Legislature(2013 - 2014)BARNES 124

03/18/2014 01:00 PM House TRANSPORTATION

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                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         March 18, 2014                                                                                         
                           1:10 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Representative Peggy Wilson, Chair                                                                                              
Representative Doug Isaacson, Vice Chair                                                                                        
Representative Eric Feige                                                                                                       
Representative Lynn Gattis                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Bob Lynn                                                                                                         
Representative Jonathan Kreiss-Tomkins                                                                                          
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
HOUSE BILL NO. 343                                                                                                              
"An Act  relating to the construction,  major rehabilitation, and                                                               
deferred maintenance  of state agency  public buildings  based on                                                               
standardized designs; and providing for an effective date."                                                                     
     - HEARD & HELD                                                                                                             
HOUSE BILL NO. 371                                                                                                              
"An  Act  providing  for the  Department  of  Transportation  and                                                               
Public Facilities  to hold  the surface  estate of  certain state                                                               
land;  relating  to  the  transfer  of  certain  state  land  and                                                               
materials  from  the  Department  of  Natural  Resources  to  the                                                               
Department  of  Transportation  and  Public  Facilities  for  the                                                               
construction or  maintenance of the  state highway  system, state                                                               
airports, and state public buildings  and facilities; relating to                                                               
the  lease  or  sale  of certain  marine  or  harbor  facilities;                                                               
relating  to  the   lease  or  disposal  by   the  Department  of                                                               
Transportation and  Public Facilities of  rights-of-way, property                                                               
interests, or improvements that  are no longer required; relating                                                               
to the  grant of certain  easements over submerged state  land to                                                               
the  federal  government; relating  to  the  transfer of  certain                                                               
maintenance  stations   on  the  James  Dalton   Highway  to  the                                                               
Department of  Transportation and Public Facilities;  relating to                                                               
the conveyance of land for  right-of-way purposes from the Alaska                                                               
Railroad  Corporation to  the  Department  of Transportation  and                                                               
Public Facilities; and providing for an effective date."                                                                        
     - HEARD & HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB 343                                                                                                                  
SHORT TITLE: STATE BUILDINGS: CONSTRUCTION & MAINT.                                                                             
SPONSOR(s): REPRESENTATIVE(s) MILLETT                                                                                           
02/26/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/26/14       (H)       TRA, STA                                                                                               
03/13/14       (H)       TRA AT 1:00 PM BARNES 124                                                                              
03/13/14       (H)       -- MEETING CANCELED --                                                                                 
03/18/14       (H)       TRA AT 1:00 PM BARNES 124                                                                              
BILL: HB 371                                                                                                                  
SHORT TITLE: STATE LAND AND MATERIALS                                                                                           
SPONSOR(s): TRANSPORTATION BY REQUEST                                                                                           
03/10/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/14       (H)       TRA, RES                                                                                               
03/11/14       (H)       TRA AT 1:00 PM BARNES 124                                                                              
03/11/14       (H)       Heard & Held                                                                                           
03/11/14       (H)       MINUTE(TRA)                                                                                            
03/18/14       (H)       TRA AT 1:00 PM BARNES 124                                                                              
WITNESS REGISTER                                                                                                              
VASILIOS GIALOPSOS, Staff                                                                                                       
Representative Charisse Millett                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of Representative                                                                    
Charisse Millett, prime sponsor of HB 243.                                                                                      
KIM RICE, Deputy Commissioner                                                                                                   
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the discussion of                                                              
HB 343.                                                                                                                         
CHRISTOPHER HODGIN, P.E.                                                                                                        
Program Manager; Energy Office                                                                                                  
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 343.                                                               
DAVE KEMP, P.E.                                                                                                                 
Engineer, Statewide Facilities                                                                                                  
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 343.                                                               
TOM MAYER, Division Director                                                                                                    
Division of General Services                                                                                                    
Central Office                                                                                                                  
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 343.                                                               
STACY SHUBERT, Director                                                                                                         
Governmental Affairs                                                                                                            
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented a PowerPoint presentation on AHFC                                                              
& Public Facilities Energy Use during the discussion of HB 343.                                                                 
RYAN COLGAN, Chief Programs Officer                                                                                             
Cold Climate Housing Research Center                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of cold                                                                  
DUSTIN MADDEN, Policy Researcher                                                                                                
Cold Climate Housing Research Center (CCHRC)                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Presented a PowerPoint during the                                                                        
discussion of HB 343.                                                                                                           
BRYAN BUTCHER, Executive Director/Chief Executive Officer                                                                       
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 343.                                                               
JOHN BENNETT, Right-of-way Chief                                                                                                
Northern Region                                                                                                                 
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 371.                                                               
SEAN LYNCH, Assistant Attorney General                                                                                          
Transportation Section                                                                                                          
Department of Law (DOL)                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 371.                                                                                                                         
DICK MYLIUS                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 371.                                                               
JOHN ANDERSON, Operations Officer                                                                                               
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 343.                                                               
ACTION NARRATIVE                                                                                                              
1:10:06 PM                                                                                                                    
CHAIR  PEGGY  WILSON  called the  House  Transportation  Standing                                                             
Committee meeting to order at  1:10 p.m.  Representatives Gattis,                                                               
Isaacson, Feige, Lynn, and P. Wilson  were present at the call to                                                               
order.   Representatives  Johnson and  Kreiss-Tomkins arrived  as                                                               
the meeting was in progress.                                                                                                    
CHAIR P. WILSON congratulated the  Department of Transportation &                                                               
Public Facilities since  Anchorage was just named  the best cargo                                                               
airport in North America.                                                                                                       
The committee took a brief at-ease.                                                                                             
         HB 343-STATE BUILDINGS: CONSTRUCTION & MAINT.                                                                      
1:12:19 PM                                                                                                                    
CHAIR P. WILSON announced that  the first order of business would                                                               
be  HOUSE BILL  NO. 343,  "An Act  relating to  the construction,                                                               
major rehabilitation,  and deferred  maintenance of  state agency                                                               
public  buildings based  on standardized  designs; and  providing                                                               
for an effective date."                                                                                                         
1:12:45 PM                                                                                                                    
VASILIOS  GIALOPSOS,  Staff,   Representative  Charisse  Millett,                                                               
Alaska  State  Legislature, stated  that  HB  343 represents  the                                                               
collaboration  between  the  Alaska Housing  Finance  Corporation                                                               
(AHFC) and other  stakeholder groups.  The bill  also builds upon                                                               
the legislature's success in crafting  a state energy policy.  He                                                               
explained that in lean economic  times tradeoffs are made between                                                               
programs  that affect  Alaskans or  infrastructure.   The sponsor                                                               
hopes  HB  343  will  foster dialogue  on  funding  for  deferred                                                               
maintenance  during major  construction and  major rehabilitation                                                               
of  state-owned  buildings and  the  overall  effect of  deferred                                                               
maintenance   costs  on   all  state   programs.     The  sponsor                                                               
anticipates  significant  changes  to  the  bill  but  hopes  the                                                               
committee will  listen to  the expertise;  in particular,  by the                                                               
Department  of  Transportation  &  Public  Facilities,  the  Cold                                                               
Climate Housing  Research Center, and  the AHFC.  He  related the                                                               
sponsor  believes a  shift in  the state's  focus from  inputs to                                                               
outcomes  means  being  able  to  use  cost-effective  technology                                                               
available today.   This  means the state  shouldn't have  to come                                                               
back  in  five  years  to   fix  mistakes  made  during  building                                                               
1:17:06 PM                                                                                                                    
DAVE KEMP,  P.E.; Engineer,  Statewide Facilities,  Department of                                                               
Transportation   &   Public   Facilities  (DOT&PF),   began   his                                                               
presentation.   He  stated that  the Statewide  Public Facilities                                                               
(SWPF)  provides project  management services  for the  planning,                                                               
design,  and   construction  for   new  and   renovated  vertical                                                               
buildings.   He  pointed out  a photograph  of the  Department of                                                               
Labor &  Workforce Development  - AVTEC  - Alaska's  Institute of                                                               
Technology Dormitory in Seward [slide 2].                                                                                       
1:17:43 PM                                                                                                                    
MR.  KEMP described  the statewide  public facilities'  functions                                                               
[slide  3].    He  read AS  35.10.190(a):  The  department  shall                                                               
coordinate the  procurement of physical facilities  for the state                                                               
to  insure the  greatest cost  savings of  planning, design,  and                                                               
contractual  techniques.    He  stated  that  this  shop  has  11                                                               
professional  engineers, three  licensed architects,  two project                                                               
manager professionals, and four engineers-in-training (EITs).                                                                   
CHRISTOPHER   HODGIN,  P.E.   Program  Manager,   Energy  Office,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
outlined  the  energy  savings  performance  contracting  program                                                               
[slide 4].  He said he works  with state agencies in an effort to                                                               
make state  facilities more energy  efficient.  He  described the                                                               
bill as  a method for  accomplishing energy  improvement projects                                                               
