Legislature(2013 - 2014)HOUSE FINANCE 519
01/28/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Fy 14 Governor's Department Overview: Department of Natural Resources | |
| Fy 14 Governor's Budget Overview: Department of Transportation and Public Facilities | |
| 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."
Co-Chair Austerman stated that the House Finance
Subcommittee on Health and Social Services had met as a
committee as a whole on January 23 for the Department's
budget overview. He related that because all the members of
the House Finance Committee sat on the Health and Social
Services (DHSS) Subcommittee, the overview would not be
repeated; however, the minutes from the House Finance
Subcommittee's DHSS Budget Overview would be included in
the current meetings minutes. [Note: Minutes from the
January 23, 2013 Department of Health and Social Services
Subcommittee DHSS Budget Overview are attached at the end
of this meeting.]
^FY 14 GOVERNOR'S DEPARTMENT OVERVIEW: DEPARTMENT OF
NATURAL RESOURCES
1:34:21 PM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, began the budget overview, "State of Alaska
Department of Natural Resources"(copy on file).discussed
slide 4 "State of Alaska Department of Natural Resources."
The slide detailed the department's core services and
included the mission statement:
Article 8, Section 1 of the Alaska Constitution
provides:
•"It is the policy of the State to encourage the
settlement of its land and the development of its
resources by making them available for maximum use
consistent with the public interest."
DNR Mission Statement:
•Responsibly develop Alaska's resources by making them
available for maximum use and benefit consistent with
the public interest.
DNR Core Services:
1. Foster responsible commercial development and use
of state land and natural resources, consistent with
the public interest, for long-term wealth and
employment
2. Provide access to state lands for public and
private use, settlement, and recreation
3. Ensure sufficient data acquisition and assessment
of land and resources to foster responsible resource
development
4. Mitigate threat to the public from natural hazards
by providing comprehensive fire protection services on
state, private, and municipal lands, and through
identifying significant geological hazards
1:36:19 PM
Mr. Fogels spoke to slide 5, which provided the
department's land management details:
Land Ownership
•Federal Land: More than 200 million acres
•State Land: Approx. 100 million acres of uplands, 60
million acres of tidelands, shore lands, and submerged
lands, and 40,000 miles of coastline
•Native Corporation Land: 44 million acres
DNR:
•Manages one of the largest portfolios of oil, gas,
minerals, renewable resources, water, and land in the
world
•Manages all oil and gas fields on state land,
including two of the largest oil and gas fields in
North America
•Oversees all activities that occur on state land
Mr. Fogels pointed to slide 6, "Alaska as a Storehouse:
Hydrocarbons." Compared to most basins, Alaska is
relatively underexplored, with 500 exploration wells on the
North Slope, compared to Wyoming's 19,000. The slide
further detailed:
North Slope
USGS estimates that Alaska's North Slope has more oil
than any other Arctic nation
· OIL: Est. 40 billion barrels of conventional oil
(USGS & BOEMRE)
· GAS: Est. over 200 trillion cubic feet of
conventional natural gas (USGS)
•Alaska has world-class unconventional resources,
including tens of billions of barrels of heavy oil,
shale oil, and viscous oil, and hundreds of trillions
of cubic feet of shale gas, tight gas, and gas
hydrates
· Positive methane hydrate test production
Cook Inlet
USGS estimates that significant undiscovered volumes
of hydrocarbons remain to be found in the Cook Inlet:
•19 trillion cubic feet of natural gas
•600 million barrels of oil
•46 million barrels of natural gas liquids
1:36:36 PM
Mr. Fogels discussed slide 7, "Alaska as a Storehouse-
Strategic & Critical Minerals":
The State of Alaska Ranks in the Top Ten in the World
for Important Minerals, Including:
•Coal: 17 percent of the world's coal; 2nd most in the
world
•Copper: 6 percent of the world's copper; 3rd most in
the world
•Lead: 2 percent of the world's lead; 6th most in the
world
•Gold: 3 percent of the world's gold; 7th most in the
world
•Zinc: 3 percent of the world's zinc; 8th most in the
world
•Silver: 2 percent of the world's silver; 8th most in
the world USGS estimates
According to the USGS, Alaska has over 70 occurrences
of Rare Earth Elements (REE).
1:36:42 PM
Mr. Fogels spoke to slides 8 through 11, "State of Alaska-
DNR has 7 divisions":
1. Division of Agriculture (DoA)
•Franci Havemeister, Director
•47 full and part-time budgeted positions
•4.6% of DNR's FY14 Operating Budget Request
•$7,760.8 budget request (all sources)
•Promotes and encourages development of an
agriculture industry in Alaska
2. Division of Forestry (DoF)
•Chris Maisch, Director
•276 full and part-time budgeted positions (does
not include the hundreds of fire season crews)
•27.5% of DNR's FY14 Operating Budget Request
•$46,737.3 budget request (all sources)
•Serves Alaskans through forest management and
wildland fire protection
3. Division of Geological & Geophysical Surveys (DGGS)
•Bob Swenson, Director
•55 full and part-time budgeted positions
•5.6% of DNR's FY14 Operating Budget Request
•$9,468.5 budget request (all sources)
•Determines the potential of Alaskan land for
production of metals, minerals, fuels, and
geothermal resources, the locations and supplies
of groundwater and construction material, and the
potential geologic hazards to buildings, roads,
bridges, and other installations
State of Alaska
DNR has 7 Divisions
4. Mining Land and Water
•Brent Goodrum, Director
•227 full and part-time budgeted positions
•16.8% of DNR's FY14 Operating Budget Request
•$28,631.2 budget request (all sources)
•Provides for the appropriate use and management
of Alaska's state owned land and water, aiming
toward maximum use consistent with the public
interest
5. Oil & Gas
•Bill Barron, Director
•100 full and part-time budgeted positions
•10.1% of DNR's FY14 Operating Budget Request
•$17,138.5 budget request (all sources)
•Responsible for the leasing of state lands for
oil, gas, and geothermal exploration
6. Parks & Outdoor Recreation
•Ben Ellis, Director
•185 full and part-time budgeted positions
•9.6% of DNR's FY14 Operating Budget Request
•$16,399.1 budget request (all sources)
•Provides outdoor recreation opportunities and
conserves and interprets natural, cultural, and
historic resources for the use, enjoyment, and
welfare of the people
7. Support Services
•Jean Davis, Director
•130 full and part-time budgeted positions
•7.7% of DNR's FY14 Operating Budget Request
•$13,162.6 budget request (all sources)
•Provides client-focused, efficient and cost-
effective financial, budget, procurement, human
resource, information technology and recording
services to DNR and the public
State of Alaska DNR has 7 Divisions
Office of the Commissioner
•Dan Sullivan, Commissioner
•10 full-time budgeted positions
•1.00% of DNR's FY14 Operating Budget Request
•$1,712.3 budget request (all sources)
1:38:16 PM
Mr. Fogels pointed to slides 12 and 13, "State of Alaska-
DNR Offices":
Gas Pipeline Project Office
•Eric Hatleberg, Acting Director
•7 full-time budgeted positions
•1.8% of DNR's FY14 Operating Budget Request
•$2,997.8 budget request (all sources)
•Monitors efforts by the Alaska Pipeline Project (APP)
to design, develop, construct and operate a 48-inch
natural gas pipeline to commercialize North Slope
natural gas
State Pipeline Coordinator's Office
•Mike Thompson, State Pipeline Coordinator
•30 full and part-time budgeted positions
•4.6% of DNR's FY13 Operating Budget Request
•$7,870.1 budget request (all sources)
•Issues leases of state land for pipeline rights-of-
ways and implements the state's policy set forth in
Alaska Statute (AS) 38.35.010 concerning the
development, use, and control of a pipeline
transportation system within the state
Office of Project Management & Permitting
•Tom Crafford, Director
•16 full-time budgeted positions
•4.7% of DNR's FY14 Operating Budget Request
•$7,964.3 budget request (all sources)
•Coordinates the review of larger scale projects in
the state
Alaska Mental Health Trust Land Office
•Greg Jones, Executive Director
•18 full and part-time budgeted positions
•2.4% of DNR's FY14 Operating Budget Request
•$3,996.1 budget request (all sources)
•Protecting and enhancing the value of Alaska Mental
Health Trust Lands while maximizing revenues from
those lands over time
1:39:47 PM
Mr. Fogels addressed slide 14, "Key Performance Measures."
