Legislature(1999 - 2000)
01/31/2000 12:12 PM House ASC
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT ARMED SERVICES COMMITTEE
January 31, 2000
12:12 p.m.
SENATE MEMBERS PRESENT
Senator Tim Kelly, Co-Chair
Senator Drue Pearce
Senator Gary Wilken
Senator Loren Leman
HOUSE MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative Gene Therriault
Representative Reggie Joule
Representative John Harris
PUBLIC MEMBERS PRESENT
Dean Owen
Alan Walker
George Vakalis
Jake Lestenkoff (via teleconference)
John Hoyt (via teleconference)
OTHERS PRESENT
Senator Randy Phillips
Representative Sharon Cissna
Representative Alan Austerman
COMMITTEE AGENDA
Activities Report
Military Issues Update
Special Presentations: Coast Guard Update, Adak Reuse Update
WITNESS REGISTER
Rear Admiral Thomas Barrett
Commander 17th Coast Guard District
P.O. Box 25517
Juneau, AK 99802
ACTION NARRATIVE
TAPE 00-01, SIDE A
Number 001
CO-CHAIR TIM KELLY called the Joint Armed Services Committee
meeting to order at 12:12 p.m. Committee members present were
Co-Chair Tim Kelly, Senator Drue Pearce, Senator Gary Wilken,
Senator Loren Leman, Co-Chair Eldon Mulder, Representative Lisa
Murkowski, Representative John Harris, and Dean Owen, Alan
Walker, and Colonel George Vakalis and, General Lestenkoff and
General Hoyt via teleconference.
INTRODUCTION OF MEMBERS AND GUESTS
CO-CHAIR KELLY introduced the following guests: Phil Oates, the
Adjutant General of the Department of Military and Veterans
Affairs; Brigadier General George Cannelos, Commander of the
Alaska Air National Guard; General Westfall, the Commander of the
Alaska Defense Force; Rear Admiral Barrett, Commander of the 17th
District Coast Guard; Chris Gates and Paul Romoff from the Adak
Redevelopment Authority; and Major Brian Piltery of the Public
Affairs Office, US Army at Ft. Richardson.
MAJOR HILFERTY introduced the members of his party.
CO-CHAIR KELLY introduced Janice Neilsen, the legislative liaison
from the US Army Pacific, Rex Blazer, special assistant to
Governor Knowles, and Mead Treadwell (who was participating via
teleconference).
REAR ADMIRAL BARRETT introduced Rob Barker, Commanding Officer of
the Coast Guard Cutter "Melon," which will be en route to the
Bering Sea soon.
PAT CARRUTHERS of the Veterans Advisory Group introduced Judith
DeSpain, Robert Cashen, Elmer Johnson, Gordon Severson and Steve
Sweet.
CO-CHAIR KELLY acknowledged the presence of former Senator Ed
Willis and Laddie Shaw of the Department of Military and Veterans
Affairs.
APPROVAL OF MINUTES
CO-CHAIR ELDON MULDER moved to approve the minutes of the
meetings held on September 23 and October 4, 1999. There being
no objection, the minutes were approved.
ACTIVITIES REPORT
CO-CHAIR TIM KELLY asked Dean Owen to brief the committee on the
Federal Aviation Administration (FAA) Conference on Military
Airport Joint Use.
MR. DEAN OWEN informed committee members that a copy of his
report is contained in committee packets and made the following
statements.
The focus of the various discussions at the conference was to
assist those communities and installations that were confronted
with Base Realignment and Closure (BRAC) action and about how to
convert airfields to joint use facilities. Joint use of
airfields is a pertinent issue for the State of Alaska and it is
a course of action with several potential benefits for both the
military and civilian communities. Joint use activities at
airfields offer additional protection against future BRACs and
they provide business opportunities for the civilian community.
Such activities might qualify an airfield for funding through the
military airport program and they allow maintenance costs to be
shared.
Alaska has three army airfields which are good candidates for
joint use activities: Allen Army Airfield at Ft. Greeley; Bryant
Army Airfield at Ft. Richardson; and Wainwright Army Airfield at
Ft. Wainwright. Any proposals for joint use must be initiated by
the civilian community. If the proposal does not interfere with
Air Force security or the Air Force's mission, the community may
enter into a long term agreement for joint use of the airfield.
MR. OWEN stated the Joint Armed Services Committee (JASC) can
assist both the military and civilian community in this arena.
Representatives from Ft. Greeley and Delta attended the
conference and expressed interest in joint uses at Allen Army
Airfield. He noted that the remainder of the information on the
conference is contained in his report.
Number 130
CO-CHAIR KELLY noted the presence of Representative Cissna. He
asked Mead Treadwell to speak to the committee on the Institute
of the North Conference.
MR. MEAD TREADWELL thanked committee members for member
participation in the November conference sponsored by the
Institute of the North on Missile Defense in the Pacific. He
reiterated for the committee the following ideas that came out of
the conference.
