technologies were.
BILL GRIFFITH, VILLAGE SAFE WATER PROGRAM, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, voiced that the project
investigated and tested new technological approaches to
reduce state capital costs for existing systems. Federal
dollars for the Village Safe Water (VSW) Program decreased
from nearly $73 million to less than $27 million over the
last eight years. The cost to address critical water and
health needs increased each year. The current need was over
$700 million. He opined that the present approach to rural
water and sanitation was unsustainable. The state cannot
build new systems or maintain existing systems. He
maintained that innovative and technological approaches
that cut costs were the only solution. The department's
goal was to cut the sewer and water costs in half. The
department worked with the University of Alaska, Alaska
Native Tribal health Consortium, and Cold Climate Housing
Research Center to develop decentralized systems within a
community for a single home or group of homes that worked
in Alaska's climate.
9:30:20 AM
In response to a question by Senator Thomas, Mr. Griffith
replied that the department met with the Cold Climate
Housing Research Center and the Anchorage and Fairbanks
branches of the University of Alaska and worked
collaboratively with the communities on new approaches. He
stressed that the department intended to request proposals
from the private sector. Once approved through the
University, a new system would be piloted in a home
developed by the Cold Climate Housing Research Center.
RN 46946
Oil and Hazardous Substance First Responder Equipment
and Preparedness
$750,000
RN 54566
Deferred Maintenance, Renewal, Repair and Equipment FY2013
$200,000
Mr. Cherian remarked that the appropriation covered
deferred maintenance in the State Environmental Health
Laboratory.
Senator Olson asked what the opinion of the department was
concerning proposed legislation to form a task force in
order to address Village Safe Water issues. Mr. Griffith
responded that the bill was pending. He reiterated that the
rural water and sewer needs were tremendous. He noted that
the bill outlined tasks that were currently completed
annually by the department. The department shared the same
concerns and goals and if established wanted to work with
the sponsors of the bill.
RN 49749
Expansion, Upgrade, and Replacement of Existing Service
$20,600,000
Senator Olson cited the VSW project and asked for specific
information for the Unalakleet Water and Sewer System
Improvements. Mr. Griffith detailed that due to erosion the
raw water transmission main line from the water source was
in danger. The line cannot be moved and a new water source
needed to be established on the North River. Senator Olson
asked for clarification on Golovin's Water System
Improvements. Mr. Griffith noted he would provide the
information to the committee after further research.
Department of Administration
9:37:03 AM
RN 54681
Nome State Office Building and Courthouse FY2013 Request:
$10,000,000
BECKY HULTBERG, COMMISSIONER, DEPARTMENT OF ADMINISTRATION,
reported that the funding provided for continued planning,
design, and construction of a new State Office Building and
Courthouse in Nome. The facility provided more working
space.
RN 54507
Juneau - Repair State Office Building Parking Garage
Phase 1 of 3
$2,500,000
RN 54683
Alaska Geologic Materials Center Replacement Facility
FY2013 Request:
$4,000,000
Co-Chair Stedman queried whether the replacement facility
was adequate to house the core samples. Commissioner
Hultberg replied that currently the samples were
inadequately housed. Phase one of the project would assess
and determine the correct permanent structure. She stressed
the importance of core sample preservation for the
development of oil and minerals in the state.
Co-Chair Stedman noted that the appropriation was only for
2013. He toured a similar facility in Texas. He learned
that geologists had re-examined old core samples, which
lead them to recent shale discoveries. He felt Alaska's
core samples contained potentially valuable information and
was surprised at the poor condition they were stored in.
The cost of drilling wells was exorbitant; core samples
were not replaceable. He requested that the department
report back to the committee on the permanent solution to
ascertain the costs and implementation of the project.
Commissioner Hultberg agreed to provide that information.
RN 54483
Douglas Island Building Renovation Phase 1 of 3 FY2013
$9,200,000
Commissioner Hultberg offered that the total cost through
phase three was estimated at $17 million to $21 million.
AMD 54931
Alaska Land Mobile Radio Software Emergency Response
Communication Security Upgrades
$3,500,000
Co-Chair Hoffman queried the cost of the contractors used
to maintain the equipment. Commissioner Hultberg agreed to
provide that information. Co-Chair Hoffman wondered if the
contract was a one-time contract. Commissioner Hultberg
explained that the expense maintained the equipment and
recurred annually. The appropriation was included in the
operating budget. She explained that the capital request
was specifically for the system upgrade.
