Legislature(2001 - 2002)
04/27/2001 03:42 PM Senate ASC
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT ARMED SERVICES COMMITTEE
April 27, 2001
3:42 p.m.
SENATE MEMBERS PRESENT
Senator Gary Wilken, Co-Chair
Senator Randy Phillips
Senator Loren Leman
Senator Bettye Davis
SENATE MEMBERS ABSENT
Senator Drue Pearce
HOUSE MEMBERS PRESENT
Representative Jeannette James
HOUSE MEMBERS ABSENT
Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative John Harris
Representative Reggie Joule
PUBLIC MEMBERS PRESENT
Dean Owen
George Vakalis
Jake Lestenkof
John Hoyt
Alan Walker
Chick Wallace
COMMITTEE CALENDAR
National Missile Defense System Update
Fire Island Logistics Project
WITNESS REGISTER
Mr. Paul Fuhs, Consultant
Cook Inlet Regional Incorporated
Juneau, AK 99801
Mr. Larry Crawford, President
Anchorage Economic Development Corporation
900 West Fifth Ave.
Anchorage, AK 99501
Mr. Michael Keane
Anchorage Economic Development Corporation
900 West Fifth Ave.
Anchorage, AK 99501
Mr. Chris Nelson
National Missile Defense
Department of Military and Veterans Affairs
PO Box 5800
Ft. Richardson, AK 99505-0800
ACTION NARRATIVE
TAPE 01-03, SIDE A
Number 001
CO-CHAIR GARY WILKEN called the Joint Armed Services Committee
meeting to order at 3:42 p.m. Present were Senators Leman, Phillips
and Co-Chair Wilken, Representative James, Mr. Lestenkof, Mr. Hoyt,
Mr. Vakalis, Mr. Owen, Mr. Walker and Mr. Wallace. Also present
were Representative Cissna and former committee staff member, Chris
Nelson. Co-Chair Wilken announced that several members were absent
due to conflicting committee schedules and that Mr. Alan Walker is
retiring and leaving the state so suggestions of names for his
replacement would be welcome.
The September 28, 2000 minutes were approved as presented with no
objection.
The first order of business was a status report on the Anchorage
Defense Logistics Initiative by the Anchorage Economic Development
Corporation (AEDC).
MR. OWEN reported that Mike Olsen, Karen Washburn and Dave Dean
from the Fairbanks' citizens advisory board were listening to the
meeting via teleconference.
FIRE ISLAND LOGISTICS PROJECT
MR. LARRY CRAWFORD, President of the Anchorage Economic Development
Corporation, introduced Michael Keane and Paul Fuhs to committee
members. AEDC has completed a study and identified a number of
very real opportunities that are worthy of pursuit. He asked Mr.
Keane to present the results of the study.
MR. MICHAEL KEANE, Director of Transportation for the AEDC, gave a
slide presentation on the Anchorage Defense Logistics Initiative.
As background, MR. KEANE said AEDC met with military leaders in
Alaska and Department of Defense (DOD) officials during the last 15
months and discussed the concept of a military global forward
mobility hub in Alaska. The system is based on Alaska's global
location: nine hours from any place in the Northern Hemisphere. The
military has also expressed interest in private partnerships
between private industry and the military's prime source
contractors. AEDC has been studying outsourcing that the military
and DOD want to use in their logistics program.
Alaska's location, its positive relationship with the military, the
existing commercial infrastructure with the cities of Anchorage and
Fairbanks and the logistics program started by the University of
Alaska Fairbanks are all very attractive qualities to the military.
The partnering concept would allow the military to piggyback on
existing commercial infrastructure in Alaska because outsourcing
with private enterprise will probably get them a better end product
and get their equipment to them faster.
AEDC met with the DoD officials and Alaska's congressional
delegation and developed the project plan to conduct the analysis.
DoD personnel have reviewed the plan to ensure the study would
provide the required information. To proceed with the global
logistics opportunity, an independent consultant was needed to
verify that Alaska is the correct location. Price Waterhouse
Coopers Group (PWC) proposal was selected as the most responsive.
The money needed to perform the analysis came from the legislature,
the Municipality of Anchorage, The Fairbanks Northstar Borough and
matched private sector contributions. A steering committee was then
formed to oversee and guide the project. During that time, AEDC
met with DoD officials and presented the "Why Alaska?" case to make
sure Alaska was on track and to get feedback.
Copies of the final draft of the Price Waterhouse Coopers' (PWC)
report were given to committee members and a copy was placed in the
committee file. The report's two major findings are:
· An Anchorage-based commercial distribution center could be
beneficial to war fighters in the North Pacific and Europe for
resupply of certain high-cost items.
· Anchorage's capability to supply refined JP-8 fuel could
provide effective support to Pacific Rim conflicts during the
surge and sustain phases, while reducing the risk of reliance
on foreign-soil refineries.
