Legislature(2001 - 2002)
03/20/2001 01:47 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 20, 2001
1:47 P.M.
TAPE HFC 01 - 56, Side A
TAPE HFC 01 - 56, Side B
TAPE HFC 01 - 57, Side A
TAPE HFC 01 - 57, Side B
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:47 P.M.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Pat Pourchot, Commissioner, Department of Natural Resources;
Nico Bus, Administrative Services Manager, Division of
Support Services, Department of Natural Resources and
Department of Military & Veterans Affairs; Annalee
McConnell, Director, Office of Management and Budget, Office
of the Governor; Kirk Frederickson, Deputy Commissioner,
Department of Environmental Conservation; Dan Seamount,
Commissioner, Alaska Oil and Gas Conservation Commission,
Department of Administration; Bill Britt, Pipeline
Coordinator, Department of Natural Resources; Joe Stam, Fire
Program Manager, Division of Forestry, Department of Natural
Resources.
PRESENT VIA TELECONFERENCE
Jim Clough, Energy, Division of Geological Surveys,
Department of Natural Resources, Anchorage; Leroi Heaven,
Mat-Su; Harold Riley, Alaska Army National Guard
Installations, Department of Military & Veterans Affairs;
Kelly Niccolo, State Fire Marshall, Anchorage; Stoney
Wright, Department of Natural Resources.
GENERAL SUBJECT(S):
Department of Natural Resources
Department of Military & Veterans Affairs
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.
#HB47
LOG SPEAKER DISCUSSION
TAPE HFC 00 - 56
SIDE A
000 CO-CHAIR WILLIAMS Called the House Finance Committee
meeting to order to address capital
budget requests for the Department of
Natural Resources, and the Department of
Military & Veterans Affairs.
100 ANNALEE MCCONNELL,
Department of Natural Resources
DIRECTOR, OFFICE OF
MANAGEMENT AND Introduced Commissioner Pat Pourchot from
BUDGET, OFFICE OF Department of Natural Resources and other
THE GOVERNOR agency representatives.
127 PAT POURCHOT, Addressed the gas pipeline project
COMMISSIONER, component request in the amount of
DEPARTMENT OF $10,242.8 million dollars. The project
NATURAL RESOURCES would summarize State actions to be taken
to facilitate the development of a
pipeline for the North Slope natural gas.
He added that actions include initiating
work on issuing State right-of-ways;
collecting data for permitting reviews;
development of an overall project labor
agreement to provide job opportunities
for Alaskans; and reviewing of the 1977
agreement between Canada and the United
States, and coordination with the
Canadians to insure a collaborative
approach.
421 Commissioner Expounded on the outreach work necessary
Pourchot with for the gas project and the pre-
application work. Commissioner Pourchot
noted the permit and handling costs. He
advised that during the effort, the
Administration is attempting to eliminate
any hurdles that occur within the large
project.
593 Ms. McConnell Addressed options involved through the
projects.
723 Commissioner Noted that the Administration had
Pourchot received a letter from Foot Hills, re-
activating the right-of-way applications.
Those applications have been dormant for
a number of years.
850 Representative Inquired if the requested funds would be
Harris used exclusively for the Alaska Highway
route.
855 Commissioner Replied that they would, however, most of
Pourchot the work could be applicable to any
application. He added, that if an
application was received under another
route, through statute, the State would
be responsible to investigate that route.
He added that idea is not the intention
at the current time.
911 Ms. McConnell interjected that the pre-application
period is not limited to only one group.
The budget assumption does assume only
one application. For the work to be done,
the route considered is currently the
same.
1001 Representative Asked if consideration had been given to
Harris the route of Valdez or Cook Inlet.
1014 Commissioner Explained that he did not know when those
Pourchot decisions would be made available. There
have been ideas that the gas route would
move through Canada. He admitted that
those are some of the questions to be
addressed through the studies that are
currently under way.
1057 Co-Chair Williams Questioned if the Administration was in
correspondence with the gas companies at
this time. Additionally, He asked how
long are the permits good for.
1092 Commissioner Acknowledged that the federal government
Pourchot is considering the permit question.
