Legislature(2021 - 2022)SENATE FINANCE 532
05/15/2021 10:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Adjourn | |
| Start | |
| SB50 || HB69 || HB71 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 69 | TELECONFERENCED | |
| += | HB 71 | TELECONFERENCED | |
| += | SB 50 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 15, 2021
10:37 a.m.
10:37:00 AM
CALL TO ORDER
called the Senate Finance Committee meeting to order at
10:37 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski (via teleconference)
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Neil Steininger, Director, Office of Management and Budget,
Office of the Governor.
PRESENT VIA TELECONFERENCE
Doug Vincent-Lang, Commissioner, Department of Fish and
Game; Alan Weitzner, Executive Director, Alaska Industrial
Development and Export Authority, Department of Commerce,
Community and Economic Development; John Linnell, Deputy
Director, Central Region, Department of Transportation and
Public Facilities; Brent Goodrum, Deputy Commissioner,
Department of Natural Resources; Steven Masterman,
Director, Division of Geological and Geophysical Surveys,
Department of Natural Resources; Marty Parsons, Director,
Division of Mining, Land, and Water, Department of Natural
Resources; David Schade, Director, Division of Agriculture.
SUMMARY
SB 50 APPROP: CAP; REAPPROP; SUPP; AMEND
SB 50 was HEARD and HELD in committee for further
consideration.
CSHB 69(FIN) am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 69(FIN) am(brf sup maj fld)(efd fld) was
HEARD and HELD in committee for further
consideration.
CSHB 71(FIN) am
APPROP: MENTAL HEALTH BUDGET
CSHB 71(FIN) am was HEARD and HELD in committee
for further consideration.
CS FOR HOUSE BILL NO. 69(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making capital appropriations,
supplemental appropriations, and reappropriations."
CS FOR HOUSE BILL NO. 71(FIN) am
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
SENATE BILL NO. 50
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
10:37:40 AM
Co-Chair Bishop noted that the Capital Budget amendments
under discussion had been proposed on May 6, 2021 and May
11, 2021 He mentioned there were two packets of amendments
to consider: Packet A, with amendments proposed on May 6,
and packet B, proposed on May 11.
10:38:50 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, addressed Packet A of proposed
amendments transmitted on May 6, 20201. He noted that both
operating and capital items were included in the packet, as
the operating items were offsetting unrestricted general
fund (UGF) costs within the Department of Transportation
(DOT), which were then being utilized to fund priority
projects in the Capital Budget. The total of the offset in
DOT included in the amendment package was just under $17.8
million, for a total general fund offset of one-time use of
federal relief funds of $32.4 million.
Mr. Steininger continued to address Packet A. Page 2 of the
packet was a summary of the items. Mr. Steininger discussed
Item 1:
Named Recipient Grant Voice of the Arctic Inupiat
FY2022 Request: $1,000,000
Reference Number: AMD 63461
Brief Summary and Statement of Need:
VOICE is a 501(c)(4) non-profit corporation whose
twenty-four members include the representatives of
federally recognized tribes, municipal governments,
Alaska Native corporations, the regional health-
nonprofit, and the tribal college from the North Slope
of Alaska. Together, VOICE works on behalf of the
Arctic region to promote and advocate issues for the
benefit of regional communities.
10:40:49 AM
Mr. Steininger addressed Item 2:
Chevak School Fire Remediation
FY2022 Request: $2,500,000
Reference Number: AMD 63457
Brief Summary and Statement of Need:
On Sunday, March 7, 2021, the old, unused school
building in the community of Chevak caught fire, and
the structure was destroyed. During the subsequent
investigation it was identified that two community
members were unaccounted for, and believed to be under
the structure during the fire. During the initial site
investigation by Department of Public Safety (DPS),
the site conditions including the roof structure on
top of the debris made the search field unsafe for DPS
investigators to continue the search for the two
individuals without logistical support. This request
would provide funding support to Chevak for the proper
disposal of fire debris containing asbestos at the
site, not to exceed $2.5M.
Mr. Steininger spoke to Item 3:
Endangered Species Act - Legal and Research Needs to
Protect State Right to Manage
FY2022 Request: $7,000,000
Reference No: AMD 43347
Brief Summary and Statement of Need:
This capital project provides funds to fight
unnecessary Endangered Species Act (ESA) actions. It
will help the state to avoid federal ESA regulatory
burdens and maintain the state's right to manage fish
and wildlife. This project enables the state's legal
and scientific engagement on ESA issues.
