Legislature(2023 - 2024)SENATE FINANCE 532
03/26/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Federal Infrastructure Funding Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 26, 2024
9:08 a.m.
9:08:09 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:08 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
Senator Donny Olson, Co-Chair
ALSO PRESENT
Shareen Crosby, Infrastructure Investment Coordinator,
Office of Infrastructure.
PRESENT VIA TELECONFERENCE
Katie Conway, Energy Program Manager, Denali Commission,
Anchorage.
SUMMARY
^FEDERAL INFRASTRUCTURE FUNDING UPDATE
9:10:20 AM
KATIE CONWAY, ENERGY PROGRAM MANAGER, DENALI COMMISSION,
ANCHORAGE (via teleconference), discussed the presentation,
"FY24 Non-Federal Match Funding Opportunity" (copy on
file). She pointed to slide 3, "Mission: to promote
economic development with a focus on critical
infrastructure and workforce training in rural Alaska.":
• Energy
• Health Facilities
• Transportation
• Village Infrastructure Protection
• Sanitation and Solid Waste
• Workforce and Economic Development
• Broadband
• Housing
• Community Facilities
Ms. Conway highlighted slide 4, "$5M of SOA UGF in FY24
became
Denali Commission's FY24 Non-Federal Match Funding
Opportunity":
• 34 Statements of Interest received
• 23 Applications invited after passing the threshold
review
• 15 projects recommended for funding
• $4,998,203 committed
Ms. Conway addressed slide 5, "Statements of Interest":
• SOI submittal included fillable PDF with request for
basic information and limited complexity
• SOIs reviewed for eligibility before invited to
submit full applications
• Eligibility criteria included primary funder, non-
federal match requirement, applicant organization, and
project type
Ms. Conway pointed to slide 6, "Full Applications":
• Complexity minimized with fillable PDF for project
details, financial and project team information, and a
budget/funding table
• 70 percent applications received were for Dept. of
Energy project match
• $10,355,263 requested
Ms. Conway discussed slide 7, "Application selection
process":
1. Individual evaluations of each application
2. Team evaluations (3 people/application)
3. Internal staff recommendations memo to Interim Co-
Chair
4. Recommendations shared with and feedback received
from Commissioners
5. Selection finalized
9:14:37 AM
Ms. Conway looked at slide 7, "Denali Commission FY24 Non-
Federal Match Funding Opportunity Selected Applications."
Ms. Conway addressed slide 8.
Ms. Conway pointed to slide 9, "$5,000,000 of FY24 SOA UGF
via the Commission's FY24 Non-Federal Match funding
opportunity leveraged":
• $60,377,230 of federal grant funding
• $7,165,241 of other match funding
Ms. Conway looked at slide 11, "Key Takeaways":
1. This is a unique funding environment with an
unprecedentedly high level of funding available for
communities/tribes.
2. That available funding requires an equally
overwhelmingly high non-federal match by the
applicant.
3. To ensure Alaska's communities/tribes leave as
little on the table as possible there's a significant
need for additional non-federal match.
4. The oversubscription to the Denali Commission's
FY24 Non-Federal Match FOA is on par with what we've
seen with infrastructure funding opportunities the
past two years, and we anticipate the same for our
FY24 Unified Funding Opportunity, which closes April
12.
9:17:14 AM
Co-Chair Stedman queried the recommended Denali Commission
absorbed amount for FY 25.
Ms. Conway replied that she could not give an answer, and
wanted to wait to hear from the interim executive director.
Co-Chair Stedman requested a reply on the subject within
the upcoming week.
Ms. Conway agreed.
Senator Wilson queried the deadline for projects.
Ms. Conway replied responded that the period of performance
for each grant are different.
Co-Chair Stedman wanted a detail of each of the fifteen
project timelines.
Ms. Conway agreed to provide that information.
9:21:04 AM
AT EASE
9:21:12 AM
RECONVENED
9:21:42 AM
SHAREEN CROSBY, INFRASTRUCTURE INVESTMENT COORDINATOR,
OFFICE OF INFRASTRUCTURE, discussed the presentation,
"Presentation to Senate Finance Committee Alaska State
Legislature Tuesday, March 26, 2024" (copy on file). She
pointed to slide 2, "Overview of Infrastructure Investment
and Jobs Act (IIJA)":
Enacted November 15, 2021
$1.2 Trillion
FY 23-27 Funds started arriving to State in FY 23,
will continue for 5 fiscal years
FY 32 Full deployment of funds, with potential
extensions
65 percent Increased Formula Funding to existing
programs
surface transportation, airport improvements, rural,
energy, housing
30 percent Discretionary Grants Focus of Office of
Infrastructure
5 percent Loans
Ms. Crosby addressed slide 3, "Overview of Infrastructure
Investment and Jobs Act (IIJA)":
30 percent Discretionary Grants Focus of Office of
Infrastructure
Only a small portion of discretionary grants come
through the State of Alaska
Entities eligible for different programs: states,
local governments, tribes, Alaska Native Corporations,
non-profits, school districts and universities,
housing authorities, utilities and energy co-ops,
water and wastewater districts, transit agencies,
agricultural businesses and co-ops, metropolitan
planning organizations, food councils, economic
development councils, and for-profits
Many, if not most, programs require 20-50 percent
cost share or matching funds
Co-Chair Stedman queried the size and scope of the office.