Co-Chair Hoffman referred to the detail backup that
identified a high-risk of system failure with the security
patches unless the hardware and software were refreshed. He
asked for clarification. Commissioner Hultberg explained
that refreshing the system involved upgrading the hardware
and software where vulnerabilities were identified in
security.
9:44:05 AM
Co-Chair Hoffman expressed concerns about the costs. Each
year the department requested millions of dollars for the
system. He wondered if she anticipated a multi-million
dollar request in FY 2014. Commissioner Hultberg replied
that she did not expect a request next year but requests
were likely in future years. She emphasized that
maintenance and operational costs were normal for a radio
system. The ALMR (Alaska Land Mobile Radio) was the most
cost effective system to meet the state's needs.
Co-Chair Hoffman queried the status of establishing shared
cost with the municipalities. Commissioner Hultberg replied
that a working group comprised of federal participants
including participants from the Department of Defense,
Alaska Municipal League, and state users were developing
cost sharing proposals. The department will present the
cost sharing proposal to the legislature next year. Co-
Chair Hoffman wondered if there was an implementation
deadline for the plan. Commissioner Hultberg replied that
she planned to include cost sharing into the FY 2014
budget.
Senator Egan emphasized that the AMLR system was vital to
Alaska, and would save the state money over time. He
worried that agreements with municipalities were not
established yet and wondered if there was enough operating
budget money to maintain the system. Commissioner Hultberg
replied that additional funds were requested in the capital
budget for training. She felt that the Department of
Administration (DOA) corrected mistakes from the past and
improved its engagement with municipal users. She assured
the committee that the department continually evaluated
alternatives and would embrace a more cost effective
alternative if prudent.
Senator Egan wondered if DOA was budgeting for software
upgrades. Commissioner Hultberg replied that the specific
request under discussion was for a software upgrade to the
state's existing sites. In addition, the department's long
range projection identified anticipated costs for regular
software upgrades.
RN 54187
Enterprise Technology System Bandwidth Monitoring
Toolset
$800,000
RN 54176
Enterprise Technology System Bandwidth Improvement
Project for Rural Sites
$1,500,000
Commissioner Hultberg noted that bandwith was a challenging
issue for all of the state agencies and especially
problematic in rural communities. The project will improve
usage of existing bandwith and is a one-time request.
RN 54040
Division of Motor Vehicles - Driver Knowledge Testing
System
$550,000
Commissioner Hultberg highlighted that the funds provided
an automated testing system in all of the Division of Motor
Vehicles offices located throughout the state. The current
system was purchased from a company that was no longer in
business and replacement parts were not available.
RN 51600
Retirement and Benefits Disaster Recovery System Year 2
of 2
$325,000
Commissioner Hultberg stated that the Division of Retirement
and Benefits (DRB) was designated as the covered entity for
both the active and retiree health plans. The division was
legally mandated by the Health Insurance Portability and
Accountability Act (HIPAA) to comply with the contingency
plan standard for electronically protected health
information technology systems and emergency access
procedure standards.
RN 51599
Retirement and Benefits Combined Retirement System
Upgrade Year 3 of 5
$350,000
RN 51598
Retirement and Benefits Document Management System
Year 3 of 4
$338,000
Commissioner Hultberg reported that the project was in its
third year, out of a four year plan to replace the
antiquated microfiche and microfilm document storage
methods for the Document Management System. The result was
improved services for the state's retirees. The
department's staff provided quick access to documents and
resolved most issues directly.
Senator Egan wondered whether the work was performed in-
house or contracted out. Commissioner Hultberg thought that
most of the work was accomplished in-house and agreed to
provide details on the contracted work.
RN 49602
Deferred Maintenance, Renewal, Repair and Equipment FY2013
$10,250,000
Commissioner Hultberg detailed that $7.25 million was
appropriated from the general fund and $3 million from the
Public Building Fund (PBF) for FY 2013. The request
included all of the deferred maintenance projects for the
DOA. She added that $6.25 million was allocated to the
public building fund group. In FY 2014, $500 thousand was
appropriated for facilities, phone upgrades, and deferred
maintenance. In FY 2014, $500 thousand for the non-public
building fund group, and $3 million for the State of Alaska
Telecommunication System (SATS) deferred maintenance was
appropriated.
9:53:25 AM
Co-Chair Hoffman requested the complete list of projects
under the $10.25 million FY 2013 request. He commented that
past appropriations were substantially less for deferred
maintenance.
Co-Chair Stedman recalled a past capital budget request for
expensive software upgrades for approximately $70 million
to $100 million. He asked what resulted from the request.