that are funded  by the energy savings from the  projects.  Since                                                               
2011,  the  state  has  achieved  combined  energy  cost  savings                                                               
greater  than  $2.1 million  per  year  on  projects in  over  40                                                               
facilities  statewide.   He stated  that the  program is  ongoing                                                               
with  several   projects  in  development,   implementation,  and                                                               
construction  phases  at any  given  time.   The  energy  savings                                                               
office  has  worked  with  the  Department  of  Corrections,  the                                                               
Department  of  Transportation  & Public  Facilities  -  Northern                                                               
Region,  and Mount  Edgecombe High  School in  Sitka through  the                                                               
Department of Education and Early Development.                                                                                  
1:19:29 PM                                                                                                                    
REPRESENTATIVE  GATTIS suggested  that  the state  owns far  more                                                               
than  40 buildings.   She  expressed an  interest in  schools and                                                               
asked whether the  DOT&PF participates in new  schools.  Although                                                               
this program  began in  2011, she wondered  if the  energy office                                                               
has  been using  cost savings  during the  design, planning,  and                                                               
contractual techniques  when constructing  new schools in  in the                                                               
Matanuska-Susitna valley.                                                                                                       
MR. KEMP  answered that  the DOT&PF does  not have  any authority                                                               
over  public  school  buildings.     In  further  response  to  a                                                               
question,  Mr. Kemp  answered that  the local  school boards  and                                                               
communities   have  the   authority  and   purview  over   school                                                               
1:21:46 PM                                                                                                                    
CHAIR  P. WILSON  understood schools  were  a local  issue.   She                                                               
wondered a legislative change would be necessary to change this.                                                                
MR.  KEMP understood  a  similar bill  has  been introduced  that                                                               
would accomplish this [HB 341].                                                                                                 
1:22:45 PM                                                                                                                    
CHAIR P.  WILSON said  she was  familiar with  the weatherization                                                               
programs  and  asked whether  this  process  is similar  to  that                                                               
MR. HODGIN answered yes.  He  explained that when the DOT&PF uses                                                               
its energy  performance contracting program, an  investment grade                                                               
energy audit  is performed to  conduct an in-depth review  of the                                                               
facility to assess the  heating, mechanical, electrical, windows,                                                               
walls,  and building  envelope system.   The  department receives                                                               
the  results  with  the  best  cost  savings  measures  from  the                                                               
analysis.   In response to  a question, Mr. Hodgin  indicated the                                                               
energy  auditors are  private  companies.   He  related that  the                                                               
department has a term contract with Cue Energy Services Ltd.                                                                    
1:24:25 PM                                                                                                                    
REPRESENTATIVE  GATTIS expressed  concern  about  the "wants  and                                                               
needs"  in  her  district.    She said  that  some  people  think                                                               
architects  are the  benefactors of  the larger  buildings.   She                                                               
suggested  the  end  result  is  that  the  legislature  and  the                                                               
district want  quality buildings  designed for the  specific area                                                               
and region  of the state.   She acknowledged that the  state pays                                                               
energy and deferred maintenance and should do a better job.                                                                     
CHAIR  P. WILSON  solicited input  from  testifiers on  suggested                                                               
statute  changes since  the  goal is  to  achieve efficiency  and                                                               
energy savings.                                                                                                                 
MR. KEMP  highlighted the energy savings  performance contracting                                                               
that the legislature required the  department to undergo as being                                                               
one  "shining star".   The  department has  been reviewing  older                                                               
buildings that  were built 30-40  years ago since  the technology                                                               
has changed significantly  since then.  He said  this program has                                                               
been saving the state over $2 million per year.                                                                                 
1:27:28 PM                                                                                                                    
REPRESENTATIVE  ISAACSON   asked  how  many  of   the  40  public                                                               
buildings  still need  improvements.   He  further asked  whether                                                               
these improvements are a result  of the Alaska Sustainable Energy                                                               
Act.   Finally, he  asked whether the  department has  been doing                                                               
this in conjunction with AHFC or any other department.                                                                          
1:28:27 PM                                                                                                                    
CHAIR P. WILSON  also asked how many public  facilities the state                                                               
has in total.                                                                                                                   
Mr. HODGIN was  unsure of the exact number  of public facilities.                                                               
He  referred  to the  2011  master  building inventory  list  and                                                               
indicated  approximately 167  state facilities  were over  10,000                                                               
square feet.   He acknowledged many more facilities  are owned by                                                               
agencies that are less than 10,000 square feet.                                                                                 
MR. KEMP  said it would also  depend on the definition  of public                                                               
facilities  since   municipalities  and  school   districts  have                                                               
facilities.   Further,  DOT&PF doesn't  manage, design,  or track                                                               
all  facilities.   He  offered  to  provide  the figures  to  the                                                               
committee  ranging from  a small  utility building  to an  80,000                                                               
square-foot office building.                                                                                                    
CHAIR P. WILSON offered to distribute the information.                                                                          
1:30:25 PM                                                                                                                    
REPRESENTATIVE  ISAACSON said  he appreciated  the clarification.                                                               
He  suggested it  would also  be helpful  to know  the number  of                                                               
buildings  the department  has been  involved in  that relate  to                                                               
1:31:48 PM                                                                                                                    
MR.  HODGINS, in  response to  Representative Isaacson's  earlier                                                               
question  on the  role the  Alaska Sustainability  Act (ASA)  has                                                               
played, responded that  it absolutely did.  In 2010,  the ASA was                                                               
enrolled and since then his  office has been working closely with                                                               
the agencies  and the  AHFC, in  particular, on  investment grade                                                               
energy audits so the AHFC can help fund the projects.                                                                           
1:32:54 PM                                                                                                                    
REPRESENTATIVE GATTIS referred to  40 statewide public facilities                                                               
for which the department has  obtained energy savings.  She asked                                                               
for further clarification on the figure.                                                                                        
MR.   HODGINS  answered   that  the   aforementioned  40   public                                                               
facilities represent  the public  facilities that  the department                                                               
has  accomplished  through  the  energy  savings  program.    The                                                               
projects  include  ones   in  the  DOT&PF,  the   DEED,  and  the                                                               
Department of  Corrections.  Of  course, the  DOT&PF's facilities                                                               
include many more than the  40 buildings the program has assisted                                                               
since it operates maintenance shops and storage buildings, too.                                                                 
REPRESENTATIVE  GATTIS  recapped  that   the  department  has  40                                                               
facilities that garnered $2.1 million  in savings [per year], but                                                               
acknowledged the department has many more buildings.                                                                            
MR.   KEMP  clarified   that  the   energy  savings   performance                                                               
contracting has been  focused on all buildings  not just DOT&PF's                                                               
buildings.  He said that the  DOT&PF moves forward with any state                                                               
agency who would like to have  the audits done and participate in                                                               
the program with AHFC.                                                                                                          
1:35:20 PM                                                                                                                    
CHAIR P.  WILSON asked whether  the Department  of Administration                                                               
(DOA) selects the projects or if the DOT&PF makes the selection.                                                                
MR. HODGINS  answered that it is  a combination of methods.   The                                                               
DOA identifies  which facilities use  more energy and  the DOT&PF                                                               
works with  the DOA to determine  whether the project would  be a                                                               
good candidate  for the energy  savings performance project.   In                                                               
other  instances,  the  department   uses  a  state  database  to                                                               
identify some energy use and prioritizes accordingly.                                                                           
1:36:53 PM                                                                                                                    
CHAIR P. WILSON asked for the average cost of the audit.                                                                        
MR. HODGIN answered that the energy  audit cost ranges from 25 to                                                               
35  cents per  square foot.   He  agreed the  state pays  for the                                                               
energy audit  through departmental funds  or by using  the AHFC's                                                               
loan program.                                                                                                                   
1:37:46 PM                                                                                                                    
REPRESENTATIVE  GATTIS  asked  whether  the  DOT&PF  does  energy                                                               
audits  prior  to construction  in  order  to build  more  energy                                                               
efficient buildings.                                                                                                            
MR.  KEMP answered  that  he will  cover this  a  bit during  the                                                               
presentation.    However,  Senate  Bill  220,  which  passed  the                                                               
legislature in  2010 [26th  Legislature] requires  the department                                                               
to  follow  national  standards   for  energy  efficiency.    The                                                               
department must  consider all types of  energy efficiency, energy                                                               
savings, options,  as well as  ways to weatherize.   He confirmed                                                               
that  the DOT&PF  currently follows  the  national standards  for                                                               
energy efficiency.   Mr. Hodgin's  program has been in  charge of                                                               
making  energy efficiency  improvements  in  older buildings,  he                                                               
1:39:20 PM                                                                                                                    
MR.  HODGIN reported  that the  cost of  audit is  repaid through                                                               
energy  cost savings  [slide  5].   He  explained  that under  AS                                                               
44.42.067  (b-c),  as  part of  the  Alaska  Sustainability  Act,                                                               
requires retrofitting  and new construction to  meet the American                                                               
Society of Heating, Refrigerating  and Air Conditioning Engineers                                                               
{ASHRAE)  90.1, Energy  Standards for  Buildings.   This standard                                                               
has  been  adopted  by  most states,  including  Alaska,  and  it                                                               
provides  energy  efficiency  requirements  for  the  design  and                                                               
construction of buildings.   The nature of this  standard is that                                                               
it includes both  prescriptive and performance-based requirements                                                               
allowing  flexibility in  design  approaches.   Additionally,  it                                                               
provides energy efficiency  performance requirements for building                                                               
