Legislature(2001 - 2002)

02/09/2001 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                   HOUSE FINANCE COMMITTEE                                                                                      
                      February 09, 2001                                                                                         
                          1:40 PM                                                                                               
                                                                                                                                
 TAPE HFC 01 - 23, Side A                                                                                                       
 TAPE HFC 01 - 23, Side B                                                                                                       
                                                                                                                                
 CALL TO ORDER                                                                                                                
                                                                                                                                
 Co-Chair Mulder called the House Finance Committee meeting                                                                     
 to order at 1:40 PM.                                                                                                           
                                                                                                                                
 MEMBERS PRESENT                                                                                                              
                                                                                                                                
 Representative Con Bunde, Vice-Chair                                                                                           
 Representative Richard Foster                                                                                                  
 Representative John Harris                                                                                                     
 Representative Bill Hudson                                                                                                     
 Representative Ken Lancaster                                                                                                   
 Representative Jim Whitaker                                                                                                    
                                                                                                                                
 MEMBERS ABSENT                                                                                                               
                                                                                                                                
 Representative Eldon Mulder, Co-Chair                                                                                          
 Representative Bill Williams, Co-Chair                                                                                         
 Representative Eric Croft                                                                                                      
 Representative John Davies                                                                                                     
 Representative Carl Moses                                                                                                      
                                                                                                                                
 ALSO PRESENT                                                                                                                 
                                                                                                                                
 Ken Taylor, Director, Division of Habitat and Restoration,                                                                     
 Department of  Fish  and   Game; Kelly  Hepler,  Director,                                                                     
 Division of Sport Fish, Department of Fish and Game; Wayne                                                                     
 Regelin,  Director,  Division  of  Wildlife  Conservation,                                                                     
 Department of Fish and Game;                                                                                                   
                                                                                                                                
 PRESENT VIA TELECONFERENCE                                                                                                   
                                                                                                                                
 Pat Galvin, Director, Governmental Coordination, Office of                                                                     
 the Governor;  Kelly  Johnson,  Legal  Council, US  Senate                                                                     
 Committee on Energy  and Natural  Resources; Brian Malnek,                                                                     
 Staff Director, US Senate Committee  on Energy and Natural                                                                     
 Resources                                                                                                                      
                                                                                                                                
 GENERAL SUBJECT(S):                                                                                                          
                                                                                                                                
 Overview:  Conservation and Reinvestment Act (CARA) Funding                                                                    
                                                                                                                                
The following overview was taken in log note format.  Tapes                                                                     
and handouts will be on file with the House Finance                                                                             
Committee through the 22nd Legislative Session, contact 465-                                                                    
2156. After the 22nd Legislative Session they will be                                                                           
available through the Legislative Library at 465-3808.                                                                          
                                                                                                                              
