Legislature(2013 - 2014)SENATE FINANCE 532

02/19/2014 09:00 AM Senate FINANCE


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09:07:52 AM Start
09:08:10 AM SB119
09:10:15 AM Fy 15 Governor's Budget Overview: Department of Commerce, Community and Economic Development
10:03:26 AM Fy 15 Governor's Budget Overview: Department of Administration
10:18:30 AM Fy 15 Governor's Budget Overview: Department of Natural Resources
10:35:16 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 119 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
Dept. of Administration
Dept. of Labor and Workforce Development
Dept. of Natural Resources
Dept. of Commerce, Community and Economic Dev.
SENATE BILL NO. 119                                                                                                           
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     appropriations to capitalize funds."                                                                                       
                                                                                                                                
9:09:21 AM                                                                                                                    
                                                                                                                                
^FY 15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF COMMERCE,                                                                    
COMMUNITY AND ECONOMIC DEVELOPMENT                                                                                            
                                                                                                                                
JO ELLEN HANRAHAN, DEPUTY COMMISSIONER, DEPARTMENT OF                                                                           
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, spoke to the                                                                      
capital budget requests for FY15:                                                                                               
                                                                                                                                
     RN 38946                                                                                                                 
     Community Block Grants                                                                                                   
     $6,060,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This   project  is   for   multiple  federally   funded                                                                    
     programs,   enabling   the  Department   of   Commerce,                                                                    
     Community and  Economic Development (DCCED)  to provide                                                                    
     grants  to  communities  and non-profits  that  provide                                                                    
     services  and/or benefits  for low  to moderate  income                                                                    
     individuals.                                                                                                               
     Project Description/Justification:                                                                                     
     Community Services Block Grants:                                                                                       
     This program provides funding  to reduce and/or prevent                                                                    
     poverty through community  based educational activities                                                                    
     which lead to a  greater degree of self-sufficiency. As                                                                    
     authorized by federal Public  Law 97-35, throughout the                                                                    
     United  States the  federal  Department  of Health  and                                                                    
     Human  Services  (HHS)  has  designated  950  Community                                                                    
     Action Agencies (CAAs)  - all of whom  may then receive                                                                    
     federal  funding  that passes-through  the  appropriate                                                                    
     state  agency.  Within  Alaska   the  federal  HHS  has                                                                    
     designated  only one  CAA,  the non-profit  corporation                                                                    
    Rural Alaska Community Action Program (RurAL CAP).                                                                          
     RurAL  CAP's mission  is to  protect  the heritage  of,                                                                    
     while  also  improving the  quality  of  life for,  low                                                                    
     income  rural Alaskans.  This  is accomplished  through                                                                    
     educational  programs such  as alcohol  and drug  abuse                                                                    
     prevention programs, fetal  alcohol syndrome prevention                                                                    
     programs,   and  child   development  programs;   adult                                                                    
     training;  affordable  housing programs;  advocacy  for                                                                    
     low-income  individuals;  and  instruction  on  how  to                                                                    
     advocate for themselves.                                                                                                   
     This  program has  been in  existence  since 1965.  The                                                                    
     federal HHS  provides 100 percent  of the  funding. For                                                                    
     FY2015,  DCCED   anticipates  $3  million   in  federal                                                                    
     funding.                                                                                                                   
     Community Development Block Grants:                                                                                      
     This program  provides grants  not to  exceed $850,000,                                                                    
     to    municipalities     for    planning    activities,                                                                    
     infrastructure   projects,  and   economic  development                                                                    
     which benefit low to moderate-income individuals.                                                                          
     This  program has  been in  existence  since 1983.  The                                                                    
     U.S. Department of Housing  and Urban Development (HUD)                                                                    
     provides  fundi  ng,  which  ranges  from  $3  to  $3.5                                                                    
     million  annually with  a state  match of  two percent.                                                                    
     For  FY2015, DCCED  anticipates $3  million in  federal                                                                    
     funding with a state match of $60,000.                                                                                     
                                                                                                                                
9:10:15 AM                                                                                                                    
                                                                                                                                
     RN 54070                                                                                                                 
     Economic Development Marketing Initiative                                                                                
     $400,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Expand   development   activities  and   promotion   of                                                                    
     Alaska's  economic opportunities  and  reputation as  a                                                                    
     great  place  to  live, conduct  business,  and  invest                                                                    
     through   activities   that   may   include:   enhanced                                                                    
     visibility at trade shows;  a proactive media relations                                                                    
     campaign;  and expanded  marketing support  of Alaska's                                                                    
     key industries  across all sectors,  including tourism,                                                                    
     fisheries,   minerals,   forest  products,   film   and                                                                    
     agriculture.                                                                                                               
     Project Description/Justification:                                                                                     
     This  project will  expand promotional  and development                                                                    
     activities  of   Alaska's  industries  and   build  our                                                                    
     reputation as  a great place to  live, conduct business                                                                    
     and  invest.  New   development  efforts  initiated  in                                                                    
     FY2013  through  a  capital appropriation  allowed  the                                                                    
     department  to  act  in  a  broad  and  impactful  way.                                                                    
     Development  programs keep  Alaska in  the marketplace,                                                                    
     align with  the private sector needs,  provide targeted                                                                    
     technical assistance,  and help businesses  with access                                                                    
     to capital.                                                                                                                
     The department  plans to  build on  increased marketing                                                                    
     efforts  initiated  with   FY2013  capital  funding  to                                                                    
     include:                                                                                                                   
     Create Awareness and Demand for Alaska Products                                                                            
        · Upgrade  the  Alaska  building trade  show  booth,                                                                    
          displays and  materials, which  currently showcase                                                                    
          more than 25 Alaska businesses and products.                                                                          
        · Expand  participation  outside  of  the  Anchorage                                                                    
          area  in  consumer   and  home  building  industry                                                                    
          shows.                                                                                                                
        · Upgrade  and  maintain  the  online  directory  of                                                                    
          products.                                                                                                             
        · Engage  retailers   and  consumers   by  promoting                                                                    
          construction of a home built in Anchorage with                                                                        
        · Alaska  manufactured   products.  Promotions  will                                                                    
          include retail  and consumer tours,  seminars, and                                                                    
          demonstrations with Alaska Grown products.                                                                            
     Connect   Alaska  Minerals   Projects  with   Potential                                                                  
     Investors                                                                                                                
        · Sponsor  a  one-day  Alaska  minerals  seminar  in                                                                    
          conjunction   with  a   major  mining   conference                                                                    
          (30,000 attendees) held each March in Toronto.                                                                        
        · Showcase  the State  of  Alaska, minerals  support                                                                    
          industries,   Alaska   Native  corporations,   and                                                                    
          mineral  exploration companies  at major  industry                                                                    
          trade shows.                                                                                                          
        · Expand  efforts to  collaborate  with other  state                                                                    
          agencies  to  target  investors  in  the  minerals                                                                    
          industry.                                                                                                             
     Pursue Development Opportunities                                                                                         
        · Immediately react  when businesses  and industries                                                                    
          outside   the  state   indicate  an   interest  in                                                                    
          locating  to  Alaska.  This "SWAT  team"  approach                                                                    
          includes  responding   to  mariculture  businesses                                                                    
          that may  relocate from  Washington state  and the                                                                    
          unmanned  aircraft industry  interested in  Alaska                                                                    
          for both military and non-military applications.                                                                      
        · Develop   an   approach   to   "re-shore"   Alaska                                                                    
          businesses  that have  migrated out  of Alaska  or                                                                    
          the  United  States,   such  as  the  department's                                                                    
          participation in the  2013 US Manufacturing Summit                                                                    
          and Trade Show in Florida.                                                                                            
        · Promote Alaska as a film location as well as                                                                          
          support  film and  television productions  through                                                                    
          our   workforce,   film-related  businesses,   and                                                                    
          incentives.                                                                                                           
     Generate Media Exposure for Alaska Industries                                                                            
        · Conduct media briefings and Alaska site visits to                                                                     
          attract  media  interest  in  Arctic  development,                                                                    
          logistics   and  transportation,   marine  trades,                                                                    
          natural    gas,   manufacturing,    and   resource                                                                    
          development.                                                                                                          
        · Pursue national and trade publications to promote                                                                     
          Alaska's reputation  as a place  to invest  and do                                                                    
          business.                                                                                                             
     With   this  capital   project,  the   department  will                                                                    
     continue   providing   development   work   in   forest                                                                    
     products,  minerals,   and  emerging   industries,  the                                                                    
     marketplace. The business  community has benefited from                                                                    
     the   department's   recent   efforts.   For   economic                                                                    
     development  progress  to  continue, it  is  imperative                                                                    
     that  the   department  have  capacity   for  marketing                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
9:14:00 AM                                                                                                                    
                                                                                                                                
     RN 55631                                                                                                                 
     Nutritional Alaskan Foods for Schools                                                                                    
     $3,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This   project  will   provide   grant   funds  to   be                                                                    
     distributed  to school  districts to  purchase healthy,                                                                    
     Alaska  grown food  products to  be  served for  school                                                                    
     meals.  This project  provides healthy  and nutritional                                                                    
     meal  options for  Alaskan  students, promotes  healthy                                                                    
     lifestyle  choices, and  creates  an additional  market                                                                    
     for locally grown and harvested Alaskan food products.                                                                     
     Project Description/Justification:                                                                                     
     This pilot  program began  in FY2013,  and is  meant to                                                                    
     encourage   Alaska   school   districts   to   purchase                                                                    
     nutritious food sources that are  grown or harvested in                                                                    
     Alaska. Grant  funds will  be apportioned  two separate                                                                    
     ways.  Fifty-three   percent  of  the  funds   will  be                                                                    
     allocated  according  to   the  2013-2014  school  year                                                                    
     average daily  membership of the school  districts. The                                                                    
     remaining 47  percent of the funds  will be apportioned                                                                    
     according  to   the  2013-2014  School   District  Cost                                                                    
     Factor. The  sum of the  two amounts will  be available                                                                    
     to each school district  for reimbursement of purchases                                                                    
     under this program. Under  the Nutritional Alaska Foods                                                                    
     for  Schools  program,  a  school  district  makes  its                                                                    
     purchases and  submits a  reimbursement request  to the                                                                    
     Department of Commerce, Community and Economic                                                                             
     Development  (DCCED).  The request  details  quantities                                                                    
     purchased, cost,  and proof that products  were Alaskan                                                                    
     grown,  or caught/harvested  in  Alaskan waters.  DCCED                                                                    
     then  issues  a  reimbursement payment  to  the  school                                                                    
     district  for  the  cost,  up  to  the  amount  of  the                                                                    
     district's allocation. For  this FY2015 funding, school                                                                    
     districts  have   until  June   30,  2015   to  request                                                                    
     reimbursement. Any  remaining funds are  distributed to                                                                    
     districts  based  upon  their 2013-2014  average  daily                                                                    
     membership.                                                                                                                
     The  following items  would  qualify for  reimbursement                                                                    
     under the Nutritional Food for Alaskans program:                                                                           
        · Finfish or shellfish caught/harvested in Alaskan                                                                      
          waters.                                                                                                               
        · Livestock raised in Alaska.                                                                                           
        · Milk produced from livestock in Alaska.                                                                               
        · Fruits and vegetables grown in Alaska.                                                                                
        · Native produce and berries commercially harvested                                                                     
          in Alaska.                                                                                                            
        · Transportation and shipping costs of the above                                                                        
          goods.                                                                                                                
                                                                                                                                
