Legislature(2025 - 2026)SENATE FINANCE 532

04/16/2025 09:00 AM Senate FINANCE

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Audio Topic
09:14:28 AM Start
09:15:31 AM Presentation: Alaska Municipal League – Alaska Infrastructure Progress Update
10:19:58 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Alaska Infrastructure Progress TELECONFERENCED
Update
Alaska Municipal League
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 16, 2025                                                                                            
                         9:14 a.m.                                                                                              
                                                                                                                                
9:14:28 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:14 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Mike Cronk                                                                                                              
Senator James Kaufman                                                                                                           
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Nils  Andreessen,   Executive  Director,   Alaska  Municipal                                                                    
League.                                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
PRESENTATION:    ALASKA    MUNICIPAL   LEAGUE         ALASKA                                                                    
INFRASTRUCTURE PROGRESS UPDATE                                                                                                  
                                                                                                                                
Co-Chair Stedman discussed the agenda.                                                                                          
                                                                                                                                
^PRESENTATION:    ALASKA   MUNICIPAL    LEAGUE        ALASKA                                                                  
INFRASTRUCTURE PROGRESS UPDATE                                                                                                
                                                                                                                                
9:15:31 AM                                                                                                                    
                                                                                                                                
NILS  ANDREESSEN,   EXECUTIVE  DIRECTOR,   ALASKA  MUNICIPAL                                                                    
LEAGUE,   discussed   a  presentation   entitled   "Alaska's                                                                    
Infrastructure  Era:  Key  Outcomes; Core  Needs"  (copy  on                                                                    
file). He  was prepared  to talk about  where the  state had                                                                    
been and  where it  was going. He  noted that  when Congress                                                                    
passed the  Infrastructure Investment and Jobs  Act (IIJA) a                                                                    
few  years previously,  local governments  had directed  the                                                                    
municipal league  to put a  generational effort  forward and                                                                    
maximize the benefit for Alaska.                                                                                                
                                                                                                                                
9:16:42 AM                                                                                                                    
                                                                                                                                
Mr.   Andreassen  looked   at  slide   2,  "A   Generational                                                                    
Opportunity,   which  showed  a   clip  from  United  States                                                                    
Senator  Lisa Murkowski's  website that  featured a  list of                                                                    
news articles that had been  published when IIJA was passed.                                                                    
He explained that the bill  corresponded to past discussions                                                                    
of  the states   infrastructure deficit.  He said  that IIJA                                                                    
had provided an opportunity to make a difference.                                                                               
                                                                                                                                
9:18:02 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen spoke  to slide  3, "Outsize  Impact," which                                                                    
showed two  pie charts from  2023. He noted that  the source                                                                    
of the information, Invest.gov,  was no longer available for                                                                    
data. He noted  that IIJA provided funding  where there were                                                                    
needs, the  largest amount  going toward  transportation. He                                                                    
discussed the distribution of IIJA funds in 2023:                                                                               
                                                                                                                                
     Federal Infrastructure Act Grant Funding Awarded to                                                                      
     Alaska Recipients by Recipient Type:                                                                                     
     Transportation - 52 percent                                                                                                
     Broadband  28 percent                                                                                                      
     Resilience  7 percent                                                                                                      
     Water  6 percent                                                                                                           
     Energy  5 percent                                                                                                          
     Environmental Remediation  1 percent                                                                                       
     Other  1 percent                                                                                                           
                                                                                                                                
Mr.  Andreassen   commented  that  the  numbers   will  have                                                                    
adjusted  slightly  in more  recent  years.  He pointed  out                                                                    
where IIJA  had been  directed, and for  the most  part that                                                                    
state government had  been a recipient of a  large amount of                                                                    
the funds. He stated that a  large portion of the funds were                                                                    
formula  funds. He  thought it  was worth  knowing that  the                                                                    
state was  frequently a pass-through  entity for  the funds,                                                                    
many of which were passed down to local agencies.                                                                               
                                                                                                                                
