04/06/1993 01:00 PM House CRA

  HJR 37:  FED MONEY FOR RURAL WATER/SEWER PROJECTS                            
                                                                               
  ROGER MCKOWAN, LEGISLATIVE STAFF TO REPRESENTATIVE LYMAN                     
  HOFFMAN, testified on his behalf saying, "In the summer of                   
  1990, nearly a quarter of the residents of the village of                    
  Kotlik were victims of viral meningitis...I think we all                     
  understand there are some very critical water and sewer                      
  problems in rural Alaska.  In an ongoing effort to identify                  
  sources of funding for rectifying these situations,                          
  Representative Hoffman has come into contact with HJR 1033                   
  in Congress.  This piece of legislation is sponsored by                      
  Congressman Hayes of Louisiana and suggests that the federal                 
  government should provide 300 million dollars a year for six                 
  consecutive years...for constructing water and sewer                         
  projects in economically depressed rural communities."                       
                                                                               
  MR. MCKOWAN continued, "Under the intent currently                           
  established in HJR 1033, the allotments would be made to the                 
  states in the ratio which the population and economically                    
  distressed rural communities of each state bears to the                      
  total population in economically distressed rural                            
  communities of all the states...  In a 1990 report to                        
  Congress, the EPA (Environmental Protection Agency)                          
  estimated that 74 percent of the nation's Native wastewater                  
  problems were located in the state of Alaska."                               
                                                                               
  MR. MCKOWAN continued further, "The governor has asked for                   
  26 million dollars for village safe water through the DEC...                 
  Should HJR 1033 pass...the state of Alaska would qualify for                 
  45 million dollars.  It is a 90 percent federal match, so                    
  rather than go in and have to spend 26 million dollars in                    
  general funds to accomplish (less)...it is my understanding,                 
  that the state, through Village Safe Water dollars, could go                 
  in with five million dollars, purchase 45 million more                       
  dollars, through the federal government, accomplish all the                  
  projects that are listed...on this prioritized list and save                 
  the state 20 million dollars approximately, in general fund                  
  dollars..."                                                                  
                                                                               
  Number 560                                                                   
                                                                               
  REPRESENTATIVE ED WILLIS pointed out that a Glennallen                       
  water/sewer project was on the governor's priority list.  (A                 
  copy of this list may be found in the House Community and                    
  Regional Affairs Committee Room, Capitol Room 126, and after                 
  the adjournment of the second session of the 18th Alaska                     
  State Legislature, in the Legislative Reference Library.)                    
                                                                               
  REPRESENTATIVE TOOHEY asked if the governor's priority list                  
  included population considerations.                                          
                                                                               
  Number 578                                                                   
                                                                               
  KEITH KELTON, DIRECTOR, DIVISION FACILITY CONSTRUCTION                       
  OPERATION, ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION,                  
  indicated that materials providing this information had been                 
  distributed to legislators.  He added, "We are very much in                  
  support of HJR 37...  HJR 1033 is the first comprehensive                    
  attempt to try to provide grants for those smaller                           
  communities which are unable to afford the loan programs...                  
  We think it would be a very good tool to have in the box                     
  with rural communities...  This is just one of the possible                  
  sources of revenue and a very attractive option at this                      
  time, and the timing on this is very good."                                  
                                                                               
  Number 630                                                                   
                                                                               
  CHAIRMAN OLBERG asked about the dollar sign notation on the                  
  governor's priority list.                                                    
                                                                               
  MR. KELTON explained, "The dollar figures that are shown on                  
  there relate to basically two programs.  It is either a                      
  match with the U.S. Public Health Service on projects where                  
  we are going in jointly, or the Environmental Protection                     
  Agency has had a very limited program called the Indian Set                  
  Aside Program where basically half of one percent of the                     
  total federal appropriation for wastewater has been                          
  available for Indian Set Aside Projects.  ...The total                       
  identified need is over 1.2 billion dollars for rural                        
  Alaska, so we have a long ways to go unless we get a steady                  
  sustained source of funding, and we are looking at the                       
  federal government to pick up part of it."                                   
                                                                               
  Number 651                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked, "Again, is there any limit on                   
  the amount of people in a village that precludes the fact                    
  that they can have a sewer system?  If you have ten people                   
  that set up camp in Iditarod, does that equate to a fact                     
  that they can have a sewer and water system?"                                
                                                                               
  MR. KELTON said, "That is a very good question and one we                    
  have wrestled with for years.  The way we have addressed                     
  that is the priority list that is handed out is developed                    
  through a series of evaluation criteria...obviously, those                   
  that have the bigger problem associated with a larger                        
  population are going to be at the top of the list.  So we                    
  are addressing the bigger needs and if we ever get down to                   
  the point where we are talking about ten people, then                        
  perhaps we will have a real question to answer..."                           
                                                                               
  Number 678                                                                   
                                                                               
  REPRESENTATIVE SANDERS MOVED that HJR 37 be moved out of                     
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 1:53 p.m.