envelope  and walls,  heating and  ventilation systems,  interior                                                               
and exterior  lighting, power  systems, and  more.   He described                                                               
this  as   a  continuously  evolving   standard  with   over  100                                                               
professionals working to update the standard every few years.                                                                   
1:41:09 PM                                                                                                                    
MR. KEMP emphasized  the importance of having  a prescriptive and                                                               
performance  based  standard,  especially  in  Alaska  since  the                                                               
DOT&PF plans, designs, and constructs  projects from Ketchikan to                                                               
Nome.   The state has a  wide range of climate  conditions so the                                                               
department's standards must be flexible  enough for DOT&PF to use                                                               
the best  technology for  each specific location  in Alaska.   He                                                               
concluded that this is what ASHRAE 90.1, does.                                                                                  
MR.  KEMP  said  the  next slide  entitled  "Capital  Improvement                                                               
Projects in  Alaska" clarifies who has  responsibility in Alaska.                                                               
The large  circle represents the  entire state,  including school                                                               
districts and  schools that  fall within  and outside  the circle                                                               
representing  the State  of Alaska,  the AHFC,  the Alaska  Court                                                               
System, and  the University  of Alaska.   Another  circle depicts                                                               
the statewide public facilities and  various state agencies.  His                                                               
agency is  in charge  of the  construction, planning,  design and                                                               
construction  of  facilities  for   agencies  within  this  inner                                                               
1:42:54 PM                                                                                                                    
REPRESENTATIVE ISAACSON asked for  clarification on where the DOA                                                               
falls in terms of the circle.                                                                                                   
MR. KEMP said  the DOT&PF gives the DOA  authorization to perform                                                               
projects on an authority basis.                                                                                                 
1:43:36 PM                                                                                                                    
KIM  RICE, Deputy  Commissioner, Department  of Transportation  &                                                               
Public Facilities  (DOT&PF), pointed  out that this  slide [slide                                                               
6]  refers to  capital projects,  but not  to maintenance  costs.                                                               
She acknowledged that  the department should also  create a slide                                                               
for maintenance  costs, but maintenance is  managed by individual                                                               
departments.  She  emphasized that the DOA's  primary function is                                                               
space,  space standards,  and allocation  among the  departments.                                                               
Most of the  work on capital projects for contracting  is done by                                                               
a delegation from the DOT&PF.   The DOT&PF performs the standards                                                               
for   contracting.     She   estimated   that   the  DOT&PF   has                                                               
approximately  750  buildings  if   every  shed  and  maintenance                                                               
facility were  counted.   She surmised  that thousands  of public                                                               
buildings  exist   in  the  state,   but  the   statewide  public                                                               
facilities  group   handles  capital  programs  for   design  and                                                               
construction of  facilities.  She  characterized it as  being the                                                               
consultant agency that helps other  agencies through the process,                                                               
including fish hatcheries and sand storage buildings.                                                                           
1:45:11 PM                                                                                                                    
MR.  KEMP  explained that  the  information  on the  next  slide,                                                               
entitled "Public Buildings in Alaska"  has already been discussed                                                               
in terms of  the wide variety of facilities in  Alaska [slide 7].                                                               
For  example, LED  lights are  very  appropriate for  communities                                                               
with high fuel costs since the  cost of LED lighting is high, but                                                               
in  other locations  that sustain  lower fuel  costs, it  may not                                                               
make sense.   This illustrates  the type of flexibility  that the                                                               
department needs to  "fit" the technology to  the location within                                                               
the state.                                                                                                                      
1:46:11 PM                                                                                                                    
CHAIR   P.   WILSON   reiterated  that   the   department   needs                                                               
MR. KEMP answered  that the statutes accomplish  the AHFC's white                                                               
paper  and House  Bill [343]  will  direct the  department.   The                                                               
problem  has been  the terminology  since  it could  take a  huge                                                               
effort  to  develop  a  standard   design  that  will  work  from                                                               
Ketchikan to Nome  or for a crime lab or  a State Library Archive                                                               
and Museum (SLAM) project.                                                                                                      
1:47:21 PM                                                                                                                    
CHAIR P.  WILSON referred  to the  Alaska Sustainable  Energy Act                                                               
Annual Report in members' packets.   She asked if Mr. Kemp helped                                                               
prepare the report.                                                                                                             
MR.  KEMP  answered  yes;  that   the  aforementioned  report  is                                                               
prepared by the  Statewide Public Facilities office.   In further                                                               
response  to a  question, he  agreed it  contains information  on                                                               
progress made, which will be updated annually.                                                                                  
1:48:10 PM                                                                                                                    
TOM  MAYER,  Division  Director, Division  of  General  Services,                                                               
Central  Office, Department  of  Administration  (DOA), said  the                                                               
department has reviewed  the bill and would like  to outline some                                                               
of  the challenges  this bill  presents  for the  division.   The                                                               
division  manages  multiple  state-owned buildings;  however,  as                                                               
written,  this bill  will affect  buildings operated  by multiple                                                               
agencies  from airports  to health  centers,  fish hatcheries  to                                                               
pioneer  homes.   Each building  in the  state's portfolio  has a                                                               
specific  purpose,   which  varies  greatly  in   terms  of  age,                                                               
condition and  systems, including  electrical and plumbing.   Due                                                               
to  varying needs  across the  state  and the  varying roles  the                                                               
buildings  play  for  state  agencies,   the  public,  and  their                                                               
communities, what is  best for one region may  not be recommended                                                               
for another community due to climatic conditions.                                                                               
MR.  MAYER said  it would  be very  challenging to  establishment                                                               
detailed specifications  that would  apply to all  regions across                                                               
the state.   In practical terms, standardization  could result in                                                               
DOT&PF  needing developing  hundreds  of detailed  specifications                                                               
for building  systems with DOA  and other agencies  attempting to                                                               
balance  the  tension  between  applying a  set  standard  for  a                                                               
deferred  maintenance   project  on  existing   structures  while                                                               
finding the  best dollar approach to  replacing outdated systems.                                                               
As  technology  and  building techniques  change,  specifications                                                               
need continual  evaluation and  updates.   This type  of standard                                                               
based evaluation  represents a cost  to the state for  any agency                                                               
that  needs  space.   He  estimated  costs  for the  Division  of                                                               
General Services  is $614,000  annually.   The unknown  cost that                                                               
can't  be estimated  at  this  time is  the  cost  of a  building                                                               
component  based on  an  unknown  design that  has  not yet  been                                                               
created by DOT&PF.                                                                                                              
MR. MAYER stated that the intent  of this bill is commendable but                                                               
the solution  is already in  place.   He explained that  the goal                                                               
for  procurement  and  construction  is to  be  as  efficient  as                                                               
possible with  state funds.   For example, the  original estimate                                                               
for  a  new DNR  Geological  Materials  Center building  was  $45                                                               
million,  but with  careful analysis  the  DOA reached  agreement                                                               
with  the purchase  of the  old  Sam's Club  building on  Penland                                                               
Parkway in Anchorage  for $16 million, with  Wal-Mart paying $2.5                                                               
million of the  costs.  Including the current  remodel costs, the                                                               
overall total cost will be $24  million or a cost savings of over                                                               
$20  million.    Additionally,  the  DNR will  be  able  to  take                                                               
occupancy  this  fall   many  years  ahead  of   schedule.    The                                                               
department strives for an efficient  well-designed building for a                                                               
specific site and  region as the best overall  cost Regardless of                                                               
the project.  He reported that  best practices are already in use                                                               
with  in-house design  experts and  design consultants  to ensure                                                               
new construction and  renovation projects meet ASHRAE  90.1.  The                                                               
guidelines set minimums for energy requirement designs, he said.                                                                
1:52:07 PM                                                                                                                    
CHAIR P.  WILSON asked for  the length  of time this  process has                                                               
been in use.                                                                                                                    
MR. MAYER answered  that the Public Building Fund  (PBF) has been                                                               
in place  since 2003.   The department  manages 20  buildings, of                                                               
which 14 are in the PBF, and the remaining 5 are in the Non-                                                                    
Public Building  fund (NPBF).  Those  buildings include warehouse                                                               
types of facilities, which are not traditional office buildings.                                                                
MR.   MAYER,   in  response   to   a   question,  answered   that                                                               
approximately 30  people are involved in  this process statewide,                                                               
including   for   maintenance,   management,   and   to   perform                                                               
solicitations for the design.                                                                                                   
1:54:07 PM                                                                                                                    
STACY  SHUBERT, Director,  Governmental  Affairs, Alaska  Housing                                                               
Finance  Corporation (AHFC)  noted that  in 2008  the legislature                                                               
funded  AHFC's weatherization  and home  energy rebate  programs.                                                               
She related  that to a lesser  extent AHFC is also  known for its                                                               
work with  public facilities and  energy use.  She  indicated her                                                               
presentation will include references to  the case study of AHFC's                                                               
headquarters building.                                                                                                          
1:54:32 PM                                                                                                                    
JOHN  ANDERSON,   Operations  Officer,  Alaska   Housing  Finance                                                               
Corporation (AHFC), began  his presentation.  He  noted that AHFC                                                               
was selected  as a consultant.   In 2010, with passage  of Senate                                                               
Bill 220 the Revolving Loan Fund  was created with a $250 million                                                               
appropriation.   At  the same  time,  AHFC was  working with  the                                                               
DOT&PF and the Alaska Energy  Authority (AEA) to develop plans to                                                               
use the  American Recovery  and Reinvestment  Act of  2009 (ARRA)                                                               
funds [slide  2].   The AHFC  developed a  process and  created a                                                               
