Legislature(2011 - 2012)SENATE FINANCE 532

02/29/2012 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSSB 140(JUD) Out of Committee
Moved CSSB 144(FIN) Out of Committee
Heard & Held
+ FY13 Capital Budget: Agency Overviews TELECONFERENCED
Dept. of Law
Dept. of Commerce, Community & Economic Dev.
Dept. of Revenue
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 29, 2012                                                                                          
                         9:04 a.m.                                                                                              
9:04:50 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair  Hoffman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:04 a.m.                                                                                                   
MEMBERS PRESENT                                                                                                               
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Senator  Kevin Meyer;  Christine  Marasigan, Staff,  Senator                                                                    
Kevin   Meyer;  Darwin   Peterson,  Staff,   Senate  Finance                                                                    
Committee;  Senator   Cathy  Giessel;  Jim   Cantor,  Deputy                                                                    
Attorney  General,   Department  of  Law;  Susan   K.  Bell,                                                                    
Commissioner,   Department   of  Commerce,   Community   and                                                                    
Economic Development; Jo  Ellen Hanrahan, Director, Division                                                                    
of   Administrative   Services,  Department   of   Commerce,                                                                    
Community and Economic Development                                                                                              
PRESENT VIA TELECONFERENCE                                                                                                    
Sara   Fisher-Goad,   Executive  Director,   Alaska   Energy                                                                    
SB 140    CATHINONE BATH SALTS                                                                                                  
          CS SB 140 (JUD) was REPORTED out of committee                                                                         
          with a "do pass" recommendation and with four                                                                         
          previously published fiscal notes: FN1 (LAW), FN2                                                                     
          (DPS), FN3 (DOC), and FN4 (DOA).                                                                                      
SB 144    STATE IMMUNIZATION PROGRAM                                                                                            
          CS SB 144 (FIN) was REPORTED out of committee                                                                         
          with a "do pass" recommendation and with a new                                                                        
          fiscal impact note from the Senate Finance                                                                            
          Committee for the Department of Health and Social                                                                     
SB 160    BUDGET: CAPITAL                                                                                                       
          SB 160 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
SENATE BILL NO. 140                                                                                                           
     "An Act classifying certain substances as schedule IIA                                                                     
     controlled substances; and providing for an effective                                                                      
9:06:07 AM                                                                                                                    
SENATOR  KEVIN MEYER,  recalled prior  legislation regarding                                                                    
synthetic  marijuana, and  stated  that synthetic  cathinone                                                                    
"bath salts" were  sold on the street much  like cocaine. He                                                                    
stressed  that  using  the cathinone  bath  salts  had  very                                                                    
harmful effects, and felt that  they should be made illegal.                                                                    
He explained  that cathinone bath  salts were  not currently                                                                    
detected  by  drug testing,  so  if  they  were to  be  made                                                                    
illegal, he  hoped the crime  lab would  test for them.   He                                                                    
explained that there  were some minor changes  that had been                                                                    
made  to the  bill in  the Judiciary  Committee. Originally,                                                                    
the  bill had  been  introduced  on behalf  of  the City  of                                                                    
Anchorage,  but  the  problem is  state-wide.  The  City  of                                                                    
Anchorage   wanted  "possession   at  any   amount"  to   be                                                                    
classified a felony, but  the Judiciary Committee determined                                                                    
that possession would  only be considered a  felony at large                                                                    
quantities.  A first-time  user  of the  bath  salts with  a                                                                    
small quantity would be considered a class-A misdemeanor.                                                                       
9:08:32 AM                                                                                                                    
Senator Olson wondered  if bath salts would  be considered a                                                                    
schedule 1-A controlled substance.                                                                                              
CHRISTINE  MARASIGAN, STAFF,  SENATOR  KEVIN MEYER,  replied                                                                    
that  the Drug  Enforcement  Agency had  emergency-scheduled                                                                    
bath salts, so  it would be considered a  class-1 drug under                                                                    
federal  law. However,  in order  for the  bath salts  to be                                                                    
considered illegal  in the state,  legislation needed  to be                                                                    
Co-Chair Hoffman noted the  four previously published fiscal                                                                    
notes. He closed public testimony.                                                                                              
Senator  Ellis  MOVED to  report  CS  SB  140 (JUD)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note(s). There  being NO  OBJECTION, it                                                                    
was so ordered.                                                                                                                 
CS SB  140 (JUD) was  REPORTED out  of committee with  a "do                                                                    
pass"  recommendation  and  with four  previously  published                                                                    
fiscal  notes: FN1  (LAW),  FN2 (DPS),  FN3  (DOC), and  FN4                                                                    
SENATE BILL NO. 144                                                                                                           
     "An Act temporarily reinstating the child and adult                                                                        
     immunization program in the Department of Health and                                                                       
     Social Services; and providing for an effective date."                                                                     
9:11:14 AM                                                                                                                    
Senator  Ellis   MOVED  to  ADOPT  the   proposed  committee                                                                    
substitute  for  CS SB  144  (FIN),  Work Draft  27-LS1068\R                                                                    
(Mischel,  2/21/21). Co-Chair  Hoffman OBJECTED  for purpose                                                                    
of discussion.                                                                                                                  
DARWIN PETERSON, STAFF,  SENATE FINANCE COMMITTEE, discussed                                                                    
the  sectional changes  in the  work draft.  He pointed  out                                                                    
page 3, line  3, and explained that the  previous version of                                                                    
SB 144 stated  that for children under 19 years  of age, the                                                                    
Commissioner  may   approve  any  vaccines  that   had  been                                                                    
specifically  prohibited.  He  noted  that page  3,  line  4                                                                    
included new language  that said for a child  under 19 years                                                                    
of age,  all vaccines  required for school  attendance would                                                                    
be  provided.  Also,  there  was  a  specific  inclusion  of                                                                    
meningococcal,  human papillomavirus  (HPV), and  rotavirus.                                                                    
The  previous  version  of the  bill  specifically  included                                                                    
influenza,  pneumococcal, and  TDAP  vaccines. The  proposed                                                                    
work draft, on  page 3, line 7, added  the Shingles vaccine.                                                                    
He  explained  that the  previous  version  allowed for  the                                                                    
Commissioner to  add or subtract  vaccines for  inclusion in                                                                    
the  program based  on nationally  recognized public  health                                                                    
standards and  the availability of  funding. The  work draft                                                                    
changed that  language by stating that  the Commissioner can                                                                    
add vaccines for inclusion based  on recommendations and the                                                                    
availability of funding, and  only allowing the Commissioner                                                                    
to subtract  vaccines from  the program  if the  disease had                                                                    
been  declared   eradicated  by  the  Centers   for  Disease                                                                    
Control.  He  stated  that  it would  be  incumbent  on  the                                                                    
legislature  to be  sure  the program  is  fully funded  for                                                                    
three  years,  since the  Commissioner  was  not allowed  to                                                                    
subtract  vaccines.  He  noted   the  new  fiscal  note  had                                                                    
increased the cost of the program to $4.632 million.                                                                            
Senator Olson wondered if  the proposed committee substitute                                                                    
had the  support of  the Commissioner  of the  Department of                                                                    
Health  and Social  Services  (DHSS).  Mr. Peterson  replied                                                                    
that  a representative  from DHSS  was available  to testify                                                                    
regarding  their   support.  He  explained  that   DHSS  had                                                                    
expressed   concern  regarding   the   flexibility  of   the                                                                    
Commissioner    to   add    or   subtract    vaccines.   The                                                                    
Commissioner's oversight was restricted  in order to prevent                                                                    
political  influence   to  add  or  subtract   vaccines.  He                                                                    
stressed  that the  change made  for  the children  vaccines                                                                    
allowed  some  flexibility  for  the  Commissioner,  because                                                                    
there was a statute that declared,                                                                                              
     In  the  judgment of  the  Commissioner  of Health  and                                                                    
     Social Services,  if it is  necessary for  the children                                                                    