Ms. Conway replied that she was a team of one with
administrative support.
9:26:50 AM
Co-Chair Stedman wondered whether that size was common
across the country.
Ms. Conway replied that she had attended two National
Governor's Association Infrastructure Coordinator Meetings,
and many states had the position added to an existing
person's portfolio. She felt that an additional person in
the office was needed to support the efforts.
Co-Chair Stedman recalled that four or five people were
previously in the office, and some other states had many
people due to the size and scope of the endeavor in each
state.
Ms. Conway replied that each state had a different format
and size of their offices.
Ms. Conway pointed to slide 4, "Overview of Infrastructure
Investment and Jobs Act (IIJA)":
Enacted August 9, 2022
The portion of bill that is infrastructure-related is
primarily "Government created; business led" (i.e. tax
credits). There are some programs for government
entities.
As of March 1, 2024, Alaska has received $98 million
for:
• High-Efficiency Energy Home Rebates and Energy
Efficiency Contractor Training
• Climate Pollution Planning
• Air Monitoring
• Coastal Climate Resilience Planning
• Forestry-Related Programs
Ms. Conway addressed slide 5, "Overview of CHIPS and
Science Act (CHIPS)":
Enacted August 9, 2022
Semiconductor Manufacturing Incentives
As of March 1, 2024, Alaska has received no funds from
this legislation.
While in DC in September 2023, I asked the Economic
Development Administration (EDA) about permitting
obstacles for Alaska's critical minerals needed for
semiconductors, primarily germanium.
9:30:54 AM
Co-Chair Stedman wondered whether there were permitting
issues.
Ms. Crosby replied that there was incentivizing of
semiconductor manufacturing, which required critical
minerals. Alaska had 38 of the top 40 critical minerals
needed for renewable energy. She said, however, that the
federal agencies would not giver permits to get those
minerals in Alaska.
Co-Chair Stedman wondered whether other states had mining
permitting issues.
Ms. Crosby replied in the affirmative.
Senator Kiehl wondered whether there were any provisions in
CHIPS that had to do with producing or permitting for the
minerals.
Ms. Crosby replied in the negative.
Senator Kiehl surmised that the issue was not about
specifically declining Alaska, but rather that Congress did
not "touch our piece of the chain."
Ms. Crosby agreed.
Ms. Crosby discussed slide 6, "Governor's Infrastructure
Priorities":
• Lower the Cost of Energy
• Provide Access to Jobs, Resources and Critical
Minerals, Recreation
• Affordable Housing
• Food Security
• Childcare
9:34:49 AM
Co-Chair Hoffman wondered whether there were any
applications to address any of the priorities.
Ms. Crosby replied in the affirmative, and stated that she
would address some in the presentation.
Co-Chair Hoffman shared that he knew about the $25 million
for assisting first time home buyers. He remarked that
there was initially an effort on new homes. He wondered
whether those projects were available under the
Infrastructure Investment and Jobs Act (IIJA).
Ms. Crosby replied that the projects were not available
under IIJA, but agreed to provide further information about
the grants related to housing.
Co-Chair Hoffman stressed that the first time home buyers
hoped could use funds to use for a new home.
Ms. Crosby restated that IIJA did not directly address that
issue.
Co-Chair Hoffman wondered whether the funds could be used
to build new homes.
Ms. Crosby replied that she had not seen any programs that
would provide funds or grants for new homes.
Co-Chair Hoffman felt that the funds should not matter as
related to down payments versus new homes.
Co-Chair Stedman remarked that his area did not have
housing available for the jobs.
Co-Chair Hoffman stressed that there were so many housing
shortages in the state.
9:43:06 AM
Ms. Crosby addressed slide 7, "Alaska's IIJA Funds To Date
$5.9 Billion":
• Alaska ranks 1 in per capita IIJA funds*
• "Alaska is set to receive about $6,700 in funding
per capita. The next-largest per capita funding
allocation is about $4,400 for Wyoming, followed by
Montana and Vermont at approximately $3,500 each."
U.S. News and World Report, November 19, 2021
• Alaska entities have been awarded +30 percent of the
discretionary grants applied for
*Sen. Lisa Murkowski, November 15, 2023
Ms. Crosby pointed to slide 8, "Alaska's IIJA Funds To Date
by Funding Type."
Ms. Crosby addressed slide 9, "Alaska's IIJA Funds To Date
by Sector."
9:47:16 AM
Co-Chair Stedman queried the handling of the information
flow.
Ms. Crosby replied that she released a weekly email.
Co-Chair Stedman wondered how to sign up for the email.
Ms. Crosby replied that one could email her to receive the
information.
Co-Chair Stedman wondered whether the information was
available on a website ore whether a request was required
for access.
Ms. Crosby replied that there will soon be a link on the
governor's website to the Office of Infrastructure.