Mr. Steininger discussed Item 4:
RS2477 Access Development - Advancing State's Rights
in Navigability and Revised Statute 2477
FY2022 Request: $5,000,000
Reference No: AMD 63437
Brief Summary and Statement of Need:
This project would allow the Department of Natural
Resources to pursue additional research, in-depth
field work and, as necessary, litigation to secure
upland access to natural resources and for the public.
This effort critically assists in fulfilling the state
constitutional mandate to make resources "available
for maximum use consistent with the public interest."
RS 2477 investigation and confirmation is managed by
the Public Access Assertion and Defense (PAAD) Unit
within the DNR Division of Mining, Land and Water. RS
2477s are a distinct category of responsibility from
the navigability work that the Unit pursues.
10:42:14 AM
Co-Chair Stedman asked about Item 1. He asked whether the
program was for the entire state even though the named
recipient was Voice of the Arctic.
Mr. Steininger explained that Voice of the Arctic worked
specifically in the Arctic region of the state. He
furthered that this item was in a suite of items included
in the larger initiative by the executive branch to address
statehood rights issues.
Co-Chair Stedman appreciated the clarification.
10:43:53 AM
Senator Olson asked for an example of some of the statehood
rights issues that were anticipated in the next fiscal
year.
Mr. Steininger informed that Doug Vincent-Lang,
Commissioner, Department of Fish and Game was online and
could speak to the Endangered Species Act and the various
examples of statehood rights.
Senator Olson understood that DF&G was reflected in a
different line item.
Mr. Steininger asked whether Senator Olson was speaking
specifically to Item 1.
Senator Olson responded in the affirmative.
Mr. Steininger regretted that he did not have specifics for
the line item.
Co-Chair Bishop interjected and asked who on the invited
testifier list could best address the question.
Mr. Steininger did not have an available testifier to speak
to the Voice of the Arctic.
Co-Chair Bishop requested that someone from the executive
branch get back to the committee with information on the
line item.
Senator Olson asked for a list of all the items pertaining
to the administrations initiative on statehood rights.
10:45:47 AM
Mr. Steininger believed that Commissioner Vincent-Lang
could respond to questions on the matter.
Senator Olson felt that statehood rights and the overreach
of the federal government was always a concern of the
state. He asked about examples specific to the Arctic
region of the state.
Commissioner Vincent-Lang
DOUG VINCENT-LANG, COMMISSIONER, DEPARTMENT OF FISH AND
GAME (via teleconference), explained that Voice of the
Arctic was working on oil and gas issues, with respect to
incidental take regulations governing polar bears. He said
that the department, and members of the Voice of the Arctic
group, were crafting a model that would allow for oil and
gas exploration and expansion into new fields. He asserted
that restricting oil and gas operations in the state would
have statewide economic impacts. He said that other
concerning areas of federal overreach involved the 30X30
Initiative, which could lock vast amounts of landscape and
offshore areas into permanently protected status.
10:48:01 AM
Mr. Steininger referenced document A4, line 1:
Department: Commerce, Community, and Economic
Development
West Susitna Road Access: This project has completed
phase two of the pre-development feasibility planning,
which started in 2014 as the West Susitna Access Study
led by the Department of Transportation and Public
Facilitates as part of the agencys Roads to Resources
program. The purpose of the study was to identify
options for an optimal access corridor to a broader,
district-wide area of resources with connections to
Port MacKenzie.
UGF: $10 million
Mr. Steininger relayed that the project had previously been
included in the General Obligation Bond package, but an
amendment had been submitted to move it into the Capital
Budget.
Mr. Steininger addressed the remaining line items on
document A4:
Department: Commerce, Community, and Economic
Development
Ambler Road Pre-Construction Activities Including
Material Purchases: This project will provide an all
seasons access for exploration and development of
mineral resources within the Ambler mining district.
AIDEAs experience with similar transportation
infrastructure investments has shown that these
projects provide significant economic benefits and
long term high paying jobs throughout the region.
AIDEA expects the development of the Ambler Mining
Road to provide long term economic benefits to private
resource developers and the people of the State of
Alaska.