The slide showed the increase in the Dollars that were
committed to memorandums of understanding with the Office
of Project Management and Permitting for large project
coordination. With each year that passed by there was more
activity in the state and the department served a useful
and valuable service in coordinating the permitting of
projects.
Mr. Fogels spoke to slide 15, "Key Performance Measures."
The slide illustrated the monetary value of agricultural
products sold in Millions. The Division of Agriculture was
not directly responsible for the performance measure;
however, the department looked to it in order to increase
awareness of Alaska Grown products and market options, as
well as to expand gross product sales.
1:41:08 PM
Mr. Fogels discussed slide 16, "Key Performance Measures."
The slide charted Alaska boating fatalities. the boating
safety program had reduced the number of boating fatalities
in the state.
1:41:32 PM
JOE BALASH, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, discussed slide 18, "Secure Alaska's Future:
Oil." He related that declining oil through TAPS was the
most critical economic issue facing the state:
•TAPS has transported over 16.3 billion barrels of oil
and natural gas liquids since June of 1977. Production
peaked at 2.2 million barrels per day in the late
1980s, representing 25% of U.S. domestic production
•Since its peak, however, throughput has steadily
declined; today, TAPS is 2/3 empty and declining at 6%
per year
•TAPS throughput decline threatens economic disruption
and the very existence of our pipeline
•We must encourage industry to invest in exploration
and development of conventional and unconventional
resources on state and federal land, onshore and
offshore
•TAPS has plenty of capacity for increased throughput
•Most near-term critical economic issue facing the
state
•Less oil in the pipeline year after year takes away
revenue from future generations-the ultimate giveaway
1:43:17 PM
Mr. Balash addressed slide 19, "Secure Alaska's Future:
Oil." The slide listed the state's comprehensive strategy
to increase TAPS throughput to one million barrels per day:
I. Enhance Alaska's global competitiveness and
investment climate
II. Ensure the permitting process is structured and
efficient
III. Facilitate and incentivize the next phases of
North Slope development
IV. Promote Alaska's resources and positive investment
climate to world markets
1:44:20 PM
Mr. Balash pointed to slide 20, "Cook Inlet, NS & Beaufort
Sea Lease Sales." He related that the strategy was proving
successful:
Cook Inlet, 2011 & 2012 Lease Sales
•In June 2011, the state received the highest number
of Cook Inlet lease sale bids in 28 years, totaling
over $11 million
oTotal tracts sold: 108
oTotal high bonus bids: $10,986,826.20
•In May 2012, Cook Inlet lease sale bids totaled more
than $6.8 million
oTotal tracts sold: 44
oTotal high bonus bids: $6,865,835
NS & Beaufort Sea, 2011 & 2012 Lease Sales
•In December 2011, the Division of Oil and Gas
received more than 300 bids from more than 15 bidders,
totaling more than $21 million, signifying one of the
most successful sales in recent Alaska history
oTotal tracts sold: 239
oTotal high bonus bids: $18,712,945.98
•In November 2012, bids for all areas totaled more
than $14 million with tracts sold in the Foothills
area for the first time since 2009
oTotal tracts sold: 122
oTotal high bonus bids: $14,240,333.73
•State needs billions of dollars in new investment to
meet the Governor's one-million-barrels-a-day goal
1:45:13 PM
Mr. Balash discussed slide 21, "North Slope: Recent and
Proposed Activity." The slide illustrated North Slope oil
and gas activity in 2012. He relayed that the state had
parties looking into the full range of resources on the
slope, both in the legacy fields and in new areas. He
pointed out that a very small improvement in a legacy filed
far surpassed the arrival of new production in new fields.
He stressed that the state's legacy partners were important
and should not be forgotten.
