04/05/2001 08:08 AM House CRA
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS COMMITTEE
April 5, 2001
8:08 a.m.
COMMITTEE CALENDAR
OVERVIEW OF THE DENALI COMMISSION [INCLUDING ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA) AND
RURAL ACTIVITIES OF THE U.S. DEPARTMENT OF AGRICULTURE]
TAPES
01-17, SIDES A & B
01-18, SIDE A
CALL TO ORDER
REPRESENTATIVE CARL MORGAN, CO-CHAIR, convened the House
Community and Regional Affairs Committee at 8:08 a.m.
PRESENT
Committee members present were Representatives Morgan,
Meyer, Scalzi, Murkowski, and Kerttula.
SUMMARY OF INFORMATION
[Mr. Jeff Staser's handout dated April 5, 2000, was
distributed to the committee and included in the committee
packet.]
MR. JEFF STASER, Federal Co-Chair, Denali Commission,
testified via teleconference. Mr. Staser gave an overview
of the Denali Commission activities this year. The
commission has a budget of $65 million and of that amount,
$20 million is going into a health initiative for clinics
and sub-regional hospitals and similar facilities. The
commission is working from a steering committee list of
recommendations. Both repair and new construction will be
accomplished this summer.
The other main theme of the commission's activities is
energy and power projects. This started in 1999 and has
two years of construction experience. To date about $30
million in federal funds have been moved to the State of
Alaska (Alaska Industrial Development and Export
Authority).
The commission has started a new partnership with the
Alaska Village Electrical Cooperative (AVEC) and has moved
$18 million for 24 separate projects.
MR. STASER thanked the legislature for its interest in
Denali Commission projects.
REPRESENTATIVE MURKOWSKI asked Mr. Staser to comment on
statewide energy planning.
MR. STASER said not having an energy plan has presented
problems for the Denali Commission who is available to help
facilitate a plan, and be guided by a plan. The Denali
Commission must proceed regardless of plan status, but he
shared his frustration of not having a plan.
[Mr. Robert Poe, Executive Director, AIDEA and Alaska
Energy Authority distributed a handout titled "Alaska
Energy Plan Outline and Status, April 2, 2001, and is
included in the committee packet.]
MR. ROBERT POE, Executive Director, AIDEA and Alaska Energy
Authority (AEA), gave an update on the upcoming
construction season, including some projects that will be
completed in 2002. He said the actual numbers of completed
projects are an improvement over past years. This is
possible in large part to being able to partner with the
private sector. According to Mr. Poe, there are a
tremendous amount of projects yet to be done in Rural
Alaska.
MR. POE commented on Representative Murkowski's energy plan
question and said it gets to the heart of all issues, and
gave a brief overview (beginning in 1999) of the statewide
energy planning process, including the mutual activities of
the Denali Commission, U.S. Department of Agriculture
(USDA) Rural Development, and AIDEA.
MR. POE covered the recently completed Rural Utility
Condition Assessments during the past year.
MR. POE informed the committee that AEA has proposed a
request for proposal process to identify cost reduction
projects in Rural Alaska.
REPRESENTATIVE MURKOWSKI asked Mr. Poe about the timing of
a statewide energy plan.
MR. POE responded that he doesn't know when it will be
completed, but there are some pieces already in place and
provides a great place to start.
MR. POE, in response to Co-Chair Meyer, explained the
history of the formation of the Railbelt Energy Fund.
CO-CHAIR MEYER asked Mr. Poe about whether Alaska should be
taking a more aggressive role in the gasline project.
MR. POE replied that both coal and gas can be combusted
cleanly. He deferred to the Governor on the gasline
questions.
REPRESENTATIVE MURKOWSKI and MR. POE exchanged questions,
answers, and comments on Railbelt energy needs.
REPRESENTATIVE MORGAN asked Mr. Poe for an update on the 4-
Dam Pool sale because it has a big effect on Power Cost
Equalization (PCE).
MR. POE replied it is a high priority to get the issues
resolved and the sale completed. He believes the job can
be done by the end of the year.
MR. POE, in response to Co-Chair Morgan, replied that, to
his knowledge, there are no utilities in Alaska that have
not been subsidized; there are subsidies on a regular
basis. He discussed several examples of projects that were
built with state funds and public subsidies.
