Legislature(2013 - 2014)HOUSE FINANCE 519
01/25/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB65 || HB66 | |
| Fy 14 Governor's Budget Overview: Department of Environmental Conservation | |
| Fy 14 Governor's Budget Overview: Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 65 | TELECONFERENCED | |
| += | HB 66 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 65
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, amending
appropriations, and making reappropriations; and
providing for an effective date."
HOUSE BILL NO. 66
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:34:27 PM
LARRY HARTIG, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION (DEC), introduced himself.
THOMAS CHERIAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
introduced himself.
^FY 14 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF
ENVIRONMENTAL CONSERVATION
1:35:53 PM
Commissioner Hartig discussed the PowerPoint, "Department
of Environmental Conservation, House Finance Overview"
(copy on file). He looked at slide 2: "DEC's Mission."
Protects human health and the environment.
Commissioner Hartig detailed slide 3: "Responsibilities and
Functions."
-Develop standards
-Issue permits
-Provide compliance and financial assistance
-Respond to spills of oil and other hazardous
substances
-Safeguard the quality of food and seafood
-Operate the State Environmental Health Lab
-House the Office of the State Veterinarian
-Regulate pesticides and certain types of use
-Educate and assist the public
-Interact with our federal agency counterparts
-Investigate violations and enforce state law
Commissioner Hartig explained that compliance was often
enabled with the help of the agency.
Commissioner Hartig explained slide 4: "Divisions."
-Administration
-Environmental Health
-Air Quality
-Spill Prevention and Response
-Water
1:37:50 PM
Commissioner Hartig discussed the various divisions which
were used to divide the various responsibilities of the
division. The Division of Administration included in crime
unit. He noted that the work with the law enforcement
agencies. He noted that the criminal investigations. He
noted that some challenges included the human resource
capacity. The public sector had an aging demographic. The
average level of experience in spill response was 31 years.
Commissioner Hartig detailed slide 5: "Division of
Administration."
Components:
Commissioner's Office
Administrative Services
-Environmental Crimes Unit
-Information Services
-Financial Services
-Budget Services
-Procurement and Building Management
State Support Services
-Lease and Contracts
Commissioner: Larry Hartig
Deputy: Lynn Kent
Director: Tom Cherian
Challenges:
Reintegration of Human Resources staff to
Department
Recruitment and Workforce Development
-Aging workforce at or near retirement
-Highly specialized job classes
1:42:02 PM
Commissioner Hartig noted that the quality of water was
regulated by systems. He stated that the two increments
included that all of the public drinking water plants must
follow the rules. He stated that all systems received $11
million in federal funding to implement the new rules. He
stated that communities were helped to comply with the
rules including food safety and environmental health. He
noted that the division addressed the entire state to
inspect facilities to determine risks. He stated that the
federal government required and additional 31 people and
$200 million, and as a result the risks were substantially
lower.
Co-Chair Austerman pointed out saving questions until the
end. Commissioner Hartig mentioned that the need for the
tsunami corrections.
Commissioner Hartig discussed slide 6: "Division of
Environmental Health."
Components:
-Director's Office
-Food Safety and Sanitation
-Laboratory Services
-Drinking Water Solid Waste Management
Also:
-Building Maintenance and Operations
Acting Director: Elaine Busse Floyd
Challenges
-Drinking Water EPA Rule Implementation
-High Risk Food Safety Inspections
-Unique Laboratory Technology and Equipment Needs
Commissioner Hartig discussed the Fairbank's air quality
assessment as addressed by Representative Wilson. He
mentioned the declining federal funding, and noted that
different divisions had different funds and some would be
forced to react.
Commissioner Hartig detailed slide 7: "Division of Air
Quality."
Components:
-Director's Office
-Air Quality
Director: Alice Edwards
Challenges:
-Fairbanks Air Quality
Declining Federal Funding
1:47:44 PM
Commissioner Hartig remarked that a large portion of
operating funds came from the five cent barrel tax. He
shared that the as the waters above Alaska and near Russia
were opening up, DEC would face new regulatory challenges.
Commissioner Hartig detailed slide 8: "Division of Spill
Prevention and Response."