LOG SPEAKER                DISCUSSION                                                                                       
                                                                                                                              
      TAPE HFC 00 - 23                                                                                                        
      SIDE A                                                                                                                  
000 Co-Chair Mulder        Gave a brief overview of CARA and noted                                                              
                           that the testimony would cover funding                                                               
                           levels and program specifics.                                                                      
      KELLY JOHNSON, LEGAL Noted that Senator Murkowski and                                                                     
   COUNCIL, US SENATE   Representative Young introduced the                                                                     
   COMMITTEE ON ENERGY Conservation and Reinvestment Act in                                                                     
      AND NATURAL          Congress. The Act proposed the dedication                                                            
      RESOURCES            of revenues for outer Continental Shelf                                                              
                           (OCS) development to a variety of                                                                    
                           conservation, recreation and wildlife                                                                
                           programs for 15 years. The proposal would                                                            
                           have distributed approximately $3 billion                                                            
                           dollars to state and local communities.                                                              
                           It included $450 million dollars for                                                                 
                           federal land acquisitions.                                                                         
348 Ms. Johnson            Through the appropriation process,                                                                   
                           additional programs were included in                                                                 
                           CARA. Under the lands legacy proposal                                                                
                           $1.6 billion dollars were included; a                                                                
                           large portion of this funding is for                                                                 
                           federal programs. It is one year funding.                                                            
                           A new conservation-spending category was                                                             
                           created in the Budget Enforcement Act.                                                               
                           This funding does not come into play                                                                 
                           until FY02.                                                                                        
      Ms. Johnson          Discussed the FY01 appropriation. The                                                                
                           funding was broken down into three                                                                   
                           departments: Commerce, Interior and                                                                  
                           Forest Service. There was approximately                                                              
                           $150 million dollars for coastal impacted                                                            
                           systems in the Commerce Department. The                                                              
                           National Oceanic and Atmospheric                                                                     
                           Administration (NOAH) will administer                                                                
                           this funding. Alaska will receive                                                                    
                           approximately $13 million dollars of the                                                             
                           coastal impact assistance funding.                                                                 
465 Ms. Johnson            Funding for lands legacy programs was                                                                
                           contained in the budgets for the                                                                     
                           Department of Interior and the US Forest                                                             
                           Service. There was $90 million for                                                                   
                           stateside land and water conservation                                                                
                           grants and $100 million for state                                                                    
                           wildlife grants and $30 million dollars                                                              
                           for urban parks.                                                                                   
554 Ms. Johnson            Alaska received approximately $800                                                                   
                           thousand dollars for the stateside                                                                   
                           program of the land and water                                                                        
                           conservation fund. Alaska also received                                                              
                           $1 million dollars for state historic                                                              
                            preservation. These funds have been                                                                 
                         distributed.                                                                                         
 597 Ms. Johnson            There was $50 million dollars for state                                                             
                            wildlife grants, of which $2.5 million                                                              
                            dollars would be distributed to Alaska.                                                             
                            This has not been distributed. There was                                                            
                            an additional $50 million dollars in the                                                            
                            Interior Department appropriation bill to                                                           
                            be award through competitive grants.                                                                
                            There was also money for urban parks,                                                               
                            North American wetlands, and endangered                                                             
                            species that would also be award as                                                                 
                            competitive grants.                                                                               
 641 Ms. Johnson            Coastal impact assistance funding is the                                                            
                            largest grant to Alaska: approximately                                                              
                            $13 million dollars, which has not been                                                             
                            awarded. Reiterated that the                                                                        
                            authorization and appropriation is one-                                                             
                            time. The Alaska Delegation would like to                                                           
                            make it more permanent.                                                                           
 700 Co-Chair Mulder        Referred to funding through the Forest                                                              
                            service.                                                                                          
 722 Ms. Johnson            Explained that there was $16 million                                                                
                            dollars through the forest legacy                                                                   
                            program, but that Alaska has not chosen                                                             
                            to participate in the program. Alaska may                                                           
                            see $800 thousand dollars from the urban                                                            
                            and community forestry grants. Alaska                                                               
                            received $1.4 million dollars for Tongass                                                           
                            Mental Health lands.                                                                              
 773 Representative         Questioned if there would be continuing                                                             
      Hudson                funds.                                                                                            
 816 Ms. Johnson            Observed that the Senator's intent was to                                                           
                            create a permanent appropriation, but he                                                            
                            was not successful. The program will have                                                           
                            to compete with other programs.                                                                     
                            Representative Young intends to                                                                     
                            reintroduce the program. Senator                                                                    