REPRESENTATIVE KERTTULA asked about the future of
electricity and bulk fuel projects as opposed to the bigger
energy projects.
MR. POE replied that the screening analysis illustrates the
need to focus on localized energy use, and the need to use
all of the energy efficiently.
[Dr. Sheila Selkregg, State Director, Rural Development,
distributed a handout entitled "Efficient Management,
Maintenance and Operation of Rural Alaska Utilities
(electric, water, sewer, bulk fuel, solid waste)", which is
also included in the committee packet.]
DR. SHEILA SELKREGG, State Director, Rural Development,
USDA. Presented an overview of USDA's programs. The issue
for USDA is that the department spends about $100 to $200
million on public infrastructure in rural Alaska. The
administrators felt there is a crisis in terms of
operation, management and sustainability, and thus they
were seeing a significant failure rate. Therefore, it was
too expensive for them not to participate or support a
strategy in rural Alaska regarding operation and
maintenance. This was about the same time the Denali
Commission was discussing the same issue, so USDA partnered
with them and with AIDEA on an energy plan. Dr. Selkregg
went on to cover USDA's specific involvement and findings
in the process, which are covered in the handout.
REPRESENTATIVE MURKOWSKI said she appreciated Dr.
Selkregg's perspective and commented in detail about the
state's focus on building facilities. She also noted her
appreciation of Dr. Selkregg's presentation on management
and maintenance.
CO-CHAIR MORGAN related his experiences with
water/wastewater facilities being built in rural villages
without the input of the village.
There was further dialogue between Dr. Selkregg and Co-
Chair Morgan on community involvement and management
structure.
REPRESENTATIVE MURKOWSKI commented on the need for
training.
DR. SELKREGG related some of her recent experience on the
subject.
MR. STASER interjected that all Denali Commission projects
must include 10 percent of the funds for training,
management, bookkeeping, et cetera. Also a memorandum of
understanding (MOU) has been signed by all federal agencies
and all state commissioners to work together on community-
based plans that are regionally supported. The MOU also
expresses the need to share data so that communities know
what is going on, when it is going on, and where its going
on. Contractors want to know where the trained work force
is. This is all based on the community-based plan that Dr.
Selkregg and her team has helped to develop and produce.
DR. SELKREGG reiterated that from a federal perspective
there has been a great benefit for federal agencies to have
the Denali Commission set the expectations that all parties
work together. Also the relationship between the State of
Alaska and the Denali Commission is a powerful one.
REPRESENTATIVE MURKOWSKI asked Mr. Staser if Alaska can
likely count on receiving $65 million in future years.
MR. STASER replied that Alaska cannot count on it and that
he is soon going to Washington for an investigative hearing
to explain what is being done with these dollars. The
President has budgeted $30 million for this year, which is
a base line anticipated amount. Estimates of what will be
appropriated range from $30 million to $150 million based
on how well the case is made. Health and energy are two
areas where this federal administration's major thrust
lays.
DR. SELKREGG added that USDA normally asks for a 50 percent
match for grant money, but in Alaska they ask for a 25
percent match, so Alaska is already at a benefit above
other states. However, Dr. Selkregg noted that at times it
is difficult to get that 25 percent match.
REPRESENTATIVE MORGAN inquired as to whether the USDA would
take the match in-kind.
DR. SELKREGG replied that they would take it in-kind and
this year there is a potential $50 million in community
facility money that they are working hard [to obtain]. She
expressed the hope that Alaska will be sophisticated enough
to build infrastructure.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
There was no committee action.
ADJOURNMENT
There being no further business before the committee, the
House Community and Regional Affairs Standing Committee
meeting was adjourned at 9:58 a.m.
NOTE: The meeting was recorded and handwritten log notes
were taken. A copy of the tape(s) and log notes may be
obtained by contacting the House Records Office at State
Capitol, Room 3, Juneau, Alaska 99801 (mailing address),
(907) 465-2214, and after adjournment of the second session
of the Twenty-Second Alaska State Legislature this
information may be obtained by contacting the Legislative
Reference Library at (907) 465-3808.
| Document Name | Date/Time | Subjects |
|---|