     and general  public, then vaccines can  be administered                                                                    
     to children.                                                                                                               
Senator  Olson wondered  if the  parents had  the option  of                                                                    
opting out  of the  HPV vaccine.  Mr. Peterson  replied that                                                                    
parents had that option.                                                                                                        
Co-Chair  Hoffman  removed  his objection.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
SENATOR CATHY GIESSEL, introduced herself.                                                                                      
Co-Chair Hoffman requested  a review of the  SB 144. Senator                                                                    
Giessel   stated  that   in  previous   years  the   federal                                                                    
government  had  provided  the State  of  Alaska  with  $4.3                                                                    
million  for  the  vaccine  program,   and  the  amount  had                                                                    
currently  decreased  to  $700,000.   She  stated  that  the                                                                    
governor  had  included  an   additional  $700,000  for  the                                                                    
vaccination  program  in his  proposed  budget.  SB 144  was                                                                    
designed to provide  state funding for the  remainder of the                                                                    
cost of  for the  vaccine program.  She stressed  that there                                                                    
would be a  loss of preventative medicine in  Alaska, if the                                                                    
bill did not pass.                                                                                                              
Senator Olson  wondered if Senator  Giessel was in  favor of                                                                    
the proposed  committee substitute. Senator  Giessel replied                                                                    
that she was in favor of the proposed committee substitute.                                                                     
Senator  Ellis  MOVED to  report  CS  SB  144 (FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
CS SB  144 (FIN) was  REPORTED out  of committee with  a "do                                                                    
pass" recommendation and with a  new fiscal impact note from                                                                    
the Senate  Finance Committee for  the Department  of Health                                                                    
and Social Services.                                                                                                            
SENATE BILL NO. 160                                                                                                           
     "An Act  making and amending  appropriations, including                                                                    
     capital   appropriations   and  other   appropriations;                                                                    
     making   appropriations   to  capitalize   funds;   and                                                                    
     providing for an effective date."                                                                                          
9:18:20 AM                                                                                                                    
Department of Law                                                                                                             
JIM  CANTOR, DEPUTY  ATTORNEY  GENERAL,  DEPARTMENT OF  LAW,                                                                    
explained  that the  main budget  request  was to  set up  a                                                                    
computerized  system  for  the Department  of  Law's  (DLAW)                                                                    
charitable  trust   registration.  It  was   the  non-profit                                                                    
organization  for professionals  who helped  the individuals                                                                    
raise money. There  were $2500 charities in  Alaska who were                                                                    
required  to undergo  a  paper-driven registration  process,                                                                    
which take  an attorney  and paralegal 750  hours a  year to                                                                    
manage. He  felt that the computerized  system would benefit                                                                    
the  charities and  the public,  but also  free up  DOL work                                                                    
hours  to  focus  on   other  consumer-protection  work  for                                                                    
Senator Egan  wondered if the  program would be set  up like                                                                    
the  MyAlaska portal.  Mr. Cantor  replied that  he did  not                                                                    
know what portal  would be used. Senator Egan  felt that the                                                                    
MyAlaska was  a very effective  and easy portal.  Mr. Cantor                                                                    
agreed to look into it.                                                                                                         
Senator  Thomas  wondered  if   this  legislation  would  be                                                                    
related  to the  PickClickGive program.  Mr. Cantor  replied                                                                    
that  many of  the same  charities were  connected with  the                                                                    
PickClickGive program.                                                                                                          
Senator Thomas  surmised that the  request was for  money to                                                                    
automate  or hire  a contractor  to  advise DLAW  on how  to                                                                    
automate the  program. Mr. Cantor affirmed  Senator Thomas's                                                                    
9:22:22 AM                                                                                                                    
Department of Commerce, Community and Economic Development                                                                    
SUSAN  K.   BELL,  COMMISSIONER,  DEPARTMENT   OF  COMMERCE,                                                                    
COMMUNITY AND ECONOMIC DEVELOPMENT, introduced herself.                                                                         
Commissioner Bell  stated that  the Department  of Commerce,                                                                    
Community and Economic  Development's (DCCED) capital budget                                                                    
request  totaled $178  million. She  felt that  the proposed                                                                    
projects  would   help  DCCED   achieve  their   mission  of                                                                    
promoting  a   healthy  economy,  strong   communities,  and                                                                    
protecting  consumers   in  Alaska.  She  stated   that  the                                                                    
organization  of the  requests  begain  with the  department                                                                    
priorities. She noted that there  were more than $60 million                                                                    
in energy projects and $10  million in community development                                                                    
RN 54070                                                                                                                        
Economic Development Initiative                                                                                                 
Commissioner Bell  explained that the project  would augment                                                                    
marketing tactics  including increased presence  at industry                                                                    
trade shows, developing  new online/web content, interactive                                                                    
media tools, outreach to the  business community to identify                                                                    
new market potential and increase  sales of Alaska products.                                                                    
Building on the Alaska  Product Preference program housed in                                                                    
DCCED,  we  will work  with  Alaska-owned  assets (i.e.  the                                                                    
Alaska Railroad,  Alaska Marine Highway, state  prisons, the                                                                    
university system, and other  Alaska institutions) and other                                                                    
commercial and  institutional buyers to Buy  Alaska. Through                                                                    
this  effort,  DCCED  will  focus   on  marketing  core  and                                                                    
emerging industries,  natural resource  endowment, strategic                                                                    
global location and the state's  emerging Arctic Frontier as                                                                    
an opportunity for economic investment.  She stated that his                                                                    
initiative will  add much needed  strategies and  tactics to                                                                    
the state's marketing programs.  First, it will leverage and                                                                    
include  existing  state  programs  now  underperforming  in                                                                    
their  marketing efforts.  Secondly,  it will  add value  to                                                                    
general economic development programs  in Alaska by matching                                                                    
businesses  with potential  markets. And,  finally, it  will                                                                    
begin to allow DCCED to  extend Alaska's brand in the global                                                                    
marketplace.  A fraction  of the  state's investment  in the                                                                    
tourism  and  seafood  industries,  this  investment  allows                                                                    
DCCED to  significantly expand  awareness, value,  and sales                                                                    
in other industry sectors.                                                                                                      
Commissioner  Bell  stated  that   in  preparation  for  the                                                                    
state's five-year  comments on  Tongass Land  Use Management                                                                    
Plan  (TLMP), DCCED  will review  timber sales  in Southeast                                                                    
Alaska  for  economic  value, evaluate  market  demand,  and                                                                    
develop recommendations that  optimize Tongass resources and                                                                    
job creation potential.                                                                                                         
Co-Chair Hoffman queried  the time of the  last analysis for                                                                    
the evaluation  of TLMP. Commissioner  Bell replied  that an                                                                    
analysis of TLMP was run five years prior.                                                                                      
Commissioner Bell explained that  DCCED will study potential                                                                    
for Alaska  as an  Arctic gateway  for container  ships, oil                                                                    
tankers, cruise  ships, and other  vessels to  Asia, Europe,                                                                    
and  other global  destinations.  The department's  economic                                                                    
development  specialists  will   contribute  their  resource                                                                    
development  expertise  and  gather business  and  community                                                                    
leader  opinions  for  the   Tongass  and  Arctic  projects.                                                                    
Additionally,  the  Division  of Economic  Development  will                                                                    
contract for  professional services to obtain  the technical                                                                    
expertise needed  on global market demand,  industry trends,                                                                    
competition, and infrastructure development.                                                                                    
9:26:57 AM                                                                                                                    