                            Murkowski is currently pursuing ANWR                                                                
                            issues.                                                                                           
 903 Co-Chair Mulder        Referred to costal impact assistance and                                                            
                            a summary from Bill Horn.                                                                         
 956 Ms. Johnson            Explained that the program was drafted                                                              
                            for the Minerals Management Services                                                                
                            (MMS). It was turned into a NOAA program.                                                           
                            Additional data is needed to determine                                                              
                            the exact appropriation.                                                                          
 1009 Co-Chair Mulder       Noted that 60 percent of the funds are to                                                           
                            be divided equally between producing                                                                
                            coastal states and 40 percent is to be                                                              
                            allocated on the basis of OCS revenues,                                                             
                            subject to a maximum of 25 percent to any                                                           
                         single state.                                                                                        
1045 Ms. Johnson           Explained that Alaska received its                                                                   
                           portion from the amount divided equally                                                              
                           to the 7 production coastal states. The                                                              
                           state of Alaska's percentage of OCS                                                                  
                           production averages out to zero.                                                                   
1086 Co-Chair Mulder       Observed that 35 percent of state share                                                              
                           is to be paid directly to coastal                                                                    
                           subdivisions and $4.5 million dollars                                                                
                           would go directly to local coastal                                                                   
                           communities. Local shares would be                                                                   
                           further broken down.                                                                               
1173 Co-Chair Mulder       The local share would be allocated: 25                                                               
                           percent based on population, 25% based on                                                            
                           coastline miles and 50% on the relative                                                              
                           distance from any leased tract. Funds can                                                            
                           be used for a number of uses including:                                                              
                           National marine sanctuaries, fisheries                                                               
                           conservation, conservation and                                                                       
                           restoration of coastal and marine                                                                    
                           habitats, coastal water quality                                                                      
                           improvement, watershed protection,                                                                   
                           controlling coastline erosion and                                                                    
                           management of coastal growth and                                                                     
                           development.                                                                                       
1181 Ms. Johnson           Added that funds can be used for                                                                     
                           infrastructure up to 23 percent                                                                    
1195 BRIAN MALNEK, STAFF Noted that breakwaters could be built.                                                               
      DIRECTOR, US SENATE                                                                                                       
      COMMITTEE ON ENERGY                                                                                                       
      AND NATURAL                                                                                                               
      RESOURCES                                                                                                                 
1211 Ms. Johnson           Emphasized that infrastructure funds                                                                 
                           could go to roads. Senator did not want                                                              
                           restrictions on infrastructure.                                                                    
1233 Mr. Malnek            Observed that there is a need for fire                                                               
                           trucks, police, first aid etc.                                                                     
1246 Ms. Johnson           Emphasized that the sponsor envisioned a                                                             
                           long-term, permanent funding program. The                                                            
                           environmental community wanted assurance                                                             
                           that some environmental use would occur.                                                             
                           The language was maintained but it was                                                               
                           put into short-term program.                                                                       
1311 Co-Chair Mulder       Asked if a project to diminish erosion                                                               
                           would be considered infrastructure or                                                                
                           maintaining coastline erosion.                                                                     
1340 Ms. Johnson           The funding would fall under coastline                                                               
                           erosion.                                                                                           
1357 Co-Chair Mulder       Noted that the world would not be changed                                                            
                           with $8 million dollars.                                                                           
1376 Ms. Johnson           Stressed that Senator Murkowski wants to                                                             
                           provide additional funding. Intention was                                                            
                           to tie funding to OSC production.                                                                  
 1391 Co-Chair Mulder       Questioned if the intent was for the                                                                
                            funding to go through the normal                                                                    
                            legislative authorization process.                                                                
 1403 Mr. Malnek            Stated that the there was a desire to get                                                           
                            money straight into communities but                                                                 
                            acknowledged that the funding would pass                                                            
                            through the state.                                                                                
 1426 Representative        Could infrastructure funding be used to                                                             
      Hudson                address substandard fuel farms in                                                                   
                            villages?                                                                                         
 1462 Mr. Malnek            Felt that it would be appropriate but                                                               
                            noted that there were no clear                                                                      
                            guidelines.                                                                                       
 1477 Co-Chair Mulder       Questioned if projects need NOAA                                                                    
                            approval?                                                                                         
 1487 Ms. Johnson           States are required to submit a plan by                                                             
                            July 1, 2001 indicating what kind of                                                                
                            programs would be funded by the project.                                                          
 1512 Mr. Malnek            Stressed that NOAA needs to provide the                                                             
                            seven coastal states with a letter                                                                  
                            explaining program requirements.                                                                  
 1531 Ms. Johnson           Pointed out that NOAA has indicated that                                                            
                            they would only provide guidelines.                                                               
 1565 Co-Chair Mulder       Stressed that NOAA can be more of a                                                                 
                            hindrance in the terms of getting things                                                            
