Legislature(2023 - 2024)BARNES 124
05/02/2023 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Investing in Water/sewer Infrastructure in Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
^PRESENTATION(S): Investing in Water/Sewer Infrastructure in
Alaska
PRESENTATION(S): Investing in Water/Sewer Infrastructure in
Alaska
[Contains discussion of HB 178.]
8:06:13 AM
CHAIR MCCORMICK announced that the only order of business would
be a presentation on investing in the water and sewer
infrastructure in Alaska. [The presentation is a continuation
from the meetings on April 20, 2023, and April 25, 2023.]
8:06:52 AM
CARRIE BOHAN, Program Manager, Facilities Services, Division of
Water, Department of Environmental Conservation (DEC), continued
the presentation on the Village Safe Water program. She
referred to slide 10, titled "Village Safe Water Project
Prioritization," which addressed the application process for new
projects. She reiterated that all new projects must show a
planning effort. For this process there is a review committee
using a collaborative approach. She expressed the hope that
this approach would help communities have a planning document
for a project that could be funded from any of the funding
agencies. She stated that the projects would be scored on the
provided health benefits, how the community rates in its current
level of service, and the technical, financial, and managerial
capacity of the community. She added that other aspects of the
communities could be awarded a small amount of points. She
commented on the multi-year project process and how this helps
with project estimates and funding. She stated that once
funding is committed to a project, the project will be on the
project list until it is completed.
8:10:23 AM
MS. BOHAN continued to slide 11, which listed several projects
the Village Safe Water program is currently constructing. She
gave details on projects in Unalakleet, Wales, Nunapitchuk, St.
Paul, Shaktoolik, and St. George. She moved to slide 12, titled
"Village Safe Water SFY24 Governor's Budget." She pointed out
that the capital requests are substantial, with the bulk of
funding being tied to the Indian Health Services (IHS) and the
U.S. Environmental Protection Agency (EPA).
MS. BOHAN continued to slide 13 and stated that once utilities
are built, the program would provide support. She stated that
funding for this support would be from EPA and the U.S.
Department of Agriculture. She stated that when there is no
willing partner in a region, the division has staff to provide
training and preventative maintenance. She added that this
support staff would also respond to emergencies, which occur
most often in the worst of weather. She noted the detailed data
concerning emergency response and support on the slide.
MS. BOHAN moved to slide 14, titled "Village Safe Water and
Sewer Challenge." She stated that in reaction to projects being
underfunded, an international challenge was created with the
goal to have teams develop prototypes for in-home water reuse.
She stated that the University of Alaska Anchorage's team was
the most successful in developing a unit, which is now in the
testing stages. She expressed hope that the next stage of using
the recycled water would be soon, so this could be deployed in
homes where it is "unreasonably expensive to get a pipe there."
8:17:15 AM
REPRESENTATIVE HIMSCHOOT asked if containers would be brought
out to these houses to have a contained system.
MS. BOHAN responded that this is exactly the idea. In response
to a follow-up question, she replied that captured grey water
would be treated for reuse, with wastewater being disposed
through a haul out or septic system.
8:18:42 AM
MS. BOHAN moved to slide 15, titled "Village Safe Water Current
Challenges." She stated that IHS does have the funding for
underserved communities; however, she expressed concern that the
funding is awarded without the consideration of communities
having sufficient support after the service is provided. She
discussed the gaps created when IHS cannot provide the funding.
She pointed out the challenge concerning staffing for the
engineers, contractors, and laborers needed. Along with this
challenge, she pointed out the difficulty in obtaining the
materials, and the rising costs of these materials. She
addressed lack of guidance for the requirements for the federal
Build America, Buy America program.
MS. BOHAN proceeded to slide 16 and discussed the State
Revolving Fund loan program, which is a low-interest loan
program. She stated that the program receives grants from EPA
each year, with the state contributing a 20 percent match. She
explained why this funding has decreased over the years.
8:22:29 AM
REPRESENTATIVE MCCABE questioned the process and whether a
representative from the Village Safe Water program would contact
the underserved communities or would the communities need to
contact the program.
MS. BOHAN replied that there is a pool of about 40 communities
of regular borrowers that come for loans. She suggested that
because of staffing changes the program has not been as
proactive in reaching out to communities. She pointed out the
program is being funded by the Infrastructure Investment and
Jobs Act (IIJA) and EPA, so there are now funds for outreach,
and the program is engaged in a "big push" to inform
communities.
REPRESENTATIVE MCCABE questioned whether the federal funding
would be subject to the population limits of the Village Safe
Water Act.
MS. BOHAN replied that the Village Safe Water program is a
separate program, so there would be different requirements, as
municipalities and privately owned utilities are regulated by
the Regulatory Commission of Alaska (RCA). In response to a
follow-up question, she stated that RCA looks at the burden to
the communities concerning the rates, so for those with
privately owned utilities, RCA would make sure the loans
received could be paid back without [the burden of high utility
rates]. She suggested that this requirement is "archaic," but
it is still part of the statute.
8:28:32 AM
MS. BOHAN continued onto slide 17, which showed the first year
of IIJA funding and the Village Safe Water program's "game plan"
for the year. She discussed how the plan would be administered
and how the money would be spent. She pointed out that some of
the funding sources require the money go to disadvantaged
communities, adding that the definition of "disadvantaged
communities" is being reworked. She concluded the presentation
on slide 18 and requested questions.
8:31:42 AM
CHAIR MCCORMICK questioned whether HB 178 would make any changes
to this process.