Mr.  Andreassen drew  attention  to the  chart  on the  left                                                                    
showed funding per 1,000 residents,  over the previous three                                                                    
months,  for   various  items  including   Tribal  Broadband                                                                    
Connectivity,   Ferry  Service   for  Rural   Alaska,  Rural                                                                    
Development    Broadband    Reconnect    Program,    Surface                                                                    
Transportation   Block   Grant   Program,   and   the   Port                                                                    
Infrastructure  Development Program,  all the  items had  an                                                                    
outsized impact  in the  state compared to  the rest  of the                                                                    
nation. He thought one of the  reasons the state had done so                                                                    
well was  due to  the focus  on underserved  communities and                                                                    
areas  of persistent  poverty. He  stated that  some of  the                                                                    
programs  were structured  to directly  address the  need of                                                                    
people in Alaska.                                                                                                               
                                                                                                                                
9:21:49 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  referenced slide 4,  "Transportation," which                                                                    
showed data  from USASpending.gov, and the  Federal Highways                                                                    
Administration.  The  information included  enacted  budget,                                                                    
grants announced,  obligations, and outlays. He  shared that                                                                    
only  35 percent  had been  distributed to  grantees through                                                                    
formula  or competitive  grants.  He noted  the grants  that                                                                    
Alaska had uniquely benefitted from:                                                                                            
                                                                                                                                
     Airport Infrastructure Grants  34.8 percent                                                                              
     Ferry Service for Rural Communities  25.8 percent                                                                        
     Rail Crossing Elimination  59 percent                                                                                    
     Port Infrastructure Development Program  12.9 percent                                                                    
     Safe Streets for All  12 percent                                                                                         
     Culvert Removal  3.9 percent                                                                                             
                                                                                                                                
Mr.  Andreassen mentioned  that there  was more  work to  be                                                                    
done. He  shared that there  had been change at  the federal                                                                    
level but  there was  still room in  the enacted  budget for                                                                    
distribution of grant funds to Alaskans.                                                                                        
                                                                                                                                
9:23:51 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen  turned  to   slide  5,  "Big  Wins,"  which                                                                    
highlighted USASpending.gov  tracking of awarded  grants and                                                                    
a list of the grants from FY 23 to FY 25:                                                                                       
                                                                                                                                
     USA Spending tracks awarded grants, and the following                                                                    
     are from FY 23-25:                                                                                                       
     • Alaska Energy Authority - $206,500,000                                                                                   
     • Native Village of Eyak - $85,921,275                                                                                     
     •   Alaska   Native   Tribal   Health   Corporation   -                                                                    
     $74,950,045                                                                                                                
    • Golden Valley Electric Association - $70,972,123                                                                          
     • Municipality of Anchorage - $68,700,000                                                                                  
     • NANA Regional Corporation - $65,168,000                                                                                  
     •  Southeast   Alaska  Regional  Health   Consortium  -                                                                    
     $63,492,225 • Alaska Energy Authority - $62,450,000                                                                        
     • Dena Nena Henash - $62,450,000                                                                                           
     • University of Alaska Fairbanks - $58,856,268                                                                             
     • Northwest Arctic Borough - $54,811,907                                                                                   
     • University of Alaska Fairbanks - $53,327,846                                                                             
     • Calista Regional Corporation - $52,559,385                                                                               
     • Doyon Regional Corporation - $50,651,548                                                                                 
     • Central  Council Tlingit and  Haida Indian  Tribes of                                                                    
     Alaska - $49,899,103                                                                                                       
     • City of Seward - $45,732,04                                                                                              
                                                                                                                                
Mr. Andreassen continued to  discuss the grant distribution.                                                                    
He  thought  there had  been  a  broad distribution  of  the                                                                    
funds.  He  highlighted that most of the  grants were energy                                                                    
related. The  bar graph  on the  right showed  total federal                                                                    
dollars  distributed  through  grants   to  the  state  from                                                                    
October 22 through April 2025.  He pointed out that prior to                                                                    
the change in administration at  the end of 2024, the latest                                                                    
amount  of  funding had  been  releases.  He noted  that  in                                                                    
recent  months  the  funding  had  declined.  He  said  that                                                                    
between  3 and  5 billion  had been  awarded to  Alaska each                                                                    
year.                                                                                                                           
                                                                                                                                