9:14:24 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough requested an explanation of RN 52507,                                                                     
Alaska Energy Authority - Energy Plan Implementation.                                                                           
                                                                                                                                
SARAH   FISHER-GOAD,  EXECUTIVE   DIRECTOR,  ALASKA   ENERGY                                                                    
AUTHORITY,  DEPARTMENT OF  COMMERCE, COMMUNITY  AND ECONOMIC                                                                    
DEVELOPMENT,  replied that  she  would speak  to the  Alaska                                                                    
Energy Authority projects shortly.                                                                                              
                                                                                                                                
9:15:25 AM                                                                                                                    
                                                                                                                                
     RN 56220                                                                                                                 
     Alaska Energy Authority - Susitna-Watana Hydroelectric                                                                   
     $95,200,000                                                                                                              
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project supports  the Susitna-Watana Hydroelectric                                                                    
     project and provides for  continued progress during the                                                                    
     second  season  of  field studies.  The  Alaska  Energy                                                                    
     Authority continues to work towards  a goal of filing a                                                                    
     FERC license application.                                                                                                  
     Project Description/Justification:                                                                                     
     This   project   funding   will   be   used   for   the                                                                    
     environmental     studies,      license     application                                                                    
     preparation, and  project management consulting  on the                                                                    
     Susitna-Watana  Hydroelectric  Project. Continued  work                                                                    
     on  the  Susitna-Watana  Hydroelectric  Project  is  in                                                                    
     preparation for the Federal Energy Regulatory                                                                              
     Commission (FERC) license application.                                                                                     
     FY2015  funding will  be  used  to continue  scientific                                                                    
     work  while  project  managers work  with  other  state                                                                    
     officials  and  private  corporations  to  acquire  all                                                                    
     appropriate land use permits.                                                                                              
                                                                                                                                
Ms.  Fisher-Goad stated  that the  Office of  Management and                                                                    
Budget would be presenting  a supplemental request for $32.7                                                                    
million the  following day. She  said that  the supplemental                                                                    
funding  would  allow for  the  continuation  of the  second                                                                    
study  season,  which  was being  split  between  the  field                                                                    
seasons of 2014 and 2015.                                                                                                       
                                                                                                                                
9:18:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  inquired when AEA  hoped to get  the project                                                                    
to an  open season.  Ms. Fisher-Goad  replied that  the goal                                                                    
was  to  complete all  the  necessary  work  to file  for  a                                                                    
license  application in  2016.  The expectation  was that  a                                                                    
license would be received in 2018.                                                                                              
                                                                                                                                
9:19:01 AM                                                                                                                    
                                                                                                                                
Ms. Fisher-Goad continued with the capital requests:                                                                            
                                                                                                                                
     RN 49734                                                                                                                 
     Alaska Energy Authority - Bulk Fuel Upgrades                                                                             
     $8,500,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Bulk Fuel program  upgrades non-compliant bulk fuel                                                                    
     facilities  in rural  communities. Upgrading  bulk fuel                                                                    
     facilities reduces  the cost  of energy by  reducing or                                                                    
     eliminating  fuel  loss  from   leaks  and  spills.  By                                                                    
     providing  enough  capacity  for  current  and  planned                                                                    
     needs,   communities  may   purchase  fuel   in  larger                                                                    
     quantities at a lower cost per gallon.                                                                                     
     Project Description/Justification:                                                                                     
     Bulk Fuel Upgrades: Most rural  tank farms have serious                                                                    
     deficiencies that typically included:                                                                                      
        · Inadequate dikes to contain fuel spills                                                                               
        · Inadequate foundations, which could cause gradual                                                                     
          tank movement and fuel leakage                                                                                        
        · Improper piping systems and joints, which are the                                                                     
          most common source of fuel leaks                                                                                      
        · Improper   siting   near   wells,   beaches,   and                                                                    
          buildings, or within a flood plain                                                                                    
        · Tanks that are rusted or damaged beyond repair                                                                        
        · Electrical code violations                                                                                            
        · Inadequate security                                                                                                   
                                                                                                                                
     This  program  began in  1997  and  has expanded  since                                                                    
     FY1999   with   federal   funding   from   the   Denali                                                                    
     Commission.                                                                                                                
                                                                                                                                
     RN 57255                                                                                                                 
    Alaska Energy Authority - Renewable Energy Projects                                                                       
     Round Six                                                                                                                
     $25,000,000                                                                                                              
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The  Renewable  Energy   Grant  Recommendation  Program                                                                    
     (REGRP)  was  created  in  2008   with  the  intent  to                                                                    
     appropriate  $50 million  annually for  five years.  In                                                                    
     2012, the  program was extended  to June 30,  2023. The                                                                    
     Legislature  has appropriated  $227.5  million to  date                                                                    
     for this  program since its creation.  Applications are                                                                    
     currently being sought for the seventh year of funding                                                                     
                                                                                                                                
Ms. Fisher-Goad related that the priority list for the                                                                          
request had been presented to the committee at an earlier                                                                       
date.                                                                                                                           
                                                                                                                                
Vice-Chair Fairclough  referred back to RN  49734. She asked                                                                    
whether the  work being  done by  the Renewable  Energy Fund                                                                    
was  being  evaluated  in conjunction  with  the  Bulk  Fuel                                                                    
Upgrades,  and whether  the  fact that  the  fuel was  being                                                                    
displaced  was being  taken  into  account. Ms.  Fisher-Goad                                                                    
replied in the  affirmative. She said that AEA  was taking a                                                                    
very  community  oriented  approach   with  respect  to  the                                                                    
projects. She said that work  that was occurring in Kake was                                                                    
a prime example.                                                                                                                
                                                                                                                                
9:21:53 AM                                                                                                                    
                                                                                                                                
     RN 52498                                                                                                                 
     Alaska Energy Authority - Rural Power Systems Upgrade                                                                    
     $12,600,000                                                                                                              
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Electric  utility   systems  are  part  of   the  basic                                                                    
     infrastructure  of rural  communities. The  power plant                                                                    
     and distribution  systems in rural communities  may not                                                                    
     meet   accepted    utility   standards    for   safety,                                                                    
     reliability,  and  environmental  protections.  Due  to                                                                    
     high costs  and limited economies of  scale, most local                                                                    
     communities cannot make  the capital investments needed                                                                    
     to meet accepted utility standards.                                                                                        
                                                                                                                                
     Project Description/Justification:                                                                                     
     Rural  Power  Systems   Upgrade  (RPSU):  This  program                                                                
     concentrates   on   power  production   and   delivery,                                                                    
     including   diesel  powerhouse,   heat  recovery,   and                                                                    
     electrical   distribution.   Efficiency,   reliability,                                                                    
     safety   and   sustainability   are   primary   drivers                                                                    
     throughout  the  conceptual  design, final  design  and                                                                    
     construction process. It  is not uncommon to  see a 30-                                                                    
     40  percent  increase  in  fuel  savings  after  a  new                                                                    
     powerhouse  project is  completed. After  completion of                                                                    
     the project, the rural utility  is required to employ a                                                                    
     qualified  operator  to  ensure   that  the  system  is                                                                    
     properly   operated  and   maintained.  Alaska   Energy                                                                    
     Authority   (AEA)  provides   training  and   technical                                                                    
     assistance to assist  communities with proper operation                                                                    
     of new facilities.  This program began in  1997 and has                                                                    
     expanded  since FY1999  with federal  funding from  the                                                                    
     Denali  Commission.  Federal  funds are  declining  and                                                                    
     state  funds  are  needed   to  continue  funding  this                                                                    
     program.                                                                                                                   
                                                                                                                                
9:23:01 AM                                                                                                                    
                                                                                                                                
     RN 55450                                                                                                                 
     Alaska  Energy  Authority  - Rural  Power  Distribution                                                                  
     Project                                                                                                                  
     - Kwigillingok                                                                                                           
     $700,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project  will  fund  needed  rural  power  system                                                                    
     upgrades  in  the  community of  Kwigillingok.  Project                                                                    
     funds  will  be  used   for  the  distribution  upgrade                                                                    
     portion of the project.                                                                                                    
                                                                                                                                
     Project Description/Justification:                                                                                     
     This project  replaces the electric  power distribution                                                                    
     system  in the  village  of  Kwigillingok, Alaska.  The                                                                    
     current electrical  distribution grid was  installed in                                                                    
     the late 1970's  and is both outdated  and in disrepair                                                                    
     which  contributes  to  frequent  power  outages.  This                                                                    
     project is currently in  the design phase. Construction                                                                    
     is estimated  to begin  in the  winter of  2014. Winter                                                                    
     construction is  required due to ground  conditions and                                                                    
     the need to use ice roads.                                                                                                 
     This  project was  initially  funded  through a  direct                                                                    
     legislative   appropriation   to  the   Alaska   Energy                                                                    
     Authority (AEA)  in SB160,  SLA 2012.  The appropriated                                                                    
     amount was based on  community developed estimates that                                                                    
     indicated   insufficient   funding  to   complete   the                                                                    
     distribution  upgrades. AEA's  technical review  of the                                                                    
     original  estimates identified  a  need for  additional                                                                    
     funds in order to complete the required scope of work.                                                                     
                                                                                                                                