Terms are usually good for between ten
and twenty years. He noted that at this
time, there are some legal questions on
the table. Commissioner Pourchot
addressed the "terms" associated with the
permitting process. He noted that there
is legislation to change the length of
the permitting process.
1244 Co-Chair Williams Inquired about the correspondence
underway with the oil companies.
1261 Commissioner Responded that the producers are serious
Pourchot in their efforts to get an application,
however, there has not been a guarantee
of whether to proceed.
1317 Co-Chair Williams Referenced the Borax Mine in Ketchikan
and how that company walked away from the
project leaving the town in a "bad"
place.
1356 Ms. McConnell Spoke to the employee concerns. She
noted that some of the employee would be
from within the departments and that some
would be new. Once the project was
completed, those departmental employees
would return to their original jobs. She
stressed that there is a lot to do, in
order that the projects are not slowed
down.
1435 Representative Croft Asked if any applications had yet been
received.
1445 Commissioner Explained that there has been an
Pourchot application "on the desk" since 1992,
from Foot Hills. He added that the
Administration is working with the
Department of Law addressing right-of-way
concerns.
1498 Commissioner Continued, the State has been using
Pourchot studies from the supply/demand modality.
1552 Representative Croft Questioned the route chosen by the
Administration.
1578 Commissioner Responded that it is assumed there will
Pourchot be an application, which is acceptable.
Most of the work to be done will center
on both geological and surveying
information provided through various
studies. He added that much of the work
is not specific to the route. He was not
aware of other optional routes besides
"over the top". The Administration does
not believe that route would suit the
needs of the people of Alaska.
1682 Representative Croft Questioned how the State could fund the
beginning portion of the request without
determining the route. He asked what
part of the capital request should be
deleted.
1738 Ms. McConnell Noted that there is more information
available on the Yukon Delta Route. Most
of the work that the request includes
shares a common portion of route. She
stressed that in order to accomplish the
scope of the work, there are only three
seasons in which the project can be
undertaken.
1840 Representative Spoke to preserving the State's
Davies "options". He inquired what money is
anticipated to be used in order to
guarantee that the lines are feasible
with the regulatory structure. He
believed that the Stranded Gas Act would
not allow for those concerns.
1925 Commissioner Was not comfortable answering those
Pourchot questions at this time. He recommended
that the Department come forward to
address those concerns. Commissioner
Pourchot acknowledged that was a subject
of much concern and noted that it was
being addressed statewide through the Gas
Policy Council.
2051 Representative Hoped that the State was actively
Davies pursuing some form of regulatory staging.
He commented that there should be some
"public driver". He asked that within
the proposed expenditure, how much would
be directed toward State ownership or
"hub" concepts.
2118 Commissioner Noted that one of the studies had been
Pourchot undertaken by the Department of Revenue
to address those concerns.
2151 Representative Asked if any supported the fast track
Davies supplemental funding.
2160 Ms. McConnell Replied that it was through State
ownership concerns in the fast track
supplemental.
TAPE HFC 01 - 56,
Side B
001 Ms. McConnell Stated that it had not been placed into
the FY02 budget.
032 Representative Questioned who did not want to loose
Whitaker another field season.
070 Commissioner Replied that the producers and the
Pourchot agencies did not want to.
101 Representative Asked about the permitting proposition
Whitaker and application process.
119 Commissioner Noted that it is a right-of-way
Pourchot application which includes many aspects.
166 Representative Voiced his concern with the State's best
Whitaker interest and the routing that has been
chosen. He requested information
regarding the Administration's decision.
209 Commissioner Explained that there are alternatives for
Pourchot the highway route. One would be an "over
the top" route or the Canadian route. He
enumerated the benefits of each route and
spoke to what would be in the best
interest for Alaska.
353 Representative Asked about the unfavorable economics
Whitaker associated with the situation.
370 Commissioner Explained that the Administration
Pourchot believes that no one would be willing to
buy the gas for the price that the gas
would cost if other routes were used.
386 Representative Disagreed. He believed that the State
Whitaker should be cautious of these marketing
opportunities. He believed that it would
be in Alaska's best interest to have
maximum exposure. He reminded the
Commissioner that State law requires that
the Legislature make that final
determination.
478 Co-Chair Williams Noted that he intended to schedule a
meeting to address solely the gas line
issues.