Mr. Balash pointed to slide 22, "Next Phases & New Areas of
Exploration for NS Oil and Gas." He noted that while some
fields were maturing, the basin itself was relatively
underexplored. The slide listed opportunities for the
future:
•Shale oil exploration - ongoing
oJuly 31st conference in Anchorage on Shale Oil
•Shell finally was able to drill its first exploratory
wells in the Beaufort and Chukchi Seas
•Record of federal permitting delays should be a
continued source of concern for the State
•Eastern North Slope open, PT settled
oPT permits issued by the State and the Corps of
Engineers
•Linc Energy drilling operations at Umiat are moving
forward
•New players, operators and exploration on state land
oShell, Repsol, Brooks Range, Great Bear, Savant
oExxon Mobil, Conoco Phillips
•These developments, while positive, are just
scratching the surface of our overall potential
1:47:45 PM
Mr. Balash spoke to slides 23 and 24, "Cook Inlet-Oil and
Gas Activity":
•Legislative tax and investment incentives are working
•Old and new players exploring and investing: Apache,
Hilcorp, Armstrong, Linc, Buccaneer, Nordaq, Furie,
Cook Inlet Energy, ConocoPhillips, CIRI
•Hundreds of millions invested in 2012
•Dramatic increase in number of drill rigs in inlet -
either idle, available or stacked
oIn November 2006, 9 rigs
oIn November 2009, 12 rigs
oIn November 2012, 17 rigs (includes 2 jack-up
rigs)
•Companies shooting major 3-D seismic over large areas
of the basin
oNever previously done at this scale with this
sophisticated technology
oPresents huge opportunities for development
•New gas storage project on line; important for supply
security and more steady year-round production, and
peak availability
•Attractive price for gas relative to Lower 48 markets
- but challenged by a relatively small market
•State continues to focus on safe, responsible
development and operations
Mr. Balash stated that the state owed a lot to Cook Inlet
Sedimentary Basin; it paved the way to statehood and was a
hotbed of activity during the 1950's and 1960's, until the
discovery of Prudhoe Bay in 1968. Consequentially, all of
the attention was redirected to the North Slope and for
three decades Cook Inlet was forgotten. In recent years a
consolidation had been seen in the existing assets with the
arrival of new and credible players attracted by incentives
created by the legislature.
1:50:23 PM
Mr. Balash addressed slide 25, "Commercializing NS Gas:
2012 State of the State and Benchmarks":
Key principles for any project
•Gas to address Alaska's in-state needs for abundant
supplies of low-cost energy and economic growth
•Gas that will maximize the value of the state's
massive resource base through high-volume and export
markets
•A project that incentivizes exploration and
investment in continued oil and gas development
Governor's Roadmap to Gasline
1. Resolve Point Thomson
2. Align during the first quarter of 2012
3. Two projects-under AGIA and AGDC-complete
discussions by third quarter of 2012 determining what
potential exists to consolidate projects
4. Harden numbers on an Alaska LNG project by the
third quarter of 2012, and identify a pipeline project
and associated work schedule
5. If milestones are met, the 2013 Legislature takes
up gas tax legislation designed to move the project
forward
1:52:04 PM
Mr. Balash discussed slides 26 through 29, "Commercializing
NS Gas Significant Progress." Slide 26 showed a letter from
the Chief Executive Officers of ExxonMobil, ConocoPhillips
and British Petroleum. He noted the call out box on the
slide which highlighted key points:
"Serious discussions between our companies have
taken place over the past several months, along with
the Alaska Pipeline Project (APP) parties who are
supporting the AGIA License. We have aligned on a
structured, steward able and transparent approach with
the aim to commercialize North Slope natural gas
resources within an AGIA framework. As a result of the
rapidly evolving global market, large-scale liquefied
natural gas (LNG) exports from south-central Alaska
will be assessed as an alternative to gas lone exports
through Alberta. In addition to broadening market
access, a south-central Alaska LNG approach could more
closely align with in-state energy demand and needs.
We are now working together on the gas
commercialization project concept selection, which
would include an associated timeline and an assessment
of major project components including in-state
pipeline routes and capacities, global LNG trends, and
LNG tidewater site locations, among others."
Mr. Balash spoke to slide 27, which contained a second
letter from the same three companies. He noted key points:
"On March 30, 2012, ExxonMobil, ConocoPhillips
and BP submitted a letter informing you of progress in
working together on the next generation of North Slope
resource development. Since that time, the three
producer companies and TransCanada, through its
participation in the Alaska Pipeline Project (APP),
have maintained momentum and executed important early
work to select leading concepts for a potential
project. We are writing to update you on the progress
that has been made to date.
We have narrowed the broad range of alternative
development concepts and assessed major project
components, including that gas pipeline, gas treatment
to remove CO2 and other impurities, natural gas
liquefaction, LNG storage, and marine terminal
facilities as described on Attachment 2. Individually,
each of these components would represent a world-class
project. Combined, they result in a mega-project of
unprecedented scale and challenge; up to 1.7 million
tons of steel, a peek construction workforce of up to
15,000, a permanent workforce of over 1,000 in Alaska,
and an estimated total cost in today's dollars of $45
to $65+ billion."
Mr. Balash continued to Slide 28 which discussed the key
factor of commercializing the development of Point Thomson:
The State of Alaska has made significant progress on
commercializing North Slope gas
•Much of the upstream infrastructure is in place
•There is a renewed focus from key stakeholders on
monetizing the massive reserves of North Slope gas
•Hundreds of millions of dollars have been spent on
critical engineering and environmental regulatory and
commercial work required for a gas project
WSJ: Alaska, Gas Firms Clear Way For Pipeline
Point Thomson settlement "…paves the way for a
pipeline project to ship natural gas from the North
Slope, unleashing the state's massive gas reserves." -
WSJ, 3/30/12
FT: Oil Groups Agree on $40bn Alaska Gas Project
"ExxonMobil, BP and ConocoPhillips have reached
agreement with the state of Alaska to take a
significant step forward on a $40bn-plus project to
export liquefied natural gas to Asia, resolving a
long-running lease dispute that had been holding up
progress.
In a joint letter, the chief executives of the three
companies said they were "aligned" on a plan to
develop the huge gas reserves of Alaska's North Slope,
which until now have been stranded without a route to
market." - Financial Times, 3/30/12
Mr. Balash continued to slide 29, which further detailed
the progress that had been made in commercializing North
Slope gas. He turned to slides 30 and 31, "Commercializing
NS Gas Point Thomson":
•Point Thomson is a multi-billion dollar project
•Beginning construction now
•Producing Point Thomson liquid condensate into TAPS
as part of Phase 1
•Big prize - gas commercialization for LNG
•Significant portion of infrastructure being built for
Phase 1 is applicable to a gas line or LNG project
•Three phases of development in 2012:
explaining/defending settlement; permitting; and
getting to work
1:56:06 PM
Mr. Balash spoke to slide 32 titled "Commercializing NS Gas
Comparative Advantages." He said that the department
believed that these were advantages that positioned the
state well in the marketplace:
•The North Slope of Alaska is estimated to have over
200 trillion cubic feet of conventional gas
•Conventional gas is not controversial-unconventional
gas in the Lower 48 U.S. states remains controversial
•35 trillion cubic feet of known reserves
•Prudhoe Bay reinjects 8 billion cubic feet of gas per
day, which is enough to meet Canada's daily gas needs
•These numbers do not include the trillions of cubic
feet of shale gas, tight gas, and gas hydrates
estimated for the North Slope
•This is an almost inexhaustible supply of gas with
new technology
•North Slope gas is "wet" gas with a high energy
content (BTU value)
•An Alaska LNG project has complete certainty of
supply; not all other projects do
Mr. Balash stressed that it was important that Alaska LNG
be in high demand in the global market. He listed other
comparative advantages of Alaska LNG:
•Existing oil and gas infrastructure on the North
Slope can be utilized for a large-scale LNG project
•The route for a large-scale LNG project would be the
same or similar to the existing Trans-Alaska Oil
Pipeline route, which will save on costs and have a
limited impact on the environment
•Alaska has a longstanding tradition of reliably
exporting LNG to Asia
oAlaska has been exporting LNG to Japan for over
40 years
oAlaska has transported 2.5 trillion cubic feet
of gas to Asia (the majority to Japan) over this
time
oAlaska has never missed a LNG cargo shipment to
Asia
• Alaska is the only place in the United States
exporting LNG
•Alaska does not use gas supplies for political
purposes
•Avoids strategic shipping choke points that other
sources of LNG must traverse
•Benefits from American legal and political stability
and the rule of law
•No looming conflicts in the region
•Proximity/shipping costs are very low
•Use of existing infrastructure and pipeline routes
reduces costs
•Cold weather efficiencies significantly decrease
processing costs compared to warmer climates
1:57:45 PM
Mr. Balash addressed slide 34, which highlighted the
difference in distance on the water between Alaska and
potential LNG customers.