     RN 55445                                                                                                                 
     Alaska  Energy  Authority  - Rural  Power  Distribution                                                                  
     Project                                                                                                                  
     - Tuntutuliak                                                                                                            
     $750,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project  will  fund  needed  rural  power  system                                                                    
     upgrades  in  the  community  of  Tuntutuliak.  Project                                                                    
     funds  will  be  used   for  the  distribution  upgrade                                                                    
     portion of the project.                                                                                                    
                                                                                                                                
     Project Description/Justification:                                                                                     
     This project  replaces the electric  power distribution                                                                    
     system  in  the  village of  Tuntutuliak,  Alaska.  The                                                                    
     current electrical  distribution grid was  installed in                                                                    
     the late 1970's  and is both outdated  and in disrepair                                                                    
     which  contributes  to  frequent  power  outages.  This                                                                    
     project is currently in  the design phase. Construction                                                                    
     is estimated  to begin  in the  winter of  2014. Winter                                                                    
     construction is  required due to ground  conditions and                                                                    
     the need to use ice roads.                                                                                                 
                                                                                                                                
     This  project was  initially  funded  through a  direct                                                                    
     legislative appropriation to the Alaska Energy                                                                             
     Authority (AEA) in SB160, SLA                                                                                              
     2012. The  appropriated amount  was based  on community                                                                    
     developed   estimates   that   indicated   insufficient                                                                    
     funding  to complete  the distribution  upgrades. AEA's                                                                    
     technical review  of the original  estimates identified                                                                    
     a need  for additional funds  in order to  complete the                                                                    
     required scope of work.                                                                                                    
                                                                                                                                
9:24:52 AM                                                                                                                    
                                                                                                                                
     RN 32950                                                                                                                 
     Alaska Energy Authority - Electrical Emergencies                                                                         
     Program                                                                                                                  
     $330,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Electrical  Emergencies program  provides technical                                                                    
     support  when an  electric utility  has  lost, or  will                                                                    
     lose the ability  to generate or transmit  power to its                                                                    
     customers  and  the  condition is  a  threat  to  life,                                                                    
     health,  and/or property.  The  ability  to respond  to                                                                    
     loss  of power  in  communities is  essential to  their                                                                    
     health  and safety.  This  program  contributes to  the                                                                    
     department's  mission of  promoting  a healthy  economy                                                                    
     and  strong communities  as  electricity is  considered                                                                    
     essential for  both community development  and economic                                                                    
     growth.                                                                                                                    
                                                                                                                                
     Project Description/Justification:                                                                                     
     Electrical  emergencies  can  result  in  the  loss  of                                                                    
     communications,    lights,    refrigeration    systems,                                                                    
     washeterias, water  and sewer  systems, and the  use of                                                                    
     other basic infrastructure and equipment.                                                                                  
     Extended power outages during the  winter months can be                                                                    
     expensive and compromise public safety:                                                                                    
        · Water and sewer systems are subject to freezing                                                                       
          and bursting                                                                                                          
        · Fire hazards increase                                                                                                 
        · Medical clinics and other public facilities may                                                                       
          close                                                                                                                 
     Electrical   emergencies   may  involve   power   plant                                                                    
     failures and/or distribution system failures.                                                                              
     If  the  Alaska Energy  Authority  (AEA)  is unable  to                                                                    
     respond,  the response  to  loss  of power  emergencies                                                                    
     will be  redirected to the  Department of  Military and                                                                    
     Veterans  Affairs, Division  of  Homeland Security  and                                                                    
     Emergency   Management,   State  Emergency   Operations                                                                    
     Center (SEOC).                                                                                                             
                                                                                                                                
9:25:52 AM                                                                                                                    
                                                                                                                                
Senator  Bishop inquired  as to  how  quickly the  authority                                                                    
could react  to an  emergency. Ms. Fisher-Goad  replied that                                                                    
the AEA could  respond quickly. She shared that  many of the                                                                    
technical  experts that  understood the  diesel systems  had                                                                    
close  relationships with  the powerhouse  operators in  the                                                                    
communities.                                                                                                                    
                                                                                                                                
9:27:04 AM                                                                                                                    
                                                                                                                                
     RN 52507                                                                                                                 
     Alaska Energy Authority - Energy Plan Implementation                                                                     
     $1,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Alaska  Energy Authority (AEA) works  with regional                                                                    
     organizations  to define  and  gather information,  and                                                                    
     create a regional  energy plan. The intent  is for each                                                                    
     region have a  completed energy plan that  they can use                                                                    
     and update as appropriate.  This project is required to                                                                    
     continue  work  on the  regional  energy  plans and  to                                                                    
     evaluate  the  transmission  and propane  potential  in                                                                    
     rural Alaska.                                                                                                              
                                                                                                                                
     Project Description/Justification:                                                                                     
     The  Alaska  Energy  Authority (AEA)  is  working  with                                                                    
     regional  organizations to  initiate specific  resource                                                                    
     assessments and  project development plans.  Funding in                                                                    
     FY2015  is to  complete the  regional energy  plans and                                                                    
     provide each  region a completed  energy plan  they can                                                                    
     use and update as appropriate.                                                                                             
     There are six regions that  are under contract with AEA                                                                    
     for their regional energy  plans. Previous efforts with                                                                    
     the Railbelt  Integrated Resource Plan (RIRP)  and part                                                                    
     of the Southeast Integrated  Resource Plan (SEIRP) were                                                                    
     led  by  AEA  staff,  whereas  the  current  plans  are                                                                    
     contracted out  to a  lead entity  in each  region. The                                                                    
     regional plans  are intended to take  the previous work                                                                    
     of AEA's  The Energy Pathway and  provide a prioritized                                                                    
     project list on a regional  level. These plans are also                                                                    
     an  opportunity to  identify  communities  in a  region                                                                    
     that can  be linked  by transmission lines  and provide                                                                    
     economies  of scale  for needed  energy infrastructure.                                                                    
     Some   of   this   work   is   currently   being   done                                                                    
     inefficiently on  a project by project  basis; however,                                                                    
     developing  a regional  approach  authored by  regional                                                                    
     leaders will  assist AEA and the  state in prioritizing                                                                    
     energy project  investments. Regional planners  meet on                                                                    
     a  quarterly  basis to  share  ideas  and network  with                                                                    
     their colleagues  from other regions on  their regional                                                                    
     energy  plan. AEA  staff facilitates  the meetings  and                                                                    
     provides  updates  on  statewide energy  data,  mapping                                                                    
     resources,  and   technical  assistance   during  these                                                                    
     sessions.                                                                                                                  
     This project  will continue the current  contracts into                                                                    
     Phase  II,  and  anticipates including  other  regions,                                                                    
     such  as  Kodiak, Chugach,  and  Arctic  Slope, in  the                                                                    
     regional  energy planning  process.  The contracts  are                                                                    
     divided into two phases:                                                                                                   
        · Phase   I   -   preliminary   planning,   resource                                                                    
          inventory assessment, and data collection;                                                                            
        · Phase II - drafting, soliciting comments, and                                                                         
          finalizing the plan.                                                                                                  
     The current  contracts are for Phase  I activities. The                                                                    
     tasks include identifying  a stakeholder advisory group                                                                    
     and stakeholders at large.  Resource inventory and data                                                                    
     analysis  for the  region to  include identifying  past                                                                    
     reports, studies,  and summary of efforts,  are part of                                                                    
     this  activity. Through  data analysis,  the contractor                                                                    
     must determine, if any, areas  or projects that require                                                                    
     further analysis  (identifying the gaps)  and establish                                                                    
     assumptions  for  evaluating  project  feasibility  and                                                                    
     costs.  Phase II  tasks include  preparing alternatives                                                                    
     for  communities,  sub-regions,  and the  region  as  a                                                                    
     whole  and   identifying  and  ranking   the  preferred                                                                    
     alternatives.                                                                                                              
     The  completion of  the following  activities and  work                                                                    
    tasks are required for each of the regional plans:                                                                          
        · Determination of fuel usage by community for                                                                          
          electricity, space heating and transportation.                                                                        
        · Determination   of    locally   available   energy                                                                    
          sources.                                                                                                              
        · Evaluation of existing technology.                                                                                    
        · Evaluation of energy delivery systems.                                                                                
        · Evaluation and rank of energy sources.                                                                                
        · Organization of public workshops to assist in the                                                                     
          communication of the plan by gathering feedback                                                                       
          and providing periodic updates.                                                                                       
     Other statewide needs will also be addressed through                                                                       
     the energy plan process. These include:                                                                                    
        · The utilization of propane and Liquefied Natural                                                                      
          Gas (LNG) in rural Alaska,                                                                                            
        · Where can and do regional transmission lines make                                                                     
          sense, and Data collection and evaluation of                                                                          
          existing programs.                                                                                                    
                                                                                                                                
9:28:52 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough asked  how  many  regional plans  had                                                                    
been completed  to date. Ms. Fisher-Goad  replied that there                                                                    
were several plans  that were in a phase  2 draft situation,                                                                    
but that none of them had been completed.                                                                                       
                                                                                                                                
9:29:20 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  pointed  out   that  the  state  had                                                                    
invested $4 million starting in  2010, she wondered how long                                                                    
it would  take to complete  a plan. Ms.  Fisher-Goad replied                                                                    
that there  were 6 regions  under contract with AEA  to work                                                                    
through  the plans.  She said  that the  authority had  been                                                                    
working with the  Calista region the longest,  which was one                                                                    
of  the most  diverse regions  in the  state. She  said that                                                                    
through  the Interior  Energy  Project,  the advancement  of                                                                    
other  fuel sources  was being  incorporated into  the plan.                                                                    
She asserted that the idea  was not to deploy renewables but                                                                    
to look at affordable energy throughout the state.                                                                              
                                                                                                                                
9:31:35 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  highlighted: 6 regional plans  for $4                                                                    
million. She  wondered how much additional  investment would                                                                    
be needed  to complete the 6  plans and if new  regions were                                                                    
being  added.  Ms.  Fisher-Goad anticipated  that  the  only                                                                    
additional funds that would be  needed would be the $500,000                                                                    
for  FY15,  and  potentially  in   FY16.  She  reminded  the                                                                    
committee  that  the project  had  not  received funding  in                                                                    
FY14.                                                                                                                           
                                                                                                                                