Components:
-Director's Office
-Industry Preparedness and Pipeline Operations
-Prevention and Emergency Response
-Contaminated Sites Program
-Response Fund Administration
Director: Larry Dietrick
Challenges:
-Declining Prevention Account Balance
-Increasing Natural Resource Activity
Commissioner Hartig discussed slide 9: "Division of Water."
Components:
Water Quality
Facility Construction
-Village Safe Water Program
-Municipal Grants & Loan Program
Director: Michelle Bonnet Hale
Challenges:
-Continuing to build APDES permitting program
-Sustaining the Village Safe Water Program
Commissioner Hartig detailed slide 10: "FY 14 Budget
Request."
Operating Request: $85,271.1 2.2 percent growth
$1,052.2 GF
Capital Request: $96,905.8
Commissioner Hartig explained that the federal portion had
many strings attached. He pointed out the capital request
under the all funds section. He noted that the capital
money was used to fund sewer and water projects in Alaska.
He explained the various projects included in the
department's capital requests, and noted that federal law
led to loan forgiveness under the capital request.
Commissioner Hartig pointed out slide 11: "FY 14 Operating
Budget by Fund Source." He noted that the fees were
provided for various permits. The bars for the various
divisions and he stated that air quality program must be
run by fees collected.
Mr. Hartig detailed slide 12: "How the Response Fund
Works."
Response Account
Funded by 1¢ surcharge on each barrel of oil.
Surcharge suspended when fund exceeds $50
Million.
-Suspended as of January 1, 2013
Pays for emergency response activities.
Department recovers costs from identified
responsible parties.
Prevention Account
Funded by a 4 cent surcharge on each barrel of
oil.
Pays for operational costs and readiness
activities within the Spill Prevention & Response
Division.
1:54:32 PM
Commissioner Hartig detailed slide 13: "Status of the
Prevention Account." He noted that the graph detailed the
decline in the prevention account. He stated that there was
a surplus 20 years prior. He furthered that the funds were
decreasing substantially, because of oil production
decline.
Commissioner Hartig detailed slide 14: "Status of the
Prevention Account." He noted that the graph showed FY 13
and the spills and the cost of the projected through FY 22.
He continued to detail the graph and the one-time
expenditures and the projected total expenses.
Commissioner Hartig detailed slide 15: "Rural Water and
Sewer." He noted that the graph showed federal and state
contribution declining. Funding for rural Alaska sanitation
projects had declined by over $61 million, or 64 percent,
between 2004 and 2013. The graph on the right included two
types of needs: 1) First time service for homes without
piped or covered haul; and 2) Upgrades or replacement to
address significant health threats.
1:59:39 PM
Commissioner Hartig described slide 16: "Village Safe
Water: New Approaches."
$667 Million = Current Cost of unfunded significant
health related water and sewer needs in rural Alaska.
State/Federal funding insufficient to construct new
systems or ensure continued functionality of aging
systems.
New Technologies
-Innovative and new approaches are needed in
Alaska villages in order to cut capital and
operating costs of providing running water and
sewer.
-Issues a challenge to the private sector.
-Three-Phased Approach:
FY13: Request For Proposals (RFP) and
selection for funding.
FY14: Demonstration of projects, research
and development.
FY15: Initial pilot testing and refinement
for implementation.
"Band-Aid" Projects
-Repairs and enhancements to prolong useable life
of select systems.
Commissioner Hartig detailed slide 17: "Leg. Finance: 10
year look back (GF Only)." He mentioned the various
programs paid for by attacks on vessels. He remarked that
some funds had been transferred from the University of
Alaska budget (UA) to DEC. The growing programs were the
ocean rangers program and the drinking water program.
Commissioner Hartig described slide 18: "Leg. Finance: 10
Year Plan Growth (GF Only)." He stated that the graph
detailed all of the needs for the increases of the
department needs.
Commissioner Hartig displayed slide 20: "Leg. Finance: 10
Year Plan Growth (GF Only)."
2:05:28 PM
Commissioner Hartig discussed slide 21: "Department: 10-
Year Plan Highlights."