team to begin implement the program.   The goal was to assess the                                                               
public facility energy use.                                                                                                     
MR.  ANDERSON  added  that  the  AHFC  also  created  the  Alaska                                                               
Retrofit  Information  System  (ARIS)  that also  ties  into  its                                                               
weatherization  and  rebate program  [slide  3].   This  has  now                                                               
become the  clearinghouse or  depository for all  the data.   The                                                               
DOT&PF uses it and anyone can request to use it, he said.                                                                       
1:56:22 PM                                                                                                                    
MR. ANDERSON  said other reasons  the AHFC is  currently involved                                                               
in public buildings include the  Home Energy Rating System (HERS)                                                               
and Building  Energy Efficiency  Standard (BEES)  [slide 4].   He                                                               
related that the AHFC is  statutorily required to maintain energy                                                               
codes and  building codes  within AHFC when  its funds  are being                                                               
used.  The AHFC uses AkWarm  software for this process.  In fact,                                                               
most of  the audits contain  AkWarm files  and are all  listed in                                                               
the AHFC's  retrofit information  system.   He reported  that the                                                               
database contains over 75,000 unique records.                                                                                   
MR.  ANDERSON  related that  the  technical  service provider  is                                                               
comprised  of  40-50  professionals, including  certified  energy                                                               
auditors [slide 5].   The team benchmarked as  many facilities as                                                               
possible,  totaling 1,200  facilities  statewide.   He  described                                                               
benchmarking as  compiling basic building  information, including                                                               
attempting  to  collect two  years  of  energy  data.   The  team                                                               
selected   the  highest   energy   users  based   on  the   data.                                                               
Subsequently, AHFC conducted 327  ASHRAE investment grade audits.                                                               
In response to a question,  Mr. Anderson defined investment grade                                                               
audits as  audits that provide  a detailed look at  the facility,                                                               
representing a  national standard that AHFC  adopted from ASHRAE.                                                               
He explained that this audit  "dives in" and examines all aspects                                                               
of the building, including examining  controls and all components                                                               
and makes recommendations for the best energy improvements.                                                                     
1:58:48 PM                                                                                                                    
MR.  ANDERSON  related   each  of  the  327   audits  consist  of                                                               
approximately  50-70 pages  and  cost a  total  of $7.2  million.                                                               
Additionally,  the  AHFC  provided  another  $1  million  to  the                                                               
university  system to  conduct audits.    At the  same time,  the                                                               
DOT&PF had $10 million in ARRA funds for audits.                                                                                
MS. SCHUBERT  reported that all  of the AHFC's audits  are posted                                                               
on the agency's website so members can access the data.                                                                         
MR.  ANDERSON related  that the  327 buildings  also resulted  in                                                               
approximately  $14.7 million  in  energy savings.   He  estimated                                                               
over 5,000  statewide public  facilities exist,  including state,                                                               
schools, cities,  and boroughs.   He estimated  approximately 184                                                               
of the 479 schools statewide were audited [slide 6].                                                                            
2:00:49 PM                                                                                                                    
MR. ANDERSON said the AHFC  took advantage of a great opportunity                                                               
to make  improvements to its own   building [slide 7].   In 2011,                                                               
the AHFC  purchased its headquarters  following a  14-year lease.                                                               
The  agency immediately  began  implementing efficiency  measures                                                               
including lighting  and heating,  as well  as completing  a major                                                               
roof  repair.    Additionally,  the AHFC  has  begun  to  replace                                                               
exterior lighting and  some of its outdated control  systems.  He                                                               
estimated that  based on improvements,  AHFC has reduced  gas use                                                               
by 40 percent  and electric by 30 percent.   He said that through                                                               
the  audit  process,   benchmarking,  collaboration,  and  "white                                                               
paper" the agency asked entities  to make recommendations to move                                                               
forward.   He has reviewed these  recommendations, which included                                                               
suggestions for appropriately-size new  buildings, to establish a                                                               
level of accountability, to meter  and track energy use data, and                                                               
to consolidate  facility use where  possible [slide 8].   He said                                                               
AHFC  believes, in  particular, in  the smaller  communities that                                                               
consolidation makes more sense such  as housing a post office and                                                               
school in one building.                                                                                                         
2:02:31 PM                                                                                                                    
MR. ANDERSON  discussed recommendations  for the  building design                                                               
process [slide  10].   He understood this  could be  construed as                                                               
controversial, but the "white paper"  showed the need to consider                                                               
life-cycle costing.   This process determines  whether to install                                                               
better pumps that  can last longer than 30 years  and whether the                                                               
cost to  benefit ratio make  sense.  Especially in  rural Alaska,                                                               
with its  high energy costs,  designers should  consider building                                                               
use,  system  sizes,  controlled  ventilation,  and  lighting  to                                                               
maximize efficiency.  Further,  designers should reduce excessive                                                               
glass and  maximize daylight with  the orientation of  the school                                                               
or  other  building.    Additionally,  the  commissioning  aspect                                                               
includes    commissioning,   retro-commissioning    and   ongoing                                                               
commissioning.  In  response to a question,  Mr. Anderson defined                                                               
commissioning  as  essentially  consisting  of an  audit  of  the                                                               
constructed facility.  For  example, commissioning would consider                                                               
whether  the  building  was  operating  properly  and  if  things                                                               
installed  correctly.     The  audit  process   highlighted  that                                                               
commissioning was  often not  done so  systems were  not balanced                                                               
properly.   Retro-commissioning  occurs  later  and would  review                                                               
plans  and drawings  to determine  if the  building was  designed                                                               
properly.  If  not, rebalancing and other  improvements have been                                                               
found to reap benefits.   Interestingly, the AHFC discovered that                                                               
there wasn't  any correlation between  the age of a  building and                                                               
energy  use.   For example,  two  similar schools  were built  in                                                               
adjacent  communities  but  one  facility  used  five  times  the                                                               
energy.   The AHFC audited some  buildings that were at  least 30                                                               
years old.                                                                                                                      
2:05:34 PM                                                                                                                    
CHAIR P.  WILSON asked whether  the audits are only  performed on                                                               
existing buildings.                                                                                                             
MR. ANDERSON answered yes.                                                                                                      
2:05:49 PM                                                                                                                    
CHAIR P.  WILSON asked  whether the  AHFC discusses  these issues                                                               
when new buildings are being built.                                                                                             
MR.  ANDERSON answered  that  AHFC believes  it  brings a  unique                                                               
perspective  and as  consultants are  willing to  be part  of the                                                               
2:06:05 PM                                                                                                                    
REPRESENTATIVE GATTIS asked if anyone asking for assistance.                                                                    
MR.  ANDERSON answered  yes; the  Department of  Transportation &                                                               
Public  Facilities,   the  Alaska  Vocational   Technical  Center                                                               
(AVTEC),  and  several  of  the  schools  have  requested  AHFC's                                                               
assistance.   He explained that  the AHFC works closely  with the                                                               
DOT&PF.    Based   on  the  AHFC's  audit   process  some  energy                                                               
efficiency projects have been completed  with other funding.  The                                                               
organization either  found in-house  funds, bonding,  or arranged                                                               
for other financing, he said.                                                                                                   
2:07:04 PM                                                                                                                    
REPRESENTATIVE  GATTIS  noted  challenges,   such  that  she  has                                                               
observed some  people open  windows in cold  climates.   She also                                                               
pointed out  that highly technical  equipment has  sometimes been                                                               
installed but people  often don't know how to operate  or fix it.                                                               
For example,  she has  seen people "rip  out" some  equipment and                                                               
put  in a  simple value.   Additionally,  she noticed  some smoke                                                               
alarms  were not  working in  some buildings.   She  recalled the                                                               
DEED has  used less insulation  in order to enhance  the interior                                                               
size of their  buildings.  She hoped that  improvements in energy                                                               
efficiency will happen.                                                                                                         
MS. SHUBERT responded  that one of AHFC's  recommendations in its                                                               
"white  paper" is  to property  train maintenance  staff.   These                                                               
buildings require proactive management  and maintenance to ensure                                                               
equipment is being  appropriately controlled.  One  of the things                                                               
AHFC does  in its  own building  is to meter  the building.   For                                                               
example, employees  actively monitor  whether the lights  come on                                                               
at 2 a.m.                                                                                                                       
2:10:25 PM                                                                                                                    
RYAN  COLGAN,  Chief  Programs   Officer,  Cold  Climate  Housing                                                               
Research  Center, explained  the  Cold  Climate Housing  Research                                                               
Center (CCHRC) is a 501  (c)(3) non-profit organization formed by                                                               
the Alaska State Homebuilding Association  (ASHBA) to address the                                                               
challenges of  building in  Alaska's extreme  environment through                                                               
applied research,  policy research,  design consulting  and other                                                               
means [[slide 1].                                                                                                               
MR.  COLGAN referred  to  a familiar  image of  a  map of  Alaska                                                               
superimposed on the Lower 48.   This image illustrates how remote                                                               
and  diverse the  communities of  Alaska, which  is important  in                                                               
terms of standards.   He characterized the  necessary approach as                                                               
being  not focused  on  the  "cookie cutter"  but  on the  cookie                                                               
recipe.   Another factor to  consider in Alaska is  the logistics                                                               
since  it is  difficult  to  get to  construction  sites in  many                                                               
places [slide 3].  In addition,  work itself can be difficult due                                                               
to the environment [slide 4].                                                                                                   
MR.  COLGAN  said  one  of  Alaska's assets  is  that  the  state                                                               
consists of  problem solvers,  which is  inherent in  its people.                                                               
In fact, it is necessary to  problem solve in order to survive in                                                               