Co-Chair  Hoffman felt  that the  subject  was an  important                                                                    
aspect  to  ensure  that  the  rest  of  the  United  States                                                                    
identified Alaska as an Arctic  nation. He wondered how much                                                                    
of  the  $1.77  million  would be  expended  on  the  Arctic                                                                    
gateway  item.  Commissioner  Bell  replied  that  when  the                                                                    
budget  was initially  drafted, $1.4  million would  be used                                                                    
for  the marketing  initiative and  $300,000 for  the Arctic                                                                    
TLMP.  She furthered  that she  was  currently working  with                                                                    
other agencies to determine the best distribution of money.                                                                     
Co-Chair  Hoffman noted  that Senator  McGuire had  informed                                                                    
the Arctic  caucus that Alaska  needed to be brought  to the                                                                    
forefront as an Arctic nation.                                                                                                  
Co-Chair  Hoffman  stressed  that   the  budget  for  FY  13                                                                    
included a  request for $1.77 million,  but subsequent years                                                                    
to 2017  there was a  projection of returning to  the status                                                                    
quo of $400,000. He wondered  why there would be a reduction                                                                    
in  funding.  Commissioner  Bell   replied  that  the  first                                                                    
required much  more funding due  to market  research, public                                                                    
relations efforts,  and new marketing materials.  She stated                                                                    
that  completion of  the scope  of work  for the  Arctic and                                                                    
TLMP  was  anticipated  in   FY  13.  Therefore,  additional                                                                    
funding would not be needed.                                                                                                    
Senator Ellis  commented that there were  many opportunities                                                                    
for  film  companies  to  come   to  Alaska.  He  felt  some                                                                    
frustration that there  may not be enough staff  in DCCED to                                                                    
accommodate the demand. He noted  that he had encouraged the                                                                    
administration to  increase the  funds to meet  the staffing                                                                    
requirements.  He  requested  a  comment  on  the  film  and                                                                    
television  industry  impact  on  DCCED.  Commissioner  Bell                                                                    
responded that  DCCED had focused  on working as a  team, as                                                                    
well  as with  other agencies.  Whereas, in  previous years,                                                                    
there were  specific people assigned  to specific  areas, so                                                                    
it was  difficult to  achieve full success  in all  that was                                                                    
required  in economic  development.  She  remarked that  the                                                                    
film   and  television   aspect   of   the  department   was                                                                    
highlighted  as  an  initiative in  order  to  evaluate  the                                                                    
distinctive successes.                                                                                                          
9:32:38 AM                                                                                                                    
Senator Ellis  commented that Alaskan product  placement was                                                                    
integral to the film and  television industry, and felt that                                                                    
cross-promoting was "brilliant."                                                                                                
Senator  Thomas  wondered  what  portion  of  the  marketing                                                                    
request  would be  expended for  the potential  of marketing                                                                    
Alaska's gas to Japan  and other Asian nations. Commissioner                                                                    
Bell  replied that  there was  work with  other oil  and gas                                                                    
industry executives to refine  ways to bolster visibility in                                                                    
the oil and gas industry.                                                                                                       
Senator  Thomas wondered  if there  was  a concerted  effort                                                                    
regarding  oil and  gas industry  visibility, and  felt that                                                                    
someone  should  focus  more on  that  marketing  potential.                                                                    
Commissioner  Bell remarked  that DCCED  would keep  Senator                                                                    
Thomas's concerns in  mind as they continue  to refine their                                                                    
Senator Thomas  stressed that Japan  and other  nations were                                                                    
looking to  purchase gas from  the east coast of  the United                                                                    
States, and  transporting it to Japan-which  was almost half                                                                    
way  around the  world.  He declared  that  Alaska was  much                                                                    
closer  to  Japan,  and  felt  that there  needed  to  be  a                                                                    
vigorous effort to sell gas to Japan.                                                                                           
RN 54793                                                                                                                        
Strategic Minerals Implementation                                                                                               
Commissioner Bell explained that  this project would provide                                                                    
funding to  develop and  begin to  implement a  strategy for                                                                    
developing  the State  of Alaska's  vast rare  earth element                                                                    
resources.  The goal  would be  to have  mineral development                                                                    
underway in 2-3 years. Alaska  has an opportunity to pioneer                                                                    
research  and   industry  development  related   to  mineral                                                                    
extraction, processing, and  value-added services. Given our                                                                    
mineral  resources,   strategic  location,  and   access  to                                                                    
national   and  international   markets,  Alaska   can  gain                                                                    
significance   to  a   wide  array   of  manufacturers   and                                                                    
industries  including  renewable   energy,  automotive,  and                                                                    
personal  electronics. Developments  related  to rare  earth                                                                    
elements and other strategic minerals  will be applicable to                                                                    
Alaska's broader mining industry  in terms of cost-effective                                                                    
recovery of metals and purification.                                                                                            
9:37:55 AM                                                                                                                    
RN 38946                                                                                                                        
Community Block Grants                                                                                                          
JO  ELLEN  HANRAHAN,  DIRECTOR, DIVISION  OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  COMMERCE,  COMMUNITY AND  ECONOMIC                                                                    
DEVELOPMENT,  stated  that  the   program  was  a  long-term                                                                    
federally funded  program that allowed the  state to provide                                                                    
grants  to  communities  and non-profit  organizations.  The                                                                    
grant recipients  then provide services or  benefits to low-                                                                    
or moderate-income individuals. The  focus of the grants was                                                                    
to provide  health and safety  of local  residents; reducing                                                                    
the  cost of  essential community  services; and  preventing                                                                    
poverty through education.                                                                                                      
Ms. Hanrahan  explained that the federally  funded community                                                                    
services  block  grant,  which was  $3  million  in  federal                                                                    
money.  That federal  money passed  through the  state to  a                                                                    
community  action  agency:   Rural  Alaska  Community  Acton                                                                    
Program (RurAL CAP).  RurAL CAP's mission is  to protect the                                                                    
heritage of, while  also improving the quality  of life for,                                                                    
low-income  rural  Alaskans.  This is  accomplished  through                                                                    
educational  programs   such  as  alcohol  and   drug  abuse                                                                    
prevention  programs,  fetal   alcohol  syndrome  prevention                                                                    
programs,  and child  development programs;  adult training;                                                                    
affordable   housing  programs;   advocacy  for   low-income                                                                    
individuals  and   instruction  on   how  to   advocate  for                                                                    
Co-Chair  Hoffman  felt  that  the  request  was  high,  and                                                                    
queried  if there  was an  upper  limit on  the grants.  Ms.                                                                    
Hanrahan replied that the community  services grants did not                                                                    
have  an upper  limit, and  the community  development block                                                                    
grants had  an upper limit. Co-Chair  Hoffman furthered that                                                                    
the upper  limit of the  community development  block grants                                                                    
was $850,000.                                                                                                                   
Ms.  Hanrahan  looked  at the  community  development  block                                                                    
grants, and stated  that the program provided  grants not to                                                                    
exceed  $850.0 to  municipalities  for planning  activities,                                                                    
infrastructure    projects,    and   economic    development                                                                    
activities    which   benefit    low   to    moderate-income                                                                    
individuals. This program has  been in existence since 1983.                                                                    
The U.S.  Department of Housing and  Urban Development (HUD)                                                                    
provides  the   funding,  which  ranges  from   $3,000.0  to                                                                    
$3,500.0 annually with a state required match of 2 percent.                                                                     
RN 38943                                                                                                                        