Operating Budget
-Assumes AGIA startup in FY2016.
-General funds to address inspection rates at
high-risk food establishments from FY2015 to
FY2023.
-Retain drinking water primacy by adopting
additional required rules.
-Permits, approvals, oversight, and response of
large mining projects throughout the state
starting in FY2015.
Capital Budget
-Replaces declining federal funds with general
funds in the Village Safe Water program beginning
in FY2015.
Commissioner Hartig discussed slide 22: "Current Challenges
to Departmental Performance." He noted that the contingency
plans for the current permits and enforcement actions.
Increasing development activity and strained personnel
resources threated permitting timelines. He stressed that
the burden of new EPA rules threatened drinking water
safety by limiting resources for technical assistance.
Commissioner Hartig mentioned slide 23: "Long-Term
Challenges to Departmental Performance." He shared that the
village homes served by safe water were in challenging
communities; had declining funding with increasing costs;
and required innovation and sustainability. He furthered
that spill prevention and response was threatened by
declining response fund receipts as a result of declining
TAPS throughput.
2:11:36 PM
Co-Chair Austerman asked about slide 14 and the reduction
of the size of the budget. Commissioner Hartig responded
that the general fund increments will be used to make up
the $5 million per year.
Vice-Chair Neuman saw a large increase in FY 14 in cost
recovery. He asked which statutes cover the spill
prevention allocation requirement. Commissioner Hartig
recalled two pipeline spills. He stated that there was an
allocation in October for $250 million, which replenished
the response account. Title 46 was in statute for the
response fund, and noted that the legislature preserved the
response fund.
Vice-Chair Neuman thought that the responsibility should be
dependent upon the industry.
Representative Gara asked recalled problems that were
addressed. He pointed out page 13, and remarked that there
had been discussion regarding requiring a surcharge on each
barrel of oil in order to avoid increased state funds going
toward spill prevention. He wondered why DEC did not make a
similar proposal. Commissioner Hartig responded that those
policy calls were not under the jurisdiction of DEC. He
stated that the response fund was used across a range of
industries, but noted that the crude oil industry was the
only industry that paid directly into the fund.
2:17:37 PM
Commissioner Hartig stressed that crude oil spills used
approximately 7 percent of the response fund, but the crude
oil industry was the only industry paying into the response
fund. He remarked that there were many efforts to refine
the fund.
Representative Gara commented that the proposal to respond
differently did not exist. He pointed out slide 6 and he
recalled that food inspectors were not available. The
subcommittee deemed that the proposal be drafted by the
department. He asked if he had a third option. Commissioner
Hartig responded that a reprioritization was in an
incremental solution phase. He noted that the federal
recommendations were there.
2:22:55 PM
Representative Gara noted that the problem was without a
proposed solution. He recommended a proposal, because
without one the public should be warned. Commissioner
Hartig stated that the increment in the positions and was
implemented for documentation to be provided.
Representative Munoz wondered if there was $50 million in
the prevention fund account. Commissioner Hartig responded
in the affirmative.
Representative Munoz noted that by 2015, OMB estimated that
there would be $6 million to subsidize the prevention fund
account. Commissioner Hartig responded that the $50 million
was in a revolving fund. He stated that the replenishment
came from cost recovery through 1 cent a barrel. He stated
that in order maintain operations; a general fund increment
was required.
Representative Munoz asked if there had been consideration
regarding combining the two accounts. Commissioner Hartig
responded that the two accounts were somewhat combined,
because there was an estimated $1.2 million a year for
earned income on the $50 million that was historically
appropriated back into the prevention account.
Representative Munoz asked if the potential of combining
the two accounts, because there was long-term
sustainability in the response account. Commissioner Hartig
responded that if the $50 million, replenishment would be
required.
2:27:14 PM
Representative Wilson wondered how particulate prevention
could be affordable without other resources. Commissioner
Hartig replied that there had been an increase in federal
regulations, and the states were often not able to keep up
with the rapid changing regulations. He stressed that DEC
looked at various funding strategies to determine whether
the impact fell into its mission of protecting human health
and the environment. He remarked that conversations with
communities across the state helped to determine regulatory
change to EPA's standards.