First, conference participants reviewed the threat of a missile
attack. Alaska and Hawaii face more of a threat from missiles
being developed by North Korea, China, Russia, India, Pakistan,
Iran, Iraq and other countries. The threat exists to the rest of
the nation and its allies in Europe and Asia, but Alaska's
proximity puts it more at risk. Dr. Graham, a member of the
Rumsfeld Commission, and Dr. Pfaltzgraff spoke to that threat.
The second issue that participants focused on was the U.S.
response to that threat. Military officials talked about the
United State's engagement in trade, friendship and diplomacy to
help build trust in the Pacific. Last week the U.S. and China
agreed to establish a military-to-military relationship again.
Participants were also briefed on the technology being developed
in case a breakdown in trust or an accident occurs. Dr. David
Martin, the head of International Programs, addressed what the
Ballistic Missile Defense Office is doing to develop the land and
sea based systems. General Yamaguchi, the Japanese Defense
Attache, also participated. Colonel Pete Worden spoke about air
and space based systems and theater based systems. Both the
theater systems and the land based systems are part of a defense
system that will protect Alaska.
Dr. Martin and Secretary Cohen said this morning the deployment
decision to be made this June depends on four factors: the
threat; technology; cost; and the relationship to the ABM Treaty.
Secretary Cohen believes the first three factors are covered
despite the missile test failure last week. The U.S. must still
work with its allies and with Russia for support of this effort
so that it is not seen as counterproductive to the Treaty. Since
the conference, Japan, Canada, France, China, Great Britain, and
other nations have said they hope the U.S. does not drop the
Treaty which is of concern.
MR. TREADWELL noted that during the next few months, Alaska may
be made an offer that it cannot refuse. A treaty revision may
allow a land based system to go ahead in Alaska, but limit
Alaska's interceptors, limit Alaska's opportunity to cooperate
with sea based systems and limit Alaska's ability to perfect a
system with space based radars. He advised the Legislature to
keep an eye on this issue.
Participants discussed the ABM Treaty and how it does not allow
ships, radar and planes to coordinate with the theater based
system. They learned how the Treaty is not legally binding on
the U.S. because it was signed with a nation that is no longer in
exists. The President has refused to send the Treaty to Congress
for re-ratification.
The State Department says the treaty negotiations will be a
piecemeal process but, given the nation's interest in getting
this started in Alaska, it may be unwise to let a land-based
system act alone to defend the U.S. He advised that the
Legislature watch the ongoing negotiations very carefully.
MR. TREADWELL remarked that Alaska should continue its dialogue
with Western states and Japan, and push not only for 50 state
coverage, which the Alaska Legislature was the first to call for,
but also for an integrated system with the family of missile
defense options. Alaska needs to watch what is happening with
theater-defense options in the Pacific. Taiwan is requesting
that the U.S. buy Aegis cruisers. Japan has named its developers
of the Japanese system. The Legislature needs to be aware that a
deployment decision may not fit national needs if it is too
limited. He asked legislators to review the State's own
investments to see if and where they may inadvertently be helping
proliferation. Task forces established in Colorado, California
and Texas have reviewed their public pension funds.
CHAIRMAN KELLY noted that former Governor Hickel and his wife
hosted a conference on the USS Missouri on the last evening of
the conference.
Number 246
GENERAL HOYT made the following comments about the Symposium on
Space and Missile Defense put on by the Association of the United
States Army (AUSA). The U.S. Army holds these symposiums to
provide an opportunity for the nation's political, military, and
industry leaders to interface and exchange information on items
of mutual interest and concern. The symposiums are public forums
open to anyone willing to pay the admission price. About 425
people attended the El Paso event including part of the nation's
political leadership and representatives of every major industry
involved in the development of missile defense systems.
GENERAL HOYT highlighted portions of his report as follows. Lt.
General Kent Strube, Vice President of Education of AUSA, is an
extremely strong supporter of national missile defense and the
Alaska Army National Guard's participation in that program.
General Strube is a member of the Joint Advisory Council to the
Joint Ballistic Missile Defense Office and is a supporter of
Alaska on this issue. A video presentation was given about the
successes evident in the missile defense business last year.
Representative John Hostedtler of Indiana talked about the
threat. Polling data collected from U.S. registered voters show
that 86 percent approve of the development and deployment of the
national missile defense system. There is also very strong
congressional support for continuation of these systems.