UGF: $7.5 million
Department: Commerce, Community, and Economic
Development
Named Recipient Grant Permanent Rehabilitation
Through Mat-Su Population Corridor: Grant funding to
the Matanuska-Susitna Borough to address pavement and
roadway rehabilitation and preservation, including
work to the Parks Highway in the Wasilla population
corridor, and other areas of need as determined by the
borough. This work may include crack sealing,
resurface treatment drainage, signage, guardrail
illumination, and other refurbishments to prolong the
life of read pavement and bridges and their safety
related structures. This includes national highway
systems lane delineators, destination and distance
signing, pavement markings and signalization,
abandoned vehicle programs, road resurfacing and
transfer, road resurface treatments, and improve curb
ramps to meet ADA standards.
UGF: $10 million
Department: Natural Resources
Arctic Strategic Transportation and Resource Project:
The Arctic Strategic Transportation and Resource
(ASTAR) as a partnership between the State of Alaska,
Department of Natural Resources and the North Slope
Borough. ASTAR seeks to work with North Slope
communities and stakeholders to identify projects,
resources, and studies which offer the most cumulative
benefit to the North Slope region and its communities.
UGF: $3 million
Department: Natural Resources
Alaska Real-Time Global Navigations Satellite System
Network: Alaskas existing Continuous Operating
Reference Stations (CORS) provide geodetic quality
Global Navigations Satellite System (GNSS) data at a
known location which enables users to improve three-
dimensional positioning, meteorology, public safety,
and geophysical applications. It is the cornerstone of
the National Spatial Reference System (NSRS). However,
Alaskas CORS are currently operating independently
and are not linked as a system. These linked systems
are called Real-Time GNSS Networks.
UGF: $3 million
Department: Transportation and Public Facilities
FHWA Allocation Denali Commission Infrastructure:
This project will enable the Denali Commission to
execute on targeted surface transportation projects in
rural Alaska. The Denali Commission was established
with a focus on promoting rural development in bulk
fuel storage, power generation, health care
facilitates, surface transportation and waterfront
facilities, communications systems, and specialty
housing. The Denali Commission Act affords the agency
significant latitude and authority to address issues
facing rural Alaska.
Fed Funds (CRRSSA): $15 million
10:50:46 AM
Co-Chair Stedman referenced Item 3 Named Recipient Grant
Permanent Rehabilitation Through Mat-Su Population
Corridor. He wondered whether there had been a typo and if
Mat-Su should be replaced with Southeast Islands. He
indicated his jest with a chuckle.
10:51:17 AM
Co-Chair Bishop asked about Item 1, West Susitna Road
Access. He understood that the original geo bond had been
for $8.5 million and wondered why the request was for $10
million.
10:51:43 AM
ALAN WEITZNER, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT (via teleconference),
explained that the increased cost was due to the full
funding permitting costs for the access road. He noted that
the previous bill had identified two particular areas to be
addressed in the road advancement. He said that originally
$4 million was requested to address the current winter road
extension from the West Susitna Parkway, across the Little
Susitna. He stated that the allocation was still sought for
an all-purpose road extension and a single-lane bridge
across the Little Susitna river. He said that the remainder
was an estimation of the full permitting cost to advance
the West Susitna Access Road as the project moved into the
Western Basin Mining District.
Co-Chair Bishop asked about the timeline to finish
permitting the project.
Mr. Weitzner relayed that early permitting feasibility work
for the necessary National Environment and Planning Agency
(NEPA)application was expected to be completed by February
2022. He shared that if able to complete the pre-
permitting, he believed that the permitting process would
be complete within the first quarter of 2024.
10:53:46 AM
Co-Chair Bishop asked about Item 2 and the Ambler Road pre-
construction activities and materials ask of $7.5 million.
He contended that the project was far from the construction
phase. He asked what kind of gravel would need to be
purchased in the next year.
Mr. Weitzner explained that the $7.5 million would
specifically address the impacts and requirements on the
Alaska Native Settlement Claims Act (ANSCA) lands that
would be crossed by the access road. He specified that that
the funds would be used for pre-planning, layout, and
design work necessary for gravel sites.
10:55:19 AM
Co-Chair Bishop surmised the work was still front-end and
that the request would ensure that when the time came to do
a project, gravel mining could be done.