Representative Wilson wondered whether there were reasons
why there were more programs in the drinking water systems
and not air quality. Commissioner Hartig responded that
every community was required to have a drinking water
system, and there was more work in that arena. He stressed
that water was not considered more important than air.
Vice-Chair Neuman looked at AS 46.08.060, and noted that
the commissioner shall make available report to the
legislature not later than tenth day following convening.
The report should include the amount of money expended by
the department. He wondered if that report had been
conducted. Commissioner Hartig responded that the report
was delivered the previous.
2:32:33 PM
AT EASE
2:35:46 PM
RECONVENED
^FY 14 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF COMMERCE,
COMMUNITY and ECONOMIC DEVELOPMENT
2:35:49 PM
SUSAN BELL, COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT (DCCED), introduced herself.
JO ELLEN HANRAHAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, introduced herself.
Commissioner Bell presented the PowerPoint, "House Finance
Committee; Alaska State Legislature; January 25, 2013"
(copy on file). She discussed slide 2: "Mission: Promote a
healthy economy, strong communities, and protect consumers
in Alaska." The graph illustrated the six corporate
agencies and the six agencies within DCCED. She reinforced
the importance of the regulatory protection to protect
consumers and businesses.
Commissioner Bell detailed slide 3: "Core Services."
-Marketing Alaskan products and services in key
sectors including: seafood, tourism, minerals, forest
products, film, and transportation.
-Providing access to capital for business development.
-Reducing the cost of energy through development of
renewable resources, financing for energy generation
and transmission, implementation of energy efficiency
programs, grants, and technical assistance.
-Assisting local governments and unincorporated
communities through grants, technical assistance,
financial and utility management, and planning.
-Regulating commercial activities in banking,
securities, corporations, professional licensing,
alcoholic beverage industry, and public utilities.
Commissioner Bell discussed slide 4: "Challenges."
-High cost of energy impacts communities and
businesses.
-Gaps in critical infrastructure such as roads, ports,
communications, and processing facilities.
-Higher cost of goods and services in rural areas.
-Federal regulatory permitting delays and denials.
-Ongoing need to educate markets about Alaska products
and services.
-Uncertainty hampering private investment.
-Declining federal funding for rural programs.
-Growth of new financial programs that increase fraud
and misinformation for consumers.
Commissioner Bell detailed slide 5: "Priority Programs."
Economic Growth
-Division of Economic Development, AIDEA, ASMI.
-$66.4 million - 33 percent of budget.
-Net $4.4 million increase.
ASMI.
Sustainable Energy
-Alaska Energy Authority.
-$67 million - 33 percent of budget.
-Net $3.4 millon increase.
PCE and Susitna-Watana Hydro.
Commissioner Bell discussed slide 6: "The 16 percent of the
budget."
Strong Communities
-Community and Regional Affairs, Serve Alaska.
-$32.4 million - 16 percent of budget.
-Net $28 thousand decrease.
Declining federal RUBA funding.
Consumer Protection
-Banking and Securities; Insurance; CBPL;
Regulatory Commission of Alaska, Alcoholic
Beverage Control Board.
-$35.3 million - 18percent of budget.
-Net $576.8 thousand decrease.
Prescription Drug Monitoring grant and OTIs
Commissioner Bell detailed slide 7: "Budget by Priority
Program." She explained that the Sustainable Energy Program
was 33 percent of the budget at $66.982 million; the
Economic Growth Program was 33 percent of the budget at
$66.416 million; the Consumer Protection Program was 18
percent of the budget at $35.336 million; and the Strong
Communities Program was 16 percent of the budget at $32.419
million.
2:42:50 PM
Commissioner Bell discussed slide 8: "Economic Growth."
Division of Economic Development
Marketing:
-Tourism recovery (1.8 million visitors) and
Icelandair to begin service in May 2013.
-25 film productions approved for tax
credit.
-Promoted minerals, forest products, Made in
Alaska, Alaska product preference.
-Partner with private sector and state
agencies.
Business Development:
-Provided 400 small Alaska business with
technical assistance.