9:32:28 AM                                                                                                                    
                                                                                                                                
Senator   Hoffman    offered   strong   support    for   the                                                                    
appropriation.  He said  that energy  costs in  rural Alaska                                                                    
were the number  one concern for people living  in the area.                                                                    
He pointed out  that the Calista region was the  size of the                                                                    
state of  Washington. He  asserted that  4 years  could seem                                                                    
like a long  time, but that getting it right  the first time                                                                    
would save the state money in the long run.                                                                                     
                                                                                                                                
9:33:18 AM                                                                                                                    
                                                                                                                                
Senator Bishop  inquired whether the projects  were ready to                                                                    
bid  after  they  were evaluated  by  AEA.  Ms.  Fisher-Goad                                                                    
responded that the goal was  to have projects prioritized by                                                                    
the region  and then  for AEA to  provide the  analysis. She                                                                    
stated that  many of  the projects  that would  be evaluated                                                                    
were already in the cue with other programs.                                                                                    
                                                                                                                                
9:34:08 AM                                                                                                                    
                                                                                                                                
Senator Olson referred  to RN 56220. He  understood that the                                                                    
FY15  request was  $10,000,000,  and that  the FY16  request                                                                    
would be $217,000,000 and $100,000,000  in FY17. Ms. Fisher-                                                                    
Goad replied that  there had been an  amendment with respect                                                                    
to the back-up provided for  the project. She explained that                                                                    
the authority  had focused on  the licensing  efforts rather                                                                    
than the  engineering of the  project. She said that  it had                                                                    
been  determined that  it made  more sense  to focus  on the                                                                    
licensing  aspect  of  the project  before  going  into  the                                                                    
detailed design. The request focused  beyond the request for                                                                    
FY15,  and she  reminded the  committee of  the supplemental                                                                    
request for FY14.  She said that it was  anticipated that an                                                                    
additional  $73.1  million  to   acquire  the  license.  She                                                                    
relayed that additional engineering  cost estimates had been                                                                    
added to  the detail of  the backup, which would  be roughly                                                                    
$245  million.   She  asserted  that  the   purpose  of  the                                                                    
licensing  portion was  to focus  in on  that aspect  of the                                                                    
FERC  process to  make sure  that AEA  had a  project before                                                                    
expending any of the engineering funds.                                                                                         
                                                                                                                                
9:35:52 AM                                                                                                                    
                                                                                                                                
Senator Olson understood that in  2016 AEA was suggesting it                                                                    
would need  another $73.1  million in  addition to  the $216                                                                    
million.  Ms.  Fisher-Goad  reiterated  that  there  was  an                                                                    
amended back-up detail request with the $10,000,000 that                                                                        
reflected only the $73.1 million in FY16.                                                                                       
                                                                                                                                
Ms.   Hanrahan   continued    with   the   capital   request                                                                    
presentation:                                                                                                                   
                                                                                                                                
     RN 51748                                                                                                                 
     Alaska  Industrial Development  and Export  Authority -                                                                  
     Ambler Mining District Access                                                                                            
     $8,500,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project will  provide an  all season  access road                                                                    
     for  exploration and  development of  mineral resources                                                                    
     within the  Ambler mining  district. This  project will                                                                    
     provide  substantial  economic  benefits  and  a  large                                                                    
     number  of  high paying  jobs  in  the region.  Funding                                                                    
     sought  will  be  used to  continue  the  Environmental                                                                    
     Impact Statement (EIS) and  permitting processes to the                                                                    
     point that  the road  could be constructed.  The Alaska                                                                    
     Industrial  Development  and Export  Authority  (AIDEA)                                                                    
     will develop the project  financing structure through a                                                                    
     public-private  partnership in  conjunction with  local                                                                    
     governments,  regional  native  corporations,  and  the                                                                    
     private sector.                                                                                                            
                                                                                                                                
9:38:16 AM                                                                                                                    
                                                                                                                                
     RN 58442                                                                                                                 
     Alaska Railroad Corporation - Positive Train Control                                                                     
     $15,000,000                                                                                                              
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project provides $15,000,000 for the Alaska                                                                           
     Railroad   Corporation   -   Positive   Train   Control                                                                    
     upgrades.  The Alaska  Railroad  Corporation (ARRC)  is                                                                    
     required to install  this federally-mandated technology                                                                    
     in order to continue  offering passenger rail services.                                                                    
     It is  estimated that approximately $69.7  million will                                                                    
     be  needed  between  2015  and  2018  to  complete  the                                                                    
     project.                                                                                                                   
                                                                                                                                
9:38:49 AM                                                                                                                    
                                                                                                                                
JEANNE MUNGLE, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT                                                                     
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, proceeded                                                                      
with the capital requests:                                                                                                      
                                                                                                                                
     RN 58442                                                                                                                 
     Fairbanks  North  Star  Borough -  Heating  Device  Air                                                                  
     Quality                                                                                                                  
     Mitigation                                                                                                               
     $2,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The   Fairbanks  North   Star  Borough   (Borough),  in                                                                    
     collaboration with  the State of Alaska,  is continuing                                                                    
     to   work   towards   minimizing   particulate   matter                                                                    
     emissions  and improving  air quality  in the  Borough.                                                                    
     This project  will provide funding  to the  Borough for                                                                    
     heating  device   change-out  programs   that  mitigate                                                                    
     emissions  and  improve  air quality  within  the  fine                                                                    
     particulate  matter  nonattainment area.  This  program                                                                    
     allows Borough residents to  remove, replace, or repair                                                                    
     their solid  fuel heating devices with  cleaner burning                                                                    
     devices. EPA-certified heating  devices offer increased                                                                    
     energy  efficiency and  reduce fine  particulate matter                                                                    
     emissions over older, uncertified devices.                                                                                 
                                                                                                                                
9:39:17 AM                                                                                                                    
                                                                                                                                
     RN 55603                                                                                                                 
     Kotzebue - Swan Lake Small Boat Harbor                                                                                   
     $2,500,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
    Kotzebue is the regional transportation hub for the                                                                         
     Northwest  Arctic  Borough.  Residents  of  the  region                                                                    
     frequently  use its  two  "harbor  like" facilities  to                                                                    
     access subsistence areas. Native  subsistence is a very                                                                    
     high priority  for Kotzebue and borough  residents, and                                                                    
     a major  contributor to its economy.  This project will                                                                    
     provide  adequate mooring  and  docking facilities  for                                                                    
     borough residents  whose primary  transportation during                                                                    
     summer months is by small boats.                                                                                           
                                                                                                                                
Ms. Mungle added that the project was necessary because the                                                                     
Shore Avenue Erosion Project had eliminated the use of the                                                                      
existing boat harbor for many subsistence users.                                                                                
                                                                                                                                
9:40:15 AM                                                                                                                    
                                                                                                                                
     RN 57375                                                                                                                 
     Matanuska-Susitna Borough - Bogard Road Extension East                                                                   
     $5,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project provides  an additional east-west corridor                                                                    
     from  Palmer to  Wasilla to  reduce traffic  congestion                                                                    
     and  traffic-related fatalities  and improve  safety in                                                                    
     the core area.                                                                                                             
                                                                                                                                
     Project Description/Justification:                                                                                     
     Construction  of the  Bogard  Road  Extension from  the                                                                    
     City of  Palmer to  Trunk Road  will provide  the final                                                                    
     link for  the Bogard-Seldon  Corridor. This  will allow                                                                    
     travel  from  Palmer to  north  of  Wasilla and  Meadow                                                                    
     Lakes without having to  use the Palmer-Wasilla Highway                                                                    
     or Parks Highway. This will  be an additional east-west                                                                    
     corridor  to  relieve  traffic congestion  and  improve                                                                    
     safety  in the  most populous  areas of  the Matanuska-                                                                    
     Susitna Borough.                                                                                                           
                                                                                                                                
     A  portion of  the  construction  funding was  provided                                                                    
     through a voter-approved  2012 State General Obligation                                                                    
     Bond.  This project  will provide  the remaining  funds                                                                    
     needed to  complete construction of 3.25  miles of road                                                                    
     between  the Glenn  Highway in  Palmer and  Trunk Road,                                                                    
     one  of the  borough's few  north-south arterials.  The                                                                    
     construction  of this  segment  will  provide the  last                                                                    
     link for  an additional east-west corridor  between the                                                                    
     Borough's two largest cities.                                                                                              
                                                                                                                                
9:40:59 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer asked whether the project was in its final                                                                       
phase. He queried how the project fell under the department                                                                     
and not the Department of Transportation (DOT).                                                                                 
                                                                                                                                
Ms.  Hanrahan replied  that many  small  road projects  went                                                                    
through  the department  because  they were  not within  the                                                                    
Statewide  Transportation  Improvement Program  (STIP)  plan                                                                    
for DOT.                                                                                                                        
                                                                                                                                
9:41:35 AM                                                                                                                    
                                                                                                                                
Ms. Mungle replied added that the project would provide the                                                                     
remaining funds to complete the 3.25 miles of road.                                                                             
                                                                                                                                
9:41:47 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy inquired  if there  was coordination  with                                                                    
the  other departments  regarding laying  water lines  along                                                                    
the route and other activities along the route.                                                                                 
                                                                                                                                
Ms.  Hanrahan  the  department  did  have  local  government                                                                    
specialists   that   worked    throughout   the   state   on                                                                    
coordinating between departments.                                                                                               
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
Ms. Mungle continued with the capital requests:                                                                                 
                                                                                                                                
     RN 57374                                                                                                                 
     Matanuska-Susitna  Borough  -  Rail Extension  to  Port                                                                  
     MacKenzie                                                                                                                
     $5,000,000                                                                                                               
                                                                                                                                
     Brief Summary and Statement of Need:                                                                                   
     This  project provides  funding for  construction of  a                                                                    
     rail  extension from  the Alaska  Railroad mainline  to                                                                    
     Port MacKenzie,  a deep water  port capable  of docking                                                                    
     and loading the largest cargo  vessels in the world. By                                                                    
     providing a  shorter rail route to  tidewater, the rail                                                                    
     extension  will  substantially   boost  the  export  of                                                                    
     Alaska's minerals, and  other natural resources helping                                                                    
     to diversify the statewide economy.                                                                                        
                                                                                                                                
9:43:28 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  inquired  if the  request  represented  the                                                                    
final  cost on  the rail  line and  whether anyone  else was                                                                    
participating in  offsetting some  of the costs.  Ms. Mungle                                                                    
responded  additional  funding  would  be  needed,  but  the                                                                    
degree  of funding  was  unknown at  present.  She said  she                                                                    
would get back to the committee regarding those issues.                                                                         
                                                                                                                                