                            done.                                                                                             
 1590 Ms. Johnson           Acknowledged that running the funds                                                                 
                            through NOAA has caused concerns. The                                                               
                            Senator's intent was to treat the funds                                                             
                            as revenue sharing.                                                                               
 1613 Co-Chair Mulder       Stated that there are a multitude of                                                                
                            projects that the state could be doing                                                              
                            with another revenue stream, but pointed                                                            
                            out that there is extensive                                                                         
                            administrative effort involved.                                                                   
 1644 Representative        Commended the Congressional delegation                                                              
      Hudson                for their work on the program.                                                                    
 1693 PAT GALVIN,           Provided details on the Coastal Impact                                                              
      DIRECTOR,             Assistance Program. The statutory                                                                   
   GOVERNMENTAL          structure was geared to an on-going                                                                    
      COORDINATION, OFFICE large-scale program, which ended as a                                                                
      OF THE GOVERNOR       smaller one-year program.                                                                         
 1822 Mr. Galvin            Noted that the state has till July 1,                                                               
                            2001 to demonstrate how the state and                                                               
                            local funds would be spent. Most of the                                                             
                            state's effort has been with NOAA                                                                   
                            regarding the scope of the plan and the                                                             
                            amount of details needed.                                                                         
 1862 Co-Chair Mulder       Asked why local coordination was needed.                                                          
 1870 Mr. Galvin            Explained that there is only one state                                                              
                            plan that designates how all the money is                                                           
                            to be spent. Local communities will                                                               
                           submit plans, but the infrastructure                                                                 
                           portion has a cap of 23 percent.                                                                     
                           Coordination is required to assure that                                                              
                           local communities share the                                                                          
                           infrastructure allotment and that the                                                                
                           total not exceed 23 percent.                                                                       
1935 Co-Chair Mulder       Expressed frustration at the level of                                                                
                           bureaucracy.                                                                                       
1948 Mr. Galvin            Goal to make sure that the state fulfills                                                            
                           obligations and receives the entire                                                                  
                           funding amount. He emphasized that they                                                              
                           are waiting for a draft from NOAA.                                                                   
                           Stressed the need for broad requirements                                                             
                           and flexibility.                                                                                   
1996 Representative        Observed that other states are faced with                                                            
      Hudson               the same problems.                                                                                 
2012 Mr. Galvin            Noted that they are working with the                                                                 
                           other 7 coastal states. Alaska has                                                                   
                           constraints that require flexibility.                                                              
2049 Co-Chair Mulder       Observed that the Governor's budget                                                                  
                           contains funding for CARA in the Division                                                            
                           of Governmental Coordination's budget.                                                             
2087 Mr. Galvin            The state portion of the coastal impact                                                              
                           assistance funds is $8.3 million dollars.                                                            
                           This funding is contained in the Division                                                            
                           of Governmental Coordination's budget.                                                               
                           The CARA statute requires public                                                                     
                           participation. NOAA requires a 30-day                                                                
                           comment period.                                                                                    
2117 Co-Chair Mulder       Noted that the Legislature is being asked                                                            
                           to give blanket authorization for the                                                                
                         CARA funding.                                                                                        
2135 Mr. Galvin            Reiterated that a state plan will have to                                                            
                           go through the public process. There are                                                             
                           some general ideas of where the funding                                                              
                           could be used on a statewide level. Ocean                                                            
                           research and monitoring are among the                                                                
                        possible uses.                                                                                        
2173 Co-Chair Mulder       Questioned if it would be wise to spend                                                              
                           onetime funding on long-term research. He                                                            
                           suggested that a few projects be picked                                                              
                           that can be accomplished.                                                                          
2206 Mr. Galvin            Noted that the state does not currently                                                              
                           have $8 million dollars of projects that                                                             
                           are not infrastructure and would meet the                                                            
                           NOAA requirement.                                                                                  
2232 Mr. Galvin            Emphasized that CARA funding could be                                                                
                           used to integrate the holes that exist                                                               
                           with ocean monitoring and research around                                                            
                           the state.                                                                                         
2257 Co-Chair Mulder       Stressed that he is reluctant to give                                                                
                           cart blanc authority.                                                                              
 2272 WAYNE REGELIN,        Observed that there were negotiations on                                                            
      DIRECTOR, DIVISION    the federal level that resulted in $150                                                             
      OF WILDLIFE           million dollars for land acquisitions. A                                                            
      CONSERVATION,         comprehensive management plan for all the                                                           
      DEPARTMENT OF FISH    department's programs would be required                                                             
      AND GAME              before Alaska could compete for the land                                                            
                            acquisition competitive grants. He noted                                                            
                            that there is an attempt to rescind this                                                            
                            statute requirement in Congress and that                                                            
                            it is so burdensome that he did not know                                                            
                            of any states competing for the grants.                                                           
                                                                                                                              