Mr. Weitzner answered in the affirmative. He added that the
full $7.5 million might not be necessary and could be used
to address any specific requirements that arose from
working with the ANCSA Corporation.
10:55:59 AM
Co-Chair Bishop asked about Item 3 and the $10 million for
the Mat-Su.
Mr. Steininger deferred to the department to speak to the
item.
10:56:32 AM
Co-Chair Bishop understood that none of the requested money
would be put out to competitive bid, that the borough would
be procuring in-house contracts.
JOHN LINNELL, DEPUTY DIRECTOR, CENTRAL REGION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES (via
teleconference), relayed that he had not heard that
information but that he could not speak for the borough. He
shared that the Mat-Su borough manager had indicated a
willingness to work with the department, which had
suggested putting the work out to bid. He anticipated that
the borough would put the projects out to competitive bid.
10:57:27 AM
Senator Wilson asked whether the borough could use the
funds for the matching road bonds projects that were
currently out to bid.
Mr. Linnell understood that the funds would go directly to
the Mat-Su Borough and would be used to work on roads. He
could not speak to whether they could be used for a match.
Co-Chair Bishop looked at the backup information for the
project:
This work may include crack sealing, resurface
treatment drainage, signage, guardrail illumination,
and other refurbishments to prolong the life of read
pavement and bridges and their safety related
structures. This includes national highway systems
lane delineators, destination and distance signing,
pavement markings and signalization, abandoned vehicle
programs, road resurfacing and transfer, road
resurface treatments, and improve curb ramps to meet
ADA standards.
Co-Chair Bishop believed that the language was very clear.
Mr. Linnell concurred.
10:58:33 AM
Senator Wilson asked whether there was a ratio for funds
that needed to go to each of the previously mentioned
issues.
Mr. Linnell understood that the decisions would be up to
the borough's discretion.
10:59:23 AM
Senator Wielechowski asked whether the funding for the Mat-
Su borough would be used for state roads or local roads.
Mr. Steininger stated that the intention was to allow the
Mat-Su Borough to use the funds for borough roads,
inclusive of roads not managed by DOT.
Senator Wielechowski asked whether the administration would
support a similar appropriation for roads in Anchorage.
Mr. Steininger stated that the appropriation put forward
was for roads in the Mat-Su Borough; no appropriation had
been put forward for other areas of the state.
Senator Wielechowski suggested that an amendment to the
bill might be in order.
11:00:55 AM
Senator Olson mentioned comments by Senator Wielechowski
and thought borough road should be maintained by the
borough and state roads maintained by the state. He
stressed that there were roads in his districts that could
use attention as well.
11:01:20 AM
Senator Wilson also believed there were some state roads
that needed maintenance, and the borough had partnered with
the state in the past to do repairs. He mentioned that the
roads in the recipient area were in very bad shape.
11:02:23 AM
Co-Chair Bishop mentioned Item 4 and asked for an update on
the ASTAR Project. He asked whether the $5 million request
would bring the project through the permitting process.
BRENT GOODRUM, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES (via teleconference), deferred the question to
Steven Masterman.
STEVEN MASTERMAN, DIRECTOR, DIVISION OF GEOLOGICAL AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), relayed that the funding request was for
geological investigations that would provide the
information necessary for the design and eventual
construction of projects. He relayed that the planned
projects currently included the western part of the North
Slope between Wainwright, Utqiavik, and Atqasuk. He said
that there was considerable interest for a community
interconnected road and the area was one of the most
challenging areas of the state to located construction
materials. He said that the funds would help with the
drilling work necessary to find the resources to build the
road.
Co-Chair Bishop asked if there was an estimate as to what
it would cost to accomplish the permitting process.
Mr. Masterman did not have an estimate. He noted that the
departments role was the geological work and that the
design phase was beyond his level of expertise. He
estimated that the work that DNR needed to do would total
approximately $10 million.
11:05:20 AM
Co-Chair Bishop asked about Item 5, the Alaska Real-Time
Global Navigations Satellite System Network. He asked for
background on the request.
11:05:38 AM
Senator Olson asked whether the road on the North Slope
would be used year-round.
Mr. Masterman stated the intent was to look for sand and
gravel to build an all-season road.