Community Development and Assistance                                                                                            
Ms. Hanrahan  stated that  this appropriation  would provide                                                                    
development opportunities and  assistance to communities and                                                                    
non-profit  organizations for  community development.  These                                                                    
programs   contribute  to   the   department's  mission   of                                                                    
promoting  a  healthy  economy  and  strong  communities  by                                                                    
providing economic growth in the communities it serves.                                                                         
9:43:19 AM                                                                                                                    
Ms.  Hanrahan  detailed  the  Community  Air  Photo  Mapping                                                                    
Grant:  Since  2002,  DCCED has  coordinated  production  of                                                                    
mapping products  in 18 areas throughout  the state. Funding                                                                    
for  projects  came  from  federal  programs,  state  funded                                                                    
construction  projects,  regional  entities,  or  the  local                                                                    
community.  The Denali  Commission,  DOT&PF, and  USDA-Rural                                                                    
Development were  the primary sources  of matching  funds to                                                                    
cover approximately 50 percent  of the mapping contract; the                                                                    
other 50 percent  came from regional or  local partners. The                                                                    
Division  of Community  and Regional  Affairs'  role was  to                                                                    
coordinate  the  funding   partners,  define  the  technical                                                                    
criteria for the  final map product, and  oversee the review                                                                    
of  the maps  as  they were  developed  by contractors.  The                                                                    
three areas  of the  state that remain  to be  mapped, using                                                                    
corrected  orthophotos,  are  areas with  potentially  large                                                                    
project  impacts. 1)  The Northwest  Arctic Borough  will be                                                                    
affected  by the  establishment  of  shipping routes  across                                                                    
Northern  Canada  and  the   US,  and  possibly  significant                                                                    
mineral deposits.  2) North  Slope Borough  communities will                                                                    
be  impacted  by northern  shipping  routes  and future  oil                                                                    
development both on and offshore.  3) The Alaska Highway and                                                                    
Northern Parks  Highway communities will be  affected by gas                                                                    
line  projects now  in planning  stages.  The $1,100,000  in                                                                    
general funds will  provide up to 50 percent  of the funding                                                                    
to complete the  projects. The remaining 50  percent will be                                                                    
provided by regional or  local entities. Alaska's Floodplain                                                                    
and Erosion  Management Program:  This program's  mission is                                                                    
to reduce public  and private sector damage  and losses from                                                                    
flooding  and erosion.  This  is  accomplished by  providing                                                                    
municipalities  that  participate   in  the  National  Flood                                                                    
Insurance Program (NFIP),  with program compliance technical                                                                    
assistance and  as a resource for  municipalities looking at                                                                    
joining the  program. Department of Commerce,  Community and                                                                    
Economic  Development  (DCCED)  and  the  Federal  Emergency                                                                    
Management  Agency's  (FEMA)   Flood  Mitigation  Assistance                                                                    
program  (FMAP) personnel  work with  the municipalities  on                                                                    
every  phase  of  potential  projects   --  applying  for  a                                                                    
planning grant,  approving the  resulting plan,  approving a                                                                    
construction grant  or contract and approving  the completed                                                                    
project.  FEMA provides  funding for,  community assistance,                                                                    
technical   assistance,    and   assistance    to   specific                                                                    
communities.  In  FY2013,  DCCED anticipates  $120,000  from                                                                    
FEMA  with required  General  Fund match  of  $40,000 for  a                                                                    
project  total  of  $160,000.  The  NFIP  funding  for  this                                                                    
program  requires that  the state  contribute 25  percent of                                                                    
the  total project  funds. This  program  has existed  since                                                                    
1997.  Hazard  Mitigation  Assistance Grants:  The  National                                                                    
Flood  Insurance  Fund  (NFIF) provides  funding  for  Flood                                                                    
Mitigation Assistance  (FMA), Repetitive Flood  Claims (RFC)                                                                    
and Severe  Repetitive Loss (SRL)  programs. The  grants are                                                                    
available  for  application  annually and  are  pass-through                                                                    
grants  to   local  communities  to  mitigate   flood  prone                                                                    
buildings  or  other  eligible   activities.  There  are  no                                                                    
current specific grant requests  pending; however, we expect                                                                    
up to $300,000 in requests may be submitted.                                                                                    
Co-Chair  Hoffman  wondered  why  there  was  a  $3  million                                                                    
reduction  from  the  previous  year's  funding  level.  Ms.                                                                    
Hanrahan  explained  that  the   funding  for  the  projects                                                                    
fluctuates depending  on what  projects were  occurring. She                                                                    
noted  that  the  funding was  specific  to  what  community                                                                    
development projects were in the queue.                                                                                         
Co-Chair Hoffman felt  that the request was  the lowest it's                                                                    
been in over  a decade. He felt that there  was a high need,                                                                    
and wondered if the need did  not exist and that was why the                                                                    
funding was  not available. Ms. Hanrahan  offered to provide                                                                    
information at a later date.                                                                                                    
RN 54869                                                                                                                        
State  Support for  Rural Roads  and Waterfront  Development                                                                    
Ms.  Hanrahan  explained  that this  will  provide  matching                                                                    
funding  to rural  communities  that  have obtained  federal                                                                    
grants  through  the Denali  Commission  and  allow them  to                                                                    
construct  rural road  and waterfront  development projects.                                                                    
The Denali Commission will research,  vet, and decide on the                                                                    
rural  road  projects  that  will   be  developed,  and  the                                                                    
Department  of   Commerce  will  make  the   grants  to  the                                                                    
recipients to complete funding for their project.                                                                               
Potential Projects could include but are not limited to:                                                                        
- Hughes - Moose Loop/Blueberry Road construction                                                                               
- Chignik Lake - Culvert Replacement construction                                                                               
- Craig - Community Streets Paving construction                                                                                 
- Huslia - Community Streets Construction                                                                                       
- Cherfornak - Boardwalk reconstruction design                                                                                  
- Buckland - Uptown Road construction                                                                                           
- Hydaburg - Saltry Point Road construction                                                                                     
- Wainwright - Access Road construction                                                                                         
- Kwigillingok - ATV Trail - design and construction                                                                            
- Haines - Third Avenue street construction                                                                                     
- Toksook Bay - Community Roads construction                                                                                    
- Point Lay - Subdivision Roads preliminary design                                                                              
- Northway - Housing Road design                                                                                                
- Igiugig - Float Plane Road construction                                                                                       
- Birch Creek - Feasibility Study                                                                                               
- Wrangell - Wood Street design and construction                                                                                
- Pitkas Point - Main Street - preliminary design                                                                               
- Selawik - Barge Landing Road and Boardwalk Improvements                                                                       
Senator Olson wondered  how one would become  eligible to be                                                                    
a  part  of  the  program. Ms.  Hanrahan  replied  that  the                                                                    
proposals   were  run   through   the  Denali   Commission's                                                                    
Transportation Committee.                                                                                                       
9:48:54 AM                                                                                                                    
Senator  Olson wondered  if  there was  a  dollar limit  per                                                                    
community. Ms.  Hanrahan replied that funding  was dependent                                                                    
on the specific project and the funding source.                                                                                 
Senator  Egan  wondered  if each  project  had  been  vetted                                                                    
through DOT/PF. Commissioner Bell  replied that the proposed                                                                    
projects  would put  state funding  into  projects that  had                                                                    
been  identified  through  the Denali  Commission  Committee                                                                    
Senator Egan felt that some  organized boroughs did not have                                                                    
the expertise to design the  local service roads and trails.                                                                    