GENERAL HOYT said that Lt. General George McDonald, Deputy
Commander in Chief of the North American Aerospace Defense
Command, presented the Canadian perspective on national missile
defense. As of the first week of December, no formal interface
between the U.S. and Canadian governments concerning the national
missile defense program occurred, therefore Canada had developed
no position on that issue. It may or may not participate in its
development and funding. Canada does not understand the concept
of national missile defense and questions whether such a threat
to Canada exists. It is more concerned about weapons of mass
destruction used by terrorists. Canada opposes abrogation of the
current ABM Treaty and it also opposes the use of weapons in
space. The intention of the military and industry leadership to
develop space based laser systems is to destroy missiles on
launch as close to enemy territory as possible. The space-based
system would be backed up by a ground-based interceptor system
that is being developed now. He agreed with Mr. Treadwell that
the U.S. has some political obstacles to overcome among the world
leadership on these issues.
GENERAL HOYT pointed out that he discussed with Mr. Josh Edwards,
Director of Business Development for Boeing, the use of the
Kodiak missile launch facility for future testing. He believes
the Alaska Air and Army National Guard will benefit, as well as
all of Alaska. He concluded there is work to be done but he
believes Alaska will see success, to the benefit of Alaska and
the nation.
CO-CHAIRMAN MULDER remarked that participants at the Institute of
the North Conference had the opportunity to visit with General
Smith to argue the value of Alaska's army posts. The meeting
lasted about two hours and was very beneficial.
Number 352
SENATOR WILKEN referred to item 7 on the last page of General
Hoyt's report, and asked General Hoyt to expand on the Kodiak
missile launch facility's use.
GENERAL HOYT replied that the missile launch systems currently
being used for the launch of target missiles and launch of
interceptor missiles are pointed directly at each other. If the
Kodiak system is used to shoot South, the intercept occurs at a
different angle which is beneficial from the standpoint of
testing the system. He does not know the technical aspects but
he believes it would be worthwhile for the facility managers to
be in contact with Boeing.
CO-CHAIRMAN MULDER pointed out that he visited with the Alaska
Aerospace Director, Pat Ladner, about the ability of Boeing to
use Kodiak, instead of Kwajalein Atoll, in relation to the
missile testing. As General Hoyt pointed out, it is more
technically difficult to shoot from Kodiak than to shoot from
Vandenburg Air Force Base in California. A Kodiak launch would
reflect a more real life scenario which makes it more valuable.
Another strategic value to Kodiak is that all three phases of the
rocket could be fired from there while only two can be fired at
Kwajalein because of the red zone.
CO-CHAIRMAN KELLY acknowledged the presence of Senator Phillips.
CO-CHAIR KELLY asked Colonel Vakalis to update committee members
on the NAID Conference.
COLONEL GEORGE VAKALIS informed committee members the National
Association of Installation Developers' (NAID) Conference on
Military Base Privatization occurred during the past week.
Several issues of interest to Alaskans were discussed.
First, NAID was formed in response to the last BRAC rounds to
assist communities that would be taking over bases being vacated.
The initial composition of NAID included realtors, industrial and
residential contractors, and bankers. NAID's focus has recently
changed as no BRAC rounds have occurred for several years. Most
of the changes to the bases have already occurred or are in a
holding pattern because of problems, i.e. environmental cleanup.
NAID's new focus is to look at what can be done to make posts,
camps, and stations throughout the United States "BRAC-proof."
To do that, NAID is looking at ways to make existing posts more
cost effective: privatization, outsourcing, or staying the
course. In some cases it is more advantageous to privatize the
utility functions of the bases while in other cases it is more
advantageous to outsource them. In other cases it is more cost-
effective to stay the course. The same case applies to real
estate. In many cases, especially in Alaska, downsizing has
created an excess of acreage, administrative facilities, housing,
and warehousing. One way to make the bases cost effective is to
lease the excess space available. Bases are being encouraged by
the Department of Defense to take that initiative. Ft.
Richardson has an excess of warehouse and administrative
building space and, in the Anchorage bowl area, there is a
shortage of warehouse space. The military calculates base costs
by dividing the amount of square footage and acreage available by
the number of soldiers. Alaska's bases have the highest cost per
soldier.
NAID is looking into a second mechanism that may be used on an
experimental basis in San Antonio, Texas. Either the entire base
will be conveyed to the local community and the military will
lease back those facilities it needs, or operational agreements
with local governments for maintenance of the infrastructure and
roads will be entered into. If either arrangement proves to be a
success, it will reduce the costs for the military unit and it
will give the local government or other entity the option to
lease out the unused facilities or acreage.
One challenge faced by Alaska is the cost of base utility
systems. Water and sewage operations are not a problem.
Electricity and heat are problematic because all electric
generating plants on the bases are coal generation plants that
produce both electricity and steam heat for all facilities on the
post. The power plants and conduits are in poor condition and
not cost effective. It will be difficult to get any entity to
take over that operation.
COLONEL VAKALIS said the more active a military base is with
local communities. State and other federal agencies, in the form
of joint uses, the more protected that installation is from
closure. He also pointed out that the Assistant Secretary of
Defense attended the conference and made clear that the
Department of Defense (DOD) is very serious about getting out of
the utility business, and on getting returns from unused
facilities and acreage. Colonel Vakalis warned that facilities
that are not leased out could be torn down. Participants were
also informed that the Department of Defense does not intend to
do a BRAC round in 2001 but it is pushing for BRACs in 2003 and
2005. DOD is waiting for a change in the Administration and is
devising more appropriate criteria to use in the next BRAC
rounds.