Commissioner Hultberg answered that the project was the
Integrated Resource Information System Project (IRIS). The
project was in the first year of a four year completion
period. The project was replacing DOA's payroll and
accounting systems. She agreed to provide updated
information to the committee.
Department of Military and Veterans Affairs
9:55:57 AM
RN 47882
Interior Alaska Veterans Cemetery FY2013 Request:
$2,000,000
RN 54798
Mobile Emergency Operations and Command Vehicle (MEOC)
Storage Construction
$925,000
Senator Egan asked where the MEOC vehicle was currently
housed.
SUSAN COLLIGAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS,
replied that the vehicle was housed in temporary housing on
the Coolis Airfield. The department wanted to relocate the
vehicle in the Matanuska Susitna Borough where better
access to the road system existed.
Senator Egan noted the cost and asked if the building had
other uses. Ms. Colligan responded that the building had a
dual purpose. The facility could convert to an alternate
state emergency operations center with the MEOC running
communications from outside the facility.
Co-Chair Stedman asked for additional information about the
MEOC.
MCHUGH PIERRE, DEPUTY COMMISSIONER, DEPARTMENT OF MILITARY
AND VETERANS AFFAIRS, explained that the vehicle was
approximately 50 feet long and was a class c motor home.
The vehicle was used with a truck and trailer and can be
barged to Southeast Alaska. He explained that the MEOC
played a vital role in catastrophic emergencies and needed
housing located outside of the bridges of Anchorage in case
of emergency deployment.
Co-Chair Stedman asked how the vehicle deployed to Nome.
Mr. Pierre replied that it would be barged with ice breaker
assistance from the Coast Guard. Co-Chair Stedman asked if
it could be transported in a C-130 or other airplane. Mr.
Pierre stated that the MEOC fit into a C-17, which had
limited landing capability in Alaska. The department owned
smaller emergency communication systems that could fit into
a Black Hawk helicopter or trailer. Co-Chair Stedman asked
if the MEOC could be flown into Juneau or anywhere Alaska
Airlines landed jets in the state. Mr. Pierre responded in
the affirmative. Co-Chair Stedman asked if the state
operated the aircrafts suitable to transport the vehicle.
Mr. Pierre replied that the state had eight C-17 airplanes.
Co-Chair Stedman concluded that the MEOC was a statewide
Alaska based response vehicle. Mr. Pierre agreed.
RN 51393
Fort Richardson - Camp Denali - Install Fire Sprinkler
System
$3,000,000
Ms. Colligan delineated that $1.8 million was appropriated
from federal funds and $1.2 million was a general fund
match. The code upgrades were required by the Department of
Defense.
RN 54824
Statewide Emergency Food Supplies FY2013 Request:
$4,860,000
Co-Chair Stedman asked for an explanation of the request.
Mr. Pierre responded that Alaska was isolated. In the case
of a significant catastrophe the state needed an emergency
food supply. The department's ultimate goal was to provide
800,000 meals suited for 40,000 people for 7 days. The
supply would be stored in strategic areas around the state
with a plan for an "automatic refresh mechanism."
10:03:06 AM
Co-Chair Stedman asked what the current condition of the
state's food supply was. Mr. Pierre responded that the
state relied on the community food banks. The food banks
had a short backup supply and inventory of food. In
addition, the DMVA collaborated with the Department of Fish
and Game (DFG) to establish emergency hunting and fishing
openings.
Co-Chair Stedman asked where the department planned to
locate the food storage facilities. Mr. Pierre identified
possible locations in Wasilla, Bethel Armory, suitable
facilities in Southeast Alaska, and in facilities where the
DMVA housed generators around the state.
Co-Chair Stedman stated that he had difficulty believing
that starvation was possible in Alaska.
RN 42898
National Guard Counterdrug Support
$100,000 (Federal Receipts)
RN 42901
State Homeland Security Grant Programs
($9,500,000)
RN 49583
Deferred Maintenance, Renewal, Repair and Equipment FY2013
$8,542,500
Ms. Colligan indicated that $4.542.5 million of deferred
maintenance funding was authorized from federal receipts,
$1,745 million was a general fund match and $2.255 million
was a straight general fund appropriation for the FY 2013
total.
Department of Natural Resources
10:07:24 AM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES,
JEAN DAVIS, DIRECTOR, SUPPORT SERVICES, DEPARTMENT OF
NATURAL RESOURCES, reported that the total capital project
requests amounted to $31.3 million, which $18.5 million
were general fund dollars.