Co-Chair Austerman noted for the record that Representative
Gara and Representative Wilson had joined the committee.
1:58:23 PM
Mr. Fogels addressed slide 35, "Secure Alaska's Future:
Strategic and Critical Minerals":
Objective: To highlight Alaska's potential for
exploration, development, and processing of strategic
and critical minerals, including Rare Earth Elements
(REEs)
"Secure Alaska's Future: Strategic Minerals" is a
comprehensive strategy that will:
I. Undertake a statewide assessment of Alaska's
strategic mineral potential-millions budgeted for this
project
II. Provide support for the development of known or
highly prospective strategic mineral occurrences
throughout Alaska through infrastructure partnerships
and incentives
III. Improve the structure and efficiency of
permitting processes in order to expedite mineral
development, including strategic minerals
IV. Deepen partnership and cooperation with the
federal government, local governments, Native
corporations, and other potential new entrants to
encourage domestic exploration, development, and
processing of REEs and other strategic minerals
V. Attract new investment and markets for Alaska's
abundant mineral resources
1:59:17 PM
Mr. Fogels discussed slide 36, "Strategic and Critical
Minerals: Recent Mining Activity":
In 2011, the gross mineral production value from
Alaska totaled $3.8 billion, up 16% since 2010.
Mineral ore production had an export value of $1.8
billion in 2011, nearly 40% of Alaska's total exports.
•Producing Mines in Alaska
· Red Dog: one of the world's largest zinc mines,
produced over 555k tons of zinc and 78k tons of
lead in 2011
· Greens Creek: among the world's top 10 silver
mines, produced over 9.48 million ounces of
silver, 56k ounces of gold, and 73k tons of zinc
in 2011
· Pogo: produced 356k ounces of gold in 2011
· Fort Knox: produced 289.8k ounces of gold in 2011
· Usibelli: produced a record 2.2 million tons of
low sulfur coal in 2011, exporting half of its
production
· Nixon Fork: gold and copper mine re-opened in
2011 and still in pre-commercial production
phases
· Kensington: 2011 was first year of production for
this new gold mine-produced 88,420 ounces of gold
Mr. Fogels spoke to slide 37, "Strategic and Critical
Minerals: Recent Mining Activity":
In 2011, mineral exploration investment in Alaska
totaled $365 million - accounting for about one-third
of the total spent on exploration in the U.S.
•Advanced exploration projects include:
· Donlin: ~ 42.3 million ounces of gold (the only
project currently in the permitting phase)
· Pebble: ~ 80.6 billion pounds of copper, 107.4
million ounces of gold, and 5.6 billion pounds
of molybdenum
· Bokan Mountain: enriched in yttrium,
dysprosium, and critical heavy Rare Earth
Elements
· Money Knob: ~20.6 million ounces of gold
· Niblack: ~7.3 million tons of polymetallic
(copper, gold, silver, and zinc) volcanogenic
massive sulfide project
•30 exploration projects spent over $1 million each in
2011
•$2.8 billion has been spent on mineral exploration in
Alaska since 1981
2:00:30 PM
Mr. Fogels discussed slide 38, "Strategic and Critical
Minerals: Statewide Assessment and Outreach":
•State is undergoing a statewide assessment for
strategic and critical minerals - $2.7M appropriated
in FY2013 budget (and $2.7M requested to continue in
FY2014)
· One of largest undertakings in the country
· Looking to work with other public and private
groups
· Information will be made available to public
•Held first "Alaska Strategic & Critical Minerals
Summit" in Fairbanks in 2011. The event had:
· Huge turnout
· Very favorable national press
2:01:17 PM
Mr. Fogels addressed slide 39, "Strategic and Critical
Mineral: Statewide Assessment and Outreach":
•Held second annual "Alaska Strategic & Critical
Minerals Summit" in Fairbanks on November 30, 2012, at
the Fairbanks Princess Riverside Lodge
•Speakers included:
· State and Federal Government Officials and a
representative from Japan Oil, Gas and Metals
National Corporation (JOGMEC)
· University of Alaska
· Native Corporation leaders
· Private Industry
Mr. Fogels announced that the summit would be an annual
event.
Mr. Fogels spoke to slide 40, "Permitting Reform: Statewide
Strategy":
Objective: Improve the State of Alaska's permitting
processes in order to advance the public interest by
ensuring projects are permitted in a timely,
predictable and efficient manner while safeguarding
the environment.