parts of Alaska [slides 5-6].                                                                                                   
2:13:37 PM                                                                                                                    
MR.  COLGAN turned  to slide  7, entitled  "How does  CCHRC Solve                                                               
Problems?"   The  CCHRC first  works to  understand the  problem,                                                               
gathers information,  and identifies  solutions.  He  showed some                                                               
slides that illustrate the types  of problems encountered [slides                                                               
MR.  COLGAN said  that CCHRC  gathers information  through peers,                                                               
those  who  have  researched and  found  solutions,  and  through                                                               
advanced modeling [as shown on the  top of slide 11].  This slide                                                               
shows  the mobile  test  lab and  the  research testing  facility                                                               
[slide 11].                                                                                                                     
MR.  COLGAN explained  that CCHRC  has identified  several unique                                                               
wall solutions to meet and  exceed building standards and address                                                               
unique challenges that stem from  Alaska's extreme climate [slide                                                               
2:15:10 PM                                                                                                                    
MR. COLGAN turned to the  next slice, which illustrates how CCHRC                                                               
incorporates  solutions   into  designs  [slides  13-14].     For                                                               
example,  this   shows  the  sustainable  village   at  UAF,  and                                                               
prototypes  at Quinhagak  and Anaktuvuk  Pass.   The CCHRC  helps                                                               
find solutions for heating, ventilation, water, and wastewater.                                                                 
MR. COLGAN  reported that CCHRC  communicates with end  users and                                                               
has about  50,000 hits per year  on its website, 20,000  hits per                                                               
year  on  its blog  for  homeowners,  and  200,000 views  on  the                                                               
website  podcasts.   The  CCHRC works  with  Alaskans and  either                                                               
deliver  or work  with partners  to provide  over 50  classes per                                                               
year [slides 16-17].                                                                                                            
MR. COLGAN  turned to demonstration  projects that show  what can                                                               
be accomplished [slide 18-19].   He then returned to the question                                                               
of how  CCHRC solves  problems [slide  20].   He related  that to                                                               
understand the  problem, CCHRC recognizes that  high energy costs                                                               
exist  in some  public  facilities and  with  budget deficit  can                                                               
create  long-term  burdens for  the  state.   The  agencies  have                                                               
reported today that a significant  amount of information has been                                                               
gathered  through  benchmark,  investment  grade  audits  and  by                                                               
consulting with numerous experts to  produce the "white paper" on                                                               
public facilities.   The state has also been  working to identify                                                               
solutions   using    the   revolving   loan    program,   holding                                                               
conversations about  standards, and  recognizing that it  is hard                                                               
to   implement   the   standard   without   involving   multiple-                                                               
DUSTIN MADDEN,  Policy Researcher, Cold Climate  Housing Research                                                               
Center (CCHRC),  offered a presentation that  covers some history                                                               
about energy in  Alaska.  In the 1970s natural  gas use lessened,                                                               
primarily  due   to  energy  codes   that  required   "2x6"  wall                                                               
construction and  energy heel trusses  [slide 21].  In  the early                                                               
1990s  usage  reached  a  plateau until  the  AHFC  instituted  a                                                               
building energy  efficiency standard, which like  ASHRAE 90.1 has                                                               
a prescriptive  performance.  The  graph illustrates  that energy                                                               
use  in  Alaska  has  continued   to  decrease  as  the  building                                                               
efficiency standard  has become more widespread  and reflects the                                                               
current technology of the industry  [slide 21].  He observed that                                                               
energy standards over time have proven effective.                                                                               
2:20:50 PM                                                                                                                    
MR. MADDEN  highlighted the pie  chart that shows the  energy use                                                               
for public schools in Alaska with  about 75 percent of energy use                                                               
due  to  space heating.    He  reported  that many  schools  have                                                               
received energy  audits or have  been benchmarked.  Over  half of                                                               
the 75  percent of energy use  for space heating is  lost through                                                               
ventilation and  air leakage.   He reported that  heating outside                                                               
air at minus 20 degree air  to 70 degrees for indoor comfort uses                                                               
considerable energy.   It's important  that energy  efficiency is                                                               
well managed [slide 23].                                                                                                        
MR. MADDEN  explained the graph  with energy  efficiency depicted                                                               
on the "y" axis and the  total annual ventilation is shown on "x"                                                               
axis  [slide 24].    He acknowledged  that  some older  buildings                                                               
often performed  better than newer buildings;  however, the CCHRC                                                               
did find that  one driver of space heating  energy efficiency was                                                               
the ventilation rate.  He  identified the ventilation rate as one                                                               
ingredient of  the "cookie"  recipe that  can be  standardized to                                                               
increase  efficiency.    Many  systems   are  quite  complex  for                                                               
controlling ventilation,  such as direct digital  control systems                                                               
so having a more standard set  of these systems will increase the                                                               
effectiveness  of  the  systems   used  and  operated  throughout                                                               
Alaska.     Factors  such  as  standardization   of  ventilation,                                                               
depending on the design depending on  the number of zones and the                                                               
equipment  used, have  the potential  to save  energy and  reduce                                                               
operating  costs.    In  response   to  a  question,  Mr.  Madden                                                               
explained  that the  "DHW" on  slide 22  refers to  "domestic hot                                                               
2:24:15 PM                                                                                                                    
REPRESENTATIVE  KREISS-TOMKINS referred  to the  graph [on  slide                                                               
24] and asked what outlier was  close to 40 billion cubic feet of                                                               
MR. MADDEN was unsure.   He offered to look it  up and provide it                                                               
to  the  committee.    In  further response  to  a  question,  he                                                               
answered that "HDD" stands for "heating degree days."                                                                           
2:25:40 PM                                                                                                                    
BRYAN  BUTCHER,   Executive  Director/Chief   Executive  Officer,                                                               
Alaska  Housing Finance  Corporation  (AHFC),  added that  energy                                                               
efficiency is what AHFC does.                                                                                                   
CHAIR P. WILSON  said this presentation has  helped the committee                                                               
get a  handle on the  energy efficiency issues. She  suggested it                                                               
might  be  necessary to  get  rid  of  the  silos and  work  more                                                               
cooperatively to address these issues.                                                                                          
[HB 343 was held over.]                                                                                                         
2:27:08 PM                                                                                                                    
                HB 371-STATE LAND AND MATERIALS                                                                             
CHAIR P. WILSON announced that  the final order of business would                                                               
be HOUSE  BILL NO. 371, "An  Act providing for the  Department of                                                               
Transportation and  Public Facilities to hold  the surface estate                                                               
of certain state land; relating  to the transfer of certain state                                                               
land and  materials from the  Department of Natural  Resources to                                                               
the Department  of Transportation  and Public Facilities  for the                                                               
construction or  maintenance of the  state highway  system, state                                                               
airports, and state public buildings  and facilities; relating to                                                               
the  lease  or  sale  of certain  marine  or  harbor  facilities;                                                               
relating  to  the   lease  or  disposal  by   the  Department  of                                                               
Transportation and  Public Facilities of  rights-of-way, property                                                               
interests, or improvements that  are no longer required; relating                                                               
to the  grant of certain  easements over submerged state  land to                                                               
the  federal  government; relating  to  the  transfer of  certain                                                               
maintenance  stations   on  the  James  Dalton   Highway  to  the                                                               
Department of  Transportation and Public Facilities;  relating to                                                               
the conveyance of land for  right-of-way purposes from the Alaska                                                               
Railroad  Corporation to  the  Department  of Transportation  and                                                               
Public Facilities; and providing for an effective date."                                                                        
2:27:42 PM                                                                                                                    
REPRESENTATIVE  ISAACSON moved  to adopt  the proposed  committee                                                               
substitute  (CS)  for  HB   371,  labeled  28-LS1545\C,  Bullock,                                                               
3/17/14 as the working document.                                                                                                
There being  no objection, Version  C was adopted as  the working                                                               
2:28:08 PM                                                                                                                    
JOHN BENNETT, Right-of-way Chief,  Northern Region, Department of                                                               
Transportation  &  Public  Facilities  (DOT&PF),  referred  to  a                                                               
letter of  March 13, 2014 in  response to questions posed  by the                                                               
committee on  March 11, 2014.   He stated the  proposed committee                                                               
substitute  (CS)  for  HB  371,  Version  C,  will  help  clarify                                                               
language in Section  16 regarding reciprocal easements.   He also                                                               
understood questions  arose on whether this  bill would eliminate                                                               
or reduce public  involvement or public notice  so the department                                                               
generated  a chart  to show  all  the points  of involvement  and                                                               
notice [entitled "Typical DOT&PF Project Development Process"].                                                                 
MR.  BENNETT  also  understood Representative  Johnson  has  been                                                               
considering a proposed amendment.                                                                                               
REPRESENTATIVE  KREISS-TOMKINS asked  to  discuss some  questions                                                               
CHAIR P.  WILSON referred to  the aforementioned  response letter                                                               
from the DOT&PF that answers a  number of the questions raised at                                                               
the March 11, 2014 hearing.                                                                                                     
2:31:15 PM                                                                                                                    
REPRESENTATIVE  KREISS-TOMKINS  referred  to the  private  sector                                                               
would interface with the bill.   The [March 18, 2014] letter from                                                               
DOT&PF poses  questions on how  SB 211  or HB 371  impact funding                                                               
for DNR and DOT&PF.   He read [from a letter by  a DNR person not                                                               
identified], as follows:                                                                                                        
     Would  DOT lose  funding  from the  lost material  sale                                                                    
     revenue as  a result of  this bill?   Would DOT  gain a                                                                    
     new  funding  source  from selling  material  from  the                                                                    
     material  sites?   Section 13  of the  bill states  DNR                                                                    
     would no  longer charge DOT  for material.   Does "DOT"                                                                    
     include  DOT contractors?    Would  DOT start  charging                                                                    
     their  contractors or  others for  material from  state                                                                    
     material sites?  If so, where would those funds go?                                                                        