He felt that DOT/PF should  assist the communities to design                                                                    
and  assist  in  the construction  management.  Commissioner                                                                    
Bell explained that there were  many different funding flows                                                                    
in order  to provide  communities with  what was  needed for                                                                    
Senator Thomas  wondered if the  specific projects  would be                                                                    
available for  the Denali Borough. Commissioner  Bell agreed                                                                    
to provide that information.                                                                                                    
RN 38950                                                                                                                        
Alaska Energy Authority - Energy Projects                                                                                       
9:53:07 AM                                                                                                                    
SARA   FISHER-GOAD,   EXECUTIVE  DIRECTOR,   ALASKA   ENERGY                                                                    
AUTHORITY  (via teleconference),  stated  that this  request                                                                    
addresses   multiple  federally   funded  energy   programs,                                                                    
including Bulk Fuel Upgrades,  Rural Power Systems Upgrades,                                                                    
Alternative Energy  and Energy  Efficiency projects  and the                                                                    
state   funded  energy   planning   project.  This   program                                                                    
contributes  to  the  department's mission  of  promoting  a                                                                    
healthy   economy  and   strong  communities   by  providing                                                                    
economic growth in the communities it serves.                                                                                   
RN 49734                                                                                                                        
Alaska Energy Authority - Bulk Fuel Upgrades                                                                                    
Ms. Fisher-Goad  stated that the  goal of the  Alaska Energy                                                                    
Authority  (AEA)  bulk  fuel  program  is  to  upgrade  non-                                                                    
compliant  bulk fuel  facilities  in  communities that  meet                                                                    
program  criteria. Upgrading  bulk  fuel facilities  reduces                                                                    
the  cost of  energy by  reducing or  eliminating fuel  loss                                                                    
from  leaks and  spills.  By providing  enough capacity  for                                                                    
current and planned needs, communities  may purchase fuel in                                                                    
larger quantities at a lower cost per gallon.                                                                                   
RN 52498                                                                                                                        
Alaska Energy Authority - Rural Power Systems Upgrade                                                                           
Ms. Fisher-Goad  explained that the program  concentrates on                                                                    
power production and  delivery, including diesel powerhouse,                                                                    
hydroelectric,  and  electrical  distribution. Due  to  high                                                                    
costs   and  limited   economies   of   scale,  most   local                                                                    
communities cannot  make the  capital investments  needed to                                                                    
meet  accepted utility  standards. Efficiency,  reliability,                                                                    
safety  and sustainability  are  primary drivers  throughout                                                                    
the  conceptual   design,  final  design   and  construction                                                                    
process. It is not uncommon  to see a 30-40 percent increase                                                                    
in  fuel   savings  after  a   new  powerhouse   project  is                                                                    
completed.  After  completion  of  the  project,  the  rural                                                                    
utility  is  required  to employ  a  qualified  operator  to                                                                    
ensure that the system  is properly operated and maintained.                                                                    
AEA  provides training  and technical  assistance to  assist                                                                    
the  community with  proper operation  of the  new facility.                                                                    
$112 million  is the  estimated need  to complete  the Rural                                                                    
Power  System  Upgrades  for the  remaining  47  communities                                                                    
identified on the  deficiency list. This is  a long standing                                                                    
energy  program that  has expanded  since  fiscal year  1999                                                                    
with federal funding from the  Denali Commission. In FY2013,                                                                    
AEA  anticipates  $3  million  in  federal  funds.  The  AEA                                                                    
anticipates using  approximately $10 million in  state funds                                                                    
for RPSU projects.                                                                                                              
RN 49735                                                                                                                        
Alaska  Energy Authority  -  Alternative  Energy and  Energy                                                                    
Efficiency (AEEE) Programs                                                                                                      
Ms. Fisher-Goad announced that the  objective of the program                                                                    
was  to  lower  the  cost   of  power  and  heat  to  Alaska                                                                    
communities    while   maintaining    system   safety    and                                                                    
reliability.  The  AEA   alternative  energy  programs  have                                                                    
received federal funding since the  1980s from USDOE and the                                                                    
EPA  and  recently expanded  with  funding  from the  Denali                                                                    
Commission and ARRA funds. A  state general fund match of 25                                                                    
percent to  100 percent  is required  for most  federal AEEE                                                                    
RN 52507                                                                                                                        
Alaska Energy Authority - Alaska Energy Plan Implementation                                                                     
Ms. Fisher-Goad  explained that  this request  addresses the                                                                    
state funded Alaska Energy  Plan Implementation. The project                                                                    
contributes  to  the  department's mission  of  promoting  a                                                                    
healthy   economy  and   strong  communities   by  providing                                                                    
economic  growth in  the communities  it serves.  She stated                                                                    
that the objective  is to develop a  statewide Alaska energy                                                                    
plan. An estimated  $1 million of general  funds is required                                                                    
for  the  continued  development  of  the  energy  plan,  in                                                                    
particular  AEA will  work  with  regional organizations  to                                                                    
initiate specific regional  resource assessments and project                                                                    
development   plans.  The   completion   of  the   following                                                                    
activities and work tasks are required:                                                                                         
- Determination of fuel usage  by community for electricity,                                                                    
space heating and transportation                                                                                                
- Determination of locally available energy sources                                                                             
- Evaluation of existing technology                                                                                             
- Evaluation of energy delivery systems                                                                                         
- Evaluation and rank of energy sources                                                                                         
-  Deployment to  the private  sector by  providing business                                                                    
plan to existing or new enterprises, and                                                                                        
-  Organization  of  public   workshops  to  assist  in  the                                                                    
communication  of   the  plan  by  gathering   feedback  and                                                                    
providing periodic updates.                                                                                                     
Senator Thomas  remarked a  prior discussion  regarding some                                                                    
of proposed  projects. He  noted that there  may need  to be                                                                    
some  attention  evaluating the  costs  of  the projects  in                                                                    
order reduces  the cost  of diesel usage.  He looked  at the                                                                    
rural  areas and  the removal  of old  diesel tanks  and the                                                                    
hazards related to the removal  of old diesel fuel tanks. He                                                                    
wondered if  that issue had  been addressed in the  AEA. Ms.                                                                    
Fisher-Goad replied that there  was a conversation about the                                                                    
result of the renewable energy  projects, and there was work                                                                    
regarding  those  projects.  She  stated that  the  AEA  was                                                                    
working  to  provide  information  for  the  Senate  Finance                                                                    
Committee about  the evaluations  of the projects.  She felt                                                                    
that  the traditional,  rural energy  project requests  were                                                                    
intended to look at the  system holistically, to ensure good                                                                    
quality energy and powerhouse systems.                                                                                          
10:00:36 AM                                                                                                                   
Co-Chair Hoffman  stressed that  many communities  have tank                                                                    
farms that  need to be  replaced, and requested the  need of                                                                    
approximately $6  million to replace the  tanks. Ms. Fisher-                                                                    
Goad  replied that  it was  not her  intent to  suggest that                                                                    
there was no need. She  stated that there were some concerns                                                                    
regarding the type of tanks  that needed to be replaced. She                                                                    
stressed that  the AEA  was looking  into the  conditions in                                                                    
all the communities.                                                                                                            
Co-Chair Hoffman  said strongly that he  understood the tank                                                                    
farms  as even  being  hazardous to  children.  He felt  the                                                                    