DNR has been working with a team from DNR, DEC, ADF&G,
and LAW to develop and advance strategies that aim to:
I. Improve agencies' internal permitting structure to
create a more efficient, timely, and certain process
II. Enhance coordination within different state
departments and with different entities and
stakeholders throughout the state
III. Seek input from the public about the permitting
process including input from municipalities, industry
and non-governmental organizations
IV. Improve coordination between the state and the
federal government-federal permitting issues have a
strong influence on state projects
V. Anticipate and plan for permitting the next phases
of resource development, e.g. the Shale Oil Task Force
2:03:54 PM
Mr. Fogels spoke to slide 41, "Permitting Reform:
Significant Progress":
· In FY12, the Legislature provided approximately $2.7
million in operating funds for the Division of
Mining, Land & Water to create efficiency,
timeliness and certainty in the permitting process
· We are utilizing capital funding from FY12 ($2.5M
for the Unified Permit Project and Document
Management) to focus on business management software
and services
· In FY13, the Legislature approved the continuation
of FY12 operating funds as part of the ongoing base
for permitting and an additional $950.0 to cover
increased personnel costs and fill vacant positions
focused on permitting
o FY13 capital budget included $3.3M to continue
work on the Unified Permit Project, including
the continuation of IT strategies and Business
Process Management
· Permitting Reform Significant Progress
· We have filled and trained new and vacant positions
· We reclassified and updated over 50 position
descriptions
· Since the beginning of FY12, the backlog has been
reduced by 38.2% (1,015 authorizations)
· We have conducted public meetings statewide for
input on state permitting processes
· We are evaluating internal processes to identify and
fix inefficiencies
Mr. Fogels discussed slide 42, "Permitting Reform:
Statutory Changes":
2012 Legislature - HB361
•The Division of Mining, Land and Water identified
over 30 statutory changes that would help reduce
applicant costs, create efficiencies, reduce
redundancies, and reduce opportunities for legal
challenges
•During the 2012 Legislative session, the Governor
introduced HB 361, which included the highest priority
changes related to leasing and disposal programs that
would help reduce the permitting burden on the
applicant and free more time for staff to work on
processing applications
•HB 361 was passed and signed by the Governor
2:05:44 PM
Mr. Fogels addressed slide 43, "Agriculture: 2012 Overview
of Accomplishments":
The Division of Agriculture continues to be very busy
promoting and encouraging development of the agriculture
industry in Alaska
•Worked to increase the demand for Alaska grown
products; created strong advocacy for the Alaska grown
program throughout the state
•Deepened DNR cooperation and coordination with the
farming community
•Explored new marketing ventures to promote Alaska
Grown program; instituted Restaurant Rewards Program
to encourage the use of local produce
•Provided support and promotion to over 40 Farmers
Markets throughout the state, which continue to grow
in popularity
•Farm to School Program is recognized as a national
leader
oProgram is actively engaged in 47 out of 54
school districts; 100% of the school districts
have received the Alaska Seasonal Availability
Chart. Five recipes utilizing Alaska Grown
products have been developed that meet federal
school meal requirements.
•Sold 1,327 acres of agricultural land in the Northern
Region
•Added 52 new farms to the Alaska Grown user list
•Published the Alaska Forage Manual (2012) and was
nationally recognized for the following publications:
Alaska Coastal Revegetation and Erosion Control Guide
(2010) & Interior Alaska Revegetation & Erosion
Control Guide (2012)
2:07:14 PM
Mr. Fogels discussed slide 44, Parks and Outdoor
Recreation: 2012 Overview of Accomplishments":
Serves the Alaska public through outdoor recreation,
educational programming, and access to public lands
•Recruited, hired and trained more than 700 park
volunteers who donated more than 95,000 hours to the
park system-a cash value of more than $2 million
•Permitted 1,104 individuals to provide commercial
recreational services in state park areas, which
resulted in millions of dollars in direct and indirect
economic benefit to the state
oIn 2011 (the most recent data available),
sportfish guide businesses operating in 10
different state park areas generated approx. $7.7
million in revenue; businesses that offered
guided hikes in 14 different park areas generated
approx. $790,000 in revenue
•Lower Chatanika SRS was reinstated into active
management thanks to local and legislative support
•3 new public use cabins in Southeast (2 Eagle Beach
SRA, 1 Juneau Channel Islands SMP); PUC occupancy
increased 9% and overnight camping increased 3%
•4 "Arts in the Parks" events statewide
•National honors, including: Joe McCullough, National
Boating Safety Educator of the Year, and Judy Bittner,
Dept. of Interior National Partners in Conservation
Award
Mr. Fogles addressed slide 45, "Forestry-Timber Resources:
2012 Overview of Accomplishments":
Alaska has 17% of the nation's forest land
•Finished final report for Governor's Alaska Timber
Jobs Task Force per AO 258; report makes 35 specific
recommendations that span 8 substantive areas of the
industry sector
•Sold 18,786,000 board feet of lumber to 34 Alaskan
businesses
•Provided direct and indirect support to over 80 woody
biomass projects - this is important work that is
assisting many small, remote communities and larger
roadside communities that are struggling with high
energy costs for space heating and electrical needs
•Continue to work through the State Tongass Team to
provide coordinated comments to USFS in regard to
federal timber sales in the Tongass National Forest-a
continual challenge
•Worked with Department of Law to support their
efforts in appealing the invalidated Tongass National
Forest exemption from the Roadless Rule in the 9th
Circuit
•New marketing tag line: "Triple Bottom Line:
Environment, Economy and Communities"
2:09:15 PM
Mr. Fogels spoke to slide 46, "Forestry - Wildland Fires:
2012 Overview and Accomplishments":
•Contained 95% of the fires in Critical and Full
Protection Options at 10 acres or less during the 2012
season
•Responded to late-season wildfires in Dillingham and
the Mat-Su Valley
•Provided assistance to Municipality of Anchorage in
response to extreme wind and rain events and to the
Mat-Su Borough in response to flooding
•Played a major role in providing firefighting
assistance to the lower 48 states during a
particularly difficult fire season for the Nation
•Provided a critical tactical asset for use by
wildland fire managers in the form of fire retardant
air tankers to supplement the USFS national air tanker
fleet that has shrunk to an inadequate fleet
•Instructed 40 rural students in basic fire-fighting
and 34 students in advanced fire-fighting at the Tok
Wildland Fire Academy
Mr. Balash spoke to slide 48, "2013 Legislative Session &
Beyond: Oil Tax Reform":
•The Governor has been encouraged by the consensus
that has emerged over the past year
•Alaska should be in the forefront of this American
energy renaissance rather than watch oil production
continue to ebb
•Alaskans agree that something needs to be done
•Implementing comprehensive plan-tax reform remains
key
Core Principles of Tax Reform:
•Must be fair to Alaskans
•Encourage new production
•Simple so that it restores balance to the system
•Durable for the long term
Status quo favored by some is unfair to Alaskans and
unacceptable.