11:05:58 AM
Co-Chair Bishop asked about Item 5. He asked Mr. Masterman
how the network would assist in the field work.
Mr. Masterman related that any kind of land survey relied
on GPS location, so having a real-time location was time
saving and therefore saved money.
11:07:32 AM
Mr. Goodrum interjected that Marty Parsons could offer
further details on the item.
11:07:51 AM
Co-Chair Bishop understood that typically it took four
hours for a GPS system to acquire; this system would allow
for real-time acquisition.
MARTY PARSONS, DIRECTOR, DIVISION OF MINING, LAND, AND
WATER, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), thought Co-Chair Bishop had described the
situation accurately. He expanded that the system upgrade
would streamline the data collecting process by reducing
the time and expense of data collection and would result in
more accurate data.
11:09:53 AM
Senator Olson queried the difference between this system
and a traditional GPS system maintained by the federal
government.
Mr. Parsons relayed that the request was for a statewide
network that would increase the number of stations across
Alaska. He said that the federal government currently had a
satellite system with reference stations that provided
scattered reference points. He said that the new system
would allow for more accurate and real-time data.
11:12:02 AM
Co-Chair Stedman wanted to discuss the Denali Commission
and Item 6. He expressed hope that the commission would
execute the appropriation quickly and frugally. He thought
the state was anticipating a huge infrastructure program
from the federal government that could double the amount to
the state for highways and airports over the next 8 years.
He thought if the commission could execute projects there
could be generous funding flowing to the commission over
the next few years. He expressed concern that there would
be more funds available for DOT than the department had
throughput ability.
11:13:43 AM
Senator Olson noted that the said that the airport in
Golivin needed to be refurbished.
11:13:59 AM
Senator Wielechowski mentioned Item 1 and the West Susitna
Road Access Project. He asked how much of the road was
completed.
Mr. Weitzner replied that the appropriation would complete
the permitting process
Senator Wielechowski wanted more detail about how the money
had been spent to date. He contended that the amount spent
so far seemed high for a return of only studies.
Co-Chair Bishop stated that a report would be submitted
from OMB.
11:15:24 AM
Senator Olson agreed that $100 million for studies should
be scrutinized. He asked about the mileage of the completed
Winter Access road, which was the only product of the $100
million aside from the studies
Mr. Weitzner relayed that the road was 6.7 miles. He was
unable to give full clarification regarding the previous
funding because AIDEA had not been involved in the
utilization of the funding.
Co-Chair Bishop knew that the project was a multi-use
appropriation.
11:16:22 AM
Senator Olson asked whether the road was used year-round.
Co-Chair Bishop understood that the road would be year-
round at some point.
Mr. Weitzner relayed that the road was currently for winter
access and was marginally used for fire-suppression
control. He said that the intent was to make it an all-
season road.
11:17:04 AM
Mr. Steininger addressed the spreadsheet labeled A6, which
reflected the budget transactions that implemented the
offset of UGF in DOT's operating budget. He relayed that
the table reflected use of federal funding through CARES or
CRRSSA that was available for us for operation costs in
DOT. He said that in a prior amendment there had been
several accounting positions that were required to be paid
for with the funds to ensure that the state could meet
reporting requirement to federal agencies to implement
offsets of general fund costs. The offsets were short term
in nature, and there would be a restoration of the funds in
future budgets.
Co-Chair Bishop asked whether the accounting positions were
with OMB.
Mr. Steininger explained that the positions would be non-
permanent positions within DOT.
11:18:31 AM
Mr. Steininger addressed Packet B, containing amendments
submitted by the administration on May 11, 2021. He noted
that document B1 was the transmittal letter, which
summarized the items. He drew committee attention to
document B2, which was a spreadsheet listing further detail
on the items.
Mr. Steininger addressed Item 1, which was an item in the
Department of Health and Social Services and had previously
been included in the general obligation bond package:
Department: Health and Social Services
Fairbanks Youth Facility Safety and Security
Renovation
The Fairbanks Youth Facility, originally constructed
in the 1970s, provides a secure detention program for
boys and girls, treatment services for boys, and
provides space for Fairbanks juvenile probation and
administrative staff. The building has antiquated
mechanical systems that are in need of replacement,
including heating, electrical and plumbing. The
current building does not provide for ideal safety and
security of staff and residents or allow for efficient
programming and operations. Development of a secure
facility entry point that includes a screening area,
an intake, transfer and release station, and a medical
suite comprise the major projects that will correct
most of the deficiencies in the facility.