Number 520
MR. WALKER said that during the tour of Ft. Richardson, members
saw a refrigerator warehouse in outstanding condition.
Discussion ensued about the dearth of available refrigeration
storage space in the Anchorage basin yet that building has been
destroyed. He referred to a usage agreement for the land that
precludes the Army from leasing out excess land to commercial or
local government entities and he asked if that is an issue the
legislature needs to address. He noted it is ironic that Alaska
is worried about losing bases but it is hamstrung to use the
facilities.
COLONEL VAKALIS replied there are two answers to that question.
First, the agreement Mr. Walker referred to is called NALA - the
North Anchorage Land Agreement. That agreement came into
existence as the result of over filings by the State, Native
organizations, and the Municipality of Anchorage (MOA) for the
lands associated with Ft. Richardson and part of Elmendorf Air
Force Base if those posts were declared excess to the needs of
the military. To preclude a legal battle if those posts were
declared excess to the military's need, the U.S. Government said
if all three parties can devise an agreement for the land prior
to the closure of those posts, the Army will transfer the lands
at that point in time. The agreement divides the lands three
ways: the MOA gets a certain amount for specific uses; the
Eklutna Corporation gets a certain amount; and the State gets a
large amount of acreage.
The agreement says that the State will take an identified portion
and the excess will be either jointly managed or jointly agreed
upon by the MOA and Eklutna. The problem is, as of this point in
time, that has not been determined. The Army does not need to
declare that property as excess to its needs. It can say it has
excess capacity and, in that case, if it needs to use that
property in the future, the property will revert back to the
military. Unless the Army declares that property excess to its
needs, it can still lease it out. If the military leases a
warehouse, the money goes back into military operations so the
warehouse is not considered excess to its needs because it is
revenue generating.
COLONEL VAKALIS said the second aspect of that arrangement is
that a law on the books prohibit the military from competing with
private enterprise. To get around that, three factors must be
considered. One factor is that the local government concur in
the use of land or a particular facility to compete. If the
local government has no concerns, then fair market value must be
determined and charged. Third, the use should be endorsed by the
local Chamber of Commerce.
SENATOR PHILLIPS asked whether 50 acres is available for a high
school and whether such a facility would fit the criteria.
Number 585
COLONEL VAKALIS replied that one thing that makes Ft. Richardson
valuable is its training area so 50 acres could be problematic.
Ft. Richardson intends to hold on to as much acreage as possible
to encourage other units to train there.
TAPE 00-01, SIDE B
Number 600
REPRESENTATIVE MURKOWSKI referred to a letter from the Chamber of
Commerce. It's military affairs committee has recommended that
Alaska look to hire a firm to study the situation in Alaska and
recommend how Alaska can become BRAC-proof. She asked Colonel
Vakalis his opinion of that approach.
COLONEL VAKALIS said he participated in writing that letter which
was a response to a speech that Senator Stevens made in December
of 1999. Senator Stevens spoke about a BRAC round in 2001, and
he mentioned that Ft. Richardson and Eielsen Air Force Base were
very vulnerable. As a result of those statements, it appeared to
the Chamber that an assessment was necessary. The necessity is
still there but the urgency is not. He pointed out that if a
BRAC round occurs in 2003, the fact gathering will occur before
that year.
CO-CHAIRMAN KELLY announced that Representative Therriault joined
the committee. He then asked Chris Nelson to update the
committee on military issues.
Number 569
CHRIS NELSON, staff director to the JASC, informed committee
members that the JASC is required by statute to report its
activities to the Legislature at the beginning of the session. A
copy of the activities report from July 1, 1999 through January
10, 2000 is included in committee members' packets. A few key
issues are facing committee members. First, in the area of
national missile defense, the decision on whether and where to
build the system is still on the calendar for June of 2000.
Alaska wants the system built, and it wants the system built in
Alaska. Crucial to those goals are the flight tests of the
various technological elements of the system. The first flight
in October, the test of the exo-atmospheric kill vehicle, was a
success. The second flight in early January failed to achieve an
intercept. That test was complicated and, although the intercept
failed, the other parts of the test worked very well and proved
that the architecture of the system was valid. The military
believes the intercept was not achieved because of two failed
heat sensors. A third flight test is scheduled in April.
Alaska has a lot riding on the third test. The JASC has held the
position that more tests should be conducted but it does not see
a good reason to postpone the deployment readiness review. The
JASC wants a decision to be made in June so that the bidding
process can begin in July and August, and the construction can
begin the following summer.