Mr. Balash addressed slide 49, "2013 Legislative Session
and Beyond: Other Efforts":
Gas Commercialization
•Governor's new benchmarks in 2013 State of the State
•We will work to accelerate gas line development
because of our urgent need for in-state energy
•The window of opportunity to sell Alaska LNG to Asian
markets will not be open indefinitely
•Global competition is fierce
•Continued work on demand-pull
Permitting Reform
•Progress has been made but we will again pursue
significant legislative efforts to create efficiencies
by streamlining processes, reduce redundancies, and
reduce opportunities for legal challenges
•Introduction by Governor of HB 77 builds on our
comprehensive reform efforts; critical to state's
future
Promoting the State
•Mineral Exploration Roundup Conference, Vancouver,
January 28-31, 2013
•North American Prospect Expo, Houston, February 5-8,
2013
•"Alaska Grown" produce
•Alaska State Parks hosting "Arts in the Parks"
throughout the summer
•Example: Oil & Gas Journal feature on Alaska
2:12:38 PM
JEAN DAVIS, DIRECTOR, SUPPORT SERVICES DIVISION, DEPARTMENT
OF NATURAL RESOURCES, discussed slide 51, "DNR FY 2014
Budget: Employees and Budget Structure":
•DNR currently employs about 1,100 Alaskans in full-
time and seasonal positions, with main offices in
Anchorage, Juneau, Fairbanks and Palmer, and regional
offices throughout the state
•The budget structure reorganization implemented by
the Legislature in FY2012 has simplified the reporting
and presentation of the budget. The FY2014 Governor's
budget retains this structure.
2:13:48 PM
Ms. Davis discussed slide 52, "DNR FY 2014 Budget: Budget
Growth Analysis (Prepared by Legislative Finance)", which
contained a bar graph that reflected DNR's share of total
agency operations, general fund only. Between FY 05 and FY
14 DNR's general fund budget grew by $40 million, an
average growth rate of 5.3 percent. The share of general
fund for DNR when compared to all state agency budgets was
2 percent, down from 2.63 in FY 06.
2:14:29 PM
Ms. Davis spoke to slide 53, "DNR FY 2014 Budget: Budget
Growth Analysis (Prepared by Legislative Finance)", which
contained a bar graph reflecting DNR's percent of the total
department's budget by funded group, all funds. General
funds were 61 percent of the total budget in FY 05 and were
63 percent of the FY 14 Governor's budget.
Ms. Davis spoke to slide 54, "DNR FY 2014 Budget: Budget
Growth Analysis (Prepared by Legislative Finance)", which
was a line graph that illustrated the department's
continued budget growth, general fund only, compared to 10
- year plan. The dark black line was the annual management
plan, the green dotted line was the continuation of 5.3
percent annual growth, and the dotted black line charted
DNR's 10 - year plan with initiatives.
Ms. Davis discussed slide 55, "DNR FY 2014 Budget: Budget
Growth Analysis (Prepared by Legislative Finance)", which
contained a line graph that detailed the department's
continued budget growth, all funds, compared to 10 - year
plan.
Ms. Davis addressed slide 56, "DNR FY14 Budget: Operating
Budget by Core Services," which contained a pie chart
offering the percentages of core service distribution:
foster responsible development, provide access to state
lands, sufficient data acquisition and assessment, and
mitigate natural hazard threats.
2:16:55 PM
Ms. Davis spoke to slide 57, "DNR FY 2014 Budget: Operating
Budget by Division/Office." The slide contained a pie chart
that broke down the operating budget funds by division. The
FY 13 authorized operating budget was $167, 522.5; the
request for FY 14 was $169,952.3. She noted that Fire
Suppression was contained within the Division of Forestry.
Ms. Davis pointed to slide 58, "DNR FY 2012 Budget:
Operating Budget by Core Services," which showed a
breakdown of core services by the four funding source
groups. She shared that Legislative Finance Division
characterized the governor's request into two scenarios:
adjusted base and the governor's new request items. The
chart showed the comparison from what the department was
currently operating under and the adjusted base. The key
differences were outlined at the bottom of the slide. One-
time items had been backed out of the adjusted base and
would be considered a new request if reinstated.
2:18:55 PM
Ms. Davis discussed slide 59, "DNR FY 2014 Budget:
Operating Budget by Core Services." The slide showed the
adjusted base on the left side and the governor's budget on
the right. The middle portion showed a 5.1 percent increase
in general funds form the adjusted base to the governor's
request. She noted the key changes in the bottom portion of
the slide. The first five were a restoration of one-time
items and amounted to approximately $3.4 million. Below
that line were the new items requested by the department
for FY 14.
2:20:07 PM
Ms. Davis addressed slide 60, which listed the operating
budget highlights, or the critical changes in the budget.
The changes were listed by initiative; Secure Alaska's
Future-Oil, Strategic Minerals, Gasline, Permitting, and
Forestry/Agriculture/Parks.
2:22:40 PM
Ms. Davis pointed to slide 61, which listed the same
initiatives as capital budget highlights.
Mr. Fogels concluded with slide, 62:
•The FY2014 Budget reflects our focus on DNR's core
services and the Administration's major statewide
initiatives
•Many challenges and opportunities
•Opportunities far outweigh the challenges, in large
measure due to our abundant natural resource wealth
•Partnerships are key: public, stakeholders,
legislature, private sector, Administration
2:23:22 PM
Representative Wilson discussed the graph on slide 57. She
asked whether "Fire Suppression" meant what the state paid
to put out wildfires.
Mr. Fogels responded that managing the forests was probably
a component to preventing forest fires, but that it was
dependent on where the fires broke out.
Representative Wilson queried whether DNR communicated with
other agencies to explore better forest management.
Mr. Fogels responded that the wildfire fighting force in
the state was a combination of local, municipal, and state
agencies. He offered a more thorough briefing at a later
date.
2:25:10 PM
Vice-Chair Neuman noted the increase in the department's
budget size. He queried whether the department had
projected any revenue streams to the state in anticipation
of developed resources.
Mr. Balash replied that the department did have estimates
on increased oil royalties due to the oil tax reform
effort. He stated that the 5 percent growth figure was
being knocked down significantly in the current budget. He
related that the department's budget growth was at just
over 2 percent.
2:27:45 PM
Vice-Chair Neuman asked if the department had estimated out
the opportunities for the state to diversify income revenue
streams.
Mr. Fogels responded that the department had taken a look
at all the different divisions in order to determine
revenue streams. He said that the department work further
with the committee on the issue.
2:29:24 PM
Representative Kawasaki queried the amount of the request
for the Hunting Guide Concession. He asked whether
statutory language would be needed to make a change.
Mr. Fogels replied that the department, along with DF&G,
was working to craft a guide concession program for the
state. The states past exclusive guide area system had been
deemed illegal by the Supreme Court. The department had
been working on the program for many years and were working
to create regulations for the program.
2:32:02 PM
Representative Kawasaki noted that he had expected to see
an impact in DNR's budget from the dismantling of the
Coastal Zone Management Program.