-Regional economic planning with ARDORs.
Financing: Commerical fishing and small business
development.
-267 loans, $31.1 million and $4.8 million
Salmon Enhancement Tax distribution to
aquaculture (6 qualified associations).
-New revolving loan funds for mariculture,
commercial halibut charter operators, CQE
entities, alternative energy.
Commissioner Bell discussed slide 9: "Economic Growth
(cont.)."
Alaska Industrial Development and Export Authority
-Increased net asset value to over $1.26 billion,
providing a $20.7 million dividend to the State
for FY2014.
-S&P Upgraded AIDEA's credit rating from AA- to
AA+.
-SETS (AK Sustainable Energy Transmission &
Supply) creates new energy infrastructure.
-Completed 17 loan participations totalling $34.9
million.
-Issued conduit revenue bond for Providence
Hospital Complex.
-Ketchikan shipyard and Skagway ore terminal
expansions,Cook Inlet jack-up rig and JBER
projects.
-5,500 permanent jobs and 34,200 construction
jobs in the last decade
Commissioner Bell detailed slide 10: "Economic Growth
(cont.)."
Alaska Seafood Marketing Institute
-Volume of Alaska Seafood exports to ASMI program
countries increased by 24 percent in 2011; value
increased by 28 percent.
-Ex-vessel salmon value up 29 percent, from $1.7
to $2.2 billion.
-Increased value of fresh, frozen, and shelf-
stable (canned and pouched) Alaska seafood in
U.S. and international markets.
-Continued international focus on sustainable
fisheries.
-Expanded collaboration with tourism marketing
programs, Alaska Grown, and Nutritious Foods in
Schools grants.
-Opened new office in Brazil to serve the
emerging market.
2:48:34 PM
Commissioner Bell discussed slide 11: "Sustainable Energy."
Alaska Energy Authority
-Filed FY13-14 Study Plan with FERC for Susitna-
Watana Hydro.
-Renewable Energy Fund approved $202.5 million in
227 projects to date.
-Disbursed $39.2 million in PCE grant payments.
-Trained 22 bulk fuel and 32 power plant
operators; assistance to 47 communities, and
emergency response to 10 communities.
-44 Bulk Fuel Loan commitments of $12.7 million.
-60 energy audits on commercial buildings,
potential $1.1 million annual savings.
-Emerging Energy Technology Fund Program received
70 proposals - 16 selected for funding in 2012.
Commissioner Bell discussed slide 12: "Strong Communities."
Community and Regional Affairs
-Bulk Fuel Bridge Loans (7 percent increase) to
16 communities.
-Fuel Watch Initiative - 850 calls to 341
communities to verify adequate financial
resources for fuel supplies.
-RUBA assisted 208 communities, 72 communities
met sustainability indicators; trained 161
utility managers.
-$1.4 billion distributed through 1,900 state and
federal grants - including Nutritious Foods in
Schools Program.
-Almost $29 million distributed for: PILT, NFR,
fisheries business tax, fisheries landing tax.
-$80 million Community Revenue Sharing.
-Local Boundary Commission completed transactions
in 9 communities.
2:53:27 PM
Commissioner Bell discussed slide 13 "Strong Communities
(Cont.)."
Community and Regional Affairs (cont.)
-Finalized digital orthophoto maps in 14
communities.
-Emergency response, National Flood Insurance
Program support.
Serve Alaska
-285,000 hours of volunteer service, over $6
million value.
Alcohol Beverage Control Board
-Licensees achieved 87 percent compliance with
laws, continuing a steady increase for the third
year.
-In a recent study, Alaska was shown to have the
lowest percentage of sales by retailers to
underage persons.
Commissioner Bell discussed slide 14: "Consumer
Protection."
Banking and Securities
-52 institutions examined; all profitable and
well capitalized.
-Issued new licenses to 5 premium finance
companies, 3 payday lenders, 203 mortgage
broker/lenders, 56 money services; issued 6
parity orders to state chartered depository
institutions.
-Issued license renewals to 12 payday lenders, 25
premium finance companies, 1 loan company, 1
business industrial development corporation
(BIDCO).