REPRESENTATIVE  KREISS-TOMKINS acknowledged  the large  number of                                                               
MR. BENNETT responded  he is correct, with respect  to the issues                                                               
of  payment  for  materials,  since DOT&PF  would  no  longer  be                                                               
charged so  DNR would  no longer  have that  revenue stream.   He                                                               
related his  understanding that the  bulk of the revenue  for the                                                               
sales of  material goes into  the state's  general fund.   To the                                                               
extent that some of it might  be used in management or processing                                                               
of material  sales contracts, he  pointed out that the  DNR would                                                               
not have the burden of  applying for or processing material sales                                                               
contracts  so the  lost revenue  wouldn't be  quite as  big of  a                                                               
problem [since neither department  would have to administratively                                                               
manage  these  contracts].   With  respect  to DOT&PF  generating                                                               
revenue by  sale of materials,  he responded that this  bill does                                                               
not provide  authority nor  has the  department had  authority to                                                               
sell materials  to third  parties.  Thus,  there wouldn't  be any                                                               
revenue  stream coming  in  to  DOT&PF by  virtue  of this  bill.                                                               
Further,  the DOT&PF  wouldn't charge  contractors for  materials                                                               
because  the  department  is expecting  the  bidding  process  to                                                               
result  in better  prices since  the department  will use  state-                                                               
owned materials and not need to procure them.                                                                                   
2:33:51 PM                                                                                                                    
REPRESENTATIVE  KREISS-TOMKINS acknowledged  he has  had a  vague                                                               
impression that private businesses  sell materials.  For example,                                                               
in  Sitka  there are  private  quarries  that  sell gravel.    He                                                               
expressed  concern that  the state  would be  competing with  the                                                               
private sector if the state provides  the material for free but a                                                               
private quarry in the same proximity sells the same materials.                                                                  
MR.  BENNETT   acknowledged  the   concern.    Even   though  the                                                               
department  has hundreds  of  BLM and  DNR  sites available,  the                                                               
department  likes to  consider its  contracts  as advertised  ,au                                                               
contain   contract-furnished  materials.      For  example,   the                                                               
department might  make a material site  available - a BLM  or DNR                                                               
site -  but the  contractor is  not obligated to  use them.   The                                                               
contractor may decide to purchase  materials elsewhere or develop                                                               
a material site.  It all depends  on the market forces as to what                                                               
is  best for  the  contractor to  reduce  his/her overall  costs.                                                               
Clearly a lot of commercial  material sites and competition exist                                                               
in the  urban and suburban areas  so the market forces  will work                                                               
very well  for the state.   In rural  areas it is  more difficult                                                               
since  not   many  property  owners   have  materials   to  sell.                                                               
Additionally,   the   department    must   perform   geotechnical                                                               
investigations  to  determine  whether  the  material  meets  its                                                               
specifications and sufficient quantities  exist.  He acknowledged                                                               
there  might  be  a  private  property  owner  who  is  aware  of                                                               
available gravel,  but that  gravel may not  be suitable  for the                                                               
project.   Further, there  isn't any  assurance that  the private                                                               
property owner will  offer the same conditions,  terms, or prices                                                               
to all the contractors.   It could skew the project significantly                                                               
in the  instance that  only one commercial  provider exists.   He                                                               
summarized  that the  department recognizes  commercial providers                                                               
exist but  the market will  determine whether those will  be used                                                               
by the contractor.                                                                                                              
2:37:00 PM                                                                                                                    
REPRESENTATIVE JOHNSON related  a scenario in which  DOT&PF has a                                                               
material site  for a project.   Since  the materials are  free to                                                               
the department, the  DOT&PF can underbid or  complete the project                                                               
for less  by hiring  state employees.   He  would like  to ensure                                                               
that the  state does  not perform  projects that  have previously                                                               
been done by  the private sector under a  competitive process for                                                               
the materials.                                                                                                                  
MR.  BENNETT  deferred  to the  deputy  commissioner  to  answer;                                                               
however, he offered his belief that  prior to taking on a project                                                               
that would have gone out to  bid, the department would need to do                                                               
a  best interests  findings to  determine it  was in  the state's                                                               
been  interest  that  the  maintenance forces  did  not  pay  for                                                               
materials or  even larger maintenance work  that could constitute                                                               
a project.   In  the same  sense contractors  aren't going  to be                                                               
charged  either  since  the materials  are  state-owned  and  are                                                               
designated  for state  projects.   Thus,  the department  doesn't                                                               
envision any issue will arise.                                                                                                  
2:38:34 PM                                                                                                                    
REPRESENTATIVE  JOHNSON asked  whether  it  is constitutional  to                                                               
give away the state's resources.                                                                                                
MR. BENNETT answered that the state  would not be giving away its                                                               
resources since the materials would  be used for public projects.                                                               
Further, DOT&PF represents the public in this instance.                                                                         
2:39:03 PM                                                                                                                    
CHAIR P.  WILSON related  her understanding  that everyone  is on                                                               
the  same "playing  field" since  the DOT&PF  doesn't charge  the                                                               
contractors either.                                                                                                             
MR. BENNETT agreed.                                                                                                             
REPRESENTATIVE JOHNSON maintained the  state would be giving away                                                               
resources  to a  private contractor  even  though it  is for  the                                                               
public good.                                                                                                                    
MS. RICE explained that the  department does not intend to change                                                               
contracting  procedures.   Under  the bill,  the proposed  change                                                               
would merely  reduce paperwork  between DNR  and DOT&PF.   First,                                                               
the DOT&PF  physically manages  most of  these pits.   Currently,                                                               
the DOT&PF  contacts DNR, creates  a materials sales  contract at                                                               
$.50  per yard  - the  standard price  - and  makes the  contract                                                               
available in specifications to contractors.   All contractors can                                                               
use  this   source  for   materials;  however,   the  contracting                                                               
specifications also  allow the  contractor to  go to  any supply.                                                               
In fact,  contractors will  sometimes make their  own pits.   Any                                                               
materials  that come  from  the  state's pit  will  end up  being                                                               
embankment so essentially the DOT&PF  is moving from one resource                                                               
to another.   The  public will  always continue to  use it.   The                                                               
$.50 per yard  not being paid is  pretty inconsequential compared                                                               
to the  $2-4 per yard  that the  department would pay.   Further,                                                               
most  of that  money is  haul and  placement.   The DOT&PF  needs                                                               
certain quality materials, makes them  available, but most of the                                                               
time the materials are not used.                                                                                                
2:41:05 PM                                                                                                                    
CHAIR P. WILSON surmised most of those are not in urban areas.                                                                  
MS. RICE said that most of  the material used by the Municipality                                                               
of Anchorage  (MOA) is hauled  from the  Matanuska-Susitna valley                                                               
by train since did not believe DOT&PF has a pit in the area.                                                                    
2:41:38 PM                                                                                                                    
REPRESENTATIVE JOHNSON maintained that  the state would be giving                                                               
away  state  assets   since  they  would  not   be  charging  the                                                               
contractor.   He related his  understanding the  department would                                                               
waiver  the  $.50  per  yard   fee  and  asked  whether  this  is                                                               
MR. BENNETT answered  that the DOT&PF has purchased  land for its                                                               
project.  The  state requests that the contractor  use the state-                                                               
owned material on the state's project.                                                                                          
REPRESENTATIVE  JOHNSON  envisioned  a paving  project  in  which                                                               
private contractor  can bid on  it $.50  per yard, but  under the                                                               
new scenario the fees are waived.                                                                                               
2:43:16 PM                                                                                                                    
REPRESENTATIVE ISAACSON  understood that  since DNR  was involved                                                               
and the  DOT&PF has paid DNR  for materials, which he  equated as                                                               
an  administrative fee.   He  further understood  that under  the                                                               
bill, since  DNR is  no longer  the owner,  the DOT&PF  is moving                                                               
material from  one state site to  a road bed.   The state doesn't                                                               
provide a  public benefit  by paying  DNR an  administrative fee.                                                               
This bill  attempts to  consolidate the  process by  limiting the                                                               
management  the project  and  materials for  the  project to  one                                                               
department [the DOT&PF].                                                                                                        
2:44:49 PM                                                                                                                    
SEAN LYNCH,  Assistant Attorney General,  Transportation Section,                                                               
Department   of   Law   (DOL),  responded   that   Representative                                                               
Isaacson's characterization  is fully  accurate.  When  the state                                                               
furnishes culverts,  materials, or  anything else for  a project,                                                               
all bidders accommodate  for this in their bid,  which results in                                                               
reduced project costs and general  fund savings.  In instances in                                                               
which contractors have to purchase  materials from the state, the                                                               
state would also pay additional  administrative costs for the two                                                               
agencies [DNR &  DOT&PF].  He clarified that  the contractors are                                                               
not taking materials  for their own personal use  for third party                                                               
uses,  but are  moving  state  materials from  one  place to  the                                                               
state's project site.                                                                                                           
CHAIR P. WILSON characterized this  as "getting rid of the middle                                                               
guy" since it will be cheaper.                                                                                                  
MR. BENNETT agreed.   He described the current  process as moving                                                               
money from DOT&PF  to DNR and the contractor does  not benefit in                                                               
any way.                                                                                                                        
REPRESENTATIVE JOHNSON thought it might be circular logic.                                                                      
2:47:01 PM                                                                                                                    