MR. NELSON noted he has been in contact with staff at the
national missile defense office, and has indicated that the JASC
would enjoy having the opportunity to host Major General Nance,
the Commander of the National Missile Defense office. The
attendance of Dr. Pellier, Vice President of Boeing, would also
be extremely helpful. General Nance may be available during the
week of April 3rd. He asked the committee's permission to issue
a formal invitation to General Nance to visit Alaska during that
week.
CO-CHAIRMAN KELLY asked if there was objection to that
invitation. There being no objection, Co-Chairman Kelly asked
Mr. Nelson to proceed.
Number 524
MR. NELSON informed committee members that although the next BRAC
round has been scheduled in 2003, the issue is still on the table
and DOD is looking hard for ways to shed itself of excess base
structure. The JASC's argument that new evaluation criteria must
be used in any future BRAC rounds has been successful. The
committee has argued that the new criteria view and weight joint
activities. Leon Panetta was the featured speaker at the NAID
conference in Jacksonville, Florida last summer. Mr. Panetta
described what people expected from BRAC and what they got. A
study of base reuse found that only one-fifth of bases closed in
the first three BRAC rounds had regained the same level of
employment in civilian reuse as that prior to closure.
MR. NELSON suggested the JASC's number one priority must be to
continue to monitor ballistic missile defense. BRAC must also be
monitored.
SENATOR PEARCE commented that Senator Murkowski pointed out that
some military facilities are more cost effective to keep open
than to close due to the cost of environmental cleanup. She
asked whether that will work for or against Alaska in another
BRAC round.
MR. NELSON said that along with changes to BRAC evaluation
criteria, another analytical tool, the COBRA model, must be
changed. COBRA is a military acronym for Cost of Base
Realignment Action. That model was developed in 1988 to compute
a break even point but no environmental cleanup costs were
factored into it at all. If a 2003 BRAC round is authorized, in
addition to Alaska's efforts to ensure that joint evaluation
criteria are used, it must also insist that the COBRA model be
modified to include the costs of environmental cleanup because
those costs are enormous in virtually every base that has been
closed. The DOD does not bear those costs; many of the bases
become Superfund sites.
CO-CHAIRMAN KELLY asked Mr. Nelson to work with Colonel Vakalis
and the Anchorage Chamber of Commerce on the possibility of
hiring a consultant.
MR. NELSON agreed.
Number 448
SENATOR WILKEN informed committee members that last March a
number of legislators were invited to visit the Northern Edge
Training Site. Legislators returned with an appreciation of the
military's role in Alaska and the role of Alaska in the military
strategy. On the return trip, participants discussed the need to
inform other legislators about that relationship. To that end,
they decided to establish a "Northern Edge Day" so that
legislators could visit that site on one day each session. He
asked committee members to recommend that action to the
Legislative Council and legislative leadership.
CO-CHAIRMAN KELLY asked Mr. Nelson to work with Senator Wilken on
that issue.
Number 527
REPRESENTATIVE MURKOWSKI noted that Mr. Treadwell indicated that
he was willing to work on a resolution regarding the ABM Treaty
and how it will or will not affect Alaska. She asked JASC
members to work with her on such a resolution.
SENATOR LEMAN noted the JASC report mentions the ARRC track
realignment to Ft. Richardson. He felt the report should reflect
that he and Representative Murkowski are working with the ARRC,
the Air Force and the Army on legislation to be introduced this
week regarding that land exchange.
MR. NELSON pointed out that Senator Leman will also be meeting
with officials to talk about the smoke issue.
CO-CHAIRMAN KELLY asked Rear Admiral Barrett to update the
committee on Coast Guard issues.
Number 411
REAR ADMIRAL BARRETT gave the following briefing to legislators.
Coast Guard activities in Alaska are quiet today but, even so,
three cutters are out patrolling and air stations in Sitka and
Kodiak will be running fisheries patrols in their areas. Also,
the Cutter Melon is in Juneau and is en route to the Bering Sea.
Marine inspectors are in Dutch Harbor and Nikiski checking on
commercial vessel shipping. Aside from 2000 active duty members,
the Coast Guard also has about 400 auxiliary members and over 50
reservists. The Coast Guard puts about $200 million into the
Alaska economy each year in both salaries and purchases. That
amount does not include the cutters that come from other areas
and patrol in Alaska. The Coast Guard is located in many
locations in Alaska in relatively small size. The Coast Guard
operates: buoy tenders; coastal patrol boats; small boat
stations; marine safety offices in Anchorage, Valdez, and Juneau;
air stations at Kodiak and Sitka; support centers in Kodiak and
Ketchikan; and loran stations scattered around the State.
Alaska is a maritime state with a huge coastline and a tremendous
amount of activity along that coastline. The major economic
drivers in the State include the oil industry, fisheries and
tourism - industries that move on the water. Over 14,000 vessels
are involved in commercial fishing in Alaska. Passenger vessels
in the 100 to 200 passenger size are moving further off the main
waterways.