The cover letter sent out with the report pointed out opportunities
and recommendations. AEDC must focus on vendor and war fighter
requirements and develop the details and support for specific
operations. PWC provided AEDC with a list of the top 100 DOD
vendors and ADEC must now decide which items could logically be
distributed from Alaska.
Williams of Alaska now has a project underway to increase its fuel
capacity in the Port of Anchorage and this could be advantageous in
a surge operation.
Several other opportunities were identified in the analysis:
maintenance functions, repair and calibration of high value mission
critical items, training exercises, humanitarian mission logistic
support and other activities for which Alaska is uniquely qualified
because of its location and capabilities.
Finally, the report will go to DOD and Alaska's congressional
delegation and AEDC will work to obtain funding to implement the
recommendations and continue to market Alaska to DOD and prime
source contractors.
CO-CHAIR WILKEN asked if there were any questions.
SENATOR LEMAN asked, regarding the slide entitled "Next Steps,"
whether the funding to implement the study recommendations would
come from a federal or state source.
MR. KEANE said state and private matching funds would be used.
CO-CHAIR WILKEN reported for the record that Senator Davis and
Representatives Harris and James joined the meeting.
MR. CRAWFORD said apart from the specific opportunities, one of the
values of the study is to make the military much more aware of the
capabilities in Alaska. Most military personnel are aware of
Alaska's strategic location but many are not aware of its
infrastructure available to satisfy some of their requirements.
MR. PAUL FUHS, AEDC project consultant, pointed out the importance
of the fuel resupply capability in Alaska is that during times of
conflict, refineries are primary targets to cripple aircraft
operation. Alaska is close to the Asian theatre and has indigenous
refining capacity. He added that fuel only has a six-month to one-
year shelf life but Alaska has other commercial uses so as fuel
gets close to the pull date, that fuel can be sold to another
market. The military will actually pay to hold the federal fuel
reserves.
CO-CHAIR WILKEN asked whether the fuel option would require more
tankage.
MR. FUHS said it could and, in that case, it could be paid for with
a federal appropriation or a contract with a private supplier. It
might also require more refining capacity. He was interested to
hear Congressman Young say that the West Coast does not have the
refining capacity so more refining should be done in Alaska.
MR. CRAWFORD added, with the new administration, the military is
looking at how they should do business so it is a good time for
Alaska to be presenting its capabilities. Also, as military
opportunities are pursued, commercial opportunities should be
pursued as well.
MR. LESTENKOF asked if the next step is to make a presentation to
DOD representatives in Washington, D.C. and to talk to the war
fighter about some of their requirements. AEDC will also be
working with the military vendors.
MR. CRAWFORD said that is correct but they would also be working
with military vendors to identify the benefits of having some
needed supplies pre-positioned in Anchorage.
MR. LESTENKOFF asked if AEDC plans to brief any of the military
players in the Pacific before going to Washington.
MR. CRAWFORD replied they have met with General Case and they have
been encouraged by General Guan (ph) to deliver the information to
DoD.
MR. LESTENKOFF asked whether the Alaska Command (ALCOM) had been
apprised.
MR. CRAWFORD said it has; they have worked closely with General
Case and with General Schwartz since he has taken over the command.
AEDC also worked with General Oates since the appropriation was
made to the Alaska Department of Military and Veterans Affairs.
AEDC is interested in the opportunities a defense system may bring
so it will continue to work with them.
MR. OWEN informed committee members that Gordie Lewis, an advisory
council member from Fairbanks, was present.
MR. CRAWFORD commented that the Fairbanks North Star Borough
contributed to the study and had a representative on the steering
committee. Should AEDC be successful in acquiring additional funds
from the state, it would expect Fairbanks to continue to have a
seat on the steering committee while funds would be raised from the
private sector.
CO-CHAIR WILKEN informed the committee that Mr. Brophy (ph), a
former member from Fairbanks, has moved on to Usibelli Coal and was
replaced by Mr. Owen. He then asked if this project is still part
of the Quadrennial Review or whether it has gone on a separate
track.
MR. CRAWFORD said the Quadrennial Review is taking longer than
anticipated since the new administration is reviewing military
projects. He felt Alaska is well positioned. He pointed out that
a consultant from PWC is a civilian member of the Quadrennial
Review group that is defining policy on how it will proceed. He
stated that he is coming to the state at this late date because
AEDC wanted to make sure that it got all necessary input from the
military. This project has been out for review for some time but
AEDC has only received comments just recently, at which time it was
able to close out the report.
MR. FUHS added that deadlines have been pushed back because of the
delay in the results of the election. Some of the key people who
this report needs to be presented to have just now been appointed.
Each member of Alaska's congressional delegation has a military
liaison. AEDC has coordinated closely with them; they have been
extremely supportive in this effort.