9:44:25 AM                                                                                                                    
                                                                                                                                
Ms. Mungle continued to list the capital requests:                                                                              
                                                                                                                                
     RN 52278                                                                                                                 
     Whittier - Shotgun Cove Road                                                                                             
     $2,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project extends Shotgun Cove  Road 2.5 miles, from                                                                    
     Emerald Cove  Trailhead to  Trinity Point.  This paved,                                                                    
     24  foot road  will  improve the  quality  of life  and                                                                    
     produce  much needed  revenue sources  for the  City of                                                                    
     Whittier, its  residents, and  the local  business. The                                                                    
     Shotgun Cove  Road project is  an approximately  9 mile                                                                    
     of  new road  construction project  aimed at  accessing                                                                    
     lands in Shotgun  Cove as well as lands to  the east of                                                                    
     the  Whittier core  area. These  lands were  granted to                                                                    
     the City of  Whittier by the State of  Alaska. The city                                                                    
     is required  to convey the  majority of this  land into                                                                    
     private  ownership. The  Shotgun Cove  Road project  is                                                                    
     intended to  provide access to  these lands as  well as                                                                    
     to promote development.                                                                                                    
                                                                                                                                
9:45:21 AM                                                                                                                    
                                                                                                                                
     RN 45816                                                                                                                 
     Alaska Air Carriers Association, Inc. - Medallion                                                                        
     Foundation                                                                                                               
     $250,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The mission  of the  Medallion Foundation is  to reduce                                                                    
     aviation accidents in Alaska  by fostering a new safety                                                                    
     culture  and  by   promoting  higher  safety  standards                                                                    
     through  training,  research, education,  auditing  and                                                                    
     advocacy. This  project will  provide state  support to                                                                    
     the  Medallion  Foundation  as  they  transition  their                                                                    
     business model to a more fee based structure.                                                                              
                                                                                                                                
     Medallion   Foundation   participants  transport   90.3                                                                    
     percent  of  the  passengers   enplaned  in  Alaska  by                                                                    
     carriers operating  in Alaska. Those  same participants                                                                    
     carry  95 percent  of the  cargo  and mail  transported                                                                    
     within  Alaska.  Participants  in  the  safety  program                                                                    
     serve 100 percent of the communities in Alaska.                                                                            
                                                                                                                                
9:46:16 AM                                                                                                                    
                                                                                                                                
     RN 58698                                                                                                                 
     Alaska  Native  Tribal Health  Consortium-Alaska  Rural                                                                  
     Utilities Collaborative Expansion                                                                                        
     $500,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This   project  supports   the  Alaska   Rural  Utility                                                                    
     Collaborative  (ARUC) community  retrofit needs.  Since                                                                    
     2008 ARUC has been  working to operate/manage community                                                                    
     water  and   sewer  system.  Benefits   to  communities                                                                    
     include  lower fuel  and  parts  costs, improved  water                                                                    
     quality,  steady employment  of local  water operators,                                                                    
     reliable     water     service,     and     sustainable                                                                    
     infrastructure.                                                                                                            
                                                                                                                                
     In FY2014, $1.75 million was  appropriated to bring new                                                                    
     communities  into the  collaborative: Scammon  Bay, St.                                                                    
     Mary's, Buckland, Noatak, and Kasigluk.                                                                                    
                                                                                                                                
     RN 38713                                                                                                                 
     Arctic Power-Arctic Energy Issues                                                                                        
     $250,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project will  support education  efforts to  open                                                                    
     the  coastal  plain  of the  Arctic  National  Wildlife                                                                    
    Refuge for oil and gas exploration and development.                                                                         
                                                                                                                                
9:48:04 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman   acknowledged  the   project's  popularity                                                                    
statewide, but  he questioned its effectiveness.  He further                                                                    
inquired prospects  of the project  and what  the department                                                                    
had done in the last 2  years of funding in order to advance                                                                    
their goals.                                                                                                                    
                                                                                                                                
Ms. Hanrahan replied that  the legislative appropriation had                                                                    
been long-standing  in working towards the  opening of ANWAR                                                                    
to oil  exploration. She stated  that she would get  back to                                                                    
the  committee with  additional updates  on the  progress of                                                                    
the project.                                                                                                                    
                                                                                                                                
9:48:59 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer shared Senator  Hoffman's concern. He thought                                                                    
that it would be good to  see what the state was getting for                                                                    
its money.                                                                                                                      
                                                                                                                                
9:49:20 AM                                                                                                                    
                                                                                                                                
Senator  Olson understood  that  Arctic  Power was  becoming                                                                    
involved in  Outer Continental  Shelf (OCS)  reallocation of                                                                    
resources.                                                                                                                      
                                                                                                                                
9:49:57 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer thought  that if  the project  was branching                                                                    
off into  OCS and  different areas  then the  back-up should                                                                    
reflect change.  Senator Olson did  not think that  the ANWR                                                                    
aspect was  being eliminated,  he thought  that the  idea of                                                                    
opening ANWR  for drilling  was not a  favorable one  on the                                                                    
federal level.                                                                                                                  
                                                                                                                                
9:50:12 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  commented  that  there  had  been  a                                                                    
resolution passed  in the U.S.  House of  Representatives in                                                                    
support of the opening of  ANWR. She agreed that the project                                                                    
needed further review, but believed that it provided value.                                                                     
                                                                                                                                
9:51:19 AM                                                                                                                    
                                                                                                                                
Ms. Mungle continued with the project requests:                                                                                 
                                                                                                                                
     RN 41959                                                                                                                 
     Arctic   Winter    Games   State    Team   Alaska-State                                                                  
     Participation Grant                                                                                                      
     $485,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project will  provide  funding  for game  related                                                                    
     costs  for the  preparation of  the 2016  Arctic Winter                                                                    
     Games.                                                                                                                     
                                                                                                                                
9:51:55 AM                                                                                                                    
                                                                                                                                
Ms. Hanrahan turned to the next request:                                                                                        
                                                                                                                                
     RN 55062                                                                                                                 
     Blood Bank of  Alaska-Facilities and Services Expansion                                                                  
     Project                                                                                                                  
     $7,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project  provides funding for the  construction of                                                                    
     a  new  facility  to  consolidate  separate  facilities                                                                    
     within  Anchorage,  meet  market  demands,  and  expand                                                                    
     services.  This  new  facility is  scheduled  to  be  a                                                                    
     56,000  square  foot, two-story  centralized  facility,                                                                    
     with  an   additional  4,000  square   foot  mechanical                                                                    
     penthouse.   It  will   consolidate  the   BBA's  donor                                                                    
     collection,     blood    processing,     administrative                                                                    
     workspace,  mobile  blood  coach garages,  and  general                                                                    
     storage  into  a single  facility.  The  Blood Bank  of                                                                    
     Alaska (BBA) is a  strategic part of Alaska's emergency                                                                    
     response  infrastructure.   BBA  works   actively  with                                                                    
     Alaska's  emergency preparedness  entities to  ensure a                                                                    
     safe  blood  supply is  available  in  the event  of  a                                                                    
     disaster.                                                                                                                  
                                                                                                                                
9:52:17 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked whether  the funding  was going  to be                                                                    
the last  contribution to the facility.  He further inquired                                                                    
who else was helping on  the project. Ms. Hanrahan responded                                                                    
that the  department would  get back  to the  committee with                                                                    
the information.                                                                                                                
                                                                                                                                
9:53:02 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough stated  that  the  request would  not                                                                    
fully fund the  projects. She spoke in support  of the Blood                                                                    
Banks  and  highlighted that  they  were  entering on  to  a                                                                    
capital campaign  program to collect money  toward a funding                                                                    
match.  She thought  that  it would  be  incumbent upon  the                                                                    
committee to  inform the Blood  Bank that this would  be the                                                                    
last contribution to  the project, should that  was the will                                                                    
of the committee.                                                                                                               
                                                                                                                                
9:53:34 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  understood  that the  hospitals  benefitted                                                                    
from  the project  as well  as other  groups, but  he opined                                                                    
that the state  was the sole provider.  Ms. Hanrahan replied                                                                    
that the  blood bank  was doing  some private  fund raising,                                                                    
but that she was unsure of the details.                                                                                         
                                                                                                                                
9:54:01 AM                                                                                                                    
                                                                                                                                
Ms. Mungle specified  that the total project  cost was $51.5                                                                    
million, $29,760,000 of which  had already been secured. She                                                                    
said  that  the  bank  had  received  state  grants,  raised                                                                    
$610,000 in  private funds, and  the sale of  their existing                                                                    
building and Blood Bank of Alaska  cash was in the amount of                                                                    
$3 million.                                                                                                                     
                                                                                                                                
9:54:30 AM                                                                                                                    
                                                                                                                                
Ms. Hanrahan continued with the capital requests:                                                                               
                                                                                                                                
     RN 45874                                                                                                                 
     Inter-Island Ferry Authority                                                                                             
     $500,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Inter-Island  Ferry  Authority   (IFA)  provides  daily                                                                    
     service between  Ketchikan and  Prince of  Wales Island                                                                    
     (POW).   Passenger   revenue   and  other   funds   are                                                                    
     insufficient  to  cover  their  projected  costs.  This                                                                    
     transport link is a vital  service to Southeast Alaska.                                                                    
     IFA is  continuing to refine  their operations  plan to                                                                    
     maximize   profits,   reduce  expenses   and   minimize                                                                    
     reliance on state funds.                                                                                                   
                                                                                                                                
9:54:57 AM                                                                                                                    
                                                                                                                                
     RN 48513                                                                                                                 
     Marine  Exchange   of  Alaska-Alaska   Vessel  Tracking                                                                  
     System Upgrades and Expansion                                                                                            
     $600,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project  will   operate,  maintain,  upgrade  and                                                                    
     expand the vessel tracking system  provided by the non-                                                                    
     profit  Marine Exchange  of  Alaska that  substantially                                                                    
     contributes    to   safe,    secure,   efficient    and                                                                    
     environmentally sound  maritime operations.  The vessel                                                                    
     tracking  system   affects  all  of   Alaska's  coastal                                                                    
     communities and  is a valuable tool  for state agencies                                                                    
     and the United States Coast Guard.                                                                                         
                                                                                                                                