Co-Chair Stedman surmised that soon the public could see
the funds.
Ms. Crosby agreed.
9:50:04 AM
Ms. Crosby looked at slide 10, "Alaska's IIJA Funds To Date
by Recipient Type."
Ms. Crosby discussed slide 11, "Alaska Infrastructure
Partners."
Ms. Crosby pointed to slide 12, "Office of Infrastructure":
• Understand Governor's Infrastructure Priorities
• Good Understanding of Alaska's Infrastructure Needs,
Challenges and Stakeholders
• Track and Communicate Funding Available
Discretionary Grants and Awards
• Weekly Email to +600 state-wide and federal
infrastructure stakeholders
• Connect and Support State, Tribal, Community and
Infrastructure Partners
• Maximize Funds
• Work with Congressional Delegation and Federal
Agencies
• Comprehensive Infrastructure Map Launching
April 2024!
• Project Bundling
• Tackle Challenges
• Workforce Development
9:57:20 AM
Co-Chair Stedman queried who could apply for the grants.
Ms. Crosby replied that people could get grants written
through the Alaska Municipal League.
Ms. Crosby addressed slide 13, "Alaska's Key IIJA Awards":
• 1,849 Alaska projects identified for funding
$81.2 million USDOT Rebuilding American
Infrastructure with Sustainability and Equity (RAISE)
and Rural Surface Transportation Grant Program
• $803 million EPA grants for clean and safe water
• $6.3 million USDOT Low- and No-Emission Bus
Program for transit buses
• $31.5 million DOE National Electric Vehicle
Infrastructure (expect $52 million)
• $424.6 million DOE for clean energy, energy
efficiency, and power grid
• $243.1 million Airport modernization, safety and
efficiencies
• $326.2 million Ports and Harbors, USDOT Port
Infrastructure Development Program and MARAD
• $488.6 million Infrastructure resilience projects,
including $281.5 from Army Corp of Engineers
• $52.6 million Orphaned oil and gas well capping
and reclaiming abandoned mines
10:01:50 AM
Ms. Crosby looked at slide 14, "Alaska Project Spotlights":
• Port of Nome US Army Corp of Engineers $250
million for upgrades and expansion
• Alaska Railroad USDOT INFRA $25.2 million for
bridge replacements
• Kake School EPA $2 million for contaminate clean
up at former site
• Alaska Marine Highway Ferry System Federal Transit
Admin $286 million for service to remote areas, new
docks and terminals, reduce emissions
• Newtok and Napakiak Dept. of Interior $50 million
for relocation
10:02:56 AM
Co-Chair Stedman asked about the timeline for the Kake
School repair.
Ms. Crosby agreed to provide that information.
Senator Bishop wondered whether the five-year spend down
referred to the entire list, or a specific process.
Ms. Crosby replied that it was for five fiscal years.
Senator Bishop stressed that there was a challenge about
capacity for grant writers.
Ms. Crosby replied that it was a small group of people who
were facing fatigue.
10:06:01 AM
Ms. Crosby discussed slide 15, "Key IIJA Discretionary
Grants Available
• EPA Climate Pollution Reduction April 1, 2024;
Tribal set-aside May 1, 2024
• Denali Commission April 12, 2024
• MARAD Port Infrastructure Development Program
April 30, 2024
• DOE Tribal Clean Energy May 30, 2024
• FHWA Bridge Investment August 1, 2024
• DOI Water SMART September 30, 2024
• EPA Community Change November 21, 2024; $150
million for tribes; more for local governments
• USDOT Multimodal Project Discretionary (MEGA INFRA
RURAL) Reopening
• EDA Recompete Reopening
• NOAA Climate Resilience Reopening
• Currently 6 grants for workforce development
reentry, apprenticeships, farming
10:08:47 AM
Senator Wilson asked whether there was a cap on the bridge
investment over the higher amount.
Ms. Crosby replied that she had not heard of a cap.
Ms. Crosby pointed to slide 16, "Challenges with IIJA
Discretionary Grants":
• Spending is directed by federal agencies, not Alaska
• Complicated Application Process
• Permitting
• Cost Share
• Build America, Buy America Act
• Operations and Maintenance
Ms. Crosby addressed slide 17, "Office of Infrastructure
Looking Forward":
• Continued Collaboration
• Comprehensive Infrastructure Map Launching April
2024!
• Planning, Budgeting
• Project Bundling
• Economies of Scale
• Maximizing Limited Workforce
10:14:14 AM
Senator Merrick was frustrated about the permitting
obstacles on page 5.
ADJOURNMENT
10:16:09 AM
The meeting was adjourned at 10:16 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 032624 DC FY24 Non-Federal Match for SenFin 20240326 FINAL.pdf |
SFIN 3/26/2024 9:00:00 AM |
|
| 032624 SFC Office of Infrastructure 3.26.24.pdf |
SFIN 3/26/2024 9:00:00 AM |
|
| 032624 Office of Infrastructure Information and Highlights.pdf |
SFIN 3/26/2024 9:00:00 AM |