9:27:12 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen considered  slide 6,  "Challenges Along  the                                                                    
Way,"  which reflected  on  some  challenges experienced  by                                                                    
local governments, state agencies, and tribes:                                                                                  
                                                                                                                                
     Upfront  and Matching  Costs: Rural  Alaska communities                                                                  
     often  face  limited  revenue  opportunities  and  high                                                                    
     costs, making  it challenging  to provide  the matching                                                                    
     funds  required by  many federal  grants  and to  cover                                                                    
     upfront  costs for  reimbursable grants.  Thank you  to                                                                    
     the  Legislature/State   funding  through   the  Denali                                                                    
     Commission!                                                                                                                
     Potential Solutions:  Suggestions include  allowing the                                                                  
     use of  other federal funds as  matching contributions,                                                                    
     offering  advance decisions  on match  waiver requests,                                                                    
     implementing sliding-scale match  requirements based on                                                                    
     community  circumstances,   and  accepting  alternative                                                                    
     demonstrations  of  community investment  in  projects.                                                                    
     Eliminating  reimbursable  grants or  providing  bridge                                                                    
     loans   to  assist   with   upfront   costs  are   also                                                                    
     recommended.                                                                                                               
     Lack  of  Interagency  Collaboration:  The  absence  of                                                                  
     coordinated  funding among  federal  agencies leads  to                                                                    
     inefficiencies    and    missed    opportunities    for                                                                    
     comprehensive project support.                                                                                             
     Potential   Solutions:   Implementing  a   multi-agency                                                                  
     shared application  process would allow  for integrated                                                                    
     funding  between programs  and  more  efficient use  of                                                                    
     federal funds.                                                                                                             
     Build  America Buy  America:  Well-intentioned goal  to                                                                  
     reinvest  in American  manufacturing, create  jobs, and                                                                    
     strengthen our  domestic supply chain. For  states with                                                                    
     limited  manufacturing or  industrial  capacity    like                                                                    
     Alaska    BABA is  effectively a policy  that transfers                                                                    
     wealth  and jobs  to  other parts  of  the country.  In                                                                    
     Alaska  it's  driving  up costs,  causing  delays,  and                                                                    
     threatening  critical infrastructure  projects in  some                                                                    
     of our most vulnerable communities.                                                                                        
    Potential Solutions: Argue for place-based waiver.                                                                        
                                                                                                                                
9:29:44 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen displayed slide 7, "Challenges Along the                                                                         
Way," which was a continuation of the previous slide:                                                                           
                                                                                                                                
     Applicant   Eligibility:  Alaska's   unique  range   of                                                                  
     entities   serving    indigenous   people    may   face                                                                    
     limitations   due  to   federal  programs   restricting                                                                    
     eligibility to  certain types of entities  and adopting                                                                    
     expanded  definitions  of  eligible entities  can  help                                                                    
     address this issue.                                                                                                        
     Potential   Solutions:    Including   regional   tribal                                                                  
     consortia  and nonprofits  as  eligible applicants  for                                                                    
     federal grant opportunities.                                                                                               
     Complexity     and     Capacity    Constraints:     The                                                                  
     administrative demands of  grant writing and compliance                                                                    
     are burdensome  for communities with limited  staff and                                                                    
     resources.  Challenges  include  confusing  or  missing                                                                    
     guidance and funding agency capacity constraints.                                                                          
     Potential  Solutions: Adopting  models  like the  HUD's                                                                  
     High Energy  Cost Grant  program, which  simplifies the                                                                    
     application  process  and  uses  flexible,  needs-based                                                                    
     criteria,  is  recommended. Significant  investment  in                                                                    
                                                                                                                                
     capacitybuilding   and  technical  assistance  is  also                                                                    
     necessary.                                                                                                                 
     Technology: Technological challenges  specific to rural                                                                  
     Alaska,  such  as  harsh environmental  conditions  and                                                                    
     limited  infrastructure,  hinder   the  deployment  and                                                                    
     maintenance of energy projects.                                                                                            
     Potential   Solutions:   Investing  in   research   and                                                                  
     development  tailored  to Alaska's  unique  conditions,                                                                    
     and   promoting  the   deployment   of  resilient   and                                                                    
     adaptable technologies, are essential steps forward.                                                                       
                                                                                                                                