506 Ms. McConnell Interjected that at this time, there are
people on line to address these concerns.
592 KIRK FREDERICKSON, Spoke to the Department's fieldwork with
DEPUTY COMMISSIONER, regard to the proposed gas pipeline. He
DEPARTMENT OF referenced Page 4 of the handout. [Copies
ENVIRONMENTAL on File]. He stated that the Department
CONSERVATION plays an important role in projects such
as the proposed gas pipeline. The
Department is responsible for ensuring
that impacts to the environment and human
health are minimized. The project would
require numerous permits, plan approvals,
State certification of federal permits or
approvals to operate under established
general permits of regulations.
776 Ms. McConnell Mentioned the concerns voiced by the
Department of Fish and Game noting that
spokesperson was not able to stay but
would be willing to testify at a later
date.
878 Co-Chair Williams Asked if the agencies had already begun
to prepare for the gas line to happen.
895 Ms. McConnell Commented on the pipeline preparation
routes.
938 Representative Asked if the requested monies would help
Lancaster with the re-permitting.
955 Commissioner Replied that would not generally happen,
Pourchot however, there are overlaps such as the
mapping within the Department of Natural
Resources.
977 Representative Followed-up. The industry has asked the
Hudson State's personal to help address
obstacles. He asked if program receipts
would be used for those services.
1082 Representative Suggested that some of the expenses for
Hudson the mine geologist could be underwritten.
1104 Commissioner Responded that it would be difficult to
Pourchot assess costs and reimbursements without
an application.
1163 Co-Chair Williams Stressed that the producers are not
talking to the Legislature. He emphasized
that everyone wants to see the gas line
go, but were not willing to spend money
until there are more assurances. There
are no guarantees that the producers are
going to come in and make this happen.
1242 Ms. McConnell Stressed that some tasks need to be
initially undertaken and cannot be billed
to the industry. The statute is clear
that post application expenses would be
reimbursed. Pre-application costs are
unclear. She stressed that the process
should not be slowed by a lack of funds.
She suggested that half of the expenses
could be covered with statutory
designated program receipts (STPR). She
added that funding could be resolved in a
supplemental.
1360 Co-Chair Williams Questioned if the costs could be
incorporated in the current agencies
budgets, and then be reimbursed in a
supplemental, if the project goes
forward.
1443 Ms. McConnell Observed that the State cannot control
the producers, and that the State did not
want to miss a years worth of activity.
1515 Ms. McConnell Noted that there are some differences
between within the Governor's request for
supplemental funding.
1552 Co-Chair Williams Reiterated support for the project. He
questioned if funding could occur through
Legislative Budget and Audit (LBA)
Committee.
1579 DAN SEAMOUNT, AOGCC is required to evaluate the cost of
COMMISSIONER, ALASKA production gas on oil production. Mr.
OIL AND GAS Seamount discussed the reasons why the
CONSERVATION study should be done early.
COMMISSION (AOGCC),
DEPARTMENT OF
ADMINISTRATION
1765 Representative Questioned how much of the gas pipeline
Davies overlaps with the Alyeska renewal.
1811 Commissioner Noted that the State had not yet received
Pourchot an application.
1842 BILL BRITT, PIPELINE Noted that Alyeska had done environmental
COORDINATOR, work, which is expected again in a
DEPARTMENT OF renewal application.
NATURAL RESOURCES
1967 Commissioner In response to a question by
Pourchot Representative Davies, mentioned that the
State is looking into a 50/50 share of
the costs.
TAPE HFC 01 - 57,
Side A
024 Mr. Britt Discussed reimbursement.
152 Commissioner Noted that no firm reimbursement
Pourchot decisions had been reached.
239 Commissioner Discussed Oil and Gas Royalties and the
Pourchot accounting industry electronic reporting.
He concluded that the project has saved
funds and that it would develop
standardized electronic formats.
558 Commissioner Reviewed the seismic data acquisition and
Pourchot interpretation to promote oil exploration
and the leasing request. The request
would fund the acquisition of data on
leases where the data is not required to
be submitted to the State. The total
amount of the request is $138 thousand
general fund dollars.
750 Commissioner Discussed the emergency title defense-the
Pourchot Prince William Sound request. He observed
that State lands, which were submerged,
have risen higher. The survey would
prove that the land belongs to the State.