CO-CHAIR WILKEN referred to the six opportunities listed on the top
of page 2 of the PWC report and asked whether they are listed in
random manner or whether they are prioritized.
MR. CRAWFORD did not know whether they are in priority order but
noted they are all viable concepts for study. Mr. Crawford said
that PWC did a lot of work that is not apparent from the report.
They are making a model available to AEDC so that it can test
specific items.
SENATOR LEMAN thanked those in Fairbanks who provided funds for the
report. He stated support for AEDC's request for additional state
funds and recommended that members consider this project to be a
statewide effort.
CO-CHAIR WILKEN informed members that the Senate Finance Committee
has received a request for $150,000 and is in the process of
reviewing that request right now. He thanked Mr. Crawford, Mr.
Keane, and Mr. Fuhs for attending the meeting.
NATIONAL MISSILE DEFENSE SYSTEM UPDATE
MR. CHRIS NELSON, State Coordinator for National Missile Defense,
Alaska Department of Military and Veterans' Affairs (DMVA),
informed committee members that one reason the Joint Armed Services
Committee (JASC) was formed was to focus on the issue of national
missile defense and to facilitate its deployment in Alaska. The
most immediate and timely piece of news is that last week, Major
General Nance, the director of the National Missile Defense Joint
Program Office, and Mr. Jim Evatt, President of the Boeing Company,
visited Alaska. This is the first time the top management of the
Boeing team, the prime contractor on national missile defense,
visited Alaska. The trip was very productive. Mr. Evatt and
General Nance visited Clear, where the upgraded Early Warning Radar
is now on-line, and then attended meetings at Ft. Greely.
Yesterday, they had an opportunity to meet with the top leadership
of Boeing's national missile defense team and state officials. The
Department of Community and Economic Development made a strong
presentation on doing business in Alaska.
MR. NELSON said the most positive announcement is that Mr. Evatt
said that as soon as the presidential deployment decision is made,
Boeing intends to open two Alaska offices, one in Anchorage and one
in Fairbanks.
Regarding the status of national missile defense, MR. NELSON told
committee members the situation has changed with the change of
administrations. President Bush has announced his strong support
for a comprehensive national missile defense system and is looking
at all options, including Alaska. The other options include more
robust sea-based systems, space-based systems, and an overall
comprehensive involvement with our allies to provide a missile
security system that will be global in its context. Secretary
Rumsfeld is studying the options and President Bush is to make a
speech on Tuesday on missile defense. That will set the groundwork
for Secretary Powell to enter into discussions with our allies and
with Russia.
The Anti-Ballistic Missile Defense (ABM) Treaty, as currently
configured, limits both Russia and the United States to a single
missile site. The Clinton Administration was developing a program
it believed would be Treaty-compliant. Alaska was the preferred
site in that program and the Clinton Administration was negotiating
with Russia to shift under the terms of the Treaty the designated
site, which in 1972 was North Dakota. Alaska was chosen because it
is the only geographic location from which all 50 states can be
defended.
President Bush said he is looking beyond that and is pursuing a
more robust program as well as diplomatic initiatives. The sea-
based systems are prohibited by the ABM Treaty. He is also looking
at integrating the variety of our radar systems to provide a single
integrated air picture. Again, portions of that system are
prohibited by the ABM Treaty. Some of the projects that were
proposed for Alaska will not happen as immediately as hoped; one
being the X-band radar on Shemya. The barge lift to Shemya is
constricted by weather. Contracts to purchase materials must
follow federal procedures and the window is closed for the next
building period on Shemya so it will be postponed for about a year.
It looks like Alaska will not be getting the partial decision on
Shemya that everyone was hoping for. On the other hand, in
speaking with staff at the joint program office, they are sure that
the projects planned for Alaska will be the first part of a more
comprehensive missile defense system for the United States. He
informed committee members that the State of Alaska has been
working actively and doing everything possible without preempting
the presidential decision. Once Alaska gets the green light, it
will be ready to hit the deck running and support the construction
of that system. He thanked members for their strong support.
MR. NELSON recognized the presence of Janice Neilsen, legislative
liaison for the U.S. Army Pacific.
CO-CHAIR WILKEN asked the status of launches out of Kodiak.
MR. NELSON said one, and possibly two, launches are coming up.
Kodiak has been designated as the site of test flights for the
radar - not intercept flights. Launching from Kodiak provides a
very good picture of what a missile attack on the United States
would look like. Kodiak is now part of the national missile
defense architecture.
CO-CHAIR WILKEN asked if Ft. Greely will be closed down and brought
back up again.
MR. NELSON said the Ft. Greely action is a realignment. The
specific Base Realignment and Closure (BRAC) statute says that the
Northern Warfare Training Center and the Cold Region Test Center
(two activities based at Ft. Greely) will be realigned to Ft.