8:32:03 AM
RANDY BATES, Director, Division of Water, Department of
Environmental Conservation, answered that the division is aware
of the bill. He stated that because of the wording and lack of
definitions in the bill, it would not impact capacity assessment
or the awarding of funding.
8:32:49 AM
REPRESENTATIVE MEARS expressed concern about the communities
that would not meet the scoring threshold; therefore, they would
not receive funding. She questioned any additional "building
blocks" that could be offered to help these communities.
MS. BOHAN replied that there are several different opportunities
for these communities, including the Rural Utility Business
Advisory and Remote Maintenance Work Program. She added that
the Alaska Municipal League (AML) would be receiving grant
funding from EPA, which would target wastewater systems. In
response to a follow-up question, she expressed the hope that
these communities would be helped. She expressed the
understanding that, from conversations with AML, AML is willing
to help. However, she suggested that there is more work to be
done than assistance provided.
8:35:16 AM
REPRESENTATIVE MCKAY expressed curiosity as to whether there is
an end to this. He pointed out the 47 villages that need help
and questioned whether there is a progression to an end.
MS. BOHAN replied that presently the Alaska Native Tribal Health
Consortium has been doing expansive efforts to decide what is
the right direction to take, and it is moving through planning
efforts as quickly as possible. She suggested that designing a
project entails a 2-year process, while construction entails a
5-year effort. She suggested that in 15 years there would be
substantial progress. Once services are installed, she stated
that many the communities will struggle to support the services.
She advised that funding is already being given to older systems
that need support. She concluded that in general this is an
ongoing process. In response to a follow-up question, she
stated that the alternative to pipe service would be a haul
system, or wells and sceptics.
8:38:52 AM
REPRESENTATIVE MCCABE asked what it would take to make HB 178 a
more viable bill.
MR. BATES replied that the division has not had any
conversations with the sponsors of this bill, so at this point
he expressed uncertainty concerning what is being sought with
the proposed legislation. He pointed out that first and
foremost there are requirements that the division must follow,
such as the capacity issue. He explained that this issue would
be addressed through the Operations and Maintenance Best
Practices ("Best Practices") scoring. He suggested that HB 178
is trying to get around the assessment. He stated that now the
division is working on improving service, and he discussed how
this is being done.
REPRESENTATIVE MCCABE expressed the understanding that when a
community fails, the assessment tool is important. He stated
that the tool may need development, but not circumvented. He
pointed out the two bills [including HB 178] that are now "in
play" and requested any recommendation on how these bills may be
made better.
MR. BATES expressed interest. He suggested that some simple
changes to statute in relation to RCA could provide a
significant change for eligibility. He stated that there are
"three big pots" of money, and the division intends to use these
for the communities with the need.
8:45:11 AM
REPRESENTATIVE HIMSCHOOT, returning to slide 13, pointed out
that all the communities have gone through the Best Practices
tool, and should be set up; however, 48 emergency trips a year
have been required. She questioned whether this is standard.
MS. BOHAN responded that 50 emergency trips a year has been the
average over the past several years. She stated that Best
Practices scoring has been used since 2015; therefore,
communities have been through the assessment prior to funding.
She pointed out that different aspects are continually changing,
and the situation is cyclic. She mentioned the changing climate
situation.
MR. BATES continued the explanation and referred to Angoon's
early freeze last year, which caused a significant issue, and
this was unrelated to the community's capacity. He stated that
breakdowns always occur in inclement weather.
8:49:08 AM
REPRESENTATIVE HIMSCHOOT commented that in 2023 there are
communities living in less than sanitary conditions. She stated
that if there is a regulatory barrier to getting services to
these communities, the division can contact her office with any
regulatory change that is needed.
8:50:21 AM
CHAIR MCCORMICK questioned the biggest barrier to bringing these
[sanitation] services to the underserved communities.
MR. BATES stated that there is a list of barriers, including
money and time.
MS. BOHAN replied that historically the barrier has always been
the money; however, now with IIJA funding this is not the case.
She stated that the biggest barrier now is a clear path for
communities to remain sustainable after the infrastructure is
built.
8:52:50 AM
REPRESENTATIVE MCCABE asked what the biggest cost driver is for
managing utilities. He suggested that it is the cost of power.
MS. BOHAN expressed agreement. She stated that in the
communities that remain unserved in Northern and Western Alaska,
40 percent of operational cost is from the energy, as diesel is
still used there.
8:54:02 AM
REPRESENTATIVE RUFFRIDGE questioned what other Arctic
environments are doing to address sanitation and water supply.
MS. BOHAN replied that the division has investigated what other
Arctic states and nations are doing. She discussed some other
methods in dealing with these issues.
MR. BATES reminded the committee that IIJA is not just one-time
funding, but funding for 5 fiscal years for the infrastructure
program, which relates to 10-years' worth of work. He expressed
the understanding that it feels like a rush to do this, but he
noted that there is time. He reiterated that it is the
division's intention to spend every available dollar to assist
in building the facilities, as well as supporting communities
and their capacity to own and operate the facilities.
8:57:46 AM
CHAIR MCCORMICK provided ending comments and thanked the
presenters.
8:58:37 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:59 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DEC VSW Overview HCRA 04.20.23.pdf |
HCRA 4/20/2023 8:00:00 AM HCRA 4/25/2023 8:00:00 AM HCRA 5/2/2023 8:00:00 AM |
DEC |