The requested amount is $120 thousand
general fund dollars.
841 Commissioner Reviewed the request for State park
Pourchot emergency repairs. There is $42 million
dollars in deferred park maintenance
needs. The request would only address
emergency health and safety repairs. The
requested amount would be $400 thousand
general fund dollars.
920 Commissioner Discussed the request for fire truck
Pourchot engine replacements, which is an on-going
expense. The State would like to hire two
trucks. The amount of the request would
be $200 thousand general fund dollars.
975 Representative Questioned if the Department participates
Davies in the State fleet program.
NICO BUS, Noted that the State does participate in
ADMINSTRATIVE the State fleet process, but that the
SERVICES MANAGER, funding is separate. He noted that there
DIVISION OF SUPPORT are insufficient funds in that fund. The
SERVICES, DEPARTMENT Department pays for the customization of
OF NATURAL RESOURCES funds. The State Fleet Fund only pays
for the chaise.
1090 JOE STAM, FIRE Noted that there would be additional CPI
PROGRAM MANAGER, requests for subsequent years.
DIVISION OF
FORESTRY, DEPARTMENT
OF NATURAL RESOURCES
1180 Commissioner Reviewed the request for the Fairbanks
Pourchot office facility roof maintenance and
repairs request in the amount of $200
thousand general fund dollars.
1209 Commissioner Discussed the airborne geological and
Pourchot geophysical mineral inventory request.
The intent is to do 1,000 square miles
each year. The amount of the request
would be $250 thousand general fund
dollars.
1300 Commissioner Reviewed the snow-machine trail
Pourchot development and program grants request.
He observed that the cost of registration
would be used to support the grants as
accordance with legislative intent. The
amount of the request would be $200
thousand general fund dollars.
1362 Commissioner Reviewed the Chena Pump Road boat launch
Pourchot river access purchase request. He noted
that this is the only boat launch in the
Fairbanks Tanana River area. The amount
of the request would be $101.5 thousand
general fund dollars.
1464 Mr. Bus Discussed the Recorder's Office equipment
upgrades and records preservation. The
Recorder's Office collects funds for
operation. The request is based on
passage of legislation and would be
switched to program receipts if not
passed. The amount of the request would
be $225 thousand general fund dollars.
1532 Representative Spoke in support of the request.
Hudson
1548 Mr. Bus Discussed the Alaska Minerals Information
At Risk Program: mining claims
automation. He noted that the allocation
would improve public access to public
record systems. The amount of the
request is $700 thousand federal receipt
dollars.
1607 Mr. Bus Discussed the Agricultural Revolving Loan
Land and Assets disposal. The funding
would provide for disposal of the assets
in the Interior and Southcentral Alaska.
The requested amount would be $100
thousand agricultural loan fund dollars.
1636 Mr. Bus Addressed the National Fire Plan and the
managing impacts of wildfires on
communities and the environment. The
requested amount would be $3.460 million
federal dollar receipts and $2.178
million State designated receipt dollars.
1665 Representative Asked if the project was restricted to
Davies the Kenai Borough.
1676 Mr. Bus Explained that more would be added.
1691 Mr. Bus Spoke to the Alaska post entry plant
quarantine facility establishment request
in the amount of $1.350 million federal
receipt dollars.
1732 Mr. Bus Addressed the agriculture plant material
center seed lab construction requested
funding in the amount of $3,070.0 federal
fund receipts. He noted that it is a
State owned and operated facility. The
present space in not capable of meeting
the demands for seed testing and
technology development.
1757 Mr. Bus Discussed the agricultural land sales for
the agriculture industry request in the
amount of $145 thousand State land
dollars. The funding would provide staff
and support services to sell agricultural
land in Interior and Southcentral Alaska.
1798 Mr. Bus Spoke to the historic preservation and
restoration projects, the US Army public
works program request in the amount of
$600 thousand federal receipt dollars.
The State Office of History and
Archeology is working in partnership with
the Department of Army on historic
preservation planning and restoration
projects.
1827 Mr. Bus Continued, addressing the national
historic preservation fund federal grant
program FY02 request in the amount of
$1,250 million dollars. The fund is a
federal matching grant project with a 60%
federal and 40% State match.