Wainwright and that the Garrison will be closed. That action will
be completed as scheduled on July 1. US Army Alaska (USARAK) has
funding in place to keep a residual workforce on Ft. Greely for at
least the next two fiscal years. That workforce will consist of 10
soldiers and 55 civilian employees this year and eight soldiers and
58 civilians next year. Ft. Greely will be in "warm base status" -
the base will be maintained but no military activities will take
place. The movement to Ft. Wainwright of the Northern Warfare
Training Center and the Cold Region Test Center is just about
complete. Overall, Alaska did not lose any military or civilian
positions in the realignment but those based in Ft. Greely and
Delta Junction were shifted up to Ft. Wainwright, which is what has
caused a severe economic impact on Delta Junction.
MR. VAKALIS clarified that even though no military activities are
being conducted at Ft. Greely, that does not preclude using the
training areas.
MR. NELSON agreed and added the U.S. Army is retaining the range
areas around Ft. Greely under the plans for civilian reuse. The
Army identified approximately 1700 acres that could be transferred
for civilian reuse if someone wanted to reuse the facilities and
they were declared surplus. The 1700 acres included the old Ft.
Greely contonement area but it did not include Allen Army Airfield,
which USARAK is retaining as well.
CO-CHAIR WILKEN informed participants that the Senate passed the
adjutant general legislation [HB 72] today.
MR. NELSON said Alaska should be proud of what the Alaska
Legislature and Administration have done to get the state ready to
support this activity. HB 72 sends a clear message to Washington,
D.C. that Alaska is very serious about having a national missile
defense system here. The national missile defense system is
designed to be run by a unit of the Alaska Army National Guard.
MR. LESTENKOF asked Mr. Nelson if he is knowledgeable about the
proposed fiber optic run to Shemya.
MR. NELSON said he is learning more about it. He stated,
When we first started talking fiber optics, Boeing had
indicated its desire to try to tie into an international
organization called FLAG - FLAG stood for Fiber Links
Around the Globe. But this is an international company
whose goal was to link countries and they were looking to
come across the Pacific and Boeing had initially thought
about teaming with them. Mr. Evatt told us that after
lengthy negotiations with them, they did not see a
commonality in purpose and so Boeing is no longer looking
at FLAG to provide the fiber optic links. There will be
fiber optics involved and this gives us an opportunity to
work with them and see what we can do. I need to be
talking to their folks next week to really get an idea on
where they want to bring fiber links ashore and see what
we can do on that but we do have an emerging opportunity
at this point to play a bigger role in the fiber optic
part of this than we had - really up until last week.
MR. LESTENKOF suggested that a spur to the Kodiak launch facilities
would be helpful.
CO-CHAIR WILKEN asked Ms. Neilsen to address the committee.
MS. NEILSEN, Director of Governmental and Legislative Affairs for
U.S. Army Pacific at Fort Shafter, Hawaii, offered the following
analysis of what will be happening with BRAC. BRAC is one of 17
areas that Secretary Rumsfeld is studying in conjunction with the
Quadrennial Defense Review. Future BRAC rounds are anticipated,
however the federal government is not expected to put BRAC within
the legislation this year. That is more likely to occur next year,
after Secretary Rumsfeld's recommendations come forward. The way
closures occur in the future is under study, particularly whether a
commission will be appointed as in the past or whether the actual
selection of closure sites will be handled differently. One area
now being advocated is to look at joint usage of military
facilities and that would be favored in Alaska since many of the
Army-Air Force installations are run jointly. Also, Secretary
Rumsfeld is looking at whether to have one or two BRAC rounds.
TAPE 01-3, SIDE B
MR. VAKALIS suggested that the JASC plan one meeting to focus on
strategizing future activities to prepare for the next BRAC rounds.
Once people begin anticipating BRAC, they will be begin to protect
their bases and he does not want to see Alaska "behind the eight
ball."
CO-CHAIR WILKEN said he would discuss that with Co-Chair Mulder.
MR. NELSON agreed and pointed out that he and Colonel Vakalis
selected a BRAC team in 1995. That team was very effective but a
lot of luck was involved because Alaska was late in getting to the
table. He suggested being proactive and arranging to meet this
summer. He stated that the biggest lesson Alaska learned from the
last BRAC round was that the single service analysis of each of
their bases did not fully take into account some of the advantages
that, particularly, the Elmendorf-Ft. Richardson complex offers,
being co-located on the same military reservation. The analytical
tools being used could not measure those kinds of synergies.
Alaska needs to work, at the beginning of the process, to make sure
that joint considerations are included in the analysis.
There being no further business to come before the committee, CO-
CHAIR WILKEN thanked all members and participants for attending and
adjourned the meeting.
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