Other Funds: $18,986.720
Mr. Steininger shared that the item had been resubmitted to
change the fund source; the fund source being used was the
Norther Tobacco Securitization Corporation bonding
receipts. He said that the corporation was seeking to
refinance at low interest rates and would make available
additional bonding capacity, which must be used for certain
types of projects to maintain their tax-exempt status. He
related that the project at the Fairbanks Youth Facility
met the criteria.
Mr. Steininger continued to Item 2:
Department: Natural Resources
Advance Surveys for all State Lands Including
Agriculture and Mariculture
Alaska has all the qualities of an ideal environment
for agriculture and mariculture development, however
access is one of the largest hurdles to the full
development of land in Alaska. Building roads and
bringing in utilities to quality state lands will
stimulate growth and help make large-scale farming
successful, which will in turn grow Alaskas economy.
This initial investment will provide the structure for
continued, sustainable agriculture and mariculture
that will create new jobs and opportunities for
business and entrepreneurs, a sustainable way of life
for farming families, and address food security in
Alaska.
UGF: $7,500,000
Mr. Steininger continued to Item 3:
Department: Natural Resources
Permit Backlog Reduction
The Division of Mining, Land, and Waters mission is
to provide for the appropriate use and management of
Alaskas state-owned land and water, aiming toward
maximum use consistent with the public interest. This
water rights backlog project will aid the division in
achieving its mission by delivering Alaskans water
rights that are legitimately requested from the
department. This project will allow the division to
process and adjudicate new land applications quicker
and more efficiently.
UGF: $7,000,000
Mr. Steininger continued to item 4:
Department: Natural Resources
Land Development for Nenana-Totchaket
This project is the development of a 100,000+ acre
agricultural development project in the Nenana-
Totchaket region in interior Alaska, increasing both
the availability of land and local food security. This
project will provide land for agricultural use which
has been surveyed and basic access roads installed.
This will support the local and regional production of
foodstuffs necessary to support the citizens of Alaska
now and into the future and will diversify and
strengthen the states economy.
UGF: $5,000,000
Co-Chair Bishop asked for more detail on the $7 million for
the permit backlog in Item 3.
Mr. Parsons relayed that DNR had struggled with a backlog
in authorizations, which had stemmed from working with
paper files rather than electronic files that could be
share easily with many parties. He stated that the
department proposed to work through existing paper files
with long-term non-permanent (LTNP) positions to update the
paper files to digital. He related that this would make for
more efficient files sharing system. He noted that proposal
would standardize the collection of information so that it
could be easily discernable by adjudicators and expedite
that authorization process.
11:23:30 AM
Co-Chair Bishop asked about the timeline for completion of
the project.
Mr. Parsons did not think the task would be simple. He
believed it would take a minimum of three years (maximum of
five years) to complete.
Co-Chair Bishop asked whether the requested funds would
complete the project.
Mr. Parsons affirmed that the funds would be sufficient for
completion.
11:24:24 AM
Co-Chair Stedman asked about the permitting backlog at DNR,
which he recalled was sizeable. He queried the current
number of backlogged permits.
Mr. Parsons believed that there had been over 2600
backlogged permits at the beginning of the process, and
currently there were under 940. He said that the permit
applications were being assessed to determine which were
backlogged and which were current.
Co-Chair Stedman asked for explanation as to whether
Alaskans should be applying for water permits for remote
residencies.
Mr. Parsons expressed that it was always important for
individuals who wished to acquire a water right to apply to
the division. He shared that there were approximately 516
existing applications in the queue, and as the state
matured there was more pressure to look at the permits and
consider whether aquifers were being over-appropriated. He
stated that part of the request would put staff to work
through the 516 backlogged applications to avoid over-
appropriation of the aquifer.
Co-Chair Bishop handed the gavel to Co-Chair Stedman.
11:27:42 AM
Senator Wilson had questions about Item 2 and Item 4. He
thought that the language in Item 2 was vague as to what
type of projects the money could be spent on, and he
requested further clarification on the kind of projects for
which the funds would be spent.