REPRESENTATIVE FEIGE acknowledged it  was shifting money from one                                                               
pocket to the other.  He  asked how this is applied in federally-                                                               
funded projects.                                                                                                                
MR.  BENNETT   answered  that  most  of   DOT&PF's  projects  are                                                               
federally-funded projects.   In  those instances,  the department                                                               
uses federal  dollars to pay the  $.50 fee per cubic  yard fee to                                                               
DNR.   He suggested that  for the most part  the funds end  up in                                                               
the general fund.                                                                                                               
REPRESENTATIVE FEIGE said  the process would allow  the DOT&PF to                                                               
obtain more from the federal funding for any given project.                                                                     
MR. BENNETT answered that is correct.                                                                                           
2:47:47 PM                                                                                                                    
REPRESENTATIVE GATTIS related a  scenario in a contractor invests                                                               
in a pit  that provides the materials used on  jobs; however, the                                                               
state is  giving the contractor's  competitors free  gravel which                                                               
gives them an advantage.                                                                                                        
CHAIR  P.  WILSON using  that  scenario,  suggested that  if  the                                                               
contractor could  get it for  free that the competitors  may also                                                               
wish to use the free material.                                                                                                  
REPRESENTATIVE GATTIS agreed but  pointed out that the contractor                                                               
would still be paying for the pit.                                                                                              
CHAIR P. WILSON  suggested the contractor could  save his/her own                                                               
pit gravel for another purpose.                                                                                                 
2:49:43 PM                                                                                                                    
REPRESENTATIVE  FEIGE said  the  competitiveness  of the  private                                                               
gravel pit owner  is somewhat reduced by eliminating  the cost of                                                               
the  gravel.   He  suggested  that  the  cost  of the  gravel  is                                                               
primarily the transportation cost to deliver the material.                                                                      
MR. BENNETT agreed that is a  relevant point.  One contractor may                                                               
bid and  plan to  use the  state's existing  material site.   The                                                               
successful bidder may  have purchased a site to  develop since it                                                               
could result in a 20-mile less  haul distance.  He maintained the                                                               
developed  site  could be  more  competitive  and it  will  still                                                               
"shake out" in the market.                                                                                                      
2:51:12 PM                                                                                                                    
REPRESENTATIVE   KREISS-TOMKINS    understood   the   discussion.                                                               
However,  he suggested  that this  bill changes  the market  to a                                                               
certain extent.   While transportation and haul  costs will still                                                               
determine whose gravel pit is  most competitive in a project, the                                                               
current  market  forces are  changed  under  the  bill.   He  was                                                               
interested in  hearing from the  private sector in the  rural and                                                               
non-rural areas with respect to the  bill.  He offered his belief                                                               
that it merits  further investigation as to the  specifics of how                                                               
this will affect contractors.                                                                                                   
CHAIR P.  WILSON suggested that contractors  would be complaining                                                               
if the bill [created disadvantages for them].                                                                                   
2:52:31 PM                                                                                                                    
REPRESENTATIVE ISAACSON referred to  the DOT&PF's response to the                                                               
committee [dated March  13, 2014].  He referred to  page 2, which                                                               
        Could DOT&PF lease land from the Alaska Railroad                                                                      
     Corporation (ARRC), rather than the ARRC selling land                                                                    
     to DOT&PF?                                                                                                               
REPRESENTATIVE  ISAACSON said  the  response was,  in part,  "The                                                               
short answer  is that  while leasing land  from ARRC  may benefit                                                               
the  railroad's bottom  line, it  may not  represent a  good long                                                               
range policy for the management,  operation and funding of DOT&PF                                                               
REPRESENTATIVE  ISAACSON  offered  that   the  letter  gives  two                                                               
examples,  first,  in  which  the ARRC  was  compensated  in  the                                                               
Illinois [Street project  in Fairbanks].  In  the second example,                                                               
the Healy  River airport,  the ARRC doesn't  want to  continue to                                                               
pay for a lease  since it is a state benefit.   He concluded that                                                               
the ARRC  suffers negligible operational  impacts when  a portion                                                               
of  ARRC's  property  is transferred  as  required  for  DOT&PF's                                                               
projects,.  He  understood the ARRC's land similar  to the Alaska                                                               
Mental  Health Trust  Lands in  that its  purpose is  to generate                                                               
revenue.   Thus,  the  more  land that  is  taken  away from  the                                                               
railroad the larger  the impact it will have in  terms of loss of                                                               
rent and profit.  Currently,  the ARRC has been suffering because                                                               
of fewer  active leases and  the ARRC has declining  revenues due                                                               
to   declining  production   at   refineries   and  coal   mines.                                                               
Therefore, any impact to the railroad can hurt, he said.                                                                        
2:54:41 PM                                                                                                                    
REPRESENTATIVE ISAACSON  wondered if  there might be  a different                                                               
way to  address this.   He asked  whether instead of  taking land                                                               
the DOT&PF could exchange state land to compensate the railroad.                                                                
MR. BENNETT  answered that DOT&PF  doesn't have a land  base that                                                               
it could trade since it is  constrained by its obligations to the                                                               
federal   funding  agencies,   such   as   the  Federal   Highway                                                               
Administration  (FHWA).   Further,  the DOT&PF  pays fair  market                                                               
value to  the railroad for  any land  DOT&PF takes.   The concept                                                               
behind  this just  compensation is  that  the ARRC  can take  the                                                               
proceeds  and  replace the  right-of-way  land  taken from  them.                                                               
Therefore,  it doesn't  necessarily reduce  the land  base unless                                                               
the railroad doesn't replace the  lands acquired for the project.                                                               
Additionally, a railroad  is considered a utility so  in terms of                                                               
highway  rights-of-way  or  airports,  the  ARRC  can  through  a                                                               
limited fee  of a  utility permit  can gain access  to them.   He                                                               
characterized this  as being a  very lopsided relationship.   The                                                               
DOT&PF pays  full fair  market value  for any  lands it  needs to                                                               
acquire from  the ARRC,  but the railroad  can use  DOT&PF's land                                                               
for a very limited fee.                                                                                                         
MR. BENNETT, in  terms of the Illinois  Street project, explained                                                               
that  the public  used Illinois  Street  for 100  years and  will                                                               
likely use  it for  another hundred years.   He  anticipated that                                                               
for a 50-year  lease the DOT&PF would pay for  the property "over                                                               
and over  again."  More importantly,  when the term comes  due it                                                               
will likely  be out  of synch  with a  DOT&PF project  that would                                                               
generate revenue  to renew the lease.   For example, it  would be                                                               
possible   to  pay   for  a   lease  from   a  Federal   Aviation                                                               
Administration (FAA) funded  project if one was  available.  Even                                                               
though  the DOT&PF  has  been seeking  one  that without  project                                                               
funding the DOT&PF  doesn't have anything available  to renew the                                                               
2:57:18 PM                                                                                                                    
CHAIR P.  WILSON commented that  the ARRC reviewed this  bill and                                                               
agreed with it.                                                                                                                 
REPRESENTATIVE ISAACSON  answered that this doesn't  mean it will                                                               
necessarily  be good  for the  railroad.   He  asked for  further                                                               
clarification on the Healy project.                                                                                             
MR. BENNETT  answered that it is  not a good public  policy for a                                                               
transportation department  with long-term  public needs  to lease                                                               
land with a recurring renewal fee.                                                                                              
CHAIR  P.  WILSON  remarked  that  the  ARRC's  agreement  should                                                               
relieve members of these specific concerns.                                                                                     
REPRESENTATIVE  ISAACSON responded  that  it doesn't.   He  asked                                                               
whether  the   ARRC  would  receive  any   compensation  for  the                                                               
MR. BENNETT answered that this  bill doesn't address leasing.  It                                                               
would only  eliminate the step  necessary to  receive legislative                                                               
approval  for  the  ARRC  to   convey  fee  simple  title.    The                                                               
department  believes this  will advance  projects by  one to  two                                                               
years.   He maintained that  this bill does not  address leasing.                                                               
It will not eliminate any lease  revenues due to the railroad for                                                               
the airport.   The DOT&PF  must secure  these funds prior  to the                                                               
end of the lease in 2017 if the public intends to use the land.                                                                 
CHAIR P. WILSON  pointed out a letter of support  from the Alaska                                                               
General Contractors is in members' packets.                                                                                     
3:00:30 PM                                                                                                                    
REPRESENTATIVE JOHNSON,  with respect  to gravel, noted  that DNR                                                               
will  make  available  gravel  sales  to  private  companies  for                                                               
private projects.  He asked  whether the ARRC will sell materials                                                               
to a  private project.  He  interjected by related a  scenario in                                                               
which the DOT&PF  has materials and asked  whether the department                                                               
will make gravel available to the public  or if it is it just for                                                               
state use.                                                                                                                      
MR. BENNETT related  his understanding the question  is if DOT&PF                                                               
has acquired land from the ARRC  or DNR, whether the DOT&PF would                                                               
sell gravel.   To his knowledge,  all the land acquired  from the                                                               
ARRC has  been dedicated  to the actual  operational need  of the                                                               
highway or  the airport.   The DOT&PF  doesn't have  authority to                                                               
sell gravel, he said.                                                                                                           
3:02:17 PM                                                                                                                    
REPRESENTATIVE  JOHNSON pointed  to non-railroad  materials.   He                                                               
understood a  provision exists  for DOT&PF to  take a  gravel pit                                                               
from  DNR and  use it  for  a state  project.   He asked  whether                                                               
DOT&PF  would  sell non-railroad  gravel  to  a private  company,                                                               
which DNR can currently do.                                                                                                     
MR. BENNETT answered yes.                                                                                                       
3:02:47 PM                                                                                                                    
MR. LYNCH advised  that the DOT&PF exemption in Section  13 of HB
371, relieves  the DOT&PF from  the material  sales requirements.                                                               