9:31:35 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen highlighted  slide 8,  "Federal Funding  and                                                                    
Policy Support,"  which addressed  three areas in  which AML                                                                    
had tried  to make  a difference:   a strategic  approach to                                                                    
community  grant  applications,  Infrastructure  Assistance,                                                                    
and   infrastructure  grant   writing.  He   specified  that                                                                    
investment   to  AML   led  to   a  strategic   approach  to                                                                    
infrastructure  development,  increased  collaboration,  and                                                                    
information-sharing,  and improved  access to  grant writing                                                                    
resources.  He stressed  that  AML would  not  have had  the                                                                    
successes, experienced in the  last three years, without the                                                                    
support of the legislature.                                                                                                     
                                                                                                                                
9:33:00 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen  looked  at slide  9,  "AML  Impact,"  which                                                                    
showed a  map of  the state  and cited  that there  were 214                                                                    
total applications, #3.6 billion  applied for, 70 successful                                                                    
applications,  and $1.3  billion  brought to  the state.  He                                                                    
stated that  AML played a role  in the impact but  that many                                                                    
organizations had played a role in the success.                                                                                 
                                                                                                                                
Mr.  Andreassen said  that any  eligible entity  that had  a                                                                    
competitive project  could apply  for grants; AML  worked to                                                                    
remover barriers and provide  baseline grants to communities                                                                    
to support future opportunities.                                                                                                
                                                                                                                                
9:35:32 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen addressed  slide 10,  "Our Approach,"  which                                                                    
showed a graphic of approaches and foci:                                                                                        
                                                                                                                                
     •  Augment  Capacity      Grant  Writing   and  Project                                                                    
        Management                                                                                                              
     • Increase Competitiveness  Bundle Projects and Data                                                                       
     •  Improve Community Conditions    Deliver  Funding and                                                                    
        Projects                                                                                                                
     •  Strengthen Local Governments   Connect  to Tools and                                                                    
        Services                                                                                                                
                                                                                                                                
Mr.  Andreassen  discussed  each   approach  and  how  those                                                                    
approaches strengthened processes for local governments.                                                                        
                                                                                                                                
9:37:04 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  advanced to slide 11,  "Our Approach," which                                                                    
was a continuation of the  previous slide. He explained that                                                                    
AML worked to provide  support and technical support through                                                                    
direct  support,  cohort  support,  training  and  technical                                                                    
assistance,  and   outreach  and  information   sharing.  He                                                                    
mentioned that  there was a  list of 1500  members committed                                                                    
to the information investments. He  spoke of the work of the                                                                    
Alaska    Rural   Energy    Conference   and    the   Alaska                                                                    
Infrastructure Development Symposium.                                                                                           
                                                                                                                                
Mr.  Andreassen  stressed that  a  plan  for sustaining  the                                                                    
infrastructure  in  the  future  included  having  in  place                                                                    
workforce development, housing  needs, asset management, and                                                                    
maintenance and operations.                                                                                                     
                                                                                                                                
9:39:34 AM                                                                                                                    
                                                                                                                                
Mr.    Andreassen    looked    at   slide    12,    "Project                                                                    
Identification," which  addressed some of the  projects that                                                                    
had been  awarded. He mentioned  two platforms  available to                                                                    
meet the needs of communities and the state:                                                                                    
                                                                                                                                