communities had a better understanding  of the need for safe                                                                    
tank farm removal, rather than the point-of-view of AEA.                                                                        
Senator  McGuire queried  the process  regarding determining                                                                    
the  tank  removal  evaluation.  She  stated  that  she  had                                                                    
similar concerns  to Co-Chair Hoffman, and  re-iterated that                                                                    
it was important  to see the potential hazards  in person in                                                                    
order to  understand the urgency  to remove the  tank farms.                                                                    
Ms.  Fisher-Goad  replied  that   there  was  a  process  to                                                                    
decommission  the  tanks per  EPA  and  DEC guidelines,  and                                                                    
agreed to provide more information.                                                                                             
Senator McGuire  appreciated the work  of the AEA,  and felt                                                                    
that  the AEA  was under-staffed.  She stressed  that health                                                                    
and safety issues should be a priority.                                                                                         
10:06:19 AM                                                                                                                   
Senator Egan wondered  if there was any  effort to implement                                                                    
a  demonstration project  a  bio-mass  program in  Southeast                                                                    
Alaska.  Ms. Fisher-Goad  responded that  the status  of the                                                                    
Southeast Integrated Research Plan  was still in draft form,                                                                    
and  the public  comments period  would close  on March  19,                                                                    
2012. She stated that the  Southeast Conference would have a                                                                    
mid-session  summit the  week  of March  12,  2012, and  AEA                                                                    
would work with the Southeast  Integrated Research Plan in a                                                                    
technical   session.  The   bio-mass  recommendations   from                                                                    
Blackened  Beach   had  received   mixed  reviews,   and  an                                                                    
implementation plan  was imperative.  She stated  that AEA's                                                                    
goal with regional  plans was to ensure that  the plans were                                                                    
useful to  the regions  that helped  develop the  plans. She                                                                    
stated  that  there  were  complications  in  the  Southeast                                                                    
Integrated  Research Plan  were  diverse  with mixed  energy                                                                    
systems, with a complicated cost  of energy in the Southeast                                                                    
region.  There  were  small,  rural  communities  that  were                                                                    
diesel-dependent,  and  other  communities  that  had  hydro                                                                    
resources.  She  stated that  there  was  a  plan to  use  a                                                                    
portion of the  $2 million in the  Energy Efficiency Program                                                                    
toward  a  bio-mass  project; with  respect  to  feasibility                                                                    
assessments  and  the  technical  evaluation  and  operating                                                                    
system  evaluation. She  noted  that there  was interest  in                                                                    
interior  Alaska  to  look  at  possible  additional  pellet                                                                    
systems for some community facilities.                                                                                          
Senator  Thomas  looked at  page  14,  and pointed  out  the                                                                    
reference to nuclear  energy in a draft  report. He wondered                                                                    
when that  final report would be  available. Ms. Fisher-Goad                                                                    
replied that  the final report  was complete, and  agreed to                                                                    
provide that report to the Senate Finance Committee.                                                                            
10:11:11 AM                                                                                                                   
Senator McGuire felt that the  Southeast Energy Plan did not                                                                    
make sense. She remarked that  there were existing plans for                                                                    
linking hydro  and other power,  that were not  reflected in                                                                    
the  Integrated  Resource  Plan.  She wondered  if  AEA  was                                                                    
relying solely on the Blackened  Beach report. She felt that                                                                    
other  regional   assessments  should  be   considered.  Ms.                                                                    
Fisher-Goad  responded that  there  were  many comments  and                                                                    
criticisms  regarding  the  Integrated  Research  Plan.  She                                                                    
stated that the Blackened  Beach report recommended that the                                                                    
Southeast  Intertie  System  was   not  economical  for  the                                                                    
region,  because of  the relative  light  loads. She  agreed                                                                    
that there  should be a  consideration of  other evaluations                                                                    
and analyses.  She stressed that  all the regions  of Alaska                                                                    
wanted solid economic development plans.                                                                                        
Senator Olson  wondered if  Ms. Fisher-Goad  was aware  of a                                                                    
legislative audit  related to the procurement  process, with                                                                    
an  attached report  with  conclusions and  recommendations.                                                                    
Ms. Fisher-Goad responded  that she was aware  of the report                                                                    
and that she had been, and  AEA had addressed the issues and                                                                    
concerns in the audit.                                                                                                          
Senator Olson asked if his  constituents should be satisfied                                                                    
with  the  procurement  policies, recommendations  with  the                                                                    
signatory  authority,  and  the   formal  records  had  been                                                                    
corrected. Ms. Fisher-Goad responded in the affirmative.                                                                        
RN 50682                                                                                                                        
Alaska Energy  Authority -  Renewable Energy  Projects Round                                                                    
Ms. Fisher-Goad  explained that  the Renewable  Energy Grant                                                                    
Fund  program  was  created  in  2008  with  the  intent  to                                                                    
appropriate  $50  million  annually   for  five  years.  The                                                                    
Legislature  has   appropriated  $176.6  million   for  this                                                                    
program since its creation. This  program contributes to the                                                                    
department's  mission of  promoting  a  healthy economy  and                                                                    
strong communities  by providing  funds for  energy projects                                                                    
that promote  adequate, reliable,  reasonably priced,  and a                                                                    
safe  supply of  energy  considered  necessary for  Alaska's                                                                    
basic   infrastructure   and  economic   and   technological                                                                    
development. This project  provides continuation funding for                                                                    
the Alaska  Energy Authority's  (AEA) Renewable  Energy Fund                                                                    
Grant  program   as  intended   by  the   legislature.  Four                                                                    
renewable  energy  fund  application periods  are  complete.                                                                    
There  has been  $176.6 million  approved for  207 renewable                                                                    
energy projects.  By the  end of 2012,  AEA expects  that 45                                                                    
construction projects  will have  been completed at  a total                                                                    
cost of $167  million - approximately half funded  by the RE                                                                    
Fund and half  paid for by other sources.  The AEA estimates                                                                    
the annual  fuel savings from these  completed projects will                                                                    
be over 6 million gallons per year of diesel or equivalent.                                                                     
In response to  a question by Co-Chair  Hoffman, Ms. Fisher-                                                                    
Goad stated  that the  $25 million  request would  bring the                                                                    
total funding  for the Renewable Energy  Projects program to                                                                    
approximately $200 million.                                                                                                     
10:18:12 AM                                                                                                                   
Co-Chair Hoffman  stated that the  legislation had  a target                                                                    
of  $250  million  when  the   program  was  initiated.  The                                                                    
legislature  wanted to  "jump-start" the  program by  adding                                                                    
another $50 million,  bringing the total to  $300 million at                                                                    
the conclusion of  five years. Over the two  prior years, he                                                                    
felt  that   there  was  not   as  much  support   from  the                                                                    
administration for this program.  He wondered if the program                                                                    
was  not effective.  Ms. Fisher-Goad  replied that  the year                                                                    
prior had  recommended funding from the  legislature through                                                                    
the  program for  $36  million, and  all  the projects  were                                                                    
funded with $10 million having  been re-allocated to a prior                                                                    
round.  She  stressed  that  the issues  were  left  to  the                                                                    
governor to balance the budget.  She agreed that the program                                                                    
was  popular and  effective, but  there were  some needs  to                                                                    
provide  technical assistance  for  communities that  needed                                                                    
project  development.   The  Alaska  Energy   Authority  had                                                                    
recommended  funding  of  $43 million.  She  felt  that  the                                                                    
target  of $50  million was  a  good target,  but there  was                                                                    
extensive  evaluation pertaining  to funding,  regardless of                                                                    
decisions based on budgetary analysis.                                                                                          