The Coast Guard's primary focus is maritime safety which includes
search and rescue. Last year the Coast Guard responded to almost
1000 rescues and directly participated in saving 255 lives. The
Coast Guard has made a practice of deploying helicopters to St.
Paul and Cold Bay during the winter months and keeps a cutter on
patrol in the Bering Sea during the worst weather to reduce
fatalities. The number of deaths in the fishing industry last
year was about 19. Overall, the number of deaths has decreased
over the years although the factors for that decrease are hard to
segregate. Fishing is a dangerous occupation. Coast Guard
efforts to minimize losses include more exams at the dock, more
boardings at sea, and a focus on whether boats are ready to go to
sea in this environment.
REAR ADMIRAL BARRETT informed JASC members that over 2 million
passengers move through Alaska on passenger vessels. Last year
four vessels were grounded. The Coast Guard has a small
passenger vessel task force working with the industry to make
that industry safer. Similarly, the Coast Guard is trying to
work with the small charter boat industry to increase the level
of safety on a voluntary basis. The Coast Guard endorses a five
star safety program. If a boat meets five requirements for
safety measures such as backup communications, the Coast Guard
will endorse it as being a safe operation. The Coast Guard is
also concerned about non-commercial boating fatalities in the
State - 29 occurred last year. Alaska has the worst fatality
rate in the nation. The Coast Guard is working with the state to
improve outreach and education.
REAR ADMIRAL BARRETT said the second major mission beyond safety
is protection of natural resources. Living marine resources is
the most time consuming. The Coast Guard partners with the
National Marine Fisheries Service, the Alaska Department of
Environmental Conservation, Board of Fish, and the National
Oceanic and Atmospheric Administration to protect the fisheries
for the future. A big issue is the high seas driftnet fishery
which occurs in the Bering Sea. Right now there is a U.S.
moratorium on high seas driftnet fisheries. Last year the Coast
Guard cited 10 vessels about 1500 miles West of Kodiak for
violating the moratorium. Three of the vessels were seized.
The Coast Guard patrols the maritime boundary with Russia. A
large multi-national fleet targets pollack in the Russian EEZ.
Poor catch rates on the Russian side cause Russian fishermen to
push the U.S. boundary creating both a fisheries and sovereignty
issue for the U.S. The Coast Guard patrols this mission
regularly with its largest aircraft and cutters.
REAR ADMIRAL BARRETT noted the maritime boundary in the Bering
Sea has been ratified by the U.S. Senate but not by the Russian
Duma. The catch rates on the Russian side are about one-tenth of
the rates in the U.S. EEZ which is one reason the pressure along
the boundary is high.
The Coast Guard also enforces domestic fisheries laws to keep the
playing field level for U.S. fishermen. Alaska has the largest
IFQ fishery in the world and over 200 time, area and species
openings. The Coast Guard is increasing surveillance on sea lion
rookeries. It is also taking a hard look at the impact of cruise
ships in terms of sewage, garbage, oil and chemical discharge.
The Coast Guard enforces U.S. and current international pollution
laws; the legislature needs to consider whether what the Coast
Guard is doing is adequate. Valdez is closely monitored, as is
Cook Inlet, particularly in winter months when ice restrictions
have to be imposed.
Alaska waterways are a major highway. The Coast Guard maintains
about 1300 buoys and other navigation aids. Over the next few
years, the Coast Guard will be replacing the 180 foot cutters it
has in Kodiak, Homer, Cordova and Sitka with 225 foot cutters.
The Homer pier will not accommodate the larger ship.
The Coast Guard's portion of Northern Edge is the naval
component. Over 1,000 naval exercise participants will visit and
contribute about $700,000 to the local economy of Sitka this
year.
REAR ADMIRAL BARRETT commended Alaska's military services for
doing a lot of preventive work to make sure that Y2K was a non-
event. He noted that the Coast Guard is a little more "on the
edge" than he would like it to be because of maintenance
accounts, spare parts shortages, and people shortages.
REAR ADMIRAL BARRETT invited committee members to visit Coast
Guard facilities in Alaska.
Number 170
CO-CHAIRMAN KELLY told Rear Admiral Barrett the committee plans
to visit Kodiak in the near future.
SENATOR PHILLIPS asked if the 29 lives were lost in inland
waters.
REAR ADMIRAL BARRETT said that number was statewide.
MR. WALKER pointed out that Rear Admiral Barrett wears a second
hat as the Maritime Defense Commander and therefore overseas the
Navy component in Alaska. He asked Rear Admiral Barrett to
address that relationship and the interaction with Alaska command
and how that relates to BRAC.