He  read,  "Notwithstanding  the  provisions in  AS  38.05.560  -                                                               
38.05.565 ...."   This provision  provides DNR authority  to sell                                                               
materials from  state-owned material  sites.  This  bill relieves                                                               
the  DOT&PF of  the  requirement from  entering  into a  material                                                               
sales contract, but DNR retains  its authority under AS 38.05.550                                                               
- 38.05.565 to  sell material from these sites  to third parties.                                                               
He reiterated that DOT&PF does  not have any authority for third-                                                               
party sales and doesn't take the physical site itself.                                                                          
3:04:05 PM                                                                                                                    
REPRESENTATIVE JOHNSON recalled testimony  that if the state were                                                               
to provide  a discount  to a  refiner on  royalty oil,  the state                                                               
would need to provide the same discount to everyone.                                                                            
MR. LYNCH said he can't speak  to the comparison since he doesn't                                                               
know  the  facts;  however,  this  would  allow  for  state-owned                                                               
resources to  be removed from  a state pit  and put into  a state                                                               
project.  He  concluded that the material is never  disposed to a                                                               
third  party.   All  bidders  would have  equal  assess asset  to                                                               
incorporate  state owned  material into  the state  project.   It                                                               
would be the  same way as if DOT&PF had  an overstock of culverts                                                               
and  lists  it  in  the  contract to  be  incorporated  into  the                                                               
REPRESENTATIVE JOHNSON  maintained that in terms  of oil, whether                                                               
it was  jet fuel for trains  or something else that  if the state                                                               
offered  a  discount  it  must  give the  same  discount  to  all                                                               
3:05:54 PM                                                                                                                    
REPRESENTATIVE ISAACSON recalled the  commissioner said "may" but                                                               
not "must."                                                                                                                     
REPRESENTATIVE JOHNSON  asked whether the state  was subjected to                                                               
the same "may" for gravel as it  is for oil so would the state be                                                               
putting  itself  in the  position  that  it  needed to  give  the                                                               
material away.                                                                                                                  
MR. LYNCH  explained that  the bids  incorporate the  same common                                                               
ground for  "all bidders" so he  did not envision this  would set                                                               
up a disparity.                                                                                                                 
3:06:38 PM                                                                                                                    
REPRESENTATIVE FEIGE  thought that the  analogy would be  to take                                                               
royalty  oil and  refine it  into  fuel used  by state  vehicles.                                                               
Further, the  state could  probably justify a  lower cost  of the                                                               
royalty oil if it  resulted in a lower cost of  fuel to the state                                                               
just as  DOT&PF provides  an equal opportunity  for gravel  to be                                                               
used on  a state  project.  In  the end, the  result would  be to                                                               
reduce  the cost  of materials.    In the  case of  oil it  could                                                               
reduce cost of fuel to the  state and result in lower consumptive                                                               
costs to the state and hence the public.                                                                                        
REPRESENTATIVE JOHNSON  maintained that  a discount to  one means                                                               
the state might need to give it to everyone.                                                                                    
REPRESENTATIVE  FEIGE thought  that  rationale  would only  apply                                                               
since the state can only consume so much fuel.                                                                                  
3:07:57 PM                                                                                                                    
REPRESENTATIVE  JOHNSON  referred  to the  language  in  Alaska's                                                               
Constitution  that indicates  the state's  resources are  for the                                                               
common good of all people.                                                                                                      
REPRESENTATIVE  ISAACSON  agreed   that  Article  VIII,  Alaska's                                                               
Constitution requires the maximum use  and benefit to the people;                                                               
however, it  also sets  up a "similarly  situated" aspect.   Thus                                                               
the  benefits would  accrue to  similarly situated  circumstances                                                               
first and  then to the rest.   He suggested several  other issues                                                               
could trigger a definitive answer.                                                                                              
REPRESENTATIVE JOHNSON remarked he still has questions.                                                                         
3:10:02 PM                                                                                                                    
DICK MYLIUS said  he is testifying as a  private citizen although                                                               
he previously  worked with DNR for  29 years and dealt  with many                                                               
of  these issues.    He stated  that his  letter  is in  members'                                                               
packets  [dated March  12, 2014].   He  offered to  summarize his                                                               
concerns that have  not yet been addressed.   His primary concern                                                               
stems  from language  in the  bill that  essentially says  if the                                                               
DOT&PF asks DNR for a parcel  of land, under proposed Sections 3,                                                               
5,  8,  the  state  "shall"  transfer  these  lands  to  airport,                                                               
highways,  and  facilities,  respectively.     Thus,  DNR  cannot                                                               
decline, condition  the transfer,  or protect existing  or future                                                               
rights.  His biggest concern  relates to material sites or gravel                                                               
pits.   Of his six general  comments, the proposed CS,  Version C                                                               
addresses  his  concern  with  Section 16.    He  explained  that                                                               
proposed  Section 13  would allow  the DOT&PF  to extract  gravel                                                               
from any  existing pit on  state land.   The DOT&PF would  not be                                                               
allowed  to establish  any conditions  on the  gravel extraction.                                                               
He suggested that  this provision needs to  be distinguished from                                                               
the other provisions of the bill  that allow DOT to receive title                                                               
to the surface estate.                                                                                                          
CHAIR P. WILSON asked for further clarification.                                                                                
3:12:14 PM                                                                                                                    
MR. MYLIUS reiterated that Section 13  of HB 371 allows DOT&PF to                                                               
extract  gravel  from any  existing  gravel  pit on  state  land,                                                               
including gravel  pits may have  been developed by  another party                                                               
for a  totally different purpose.   For example,  numerous gravel                                                               
pits exist  on the North Slope.   These pits have  been developed                                                               
by the oil and gas  industry or their contractors to specifically                                                               
support North Slope  development.  Of course,  any development on                                                               
the North Slope  would require gravel roads or  pads although the                                                               
DNR  has  issued  numerous gravel  sales  contracts  to  parties.                                                               
Under HB  371, DOT&PF  could go  take any  amount of  gravel from                                                               
those pits  without any consideration or  restrictions imposed by                                                               
DNR  to protect  those  developing  their own  gravel  pits.   He                                                               
reiterated that DOT&PF  could remove gravel from  these pits that                                                               
essentially would make  it impossible to fulfill  contracts.  The                                                               
provision  in Section  13 doesn't  say anything  about protecting                                                               
valid  existing rights  although  such protections  are in  other                                                               
provisions of  the bill  applying to the  transfers.   Section 13                                                               
would apply  to any  existing pits  on state  land.   He strongly                                                               
recommended removing Section 13 from the bill.                                                                                  
3:13:48 PM                                                                                                                    
MR. MYLIUS  said the bill  still does not address  the overriding                                                               
or competing land  claims.  He referred to an  earlier example of                                                               
Happy  Valley  and Franklin  Bluffs,  in  which the  North  Slope                                                               
Borough  has  municipal  entitlement   selections.    The  DOT&PF                                                               
responses indicate  the state should  keep those and  the borough                                                               
essentially  loses out.    The bill  doesn't  address that  there                                                               
still is  a valid  selection.  If  the intent of  HB 371  is that                                                               
those  parcels should  be  transferred to  DOT&PF  then the  bill                                                               
should  actually indicate  that  the NSB's  selections should  be                                                               
rejected.  Otherwise  the DNR will need to  reject the selections                                                               
and likely  need to  litigate the matter.   Additionally,  if the                                                               
DOT&PF doesn't  need all the land  the bill leaves it  totally up                                                               
to the DOT&PF  to determine how much land  and specifically which                                                               
land it gets  to keep.  This would essentially  mean that the NSB                                                               
would be left with "the leftovers."                                                                                             
3:14:52 PM                                                                                                                    
MR. MYLIUS said  the bill does not provide any  method for public                                                               
concerns with access or conflicts  with existing landowners.  The                                                               
DOT&PF has  indicated its existing process  handles that process;                                                               
however,  the  DOT&PF's  existing  process  pertains  to  highway                                                               
projects in terms  of road location, but does not  often get into                                                               
the specific location of gravel  pits for state highway projects.                                                               
Those  decisions  are  typically  subsequent  decisions  and  the                                                               
decisions about buffers  and similar issues are  made through DNR                                                               
at the  time it  executes a  gravel sale  to DOT&PF.   Therefore,                                                               
there isn't any  provision that allows for those  types of issues                                                               
to be dealt with, he said.                                                                                                      
3:15:31 PM                                                                                                                    
CHAIR P. WILSON, asked him to put his concerns in writing.                                                                      
CHAIR P.  WILSON, after first  determining no one else  wished to                                                               
testify, closed public testimony on HB 371.                                                                                     
[HB 371 was held over.]                                                                                                         
3:17:07 PM                                                                                                                    
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 3:17                                                               

Document Name Date/Time Subjects
HB371 AGC Support Letter.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB 371 Testimony of Dick Mylius .pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB 371 comments Smith.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
HB0343A.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343-Sponsor Statement.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343-Sectional Anaylsis.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343 DOTPF Presentation 3-13.msg HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOA-FAC-03-07-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOR-AHFC-03-07-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB343-DOT-SPF-3-13-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
Sustainable Energy Act Annual Report to Legislature 2013 (2013 12 26).pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 ASHRAE 90_1 Article.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 Standardized Designs DOTPF 3-13-14.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB-343 AHFC 3 13 14 FINAL.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
HB 343 CCHRC Presentation.pdf HTRA 3/13/2014 1:00:00 PM
HTRA 3/18/2014 1:00:00 PM
HB 343
4407 MOU (wo exhibits).pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
Egan SB211 Response.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
Happy Valley Docs.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
HB 371 - letter Milles 3-12-14.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
Project Flow Chart.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
SB 211
HB 371 Sectional Analysis.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
Wilson HB371 Response.pdf HTRA 3/18/2014 1:00:00 PM
HB 371
CSHB 371 Ver C Work Draft.pdf HTRA 3/18/2014 1:00:00 PM
HB 371