    Transportation Planning and Project Funding Support                                                                       
     Goals and Objectives                                                                                                     
     To   support    transportation   project   development,                                                                    
     evaluation, and  prioritization for Alaskas   local and                                                                    
     tribal  governments.  AML   will  help  with  community                                                                    
     outreach, project  intake, and grant writing  to secure                                                                    
     federal  funds  for   surface  transportation  projects                                                                    
     under  the   Infrastructure  Investment  and   Job  Act                                                                    
     (IIJA).                                                                                                                    
     Project Activities                                                                                                       
     Outreach,  project  prescreening,  grant  writing,  and                                                                    
     project analysis.                                                                                                          
     Coordination  with  DOT&PF  and other  stakeholders  to                                                                    
    ensure federal grant applications are competitive.                                                                          
     Communities Served                                                                                                       
     All  cities,   boroughs,  and  tribal   governments  in                                                                    
     Alaska.                                                                                                                    
     Funding Agency                                                                                                             
     Alaska DOT&PF                                                                                                              
                                                                                                                                
     Alaska Energy Hub                                                                                                        
     The  Alaska  Energy  Hub  is  a  one-stop  resource  to                                                                    
     connect energy projects  and agencies providing funding                                                                    
     and  Technical Assistance.  You can  find various  maps                                                                    
     here,  with additional  resources  available soon.  The                                                                    
     Alaska Energy Hub is a  project of the Alaska Municipal                                                                    
     League  with  funding  from   the  U.S.  Department  of                                                                    
     Energys Energizing Rural Communities Prize.                                                                                
     Submit  a  Project    We  encourage  project  teams  to                                                                  
     complete the Project  Intake Form   it is  a first step                                                                    
     to find Technical Assistance for  your project and your                                                                    
     response  helps inform  decision  makers  who might  be                                                                    
     able to offer resources.                                                                                                   
     Resources    Find  information on  technical assistance                                                                  
     and funding opportunities here.                                                                                            
     Ambassadors     Learn  more  about  the  Arctic  Energy                                                                    
     Ambassadors program.                                                                                                       
     Project Map    See a  map of submitted  energy projects                                                                  
     from around Alaska.                                                                                                        
                                                                                                                                
9:41:03 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen showed slide 13, "Alignment with State                                                                           
Priorities,":                                                                                                                   
                                                                                                                                
     The Alaska Energy Security Task  Force settled on goals                                                                    
     that were  centered on affordability,  reliability, and                                                                    
     resilience  -  the three  key  factors  the Task  Force                                                                    
     identified  to meet  the overall  goal of  lowering the                                                                    
     cost  of  energy   for  Alaskans  while  simultaneously                                                                    
     ensuring energy security for our state.                                                                                    
     The recommended goals include the following:                                                                             
        Short-term:  Minimize  regret cost  while  providing                                                                  
     reliable service.                                                                                                          
        Mid-term: Invest  in infrastructure  improvements to                                                                  
     advance the long-term goal of energy diversification.                                                                      
       Long-term:  Significantly diversify  power generation                                                                  
     with  an emphasis  on local,  reliable, and  affordable                                                                    
     energy.                                                                                                                    
                                                                                                                                
9:41:52 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen referenced  slide 14, "Railbelt Transmission,                                                                    
Generation, and Storage.   The slide showed the  work of the                                                                    
Repowering Energy Assets working  group, comprised of Golden                                                                    
Valley Electric and the Denali Borough:                                                                                         
                                                                                                                                
     •  Upgrading   and  expanding  transmission   lines  to                                                                    
     improve reliability                                                                                                        
     •    Reducing    congestion   through    infrastructure                                                                    
     investments                                                                                                                
     •   Integrating  more   renewable  energy   sources  to                                                                    
     diversify energy mix                                                                                                       
                                                                                                                                
     Huge  new  federal  grant promises  easier  access  for                                                                  
     cheaper, cleaner power in Alaskas Railbelt                                                                               
     The $206  million from the  Department of  Energy would                                                                    
     pay for a  50-mile power line beneath  Cook Inlet, plus                                                                    
     two battery banks.                                                                                                         
                                                                                                                                
     Golden Valley Electric  Association Awarded $100 Millio                                                                    
     Loan  from   USDA  Powering  Affordable   Clean  Energy                                                                    
     Program, with $60 Million in Loan Forgiveness.                                                                             
                                                                                                                                