Mr. Balash replied that the program had been directed
through the department and had been part of the FY 12
budget. The adjustments were made in the FY 12 budget cycle
and had no specific increment or decrement associated with
the program for the FY 13 budget. The division that
formerly ran the program had been responsible for grants
that were not being administratively run through the Office
of Project Management and Permitting.
Representative Gara asked about how the number of
exploration wells compared over the last 5 years.
Mr. Balash answered that it depended on how you counted the
wells. He offered to get the numbers to the committee.
Representative Gara asked whether there was an expectation
about when the maximum would be reached for hydrocarbon
liquids and if projection could be found in the revenue
forecast.
Mr. Balash replied that the pipeline would have a capacity
of 70,000 barrels per day; in 2016 the expectation was that
there would be 10,000 barrels per day of condensates
recovered at Point Thomson and shipped through the
pipeline.
2:37:52 PM
Representative Munoz wondered whether the department had
improved due to the closure of the Coastal Zone Management
Program.
Mr. Balash responded that one of the losses with the demise
of the program was the loss of the coordination function.
The department had been able to pick up some of that slack
through the Office of Project Management and Permitting.
With regard to local governments specifically, the
department had executed a memorandum of understanding with
the North Slope Borough and involved quarterly meeting with
the borough mayor and the commissioner's offices, with
monthly meetings at the staff level. Issues of concern and
importance to the borough were kept in mind as the
department made decisions. He said that the coordination
had resulted in several jointly signed letters between the
borough mayor and the commissioner; one on the federal
permitting of Point Thomson, another was a request to the
Department of the Interior for a seat at the table to
undertake reviews of Shell's OCS program.
2:41:16 PM
AT EASE
2:42:47 PM
RECONVENED
2:43:28 PM
^FY 14 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES
2:43:38 PM
PAT KEMP, ACTING COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, related that he would be giving a
brief overview of the department. He introduced staff.
Commissioner Kemp discussed slide 2, "Mission":
"Get Alaska moving through service and
infrastructure."
To do this we:
•Provide for the safe and efficient movement of people
and goods
•Provide access to state services
•Open opportunities for exploration and development of
Alaska's resources
2:45:10 PM
Commissioner Kemp spoke to slide 3, "Statutory
Requirements":
•AS 44.42 Department of Transportation and Public
Facilities
•AS 44.68.010 Use of State-owned Vehicles
•AS 44.68.210 Highway Equipment Working Capital Fund
•AS 35 Public Buildings, Works, and Improvements
•AS 19 Highways and Ferries
•AS 19.10 State Highway System
•AS 19.10.300 Commercial Motor Vehicle Requirements
•AS 19.25 Utilities, Advertising, Encroachment and
Memorials
•AS 19.65 Alaska Marine Highway System
•AS 19.65.050 Alaska Marine Highway System Fund and
Budget
•AS 19.75 Knik Arm Bridge and Toll Authority
•AS 2 Aeronautics
Commissioner Kemp addressed slide 4, "Organization", which
showed the organization flow chart of the department.
Commissioner Kemp discussed slide 5, "DOT & PF Assets":
•3,186 full time positions
•Own and maintain 5,601 miles of roads/highways
•84 Maintenance Stations
•254 State Airports
•2 International Airports
•700 Facilities (4 million + sq. ft.)
•11 ferries
•35 Ferry Terminals
•24 Harbors
•805 State Owned Bridges
•7 Weigh Stations
2:47:40 PM
Commissioner Kemp spoke to slide 6, "Core Services":
•Construction of transportation infrastructure &
facilities
•Maintenance & operations of the state transportation
systems
•Measurement standards/commercial vehicle enforcement
Commissioner Kemp discussed slide 7, "Priorities":
•Operate and maintain safe and reliable roads,
airports, ferries & facilities
•Ensure Alaska has the transportation infrastructure
necessary to grow the economy
•Develop and implement efficiencies in both the
operating and capital budgets
Commissioner Kemp addressed slide 8, "Challenges":
•Moving Ahead for Progress 21st Century Act (MAP-21)
•Balancing budget against public needs, changing
conditions and expectations
•Congestion in Anchorage and MatSu
•Safety corridors
•High cost of commodities
•Getting our resources to tidewater
•Federal oversight
2:50:45 PM
MARY SIROKY, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
discussed slide 9, "Measures & Results." Moving clockwise
from top to bottom; the first graph illustrated the 3 -
year moving average percentage change in traffic fatalities
per 100 million vehicle miles traveled. She noted that the
number of fatalities had been consistently low up until
2011. The uptake was considered random and the preliminary
numbers for 2012 were expected to go back down. Graph two
shoed the increase in highway safety roads that met
department standards. The goal of the department was to
have the national highway system roads meet the national
standards and had been making steady progress towards that
end. The bottom left slide showed the reduction of rural
airports that were seasonally closed. Shared that 82
percent of Alaska's communities were served primarily by
air service and to not have air service resulted in a
significant impact on those communities. The department was
working to reduce the number of seasonal airport closures.
The final slide charted the Alaska Marine Highway System
Vessel car deck capacity utilization. She stated that the
department hoped to better utilize the car deck by marrying
service to capacity. The department had made steady
progress towards that end; when the department was able to
marry the right vessel to the right service, the best
utilizations were a result.
2:54:13 PM
Ms. Siroky spoke to slide 10 titled "FY2014 Operating
Budget." The operating budget request was $635,658.8 and
consisted of $359,391.4 of general funds, $272, 422.8 of
other funds and $3, 844.6 of federal funds. Of the total
request 63 percent of the budget was for personal services
and 35 percent was services and commodities. The department
spent a significant amount on contracts for professional to
take care of rural airports, hauling snow, street sweeping
and road maintenance.
2:55:17 PM
Ms. Siroky pointed to slide 11 titled "FY2014 Operating
Budget Funding Sources." The significant portion of the
operating budget came from general funds, 46 percent. Funds
were also brought in from the Whittier Tunnel Toll
Receipts, Vehicle Rental Tax Receipts, Marine Highway
System Fund, Federal Funds, Inter-Agency Receipts (other),
International Airport Revenue Funds, and the Highway
Equipment Working Capital Fund.
Ms. Siroky addressed slide 12 titled "FY2014 GF Operating
Allocations." The Alaska Marine Highway System (AMHS) used
46 percent of the general funds dollars in the operating
budget. The second largest portion of the usage was for
highways and aviation. The department built a large amount
of infrastructure with federal dollars but could not use
federal dollars to maintain the marine highway system. She
noted that administrative support was a significant piece
of the pie and included the Commissioner's Office, the
Division of Administrative Services, Equal and Civil Rights
enforcers, Internal Auditors, Transportation Management,
Statewide Aviation Division and the Administration and
support services for each of the department's regional
offices.