REAR ADMIRAL BARRETT explained he has two bosses - he answers to
the Commandant of the Coast Guard and to General Case as the
Naval Component Commander for Alaska. In terms of impacts,
whatever the other services do impacts the Coast Guard. The fact
that Adak is transitioning out of a naval facility and into
another type of activity impacts the Coast Guard. The Coast Guard
uses Attu as a refueling spot and, to the extent that commercial
fishing activity occurs in that area, the Coast Guard will be
impacted. He pointed out if Coast Guard C-130s cannot be staged
out of Galena, and they must be flown from Kodiak or Anchorage,
the operating hours on the maritime boundary drop dramatically.
All of the BRAC issues have multiple consequences in terms of
mission, growth, or the types of missions flown everyday.
Number 120
MR. WALKER said he hopes that in the discussions about the re-
evaluation of criteria for future BRACs, that the JASC get input
on the criteria from the Coast Guard. The BRAC personnel in
Washington, D.C. have no concept of the fact that the West Coast
is closer to Washington, D.C. than Juneau is to many parts of
Alaska.
CO-CHAIRMAN KELLY agreed that is another strong reason to retain
Alaska bases.
SENATOR PEARCE asked whether the Coast Guard has any authority
over all of the passenger ships, including cruise ships,
regarding open bridge policies.
REAR ADMIRAL BARRETT replied the Coast Guard has authority to
impose restrictions that are geographic based so it could not set
a policy on a general basis, but in a particularly difficult
operating area, the Coast Guard could come at it through the
captain of the Port Authority in particular areas.
SENATOR PEARCE asked whether that came up as an issue during the
small passenger vessel discussion.
REAR ADMIRAL BARRETT said it did and it was considered to be a
distraction.
SENATOR PEARCE said she has heard some horror stories about the
larger ships and she thought the problem would be intensified on
the smaller ships.
REAR ADMIRAL BARRETT agreed.
CO-CHAIRMAN MULDER indicated that during testimony by the
Commissioner of the Department of Environmental Conservation
(DEC) in the House Finance Committee, the Commissioner said that
the Coast Guard has oversight of oil discharge in Alaska. He
asked whether there is any desire on the part of the Coast Guard
to transfer that responsibility to DEC.
REAR ADMIRAL BARRETT said there is not. He noted that most of
the large cruise ships are foreign vessels and the standards for
oil discharge must meet international standards. Regarding
sewage discharge standards, there is no equivalent to the federal
Water Pollution Control Act with respect to oil discharge
standards.
CO-CHAIRMAN KELLY acknowledged the presence of Representative
Austerman.
REPRESENTATIVE HARRIS thanked the Coast Guard for the work it
provides in Cordova and Valdez. He pointed out that many Coast
Guard retirees remain in Alaska and participate in Alaska's
businesses.
CO-CHAIRMAN KELLY thanked Rear Admiral Barrett for his
presentation. He noted the JASC will hold its next meeting in
Anchorage in June. He anticipates that committee members will
visit the Army Corps of Engineers and the new hospital at
Elmendorf Air Force Base. In addition, the committee hopes to
visit Kodiak and Ft. Wainwright sometime this year.
SENATOR WILKEN suggested that members send their June schedules
to Mr. Nelson so that he can arrange a meeting on a compatible
date.
CO-CHAIR KELLY announced the last presentation is from Eli
Gromoff and Chris Gates of the Adak Redevelopment Authority.
TAPE 00-02, SIDE A
Number 000
MR. GATES introduced Mr. Eli Gromoff, CEO of the Aleut
Corporation, and said that Adak will be transferred from the
Department of Defense and Department of the Interior to the Aleut
Corporation.
MR. GROMOFF made the following comments on the transfer agreement
to move the property over to the Aleut Corporation which will be
ratified by legislation. Ownership of the infrastructure on Adak
that was produced by the Navy will be transferred to the
Department of the Interior plus 46,000 ANCSA acres on the
Shumagin Islands and Adak Island. The unique thing about this
transfer is that the Aleut Corporation is starting a community
from scratch. The Aleut Corporation is looking to finalize the
agreement by March.
Some environmental issues need to be addressed, specifically with
the Navy. The Aleut Corporation does not want any liabilities
that are involved with environmental issues; the main issue is
non-exploded ordinance left there from WWII. The Aleut
Corporation is working closely with the EPA to eliminate that
liability, and it hopes to use the same criteria to remove any
other non-exploded ordinances left in its region from WWII. The
Aleut Corporation owns a lot of land on other islands that are
contaminated with non-exploded ordinances also. Once the
environmental issues are cleared up with the Navy, the transition
is very close to being finished.
Legislation will be addressed by Congress this year. Hopefully
it will be signed by Congress in November and by the President in
January. In the interim, the Aleut Corporation will take full
control of Adak and it is trying to make an early transfer of the
property. The Aleut Corporation will negotiate a lump sum with
the DOD to perform the cleanup in Adak. The Aleut Corporation
can accept contaminated lands because the corporation was able to
obtain environmental insurance as a result of the BRAC. The
Aleut Corporation will keep the legislature updated on how the
transfer is going.