Co-Chair  Hoffman   stressed  that  the  vast   majority  of                                                                    
projects were also  initiated by the legislature  and not by                                                                    
the  administration.  He  stressed   that  there  were  many                                                                    
discussions  regarding technical  assistance. He  felt there                                                                    
were  many   areas  of  the  state   that  needed  technical                                                                    
assistance.  Ms. Fisher-Goad  agreed that  there was  a need                                                                    
regarding  technical assistance,  and added  that there  was                                                                    
extensive  work with  traditional rural  programs to  ensure                                                                    
that those  needs were  met. She  furthered that  there were                                                                    
conversations with  other entities to be  sure that training                                                                    
needs   and  basic   management   systems  management   were                                                                    
Co-Chair Hoffman felt the objective was a good start.                                                                           
RN 54175                                                                                                                        
Alaska Energy Authority - AVTEC Training Systems Upgrade                                                                        
Ms.  Fisher-Goad stated  that  funding  requested for  AVTEC                                                                    
Training  Systems  Upgrade  is   essential  to  support  the                                                                    
state's investment in  rural infrastructure. These equipment                                                                    
upgrades  are necessary  to  provide  power plant  operators                                                                    
with current  training on  power plant  infrastructure being                                                                    
built in rural communities.  She explained that AS 42.45.400                                                                    
requires  AEA  to  provide rural  utilities  with  technical                                                                    
assistance  and  training.  Modern training  facilities  are                                                                    
necessary to support AEA's training program.                                                                                    
10:25:23 AM                                                                                                                   
RN 32950                                                                                                                        
Alaska Energy Authority - Electrical Emergencies Program                                                                        
Ms.  Fisher-Goad explained  that the  Electrical Emergencies                                                                    
Program provides technical support  when an electric utility                                                                    
has lost, or will lose,  the ability to generate or transmit                                                                    
power  to its  customers and  the condition  is a  threat to                                                                    
life, health,  and/or property. This program  contributes to                                                                    
the department  mission of promoting  a healthy  economy and                                                                    
strong  communities as  electricity is  considered essential                                                                    
for both community development and economic growth.                                                                             
Co-Chair Hoffman noted that there  were two schools that had                                                                    
electrical  and energy  problems in  his district.  He hoped                                                                    
that they would  not have to use the funds  to address their                                                                    
needs, because he hoped that  their problems were not at the                                                                    
emergency level. He wondered why  their needs were not being                                                                    
addressed. Ms.  Fisher-Goad replied  that the  Alaska Energy                                                                    
Authority worked with  the school districts to  be sure that                                                                    
the needs were adequate and they  tried to be sure that they                                                                    
were coordinated.                                                                                                               
Co-Chair Hoffman  wondered what Gary Baldwin  says about the                                                                    
energy and  electrical problems in Napakiak  and Kipnuk. Ms.                                                                    
Fisher-Goad  replied that  she did  not have  a conversation                                                                    
with Mr. Baldwin. Co-Chair Hoffman  wondered who had been in                                                                    
contact  with the  communities.  Ms.  Fisher-Goad agreed  to                                                                    
provide  that  information  with   respect  to  the  contact                                                                    
information for the school districts' needs.                                                                                    
RN 54850                                                                                                                        
City of Fairbanks - Road Improvements                                                                                           
Ms.  Hanrahan  explained  that   the  project  will  provide                                                                    
funding for the City of  Fairbanks for road improvements and                                                                    
upgrades. Road  improvement projects  could include  but are                                                                    
not limited to: roadway  reconstruction, installation of new                                                                    
road-base materials,  pavement improvements  or replacement,                                                                    
dust  mitigation, curb  and  gutter  alignment, or  sidewalk                                                                    
10:30:43 AM                                                                                                                   
Senator  Thomas  requested   furthered  explanation  of  the                                                                    
projects. Ms.  Hanrahan replied that the  municipal projects                                                                    
were listed separately.                                                                                                         
Senator Olson wondered  why this request was  from DCCED and                                                                    
not  DOT/PF. Ms.  Hanrahan replied  that  DOT/PF dealt  with                                                                    
mostly  federal  highway  projects, and  the  projects  were                                                                    
identified  in  the  State Transportation  Plan  (STP).  The                                                                    
DCCED  requests  reflected  locally-owned roads  within  the                                                                    
Senator Olson  wondered how  many other  municipalities were                                                                    
requesting  road-improvement  funds.  Ms. Hanrahan  did  not                                                                    
know, but  the highlighted  projects had been  identified in                                                                    
the governor's priority package.                                                                                                
RN 46659                                                                                                                        
City of Kenai - Road Improvements                                                                                               
Ms.  Hanrahan  explained  that   the  project  will  provide                                                                    
funding to be  used by the City of Kenai  for municipal road                                                                    
improvements.  Road improvement  projects could  include but                                                                    
are not  limited to:  pavement improvements  or replacement,                                                                    
dust  mitigation, roadway  reconstruction,  curb and  gutter                                                                    
alignment,  installation  of  new  road-base  materials,  or                                                                    
sidewalk construction.                                                                                                          
RN 54861                                                                                                                        
City of Old Harbor - Airport Expansion                                                                                          
Ms.  Hanrahan stated  that the  project  will provide  State                                                                    
funds,  in a  joint  effort with  the  United States  Marine                                                                    
Corps' (USMC)  Innovative Readiness Training  (IRT) program,                                                                    
to plan and  permit a project to extend the  airstrip at the                                                                    
Old  Harbor Airport  from its  current 2,750  feet to  4,700                                                                    
feet in length.                                                                                                                 
Co-Chair Hoffman noted the time.                                                                                                
RN 54853                                                                                                                        
City of Saxman - Saxman Harbor - Planning and Design                                                                            
Ms.  Hanrahan  explained  that  the  project  would  provide                                                                    
matching funds to the United  States Army Corps of Engineers                                                                    
to  fund  the initial  planning  and  design phases  of  the                                                                    
creation  of a  public harbor  in  the City  of Saxman.  The                                                                    
Saxman Harbor will be one of  a limited number of harbors in                                                                    
Alaska  providing  year  round opportunities  for  ice-free,                                                                    
protected  moorage, and  will  provide  vital public  marine                                                                    
infrastructure   needed  for   the   continued  growth   and                                                                    
development of the State's economy.                                                                                             
RN 54871                                                                                                                        
Fairbanks Northstar Borough - Air Quality Mitigation                                                                            
10:35:32 AM                                                                                                                   
Senator Thomas noted  that the money for the  project was to                                                                    
be used  for minimizing emissions and  improving air quality                                                                    
in the  Borough, and wondered  how much money  was dependent                                                                    
on wood stove change out  program. Ms. Hanrahan replied that                                                                    
did  not know,  and  stated that  there  were active  grants                                                                    
contributing to  that conversion. She stated  that there was                                                                    
no specific budget for the conversion.                                                                                          
Senator  Thomas   surmised  that  there  were   no  specific                                                                    
categories   in   the   program   that   outlined   intended                                                                    
expenditures  for  the  various  areas  of  the  wood  stove                                                                    
conversion program.  Ms. Hanrahan  did not have  a breakdown                                                                    
of that budget, but  agreed to provide information regarding                                                                    
availability of a budget.                                                                                                       