2:59:42 PM
Ms. Siroky discussed slide 13, "FY2014 Operating Budget
Changes." The operating budget request of $14.182 million
could be broken down into the following:
•Salary and Health
$2,925.7
•New Initiatives
$450.2
•Impacts to Highways & Aviation
$5,274.3
•Maintain Current Level of Service (Baseline)
$5,812.5
•Technical Adjustments
($164.8)
•One Time Items
($115.2)
3:03:42 PM
Ms. Siroky spoke to slide 14, "FY2014 DOT & PF Capital
Budget." The FY 14 capital budget request was $984,113.5,
79 percent of which was made up of federal funds. The funds
supported both surface and aviation transportation
programs.
Ms. Siroky addressed slide 15, which offered a look back at
the department's funding over the last 10 years. She shared
that the federal funding had become less and less in terms
of the operating budget over the years. She stated that a
change occurred from FY 05 to FY 06 in undesignated and
designated general funds. The change was due to a shift in
the budget structure with regard to the AMHS subsidy.
Starting in FY 06, undesignated general funds were placed
directly in the AMHS budget. Previously, the funds were
placed into the AMHS funds and the budget expended the AMHS
fund as designated general funds. The percentage of general
funds was 49 percent in FY 05 and was now 58 percent in the
FY 14 budget.
3:06:00 PM
Ms. Siroky spoke to slide 16, which illustrated that the
department was 17 percent of the general funds operating
budget. She related that the yellow boxes represented the
fuel trigger.
Ms. Siroky discussed slide 17, "10-Year Projection Graph."
She asserted that the department was diligently working to
become a "flatline" agency. She noted that some small
growth was expected due to the gasline. Slide 18, "10-year
Projection Graph", offered the general fund component.
3:07:11 PM
Ms. Siroky addressed slide 19, "Information." She listed
the current information on Alaska's roadways:
· Weather Cameras
· Weather Watches
· Road Construction
· Future Construction
· Incidents
· Driving Conditions
· Available by Phone or on the web
Ms. Siroky relayed that the Statewide Transportation
Improvement Program (STIP) was searchable online.
Additionally, the public could sign up to receive notices
from the department on "Gov Delivery" or 511.Alaska.gov.
Co-Chair Austerman requested further discussion on the
first bullet of slide 8 of the presentation.
Commissioner Kemp responded that the department would
designate between $70 million and $100 million dollars to
the Community Transportation Program; many projects in the
mill were located within the program and the department did
not have the funding for construction. The funding would go
to the National Highway System and there was a set of
performance measures that were being crafted on the federal
level that the department would have to abide by. The
department was concerned by several measures; for example,
pavement ride. He opined that nowhere else in the nation
were there roads constructed on permafrost; the state could
not match pavement smoothness on the national level. The
department had been promised a seat at the table during the
rule making, but there were still concern. He said that by
the time the rules were written there would be a new
highway bill.
Co-Chair Austerman understood that the standards had yet to
be imposed because the rules had not been written.
Commissioner Kemp replied in the affirmative.
3:10:36 PM
Vice-Chair Neuman asked about the $171 million for
Community Transportation Programs. He believed that if the
state did the projects they would cost considerably less
because the federal funds were tied to so many rules. He
understood that with MAP-21 if the state was to receive
federal dollars the money would have to be spent on federal
projects; state projects would require state funds.
Commissioner Kemp replied that he was unsure that he
understood the question. He relayed that the department
used general funds for all categories within the STIP. He
related that under the federal guidelines, a project worked
in steps; a project could not be designed until the process
had been gone through incrementally. A way to leverage a
project was to interject state funds; there were many ways
that a project could be accelerated using state funds.
3:13:09 PM
Representative Holmes noted the increase in the de-icing
program and inquired if any alternative technologies for
de-icing had been considered.
Ms. Siroky responded that the requirements for de-icing
were based on the number of landings per years. Not all of
the state's jet airports required de-icing. She had not
heard of any other means of de-icing than the chemical
solution currently being used.
3:15:02 PM
Representative Munoz inquired how the municipal airports
were handling the de-icing obligation.
Ms. Siroky restated that airports without jets landing were
not required to de-ice. She said that the airport would
need to have 1,000 jet landings per year in order for de-
icing to be required.
Representative Munoz inquired how the Juneau and Ketchikan
airports would absorb the additional costs. She understood
that the material was brought in in liquid form. She
stressed that the requirement was a difficult one and
wondered if the department had pursued an exemption for the
Alaska.
Ms. Siroky replied that she would look in to.
Representative Gara said that in the past he had seen roads
that had been torn up and resurfaced that hadn't seemed in
disrepair. He wondered whether there was a way to implement
a standard for resurfacing roads on an as-needed basis.
Commissioner Kemp replied that resurfacing should be based
on need and rut depth as well as problems with the
pavement. He shared that the department was working to
implement hard aggregate into the pavement. He shared that
Egan Drive, in Juneau, used to need to be paved every 5
years. Hard rock was brought up form Haines which bumped
the repaving up to every 17 years. He stressed that hard
aggregate should alleviate the issue.
3:19:15 PM
Representative Gara pointed out that the section of road
between Cooper Landing and Talkeetna was very dangerous. He
queried why the signs that used to be there were gone. He
noted that drivers were unaware of where the pullouts were
and requested that signs be added to that section of
highway.
Commissioner Kemp replied that he would be happy to look
into it.
3:21:28 PM
Representative Kawasaki spoke to slide 11. He understood
that the AMHS was funded by receipts.
Ms. Siroky replied that the revenues were derived from
passenger and car fares. She added that the system received
and infusion of general fund dollars as well.
3:22:41 PM
Representative Kawasaki inquired if how the AMHS fares were
identified.
Ms. Siroky replied that she would back to the committee
with more details, but that she did not think that the
fares had changed significantly in the past several years.
3:24:14 PM
Co-Chair Austerman discussed housekeeping.
HB 65 was HEARD and HELD in committee for further
consideration.
HB 66 was HEARD and HELD in committee for further
consideration.
3:24:32 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOT&PF HFC Overview 01 28 13.pdf |
HFIN 1/28/2013 1:30:00 PM |
DOT HFIN Overview |
| DNR HFIN Overview 1-28.pdf |
HFIN 1/28/2013 1:30:00 PM |
DNR HFIN Overview |
| DOT Overview Response 1-28-13.pdf |
HFIN 1/28/2013 1:30:00 PM |
Dot Respnse Overview questions |