-5,949 mutual fund and investment trust filings,
411 security filings/notice filings.
-1,243 broker-dealers registered or renewed.
-Collected over $13 million in fees.
Commissioner Bell discussed slide 15: "Consumer Protection
(cont.)."
Corporations, Business and Professional Licensing
-Licensees increased nine percent for a total of
63,197 professional licenses and 66,731 business
licenses.
-39 professional licensing programs received
revenue and expense reports reconciled to ten
years of state's accounting system data.
Quarterly financial reports are now provided
to all programs, and corrective actions are
ongoing to improve historical practices.
-Streamlined corporate filings.
-Investigations received 1,394
intakes/complaints; opened 463 new cases; took
308 licensing actions; and closed 446 cases.
2:58:23 PM
Commissioner Bell discussed slide 16: "Consumer Protection
(cont.)."
Insurance
-Issued 41,735 licenses; registered 27 purchasing
groups; admitted 19 new insurance companies, 1
surplus line insurer and 2 risk retention groups.
-Collected $65,734,955 in premium taxes,
penalties and fees in FY2012.
-Opened 57 and closed 35 criminal investigations.
-Investigated 290 consumer complaints, closed 286
complaints, and took action resulting in
additional payments of $145,888 to consumers in
FY2012.
Regulatory Commission of Alaska
-Implemented electronic filing to reduce filing
costs, increase efficiency and facilitate
communication for general public, public
utilities, and pipeline carriers.
-Approved railbelt electric utility agreement to
purchase wind energy over 25-year term (payments
for power from the wind farm could be recovered
in utility rates).
-Resolved consumer complaints resulting in
credits to customers in multiple instances.
Ms. Hanrahan discussed slide 19. She stressed that DCCED
was attempting to reduce the number of communities that are
noncompliant with management sustainability indicators by
five percent each year.
Ms. Hanrahan discussed slide 20: "Percentage of the Total
Department's Budget By Fund Group." She explained that the
yellow bar represented the designated general fund, which
reflected various increases to programs.
Ms. Hanrahan discussed slide 21: "Share of Total Agency
Operations." She explained that DCCED had various peaks,
based on various increases to funding.
3:04:00 PM
Ms. Hanrahan described slide 22: "Continued Budget Growth
Compared to 10- year plan (GF only)." She stated that the
black dotted line was the department's ten year plan and
the green dotted line was LFD's extrapolation of a 9.8
annual growth over time.
Ms. Hanrahan detailed slide 23: "Continued Budget Growth
Compared to a 10 - Year plan." She explained that it was
difficult to be comparative in DCCED, because there are
various funding spike years.
Commissioner Bell stressed that DCCED was focused on its
inherent strengths, but was careful to focus on the issues
in Alaska particularly in the areas of energy,
infrastructure, and helping business thrive.
Co-Chair Austerman looked at slide 5 and the economic
growth. He asked of the $66 million was used specifically
for economic Development. Commissioner Bell responded that
the Division of Economic Development was approximately $28
million; AIDEA was nearly $16 million; and ASMI was
approximately $29 million.
Co-Chair Austerman wondered if the $4.4 million net
increase was associated with ASMI. Commissioner Bell
responded that the $4.4 million was predominantly associate
to a change in the legislative authorization in general
fund compared to the program receipts from ASMI and the
taxes.
Co-Chair Austerman asked slide 3 about core services and
noted that economic development was not mentioned on the
page. Commissioner Bell stated that marketing servicing and
financing services were key to the economic development
that was provided by the department.
Co-Chair Austerman expressed concern about the lack of
focus on economic development. He looked at slide 8, and
asked what plans were implemented to increase the economic
tax base of the state. Commissioner Bell responded helping
businesses understand about preferences, and specifically
noted financing for the minors and resource minerals
development.
3:09:20 PM
Co-Chair Austerman remarked that 90 percent of Alaska's
income was in non-renewable resources, and felt that the
presentation did not showcase a growth of an economic base
across the state.
Representative Gara expressed interest in the numbers of
employees added in the non-renewable sector. Commissioner
Bell responded that she would provide data regarding
economic growth in the non-renewable resource development
industry.