Number 095
MR. GATES stated that for four years the Aleut Corporation has
been dealing with Navy officers and the DOD on issues concerning
personal property, pilferage, use of facilities prior to
transfer, asbestos, and lead based paint. The Aleut Corporation
has leased the facilities on Adak from the Navy to work out all
the issues and about 300 people work there now. There is a huge
sense of community there. The Aleut Corporation has had to
conduct two full petitions with the Local Boundary Commission
because the second class city formation process is too slow.
Most local reuse authorities across the country are asset rich
and cash poor. In any BRAC closure the federal government holds
most of the cards and they play tough.
Adak has the second largest school in the Aleutian Chain and a
seafood processing business is on track about five years before
the State's consultants said it would be up and running. It
expects 8.5 million pounds of seafood this coming year. Last
year it produced over $200,000 dollars in fish tax revenue that
was paid to the State.
For Adak to have a master lease a VPSO is needed on site. Adak
needs some of that money that it pays to the State in taxes to
pay for a VPSO on Adak. It leases 1.3 million square feet right
now; there are 4.5 million square feet of developed buildings on
Adak, some of the buildings will never be reused.
The tough issues for the Aleut Corporation are permitting and
utility transition. The regulatory agencies of the State never
anticipated the number of permits required to transition a
military base to a private community. The Aleut Corporation may
need help in obtaining all of the permits in the time frame
given. It wants to obtain complete control of that base by
October 1, 2000. The utilities of Adak have to be downsized, but
the cost of the downsize is expensive and right now it does not
have the money to do that. It expects to have our second class
city classification completed by August of 2000, and it also
expects to have a cooperative agreement with the Navy and the
city by that time.
Number 213
CO-CHAIRMAN KELLY asked if the Aleut Corporation is through the
Local Boundary Commission in terms of permits.
MR. GATES said staff from LBC went to Adak and held the first
public information session on Adak. The main issue is that the
Aleut Corporation has asked for the whole island to be designated
as the City of Adak. The LBC objects to the size of the city,
but there is a 60 day federal review by the Department of
Justice.
CO-CHAIRMAN KELLY asked if they were anticipating any monetary
help from the federal government.
MR. GATES replied they have received a little planning help.
Senator Stevens put money into the budget to run the airport for
five years but that money may have been misallocated.
CO-CHAIRMAN KELLY asked about the Regulatory Commission of Alaska
and if it would help if the committee sent a letter to them.
Number 250
MR. GATES said that the Commission is sensitive to the needs of
Adak. The Navy is shutting down the base on October 1, 2000 and
all of the permits need to be in place. He asked if the
committee can help by providing a safety net for the permit
processing.
SENATOR PEARCE asked if all the requests are in to the Regulatory
Commission of Alaska.
MR. GATES said most of the requests are in.
MR. GROMOFF said the Navy is working very closely with the
corporation and it is looking into an administrative transfer.
Some other permits would be required, but there doesn't seem to
be a problem with the EPA. The biggest permit problem is in
regard to port operations on hazardous materials.
MR. GATES commented the sheer volume of permits is overwhelming.
SENATOR PEARCE said the RCA inherited over 500 open dockets when
it was established last year. There were almost 800 cases that
hadn't even been assigned a docket number. So far they have
cleared hundreds of those cases.
The RCA promulgated new regulations that lay out a time frame so
that scenario would not happen again. Those are now in the
Department of Law, but the process is there for a reason. The
Corporation needs to sit down with the RCA and let them know what
is coming at them, so they can make resources available. The
committee cannot help with the permit situation according to the
Administrative Code, so it is up to the RCA and the Aleut
Corporation.
MR. GATES said they have sat down with the RCA and everyone is
really overwhelmed at the magnitude of the permits needed. They
have not figured out whether it is possible to get all the
permits within the time frame available.
MR. WALKER stated that Adak is a BRAC site and the implications
of keeping it open are critical to the State. Adak is a safe
haven, not only for Coast Guard and military vessels, but our
fishing fleet, because of the severity of the weather. There is
no where else out there to offer logistic support and offer the
emergency access in that area. It is important for the State to
ensure that this site becomes a viable entity and retain those
facilities.
CO-CHAIRMAN KELLY said the next meeting will be held in Anchorage
to visit Elmendorf Air Force Base and to discuss health care
issues. Another meeting will be scheduled during the session to
begin establishing the citizen's advisory committees.
CO-CHAIRMAN MULDER encouraged committee members to think about
how the committee can best utilize the civilian advisory
committees, because they are tremendous assets authorized under
the statute. Their mission is not clearly defined so it is up to
committee members to best define the mission and clarify
objectives.
CO-CHAIRMAN KELLY asked for a report about the Y2K preparations
from General Oates. He suggested that the military would receive
legislative recognition for those efforts.
There being no further business to come before the committee CO-
CHAIRMAN KELLY adjourned at 2:10 p.m.
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