RN 38872
Unified Permit Project and Document Management
$3,300,000
Ms. Davis declared that the project supported the
Department of Natural Resources (DNR) permitting reform
strategies. The project modernized the permitting and case
management system, which resulted in efficiencies.
RN 51052
Strategic and Critical Minerals Assessment
$2,730,000
Ms. Davis explained that the request was a five year
project to determine strategic and critical mineral
deposits to help encourage development.
10:09:47 AM
RN 53984
Geologic Assessment of North Slope Shale Oil Potential
$100,000
Ms. Davis relayed that the department hoped to spur new
development by producing new data on the North Slope shale
oil resource potential.
Co-Chair Stedman asked how the project tied in with the
USGS (United States Geological Survey) process.
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, responded that DNR worked cooperatively with the
USGS by sharing information and data. Co-Chair Stedman
noted that next year's request amounted to $300 thousand.
RN 53995
Shale Oil Environmental Data
$1,000,000
Ms. Davis detailed that the Division of Oil and Gas planned
to develop an inventory of environmental data to support
permitting for shale oil development. The data identified
wetlands, streams, other jurisdictional water bodies;
include surveys of habitat and animal/fish populations,
surveys of subsistence activities, and other potential
areas of conflicting resource use. The state planned to
share the information data base with North Slope shale oil
developers documenting environmental impact statements
(EIS.)
Co-Chair Stedman asked if the request was triggered by
Great Bear's leases. Mr. Fogels stated that in part the
leases influenced the request. The department anticipated
increased permitting activity on the North Slope. The
baseline information provided support to future developers
with the EIS; part of the larger NEPA (National
Environmental Policy Act) permitting process.
Co-Chair Stedman worried that in context of how quickly
shale gas was being developed elsewhere, the state was
"behind the curve" on the development of shale oil. The
state's lease rates were minimal compared with competitors.
He wanted to know if the request was adequate to protect
the state's interest in shale oil development. Mr. Fogles
responded in the affirmative. He pointed out that the
applicant was responsible for the permitting costs. The
department's environmental data collection was not intended
to displace the applicant's responsibility to provide
environmental data. The purpose was to provide a baseline
of data to foster interest towards North Slope project
development. He added that DNR was working hard to "get
ahead of the curve on shale oil exploration and
development." The department created an inter-agency task
force on shale oil.
10:15:39 AM
Co-Chair Stedman queried why core sample collection and
storage was not under the purview of DNR. He reiterated his
concern over the inadequate condition and poor storage of
the core samples relative to the value they hold to the
state for potential oil and gas development. Mr. Fogles
reported that the current geologic materials center was a
DNR facility operated by the Division of Geologic and
Geophysical Surveys. He agreed with the described state of
the facility. He noted that DNR drove the capital budget
request but wanted DOA to take the lead considering its
expertise with facilities.
Co-Chair Stedman stressed the importance of the value of
preserving the core samples.
Senator Thomas concurred with Co-Chair Stedman and
emphasized the importance of effective coordination between
DNR and DOA.
Co-Chair Hoffman referenced DNR's admission in the capital
budget detail that the state was at a crossroads with oil
and gas exploration and development. He stressed that the
department was not giving the issue the attention it
deserved.
10:21:04 AM
Senator McGuire referred to a new economic development
strategy to market Alaska's resources by Commissioner Bell
(Department of Commerce, Community and Economic
Development) (DCCED.) She requested that DNR offer the data
collected to DCCED for use in its initiative. Mr. Fogels
assured the committee that DNR worked in close
communication with DCCED.
10:22:08 AM
AT EASE
10:33:11 AM
RECONVENED
10:33:20 AM
RN 53979
Tok Long-Term Timber Sale for Biomass Energy FY2013
$200,000
Ms. Davis voiced that the project would plan, design, and
implement the sale and startup administration for a long-
term timber contract in support of a wood fired power
facility proposed by Alaska Power and Telephone in Tok. The
utility requested a 20 to 25 year supply contract in order
to obtain project financing. The utility hoped to
eventually serve surrounding communities.
Co-Chair Stedman queried if the utility planned to use
firewood or pellets. Mr. Fogels responded that the wood was
ground up in a chipper to create a type of biomass which
was burned in a high-tech boiler to generate energy,
similar to the type installed in the Tok School.
Co-Chair Stedman wondered how many board feet of timber was
required and what volume of energy was created. Mr. Fogels
agreed to provide that information. Co-Chair Stedman
further requested verification of an escape clause in the
contract, in the event that an alternative energy supply
was developed.