     In   addition  to   state   agencies  (Departments   of                                                                    
     Transportation and Public Facilities,                                                                                      
     Commerce, Community and  Economic Development, Fish and                                                                    
     Game, Public Safety, and Environmental                                                                                     
     Conservation),  the United  States Coast  Guard (USCG),                                                                    
     coastal communities  and mariners are using  the system                                                                    
     to  aid  safe,  secure, efficient  and  environmentally                                                                    
     sound  maritime operations  in the  Arctic. The  system                                                                    
     has  also  been  used to  monitor  Shell's  exploration                                                                    
     operations and  validate compliance  with environmental                                                                    
     protection   measures   prescribed  in   permits.   The                                                                    
     information provided by the system  is also used by the                                                                    
     USCG and  state to develop risk  reduction measures for                                                                    
     vessels  transiting the  Bering Strait  and to  monitor                                                                    
     compliance with safety and environmental regulations                                                                       
                                                                                                                                
9:57:25 AM                                                                                                                    
                                                                                                                                
     RN 38948                                                                                                                 
     National Petroleum Reserve-Alaska Impact Grant Program                                                                   
     $2,800,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The  National   Petroleum  Reserve  -   Alaska  (NPR-A)                                                                    
     program  provides  grants  to  communities  for  public                                                                    
     facilities  and services.  Priority is  given to  those                                                                    
     communities  directly  or   severely  impacted  by  the                                                                    
     leases and development  of oil and gas  within the NPR-                                                                    
     A.  Funding  comes from  the  federal  government as  a                                                                    
     share  of the  funds received  on leases  issued within                                                                    
     NPR-A.                                                                                                                     
                                                                                                                                
9:58:19 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:51 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
^FY   15   GOVERNOR'S   BUDGET   OVERVIEW:   DEPARTMENT   OF                                                                  
ADMINISTRATION                                                                                                                
                                                                                                                                
CURTIS THAYER,  COMMISSIONER, DEPARTMENT  OF ADMINISTRATION,                                                                    
began  a  PowerPoint  presentation,  "Alaska  Department  of                                                                    
Administration Department  Overview." He  spoke to  Slide 2,                                                                    
"Capital Increments":                                                                                                           
                                                                                                                                
     RN 58322                                                                                                                 
     Enterprise  Technology Services  - Uninterrupted  Power                                                                  
     Supply Replacement for Juneau Data Center                                                                                
     $1,200.0                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project will  replace  an obsolete  uninterrupted                                                                    
     power supply  (UPS) device  and add  automatic failover                                                                    
     system to enterprise Juneau Data Center UPS complex.                                                                       
                                                                                                                                
     RN 58240                                                                                                                 
     Motor   Vehicles   -   Replace   Outdated   Information                                                                  
     Technology Infrastructures                                                                                               
     $900.0                                                                                                                   
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Replace  old and  out of  warranty servers  and storage                                                                    
     devices, and  increase the  business continuity  of the                                                                    
     Division of Motor Vehicles (DMV) services.                                                                                 
                                                                                                                              
     RN 58168                                                                                                                 
     Motor Vehicles - Real-Time Driving Records                                                                               
     $350.0                                                                                                                   
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Department of  Motor Vehicles  (DMV) real  time driving                                                                    
     record system  will change insurance  companies' access                                                                    
     to  Alaskan   drivers'  records  and  will   allow  for                                                                    
     insurance quotes to be given  on the same day via real-                                                                    
     time  updates to  driving  records.  This project  also                                                                    
     affords   other   authorized  organizations   real-time                                                                    
     access to Alaska driving records.                                                                                          
                                                                                                                                
10:03:26 AM                                                                                                                   
                                                                                                                                
Commissioner   Thayer   turned   to   Slide   3,   "Deferred                                                                    
Maintenance":                                                                                                                   
                                                                                                                                
   RN 49602 - This is one appropriation for a total of                                                                        
   $10,250.0 with 3 allocations:                                                                                              
                                                                                                                              
     · RN 54089                                                                                                                 
     · General Services - Public Building Fund Buildings                                                                        
     · GF $3,250.0                                                                                                              
     · PBF $3,000.0                                                                                                             
          o Funding is provided to the Division of General                                                                      
             Service's for Public Building Fund deferred                                                                        
             maintenance                                                                                                        
          o Currently there are 12 Public Buildings in the                                                                      
             fund                                                                                                               
                                                                                                                                
     · RN 54799                                                                                                                 
     · General Services - Non Public Building Fund                                                                              
     · GF $1,000.0                                                                                                              
          o Funding is provided to the Division of General                                                                      
             Service's for the Non-Public Building Fund                                                                         
             deferred maintenance                                                                                               
          o Currently there are 6 Non Public Buildings                                                                          
                                                                                                                                
Commissioner Thayer continued to Slide 4 "Public Building                                                                       
Fund", which detailed the public buildings maintained under                                                                     
the fund.                                                                                                                       
Commissioner    Thayer   discussed    Slide   5    "Deferred                                                                    
Maintenance-Underground  Parking."  The slide  depicted  two                                                                    
images  of   the  Atwood  Parking   Lot  before   and  after                                                                    
improvements   had   been   made   for   a   leaking   roof,                                                                    
deteriorating concrete, and waterproofing.                                                                                      
                                                                                                                                
10:05:18 AM                                                                                                                   
                                                                                                                                
Commissioner   Thayer    spoke   to   Slide    7   "Deferred                                                                    
Maintenance":                                                                                                                   
                                                                                                                                
     RN 54183                                                                                                                 
     ETS - State of Alaska Telecommunications Deferred                                                                        
     Maintenance System Year 5 of 5                                                                                           
     GF $3,000.0                                                                                                              
                                                                                                                                
        · Funding is provided to Enterprise Technology                                                                          
          Services for maintenance of the State of Alaska                                                                       
          Telecommunications Systems                                                                                            
                                                                                                                                
     Maintenance    included   tower    inspections,   cable                                                                    
     tensioning and installation of a microwave system in                                                                       
     shelter.                                                                                                                   
                                                                                                                                
Commissioner  Thayer  addressed   Slide  8,  "SATS  Deferred                                                                    
Maintenance-Seldovia  and Independent  Ridge." He  said that                                                                    
the  crews  often  worked  in  extreme,  cold  weather;  the                                                                    
request would  increase fuel  capacity and  reduce refueling                                                                    
missions.                                                                                                                       
                                                                                                                                
Commissioner  Thayer  turned  to  Slide  9,  "SATS  Deferred                                                                    
Maintenance-Cordova."  He  stated  that  the  request  would                                                                    
increase  the  guided  cabling  to the  tower  in  order  to                                                                    
withstand the weight of extreme ice.                                                                                            
                                                                                                                                
Commissioner  Thayer discussed  Slide  10, "What  We Use  to                                                                    
Have." The  slide illustrated the condition  of State Office                                                                    
Building  cubicle  spaces  in 1970  versus  newly  renovated                                                                    
space standards for the Division of General Services.                                                                           
                                                                                                                                
10:07:15 AM                                                                                                                   
                                                                                                                                
Commissioner  Thayer  spoke  to  Slide  11,  "New  Universal                                                                    
Standards":                                                                                                                     
                                                                                                                                
     Why space standards?                                                                                                     
     •Save the state over $125  million the next 20 years in                                                                    
     reduced lease costs.                                                                                                       
     •Through  WSCA contract  the state  saves significantly                                                                    
     on systems furniture                                                                                                       
     •New   space   will   be  better   for   teamwork   and                                                                    
     collaboration among "neighborhoods"                                                                                        
     •Better airflow with fewer walls                                                                                           
     •Natural  light  for   everyone  with  private  offices                                                                    
     toward core of building                                                                                                    
     •Shared printers, scanners and  copiers reduce the cost                                                                    
     of individual units                                                                                                        
     •Employees  can move  from one  office  to another  and                                                                    
     have the  same working experience in  any department or                                                                    
     agency                                                                                                                     
     •Clean desk policy addresses  need for document privacy                                                                    
     in agencies                                                                                                                
                                                                                                                                
10:09:41 AM                                                                                                                   
                                                                                                                                
Commissioner Thayer addressed Slide 12, "LPPG Update":                                                                          
                                                                                                                                
     Collocate high  traffic customer service  agencies into                                                                  
     one location:                                                                                                            
     •Div. of Motor Vehicles (DMV)                                                                                              
     •Permanent Fund Dividend (PFD)                                                                                             
     •Child Support Services Division (CSSD)                                                                                    
     •Provide shared customer waiting area for PFD and CSSD                                                                     
     •Ease of  customers and clients  parked in the  LPPG to                                                                    
     conduct business in LPPG                                                                                                   
     •Provide  shared  resource  rooms  for  PFD  and  CSSD.                                                                    
     Employee restrooms and café                                                                                                
     •Reduce  traffic   and  use  of  elevators   in  Atwood                                                                    
     "office" spaces                                                                                                            
                                                                                                                                
10:11:39 AM                                                                                                                   
                                                                                                                                
Commissioner Thayer  turned to Slide 13,  "Nome SOB Update."                                                                    
He shared that the funding  for the project had been secured                                                                    
in FY14, project completion was  anticipated for April 2015.                                                                    
He  said  that  the  hope  was to  increase  the  number  of                                                                    
agencies the building  housed from 6 to 8, in  addition to a                                                                    
café, 2  conference rooms,  and an  ADA public  restroom. He                                                                    
said  that the  project budget  was $11,623,145  and it  was                                                                    
projected that contractors would be on time and on budget.                                                                      
                                                                                                                                
Commissioner  Thayer  addressed  Slide 14,  "Douglas  Island                                                                    
Building Update."   He shared  that funding for  the project                                                                    
had  been  secured  as  of July  2013,  the  department  was                                                                    
currently out on bid; construction  was expected to begin in                                                                    
April  2014, completing  in August  2015. He  said that  the                                                                    
hope was  to increase the  number of agencies housed  in the                                                                    
building from  2 to 3, in  addition to 2 café,  3 conference                                                                    
rooms  and an  option for  negotiated increased  parking. He                                                                    
stated that the project budget was $18,200,000.                                                                                 
                                                                                                                                