Mr. Steininger thought the department would be best suited
to provide specifics.
Mr. Goodrum expressed that the administration was
interested in putting more land in the hands of state
residents for development. He said that some of the funds
would be used to determine which lands and could be put out
for sale and for improved accessibility to state lands.
Co-Chair Stedman handed the gavel back to Co-Chair Bishop.
11:29:20 AM
Mr. Parsons addressed Senator Wilson's question about Item
2. He noted that mariculture and aquaculture was one of the
fastest growing areas of authorization for which DNR
received applications. He stressed the importance of
avoiding over-authorizing areas for development or
interfering with other operations.
11:30:44 AM
DAVID SCHADE, DIRECTOR, DIVISION OF AGRICULTURE (via
teleconference), highlighted that the funding would be used
for infrastructure and utilities. He explained that there
were two major projects that the Division of Agriculture
and the Division of Mining, Land, and Water were working
on. First was the Nenana-Totchaket Project, which was in
phase one of three phases. He stated that the second major
agriculture project was Near Anchor Point. He said that
agricultural and general use lands had been identified. He
explained that the projects would begin with a survey. He
said that the governor supported getting lands into private
hands. He stated that utilities had to be in place for
projects to move forward. He spoke to mariculture and loans
that had been recently awarded.
11:34:16 AM
Senator Wilson was confused that Mr. Schade had mentioned a
project under Item 4 and wondered whether the funds for
Item 2 would be used for the Nenana-Totchaket project. He
expressed support for the projects mentioned by the
testifiers.
Mr. Schade reiterated that the two projects were estimated
at 23.5 million. He said the two requests were 50 percent
of identified needs. He elaborated that federal funding and
rural grants could be used to leverage the projects
forward. He asserted that the demand for the lands was very
active and the first sale was expected in fall 2021.
11:37:00 AM
Co-Chair Bishop asked whether the funds would be used in-
house or would be expended to private firms.
Mr. Schade said that the state lacked enteral capacity to
support the projects. Most of the funds would be expended
on private surveying and private road companies.
11:37:49 AM
Senator Wilson asked for clarification regarding whether
the funding for Item 2 could be used for Item 4, or if the
funds were separate.
Mr. Schade thought that the first $5 million would be used
for the Nenana-Totchaket project. He said that the other
funds would be used partially for Nenana-Totchaket,
partially for the project at Anchor Point, and partially to
survey and identify mariculture areas where there could be
competing applications.
11:39:19 AM
Senator Wilson was not opposed to the projects but thought
the funding configuration was confusing.
11:39:46 AM
Senator Wielechowski asked about Item 2 and Item 4. He
asked whether there were existing landowners that would
benefit from the requested funds.
Mr. Schade replied in the affirmative. He noted that the
Nenana-Totchaket project involved Native Corporation land,
Native Village land, University land, and Alaska Mental
Health Trust land, and general state land. He shared that
the Anchor Point project had revealed some access problems,
which the department was working to alleviate.
Senator Wielechowski thought there was a level of capital
request that had not been seen in years. He asked how the
requests should be funded.
Mr. Steininger mentioned offsetting GF dollars in DOT as
referenced earlier. He explained that the administration
saw the projects as an opportunity to develop state lands
and invest in to be able to better respond to future
infrastructure investments.
11:42:51 AM
Senator Wielechowski did not dispute that the project were
good ideas, but he inquired how the projects would be
funded. He asked whether the administration was proposing
cuts or proposing new revenue.
Mr. Steininger relayed that the administration proposed to
use UGF for the projects. He said that the projects fit
within the governors overall budget proposal and the
overall fiscal package with other pieces put forward by the
administration.
11:43:40 AM
Senator Wielechowski asserted that the state had a $1
billion deficit and reiterated his question as to where the
administration expected to find the general funds to pay
for the capital requests.
Mr. Steininger stated that the executive branch had several
proposals in front of the legislature regarding the overall
fiscal picture of the state. He asserted that one of the
special session calls included the option for discussion on
state revenue.
Co-Chair Bishop relayed that the meeting would recess until
9 o'clock a.m. the following day.
11:45:36 AM
RECESSED
ADJOURNMENT
12:28:20 PM
The meeting was adjourned at 12:28 p.m. on the following
day, Sunday, May 16, 2021.