RN 49185
Assessment of In-state Gas Energy Potential - Phase 3 of 3
$200,000
Ms. Davis offered that the three-year project (FY2013 was
phase three) provided important data for evaluating natural
gas potential in unexplored basins near transportation
corridors and population centers. The project targeted the
Nenana and Susitna basins exclusively.
Co-Chair Stedman asked why the department did not target
the Yukon basin. Mr. Fogels replied that DNR geologists had
initially evaluated all of the basins in Alaska. The
geologists prioritized the Nanana and Susitna basins as the
most suitable for the study.
RN 53966
Upgrade Well Log Tracking System (WELTS)
$112,000
Ms. Davis explained that the project would upgrade the
online WELTS system that provided information on
groundwater data.
RN 51197
Lower Kasilof River Drift Boat Takeout - Phase 2 of 2
$1,600,000
Co-Chair Stedman asked what type of takeout DNR was
building. Mr. Fogels replied that the takeout consisted of
a ramp and wench system. Currently, no public takeout was
available on the lower portion of the river which made boat
retrieval dangerous. The river had more use each year. Co-
Chair Stedman wondered why a wench was needed. Mr. Fogels
answered that the banks of the Kailof River consisted of
long mud flats.
10:41:10 AM
Senator McGuire felt that the situation was more
appropriately addressed through the private sector and
provided an economic opportunity for small business. Mr.
Fogels replied that presently there was no private sector
interest.
Co-Chair Stedman asked if a DNR employee was needed to
operate the takeout. Mr. Fogels agreed to provide the
committee with more information.
Senator Hoffman requested information on what was completed
during phase one of the project. Mr. Fogels agreed to
provide the committee with more information.
Senator McGuire requested an opinion from the Department of
Law regarding the State's liability for the ramp and
takeout.
RN 53975
Coastal Marine Boundary Mapping
$180,000
Ms. Davis stated that the request provided for a coastal
boundary consultant to review the decisions of the US
Baseline Committee. In 2006, the committee reevaluated
Alaska's coastline which adversely affected the state's
interest. The department was not informed of the
committee's action at the time. The department believed
that some of the committee's decisions were incorrect.
Mr. Fogels clarified that the committee redrew the three
mile limit for Alaska that specified what land Alaska
owned. The department felt that errors were made which cost
Alaska many thousands of acres of submerged lands with
resource potential and fisheries management issues.
Co-Chair Hoffman asked what role the Coast Zone Management
Program could have played in the situation. Mr. Fogels
replied that the issue dealt with technical surveys. The
experts might have consulted the resource reports created
by the coastal zone districts. He noted that the reports
still might prove valuable in the review process.
Co-Chair Hoffman stressed that if the Coastal Zone program
still existed the districts could have provided more
support and backup to the department during the process.
RN 54849
Timber and Resource Roads
$2,000,000
Ms. Davis explained that the project provided funding for
the identification, planning and development of roadways to
access timber, minerals, and other resources.
Co-Chair Stedman wondered why the request was not for a
larger amount. Ms. Davis stated the department factored in
the governor's other priorities when developing the budget.
10:48:10 AM
RN 6855
Abandoned Mine Lands Reclamation Federal Program
$3,200,000 (Federal Receipts)
Mr. Fogels stated that the funds were used to clean up old
coal mining sites.
RN 6865
National Historic Preservation Fund Federal Grant Program
$750,000
Ms. Davis noted that $100 thousand of the expenditure was a
general fund match and the remainder came from federal
receipt dollars. The program awarded grants to local
governments, agencies, organizations and individuals for
restoration or stabilization of historic properties, or
survey, inventory, education, planning and training.
RN 33690
Snowmobile Trail Development Program and Grants
$250,000
Ms. Davis mentioned that the funds for the program were
provided by snowmobile registration fees. Funds were
distributed in the form of matching grants.
Co-Chair Hoffman requested a list of recipients for the
grants for the last five years of the program.
Co-Chair Stedman wanted DNR to include a forward projection
for the program. Mr. Fogels agreed to provide the
information.
RN 37769
Federal and Local Government Funded Forest Resource and
Fire Program Projects
$1,000,000 (Federal Receipts)
Ms. Davis offered that the project provided federal receipt
authority for federally funded projects that supported
forestry or fire programs.
10:51:04 AM
ADJOURNMENT
10:51:30 AM
The meeting was adjourned at 10:51 AM.
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