10:13:48 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  asked whether  the new  lease parking                                                                    
had  been   calculated  into  the  recovery   rate  for  the                                                                    
renovations.    Commissioner   Thayer    replied   in    the                                                                    
affirmative. He  added that the  price was  nominal compared                                                                    
to working with  a commercial lease. He shared  that a lower                                                                    
operating cost was anticipated for the building.                                                                                
                                                                                                                                
10:14:48 AM                                                                                                                   
                                                                                                                                
Commissioner Thayer  discussed Slide 15,  "Geologic Material                                                                    
Center."  He relayed  that an  existing Sam's  Club building                                                                    
would  be renovated  into the  new GMC  center. The  project                                                                    
secured final funding  in July of 2013 and  the building was                                                                    
purchased in  July 2013. Construction was  expected to begin                                                                    
in  February 2014,  with the  completion  date of  September                                                                    
2014.  The  project budget  was  $24,500,000  and was  fully                                                                    
funded.                                                                                                                         
                                                                                                                                
10:17:31 AM                                                                                                                   
                                                                                                                                
^FY  15 GOVERNOR'S  BUDGET OVERVIEW:  DEPARTMENT OF  NATURAL                                                                  
RESOURCES                                                                                                                     
                                                                                                                                
10:18:30 AM                                                                                                                   
                                                                                                                                
JEANMARIE  DAVIS, DIRECTOR,  DIVISION  OF SUPPORT  SERVICES,                                                                    
DEPARTMENT  OF NATURAL  RESOURCES,  related  that the  total                                                                    
request for the department  was $28.2 million, $15.8 million                                                                    
of  which  were General  Funds;  this  was approximately  22                                                                    
percent less  that the  department had  in its  current FY14                                                                    
capital budget. She shared that  the projects were developed                                                                    
to   support  core   services  and   were  focused   on  the                                                                    
responsible    resource    development,   efficiencies    in                                                                    
permitting, resource  assessment, deferred  maintenance, and                                                                    
providing safe access to state land.                                                                                            
                                                                                                                                
10:19:38 AM                                                                                                                   
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL                                                                           
RESOURCES, spoke to the department's capital requests:                                                                          
                                                                                                                                
     RN 38872                                                                                                                 
     Unified Permit Project and Document Management                                                                           
     $3,300,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The   Unified   Permit   project  is   an   interactive                                                                    
     application  system with  three overall  project goals:                                                                    
     1)  Shorten and  make consistent  cycle times  for land                                                                    
     and   water  use   authorization  requests;   2)  Guide                                                                    
     applicants to  the correct authorization  requests; and                                                                    
     3)  Build internal  systems that  directly support  the                                                                    
     Department  of  Natural Resources  (DNR)  productivity.                                                                    
     This  multi-year project  is  designed  to support  and                                                                    
     streamline the  permit process, raise  productivity and                                                                    
     set  known response  times for  applicants. The  system                                                                    
     integrates mapping systems  and documents to individual                                                                    
     applicant's case files and project-related data.                                                                           
                                                                                                                                
10:20:30 AM                                                                                                                   
                                                                                                                                
BOB SWENSON, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL                                                                         
RESOURCES, listed the following capital requests:                                                                               
                                                                                                                                
     RN 58256                                                                                                                 
     Yukon River Crossing Fault Characterization                                                                              
     $630,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Yukon  River crossing  is a  critical point  on the                                                                    
     only land link along  the Trans-Alaska Pipeline, Dalton                                                                    
     Highway, proposed  natural gas pipeline  corridors, and                                                                    
     to  the  oil  and  gas resources  of  Northern  Alaska.                                                                    
     Geologic  conditions  here  are poorly  understood  and                                                                    
     locally  unstable. With  90  percent  of state  revenue                                                                    
     crossing  the  bridge  daily, state  revenue,  Alaska's                                                                    
     economy,  human  safety,  and the  environment  are  at                                                                    
     risk. This project will  fund needed geological mapping                                                                    
     and  hazards   assessment  to  understand   threats  to                                                                    
     existing  infrastructure  and  aid engineering  of  new                                                                    
     projects.                                                                                                                  
                                                                                                                                
     Project Description/Justification:                                                                                     
     What is the issue or problem to be solved?                                                                                 
     Geologic  conditions in  the area  of  the Yukon  River                                                                    
     crossing  are poorly  understood and  locally unstable,                                                                    
     as demonstrated  by the 2012  landslide near  the South                                                                    
     Bridge abutment.  The area  contains extensions  of the                                                                    
     Tintina and  Kaltag faults, two recently  active faults                                                                    
     similar in  scale to the  Denali fault  responsible for                                                                    
     the   2002   magnitude   7.9earthquake.   These   fault                                                                    
     locations  are  not  well mapped  and  their  potential                                                                    
     hazard to infrastructure is unknown.                                                                                       
                                                                                                                                
10:22:15 AM                                                                                                                   
                                                                                                                                
     RN 51052                                                                                                                 
     Strategic and Critical Minerals Project                                                                                  
     $375,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project provides  geologic  and geophysical  data                                                                    
     required  to  assess  Alaska's Strategic  and  Critical                                                                    
     Minerals  (SCM)  potential.  It  will  help  the  state                                                                    
     address  domestic need  for  these essential  elements.                                                                    
     Many  areas of  Alaska are  geologically favorable  for                                                                    
     hosting  SCMs,  but the  lack  of  basic geologic  data                                                                    
     deters mineral exploration  in Alaska's SCM-rich areas.                                                                    
     Obtaining  pertinent   geologic  data   will  encourage                                                                    
     mineral exploration,  advance the state's  knowledge of                                                                    
     its   mineral   resources,   promote   informed   state                                                                    
     management decisions,  and meets one of  the division's                                                                    
     mission goals.                                                                                                             
                                                                                                                                
     RN 58307                                                                                                                 
     Office  Space  Renovation  in  New  Geologic  Materials                                                                  
     Center  to  Accommodate  State  Pipeline  Coordinator's                                                                  
     Office                                                                                                                   
     $2,165,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The   Department  of   Administration  (DOA)   received                                                                    
     capital  appropriations  to  purchase and  renovate  an                                                                    
     existing Sam's  Club building (located at  3651 Penland                                                                    
     Parkway,  Anchorage)  into  the  new  state  Geological                                                                    
     Materials  Center  (GMC)  facility.  The  new  facility                                                                    
     replaces  the dilapidated  and  inadequate Eagle  River                                                                    
     facility currently  used by  the Department  of Natural                                                                    
     Resources  (DNR). This  appropriation provides  funding                                                                    
     to  build  out  office  space within  the  new  GMC  to                                                                    
     relocate  the   State  Pipeline   Coordinator's  Office                                                                    
     (SPCO)  from  a  private   lease  to  this  state-owned                                                                    
     facility. Rent  generated by the SPCO  will help offset                                                                    
     operations and  maintenance costs in the  new facility,                                                                    
     and generate a long-term cost savings.                                                                                     
                                                                                                                                
     What is the scope of work?                                                                                             
     Renovation of the existing facility will provide 11,                                                                       
     500  square  feet  for the  SPCO,  including  the  core                                                                    
     office   spaces    needed   for   the    employees   at                                                                    
     approximately 7,200  square feet per the  new universal                                                                    
     space  standards, 1,800  square  feet  for secure  case                                                                    
     file storage  requirements, 250 square feet  of library                                                                    
     space,  and  additional  space   for  arctic  gear  and                                                                    
     inventory  storage,   large  format  plotters   and  IT                                                                    
     equipment, and a conference room.                                                                                          
                                                                                                                                
     DOA has  calculated that moving  the SPCO into  the GMC                                                                    
     is  expected  to  generate a  future  net  cost-savings                                                                    
     after   completion   of    the   capital   project   of                                                                    
     approximately  $900,000  over  a  10-year  period,  and                                                                    
     $3,100,000 over a 20-year period.                                                                                          
                                                                                                                                
     RN 57971                                                                                                                 
     Lower  Kenai  Park  Facility and  Access  Improvements-                                                                  
     Phase 1 of 2                                                                                                             
     $1,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This is phase one of  a two-phased project to construct                                                                    
     a new boat  launch facility and restrooms  on the Kenai                                                                    
     River.  Phase one  will focus  on the  Eagle Rock  boat                                                                    
     launch   and  includes:   site  design   and  planning;                                                                    
     construction of  new restrooms;  construction of  a new                                                                    
     boat  launch; and  preliminary improvements  to parking                                                                    
     areas.                                                                                                                     
                                                                                                                                
10:24:43 AM                                                                                                                   
                                                                                                                                
     RN 58594                                                                                                                 
    King Cove Road-Izembek Right-of-Way and Permitting                                                                        
     $100,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project  provides for  coordinating  right-of-way                                                                    
     and permitting  to connect the  community of  King Cove                                                                    
     to the all-weather airport in  Cold Bay by road through                                                                    
     the  Izembek  National  Wildlife Refuge  Wilderness  as                                                                    
     directed in congressional and state legislation.                                                                           
                                                                                                                                
     RN 58258                                                                                                                 
     Forest  Access  Mapping, Inventory,  and  Reforestation                                                                  
     Projects                                                                                                                 
     $900,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project  will enable the  Division of  Forestry to                                                                    
     complete  four related  high priority  projects. First,                                                                    
     the  purchase  and  installation  of  new  bridges  and                                                                    
     culverts will  support improved access to  state forest                                                                    
     units.  Second, widespread  areas of  windstorm damaged                                                                    
     timber  in Interior  Alaska will  be mapped  to promote                                                                    
     its salvage. Third,  a comprehensive interagency effort                                                                    
     will  install and  monitor  permanent forest  inventory                                                                    
     plots to  provide managers  with up-to-date  growth and                                                                    
     yield  trends to  help meet  woody biomass  demand. And                                                                    
     fourth,  the  planting of  500  acres  of white  spruce                                                                    
     seedlings will  eliminate the reforestation  backlog in                                                                    
     the Fairbanks area.                                                                                                        
                                                                                                                                
10:27:02 AM                                                                                                                   
                                                                                                                                
     RN 6854                                                                                                                  
     National recreation Trails Federal Grant Program                                                                         
     $1,700,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Alaskans  rely on  trails  for recreation,  subsistence                                                                    
     and  transportation. These  trails need  maintenance to                                                                    
     ensure  safe  passage and  that  they  remain open  and                                                                    
     available  for  use.  Funds are  distributed  as  80/20                                                                    
     matching  reimbursable grants  for trail  and trailhead                                                                    
     development   and   maintenance,  and   for   education                                                                    
     programs  relating  to  trail  safety  and  responsible                                                                    
     trail  use.   Grants  are  awarded   to  organizations,                                                                    
     agencies  and local  governments. The  end result  is a                                                                    
     variety  of trails  that are  safe, high-quality,  have                                                                    
     year-round   access,   and  include   motorized,   non-                                                                    
     motorized, and diversified trails.                                                                                         
                                                                                                                                