1852 Mr. Bus Spoke to the Mental Health Trust Land
development and value enhancement request
in the amount of $950 thousand mental
health trust fund dollars. The office
would contract for services related to
the enhancement of parcel-specific trust
land and resource assets.
1870 Mr. Bus Discussed the abandoned mine lands
reclamation federal program request in
the amount of $1.5 million federal
receipt dollars. The Legislature enacted
the Alaska Surface Coal Mining Control
and Reclamation Act in 1983.
1888 Mr. Bus Addressed the boating safety, federal
program request in the amount of $660
thousand federal receipt dollars.
1899 Mr. Bus Spoke to the land and water conservation
fund federal grants request in the amount
of $1.6 million federal receipt dollars.
He emphasized that outdoor recreation
opportunities is very important for
Alaskans. The request would provide a
wide variety benefits including improved
physical and mental health, activities
for children to prevent delinquency,
leadership and teamwork development and
economic opportunities for individuals
and local communities.
2072 Mr. Bus Discussed the national recreational
trails federal program, an on-going
project using federal receipts. The
request amount would be $710 thousand
federal receipt dollars.
2098 Mr. Bus Addressed the forest legacy federal grant
program. He pointed out that it would be
a new project. The ability to use the
program to protect forested areas would
not be limited to State park lands. The
requested amount would be $500 thousand
federal receipt dollars.
TAPE HFC 01 - 57, Department of Military & Veterans Affairs
Side B
001 Mr. Bus Spoke to the Army Guard facilities
deferred maintenance request in the
amount of $800 thousand dollars of which
$600 thousand federal funds and $200
thousand general fund dollars. The
funding would be used for deferred
maintenance and scheduled renewal of the
Army Guard facilities around the State.
060 Mr. Bus Noted the Air Guard facility deferred
maintenance additional request in the
amount of $600 thousand dollars of which
$450 thousand federal receipt dollars and
$150 thousand general fund dollars.
108 Mr. Bus Discussed the facilities spill prevention
and countermeasures request in the amount
of $120 thousand dollars with a State
match required of $15,600 dollars.
165 Representative Questioned where the federal receipts
Lancaster would come from.
184 Mr. Bus Replied from the Army Guard.
193 Mr. Bus Spoke to the federal scout readiness
centers energy projects request in the
amount of $300 thousand federal receipt
dollars. The funds would be used to
replace doors, windows, insulate floors
and re-skin roof and walls with
insulating panels in the existing
centers.
230 Mr. Bus Addressed the Bethel readiness center
planning and design request in the amount
of $750 thousand general fund dollars.
He noted that funding was required as the
nd
initial design of a new center for the 2
Battalion, headquartered in Bethel.
298 Mr. Bus Addressed the federal scout readiness
center energy projects in the amount of
$300 million federal receipt dollars.
350 Mr. Bus Discussed the Alaska National Guard
counter drug support program request in
the amount of $100 thousand federal
receipt dollars. He noted that the
program participates in the US Department
of Justice Forfeiture Program to help
deter crime by depriving criminals of
profits and proceeds from their illegal
activities.
391 Mr. Bus Spoke to the Alaska Veterans' housing and
health needs survey request in the amount
of $200 thousand general fund dollars.
He commented that this would be a one-
time project.
435 Representative Asked if the request depended upon the
Hudson passage of the pioneer home legislation.
453 Mr. Bus Replied that the study investigates all
available options. Mr. Bus emphasized
that Alaska does not have a veteran's
home at this time.
496 Representative Asked if it was contained not in HB 88,
Lancaster when could it be expected to be
completed.
509 Mr. Bus Replied in early next year.
525 Representative Spoke about replacing the Juneau National
Hudson Guard Armory. He noted that a site had
been selected. He noted that it would be
an armory in concert with the University
of Alaska, Southeast. He pointed out
that it had not been included in the
proposed budget.
573 Mr. Bus Responded that new facility would need
more funding. The Department is
attempting to include it in the military
budget of defense.
612 Co-Chair Williams ADJOURNMENT
The meeting was adjourned at 4:10 P.M.
#
| Document Name | Date/Time | Subjects |
|---|