RN 42004                                                                                                                        
Fairbanks  Northstar  Borough  - Arctic  Winter  Games  Host                                                                    
Senator Thomas noted  that the request was  aligned with the                                                                    
Arctic Winter  Games request  on page  50. He  stressed that                                                                    
there were games  in 2012 in Whitehorse, and  no 2013 games.                                                                    
He wondered what year the money was intended.                                                                                   
Co-Chair  Hoffman declared  that  the  information would  be                                                                    
distributed to the members at a later date.                                                                                     
RN 54889                                                                                                                        
Haines  Borough   -  Haines   Boat  Harbor   and  Breakwater                                                                    
Ms.  Hanrahan  explained  that   the  project  will  provide                                                                    
funding for  the construction  of a  wave barrier  or rubble                                                                    
mound  breakwater  to  protect  the  newly  installed  float                                                                    
system at the Haines small boat harbor.                                                                                         
RN 45297                                                                                                                        
Kenai Peninsula Borough - Road Projects                                                                                         
Ms. Hanrahan  stated that project  will provide  funding for                                                                    
road improvements, upgrades and  modifications for the Kenai                                                                    
Peninsula Borough.                                                                                                              
RN 54852                                                                                                                        
Ketchikan  Gateway Borough  - Rehabilitation/Replacement  of                                                                    
Off-System City Bridges                                                                                                         
Ms.   Hanrahan  explained   that  project   will  fund   the                                                                    
replacement  and rehabilitation  of off-system  city bridges                                                                    
and  trestles   in  Ketchikan.   The  City   of  Ketchikan's                                                                    
municipal  bridges  and  trestles are  deteriorating  at  an                                                                    
accelerated  rate, due  to  weather,  geography and  general                                                                    
exposure.  Long  term replacement  of  an  aging bridge  and                                                                    
trestle infrastructure will  mitigate public safety hazards,                                                                    
provide safe  access for the public  and emergency services,                                                                    
alleviate  traffic  and  parking issues,  and  improve  slop                                                                    
stability and drainage issues for adjacent properties.                                                                          
RN 54854                                                                                                                        
Matanuska-Susitna Borough - Road Bond Package State Match                                                                       
Ms.  Hanrahan stated  that  the project  will  provide a  50                                                                    
percent state  match to  a portion of  the funding  that was                                                                    
passed as part of  a Matanuska-Susitna Borough Proposition 2                                                                    
for  "Transportation  Bonds"  to construct  municipal  roads                                                                    
throughout the Borough.                                                                                                         
10:38:35 AM                                                                                                                   
RN 50334                                                                                                                        
Wasilla - Lake Lucille Dam Improvements                                                                                         
Ms. Hanrahan  explained that  project would  provide funding                                                                    
for  emergency  repairs  at  the Lake  Lucille  Dam  due  to                                                                    
structural failure at  the dam. The main  issue currently is                                                                    
the  water level  of the  lake and  the potential  impact on                                                                    
property owners should the dam fail entirely.                                                                                   
RN 52278                                                                                                                        
Whittier - Shotgun Cove Road - Phase 4                                                                                          
Ms. Hanrahan  stated that the  project funding  would extend                                                                    
Shotgun Cove Road 2.5 miles,  from Emerald Cove Trailhead to                                                                    
Trinity Point.  This paved,  24 foot  road will  improve the                                                                    
quality of life and produce  much needed revenue sources for                                                                    
the  City   of  Whittier,  its  residents,   and  the  local                                                                    
businesses.  Completion of  the  Shotgun  Cove Road  project                                                                    
would  open up  presently inaccessible  Federal, State,  and                                                                    
Municipal  lands  to  recreational   use  and  private  land                                                                    
Co-Chair Hoffman listed the remaining items:                                                                                    
RN 45816                                                                                                                        
Alaska   Air   Carriers   Association,  Inc.   -   Medallion                                                                    
RN 49915                                                                                                                        
Alaska Manufacturing Extension  Partnership - State Matching                                                                    
RN 54602                                                                                                                        
Alaska State Fair - Sewer System Expansion and Upgrades                                                                         
RN 38713                                                                                                                        
Arctic  Power  -  Arctic  National  Wildlife  Refuge  (ANWR)                                                                    
RN 41959                                                                                                                        
Arctic Winter Games State Team  Alaska - State Participation                                                                    
RN 54847                                                                                                                        
Association of Village Council  Presidents (AVCP) - Aviation                                                                    
School Dormitory Construction                                                                                                   
RN 54846                                                                                                                        
Association of  Village Council  Presidents (AVCP)  - Yukon-                                                                    
Kuskokwim Corridor Planning and Development Project                                                                             
RN 54833                                                                                                                        
Copper  River  Native  Association  -  Copper  River  Health                                                                    
Clinic Construction                                                                                                             
RN 46475                                                                                                                        
Friends of the Jesse Lee Home                                                                                                   
RN 52182                                                                                                                        
Kenaitze Indian Tribe - Dena'ina  Health and Wellness Center                                                                    
Construction - Phase 2                                                                                                          
RN 50409                                                                                                                        
Life Alaska Donor Services, Inc. - Donor Program                                                                                
RN 48513                                                                                                                        
Marine Exchange  of Alaska -  Alaska Vessel  Tracking System                                                                    
Upgrades and Expansion                                                                                                          
RN 53771                                                                                                                        
Matanuska-Susitna Service for Children and Adults                                                                               
RN 54703                                                                                                                        
State Owned Hatcheries - Upgrades and Maintenance                                                                               
RN 52164                                                                                                                        
Cook Inlet Aquaculture - Trail Lakes Hatchery                                                                                   
RN 52165                                                                                                                        
Cook Inlet Aquaculture - Tutka Bay Hatchery                                                                                     
RN 52168                                                                                                                        
Kodiak Regional Aquaculture - Kitoi Bay Hatchery                                                                                
RN 52628                                                                                                                        
Kodiak Regional Aquaculture - Pillar Creek Hatchery                                                                             
RN 52167                                                                                                                        
Northern Southeast Regional Aquaculture - Hidden Falls                                                                          
Salmon Hatchery                                                                                                                 
RN 52163                                                                                                                        
Prince William Sound Aquaculture - Cannery Creek Hatchery                                                                       
RN 52161                                                                                                                        
Prince William Sound Aquaculture - Main Bay Hatchery                                                                            
AMD 38948                                                                                                                       
National Petroleum Reserve - Alaska Impact Grant Program                                                                        
Senator  Olson  queried the  distribution  on  page 84,  and                                                                    
wondered  if it  was  the total  funds,  including the  $4.8                                                                    
million. Ms.  Hanrahan responded  that $4.8 million  was the                                                                    
total distribution for the project.                                                                                             
SB 160 was HEARD and HELD in committee for further                                                                              
Co-Chair Hoffman discussed housekeeping.                                                                                        
10:45:11 AM                                                                                                                   
The meeting was adjourned at 10:45 AM.                                                                                          

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