     RN 6865                                                                                                                  
     National Historic Preservation Fund                                                                                      
     $800,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The  National Historic  Preservation Fund  (NHPF) is  a                                                                    
     federal program  to assist states with  their statewide                                                                    
     historic preservation  programs. Also included  in this                                                                    
     capital project  are cooperative  historic preservation                                                                    
     projects  executed  through cooperative  or  assistance                                                                    
     agreements or  grants with  federal agencies.  The NHPF                                                                    
     funds   grants   to    local   governments,   agencies,                                                                    
     organizations  and   individuals  for   restoration  or                                                                    
     stabilization  of historic  properties, and  grants for                                                                    
     survey,  inventory,  education, planning  and  training                                                                    
     projects.  Cooperative  historic preservation  projects                                                                    
     with  federal agencies  assist meeting  mutual cultural                                                                    
     resource management goals.                                                                                                 
                                                                                                                                
     RN 56460                                                                                                                 
     Knik  River Public  Use Area  Target Shooting  Facility                                                                  
     Design and Construction Phase 2                                                                                          
     $200,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The department  will create  a safe,  accessible target                                                                    
     shooting area consistent with  land use management plan                                                                    
     recommendations  made after  a lengthy  public process.                                                                    
     The  department will  design  and  construct a  minimal                                                                    
     facility reflecting  a high degree of  safety for range                                                                    
     users and users of surrounding lands.                                                                                      
                                                                                                                                
10:28:31 AM                                                                                                                   
                                                                                                                                
     RN 51197                                                                                                                 
     Public Access  and User Facilities Improvements  at the                                                                  
     Mouth of the Kasilof River Phase 2                                                                                       
     $1,400,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This   project   addresses  urgent   problems   needing                                                                    
     immediate attention where the  Kasilof River flows into                                                                    
     the  Cook  Inlet.   Unstructured  access  and  parking,                                                                    
     camping,  and   a  lack  of   solid  and   human  waste                                                                    
     facilities  have  resulted  in  serious  environmental,                                                                    
     social,  and  natural resource  impacts.  Additionally,                                                                    
     public safety, emergency,  and law enforcement services                                                                    
     are hindered.  The impacts being addressed  result from                                                                    
     the highly  popular personal use fisheries.  The number                                                                    
     of  Alaskans  participating   in  this  unique  program                                                                    
     continues   to   grow   annually  resulting   in   ever                                                                    
    increasing impacts to the area's natural resources.                                                                         
                                                                                                                                
     RN 58598                                                                                                                 
    Seward Peninsula/Port Clarence Project Development                                                                        
     $500,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Alaska  Department of  Natural Resources  will work                                                                    
     with the  federal government  to advance  land transfer                                                                    
     from  the United  States  Coast  Guard (USCG).  Funding                                                                    
     will   be  used   to   work   cooperatively  with   the                                                                    
     neighboring   land   owner,   Bering   Straits   Native                                                                    
     Corporation,    and     possibly    other    interested                                                                    
     stakeholders  on the  land transfer  for infrastructure                                                                    
     development.                                                                                                               
                                                                                                                                
     RN 57282                                                                                                                 
     South Denali Visitor Center Phase 2                                                                                      
     $1,235,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The South  Denali Visitor Center  will provide  a year-                                                                    
     round destination  on Curry Ridge in  Denali State Park                                                                    
     at milepost  135 of the  Parks Highway. The  full build                                                                    
     out for the project includes  a 15,000 to 16,000 square                                                                    
     foot  visitor center,  a  shuttle station,  campground,                                                                    
     trails,  interpretive   media,  and  parking/trailhead.                                                                    
     This  phase  will design  and  construct  a network  of                                                                    
     trails  at  the visitor  center  and  day-use areas  to                                                                    
     manage  visitor   foot  traffic  and   prevent  adverse                                                                    
     impacts to the natural surroundings.                                                                                       
                                                                                                                                
10:30:49 AM                                                                                                                   
                                                                                                                                
     RN 6855                                                                                                                  
     Abandoned Mine Lands Reclamation Federal Program                                                                         
     $3,200,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     The Legislature enacted the  Alaska Surface Coal Mining                                                                    
     Control  and Reclamation  Act in  1983 (AS  27.21). The                                                                    
     main purpose of the act  was to promote the reclamation                                                                    
     of areas mined before  enactment of the federal Surface                                                                    
     Mining Control and Reclamation  Act of 1977. Conditions                                                                    
     on  some of  these  mined areas  could endanger  public                                                                    
     health  and  safety, have  environmental  implications,                                                                    
     and prevent  the beneficial use  of or cause  damage to                                                                    
     land and water resources.  All funding for this program                                                                    
     comes  from  federal  grants;   no  general  funds  are                                                                    
     required. This  program will employ  up to  75 Alaskans                                                                    
     in private sector construction jobs.                                                                                       
                                                                                                                                
     RN 37762                                                                                                                 
     Cooperative  Water  Resource  Program  Pass-through  to                                                                  
     USGS for Stream Gaging Projects                                                                                          
     $2,500,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This   project  permits   the  Department   of  Natural                                                                    
     Resources to accept funds from  both the private sector                                                                    
     and local  governments and to pass  these funds through                                                                    
     to  the   U.S.  Geological  Survey  and   U.S.  Natural                                                                    
     Resources  Conservation  Service  as  part  of  funding                                                                    
     agreements  for  cooperative water  resource  programs.                                                                    
     The funding  agreements provide  overhead to  cover the                                                                    
     administrative costs  associated with  the pass-through                                                                    
     process.  The  data  gathered  in  these  projects  are                                                                    
     useful for reviewing water  resources related to mining                                                                    
     activities, dam safety  and construction, hydroelectric                                                                    
     power  generation, and  in-stream reservation  of water                                                                    
     applications.                                                                                                              
                                                                                                                                
Co-Chair  Meyer interjected  that time  for the  meeting was                                                                    
running  short,  he  hoped  that  questions  from  committee                                                                    
members could be communicated and  followed up directly with                                                                    
the department.                                                                                                                 
                                                                                                                                
     RN 33690                                                                                                                 
     Snowmobile Trail Development Program and Grants                                                                          
     $250,000                                                                                                                 
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     Snowmobiling  is   one  of  Alaska's   fastest  growing                                                                    
     outdoor activities and  a very important transportation                                                                    
     resource  for rural  communities.  There  is a  growing                                                                    
     demand to  develop and  maintain trails  and trailheads                                                                    
     to   provide   for   safe  riding   opportunities   and                                                                    
     transportation  routes,  and  to educate  riders  about                                                                    
     safe  riding  practices.  Funds for  this  program  are                                                                    
     provided  by  snowmobile   registration  fees  paid  by                                                                    
     Alaskans.  Funds   are  distributed  in  the   form  of                                                                    
     matching grants for  trail development and maintenance,                                                                    
     trail  marking and  signing, safety  education, and  to                                                                    
     establish legal trail easements.                                                                                           
                                                                                                                                
10:32:52 AM                                                                                                                   
                                                                                                                                
     RN 39042                                                                                                                 
     National Coastal Wetland Grant                                                                                           
     $1,000,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This project will allow the  purchase of 2,585 acres of                                                                    
     coastal  wetlands  on  the northern  coast  of  Afognak                                                                    
     Island.  The   Coastal  Wetlands  program   focuses  on                                                                    
     coastal  wetlands  ecosystems including  both  wetlands                                                                    
     and  upland buffers.  Wetlands  provide essential  fish                                                                    
     and  wildlife habitat,  which  in  Alaska support  many                                                                    
     commercial  and recreational  human uses,  particularly                                                                    
     in and  near communities, parks, and  refuges. Wetlands                                                                    
     provide  substantial  contributions to  water  quality,                                                                    
     flood  and storm  water control,  as well  as providing                                                                    
     habitat for  fish and  wildlife. This  program provides                                                                    
     federal  funding   to  the  state  for   the  long-term                                                                    
     protection of  wetlands, which is matched  with private                                                                    
     sector donations.                                                                                                          
                                                                                                                                
     RN 37769                                                                                                                 
     Federal and Local Governmental Funded Forest Resoruce.                                                                   
     $1,800,000                                                                                                               
                                                                                                                              
     Brief Summary and Statement of Need:                                                                                   
     This  project allows  for one-  time federal  and local                                                                    
     government  funded  projects.  These  projects  include                                                                    
     competitive   grant   awards    for   hazardous   fuels                                                                    
     reduction, Firewise  and prevention  education, special                                                                    
     forest  disease surveys,  forest restoration  projects,                                                                    
     biomass   inventories,  targeted   community  forestry,                                                                    
     forest stewardship  plans, and agreements  for one-time                                                                    
     local government funded  field projects, including fuel                                                                    
     mitigation.   This  project   meets   the  mission   of                                                                    
     continued  protection,  development and  management  of                                                                    
     the state's natural  resources by enlisting cooperation                                                                    
     at the local level throughout Alaska.                                                                                      
                                                                                                                                
Co-Chair Meyer understood that the rest of the requests                                                                         
dealt with deferred maintenance.  Mr. Fogels replied in the                                                                     
affirmative.                                                                                                                    
                                                                                                                                
10:33:43 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough queried the personnel costs related                                                                       
to the first request: RN 38872. Ms. Davis that the costs                                                                        
were for existing long-term, non-permanent employees.                                                                           
                                                                                                                                
10:34:38 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough asked whether long-term, non-                                                                             
permanent employees drew retirement and health benefits.                                                                        
Ms. Davis responded that they did not draw retirement                                                                           
benefits, but did receive health benefits.                                                                                      
                                                                                                                                
10:35:04 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer discussed housekeeping.                                                                                          
                                                                                                                                
10:35:16 AM                                                                                                                   
                                                                                                                                
SB 119 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
10:35:16 AM                                                                                                                   

Document Name Date/Time Subjects
SB119 Capital Follow up DCCED.pdf SFIN 2/19/2014 9:00:00 AM
SB 119