      TAPE HFC 01 - 23,                                                                                                       
      Side B                                                                                                                  
 11   Mr. Regelin           Provided a brief overview of CARA. There                                                            
                            is $50 million dollars for wildlife                                                                 
                            management that is divided by formula to                                                            
                            the states. This is part of the federal                                                             
                            aid program. The funds cannot be used for                                                           
                            other purposes and there is a match                                                                 
                            requirement. It is a one-year                                                                       
                            appropriation with a permanent                                                                      
                            authorization.                                                                                    
 88   Mr. Regelin           Noted that there is an effort to make the                                                           
                            program permanent and to increase the                                                               
                            funding. The intent was for a $350                                                                  
                            million dollar appropriation. The state                                                             
                            would have gotten $17 million dollars if                                                            
                            the original appropriation had been                                                                 
                            adopted.                                                                                          
 173 Mr. Regelin            The state of Alaska will receive $2.4                                                               
                            million dollars, added to their federal                                                             
                            aid account from the Pittman-Robertson                                                              
                            Wildlife Restoration Act. He was                                                                    
                            optimistic that the funding would be                                                                
                            continued. Directors have discretion to                                                             
                            spend money on any priority that they                                                               
                            establish.                                                                                        
 233 Mr. Regelin            However the intent is for preferred                                                                 
                            purposes of unmet funding needs for                                                                 
                            wildlife education, management of species                                                           
                            that are not hunted and wildlife related                                                            
                            recreation.                                                                                       
 260 Mr. Regelin            The legislation was started as funding                                                              
                            for species that are not hunted due to                                                              
                            endangered species problems. With help                                                              
                            from the Senator from Louisiana this was                                                            
                            tied into coastal impact assistance and                                                             
                            shared revenue for offshore drilling.                                                               
                            Revenue from offshore drilling goes                                                                 
                            directly to the federal treasury.                                                                 
 337 Mr. Regelin            An Alaska coalition of hunters,                                                                     
                            communities, oil companies, banks, and                                                              
                            the environmental community supported                                                             
                           CARA. Buying federal lands was the only                                                              
                           controversial portion.                                                                             
424 Mr. Regelin            Discussed programs that could be                                                                     
                           supported by the funding. Noted that                                                                 
                           funding could be reappropriated. Would                                                               
                           like to use some of the funds in FY02 for                                                            
                           program planning in wildlife education,                                                              
                           watchable wildlife programs and non-game                                                             
                           programs. The funding would be used for                                                              
                           projects that are high priority.                                                                   
533 Mr. Regelin            He emphasized that the department would                                                              
                           know in September or October if the                                                                  
                           funding would continue.                                                                            
602 Mr. Regelin            Acknowledged that he is asking the                                                                   
                           Legislature to make the appropriation by                                                             
                           the end of the session. Felt that the                                                                
                           program would continue. He pointed out                                                               
                           that Coastal impact funding will be lost                                                             
                           if not spent and emphasized the need for                                                             
                           flexibility for planning. He stressed                                                                
                           that the department would work with the                                                              
                           subcommittee. He reiterated that he is                                                               
                           confident that the funds will continue at                                                            
                           $100 to $150 million a year; Alaska would                                                            
                           receive the maximum of 5 percent.                                                                  
805 Mr. Regelin            All federal aid dollars have a state                                                                 
                           match of 1 to 3. They would need $800                                                                
                           thousand dollars for the state match.                                                                
                           Hunter and wildlife fees could be used,                                                              
                           but they are reluctant to do so. Looking                                                             
                           at ways to get a state match.                                                                      
849 Representative         What is the timeline?                                                                              
      Hudson                                                                                                                    
883 Mr. Regelin            The statutes outline specific purposes.                                                              
                           He stated that the department could have                                                             
                           broad suggestions by the 2/22/01                                                                     
                           subcommittee that would provide big                                                                  
                           pieces of land purchases without locking                                                             
                           the state into a long-term direction, but                                                            
                           that they would not have the normal                                                                  
                           detailed. Identifying programs will be                                                               
                           the focus.                                                                                         
1016 KELLY HEPLER,         Clarified that there are project                                                                     
      DIRECTOR, DIVISION   descriptions available. They are looking                                                             
      OF SPORT FISH,       at concrete projects. They do not have to                                                            
      DEPARTMENT OF FISH   go back to NOAA for approval.                                                                        
      AND GAME                                                                                                                
1077 KEN TAYLOR,           If it remains a one-year appropriation                                                               
   DIRECTOR, DIVISION   they would still have three years to                                                                    
      OF HABITAT AND       spend the funds. Can look at the                                                                     
      RESTORATION,         availability for additional funds for                                                                
      DEPARTMENT OF FISH   direction. Added that the fight would                                                                
      AND GAME             continue.                                                                                          
 1121 Mr. Regelin           Noted that the funds flow through the                                                               
                            federal Fish and Wildlife Service. The                                                              
                            $50 million dollars in the competitive                                                              
                            grant program would be difficult to                                                                 
                            pursue due to the restrictions.                                                                   
 1216 Co-Chair Mulder       Noted that he had questions regarding                                                               
                         urban parks.                                                                                         
 1233 Mr. Regelin           Urban and state parks will go though the                                                            
                            Department of Natural Resources. There is                                                           
                            only $115 thousand dollars.                                                                       
 1254 Co-Chair Mulder       Thought that the funds would be released                                                            
                            through competitive grants for specific                                                             
                            projects.                                                                                         
 1336 Representative        Observed that the state match would be an                                                           
      Hudson                issue.                                                                                            
 1380 Mr. Regelin           Reiterated that the match is 3 federal                                                              
                            dollars for each state dollar.                                                                    
 1386 Representative        Clarified that there were direct                                                                    
      Lancaster             appropriations to the Sea Life Center. He                                                           
                            noted frustrations with NOAA.                                                                       
                         interactions.                                                                                        
 1468                       ADJOURNMENT                                                                                       
                                                                                                                                
                            The meeting was adjourned at 2:55 p.m.                                                            
                                                                                                                                

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