Representative Gara wondered how the department could link
the funds to specific economic growth. Commissioner Bell
agreed to provide that
Representative Edgmon wondered if AIDEA and AEA should be
separated into the two boards. Commissioner Bell responded
that AIDEA and AEA were served by one board and served by
tools. She thought that the follow up would prove valuable.
She believed that the organization was growing, and the
composition of the board had changed from two commissioners
and five commissioners.
3:15:50 PM
Representative Edgmon pointed out that slide 18 required
additional examination. He remarked that 90 percent of the
energy in the state was provided by hydrocarbons. He felt
that Alaska made only slight progress.
Representative Holmes echoed the interest in working with
the economic development piece. She asked for additional
information on tourism. Commissioner Bell responded that
development specialists were responsible for the
implementation of the tourism marketing program. She stated
that the legislative intent was both formal and informal.
The engagement with the business community was the
responsibility of DCCED, and the planning process allowed
the leverage of the state's programs.
3:21:09 PM
Vice-Chair Neuman asked for more information regarding the
AIDEA investment in the rig in Cook Inlet. Commissioner
Bell responded that AIDEA had the ability to own or
partially own projects. She stated that the rig was
partially owned by AIDEA. She explained that AIDEA
leveraged, and received four to one leverage of private
funding for that project. She stressed that DCCED felt that
the investment in Cook Inlet was prudent to the board and
staff, but she expressed frustration that the rig was not
currently drilling.
Vice-Chair Neuman wondered when the rig would begin
producing. Commissioner Bell responded that she would
provide more detailed information.
Co-Chair Austerman shared that a CDQ group from western
Alaska made some inquiries regarding the ability to move
$68 million worth of business out of Seattle to Alaska. He
stated that the legislature appropriated a few planning
dollars to examine the dock in Seward. He wondered if DCCED
had communicated with that CDQ group. Commissioner Bell
replied that she shared many concerns regarding the
coordinated response times. She looked at DCCED stayed in
regular communication with the CDQ group. She shared that a
portion of the fleet was now able to be housed in Alaskan
waters over the winter. She stated that the waterfront and
business infrastructure needed to be updated, in order to
accommodate the fleet.
Co-Chair Austerman requested a copy of the plan on who was
handling the project. Commissioner Bell indicated that she
would provide that information.
Representative Munoz wondered what extent the Regulatory
Commission of Alaska considered state energy policy when
reviewing applications. Commissioner Bell offered to follow
up at a later date.
3:27:20 PM
Vice-Chair Neuman referred a request for a fifty match for
tourism marketing. Commissioner Bell responded that the
funding in the governor's request was $16 million. She
stated that DCCED leveraged those funds with some funds
from communities and businesses that participate in the
state's program. She shared that there was statute language
that stated that if the state contracts with a qualified
trade organization there would be a specific match.
Vice-Chair Neuman asked if Alaska was following the law as
per statute. Commissioner Bell stated that entering into a
contract would require compliance with the statute.
Representative Thompson asked if the marketing plan was
considered part of a match. Commissioner Bell replied that
the match would only apply if the contracted business was
directly engaged with a state program.
Co-Chair Austerman discussed the next meeting.
HB 65 was HEARD and HELD in committee for further
consideration.
HB 66 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY14 HFin DCCED Overview 1_25.pdf |
HFIN 1/25/2013 1:30:00 PM |
DCCED HFIN Overview |
| DEC Presentation for HFC 1.25.2013.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC HFIN Overview |
| DEC Response OHSRPRF 2011-2012 Report .pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Response Overview 1-25 |
| 1.29.13 - DEC Response to 1-25-13 Questions.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Overview Response 1=25 |
| DEC Response 2.5.2013 - Rep Gara FINAL.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Overview Response |
| DEC Response RF Chart Gara.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Overview Response |
| DEC Response RF Chart 10 Year Activity FY2003 - FY2012.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Overview Response |
| DEC Response2.5.2013 - Rep Kawasaki FINAL.pdf |
HFIN 1/25/2013 1:30:00 PM |
DEC Overview Response |