9:42:44 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen turned  to slide  15, "  Coastal Generation,                                                                    
Distribution, and Storage,"  which addressed another working                                                                    
group,  Collaborative  Support:   Clean  Energy  Savings  in                                                                    
Coastal Communities, with  partners Southeast Conference and                                                                    
Alaska Heat Smart:                                                                                                              
                                                                                                                                
     •  Development  of  localized energy  solutions  (small                                                                    
     hydro, tidal)                                                                                                              
     •  Supporting   microgrid  implementation   to  enhance                                                                    
     resilience  • Ensuring  sustainable, community-tailored                                                                    
     power solutions                                                                                                            
                                                                                                                                
Mr.  Andreassen  noted  that  the City  of  Saint  Paul  had                                                                    
applied  for   everything    and  had  received  significant                                                                    
awards since 2020 to upgrade their electric utility.                                                                            
                                                                                                                                
9:43:24 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen considered  slide  16,  " Rural  Generation,                                                                    
Distribution, and Storage:                                                                                                      
                                                                                                                                
     •  Expanding technical  assistance  programs for  rural                                                                    
     utilities                                                                                                                  
     • Training  for local operators and  system maintenance                                                                    
     support                                                                                                                    
     • Increased  integration of  renewables to  reduce fuel                                                                    
     dependency                                                                                                                 
                                                                                                                                
     Solar   for   All:   Community  Solar   and   Workforce                                                                  
     Development                                                                                                              
     Alaskas   projects win  nearly  $125  million in  EPAs                                                                     
     national Solar for All grant competition.                                                                                  
                                                                                                                                
     DOE   Funds  Five   Projects  in   Alaska  for   Energy                                                                    
     Improvements in Rural or Remote Areas (ERA) program                                                                        
                                                                                                                                
9:44:06 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen displayed slide 17, "Incentives and                                                                              
Subsidies,":                                                                                                                    
                                                                                                                                
     •   Developing   financial  mechanisms   (grants,   tax                                                                    
     credits, low-interest loans)                                                                                               
     • Supporting investment in  renewable energy and energy                                                                    
     efficiency                                                                                                                 
        Aligning  policies   to  streamline  permitting  and                                                                    
     regulatory processes                                                                                                       
                                                                                                                                
     Tribal Grid Resilience  Kodiak                                                                                           
     The  Tanana   Chiefs  Conference  (TCC)   has  received                                                                    
     federal  tax credits  to expand  solar power  in remote                                                                    
     tribal communities.  The TCCs  projects is  part of the                                                                    
     Alaskan Tribal  Energy Sovereignty project,  which aims                                                                    
     to improve  grid reliability,  air quality,  and reduce                                                                    
     energy costs.                                                                                                              
                                                                                                                                
     How the project works                                                                                                    
     The  TCC  will install  solar  PV  and battery  storage                                                                    
     systems in eight remote tribal communities.                                                                                
     The project will use revenue  from the Tribal ownership                                                                    
     model  to  reduce  energy   costs  and  develop  future                                                                    
     renewable projects.                                                                                                        
     The  TCC  will  establish  a utility  board  of  Tribal                                                                    
     leaders to oversee the project.                                                                                            
                                                                                                                                
     How federal tax credits help                                                                                             
     The  Residential  Clean  Energy Credit  provides  a  30                                                                    
     percent  tax credit  for  new,  qualified clean  energy                                                                    
     property installed from 2022 through 2032.                                                                                 
     The Energy  Efficient Home Improvement  Credit provides                                                                    
     a  tax  credit  up  to  $3,200  for  qualified  energy-                                                                    
     efficient improvements made to  your home after January                                                                    
     1, 2023.                                                                                                                   
Mr.  Andreassen noted  slide  18,   Statutes and  Regulation                                                                    
Reform,  which  discussed statutes and regulatory  reform as                                                                    
identified by the  Energy Security Taskforce as  areas to be                                                                    
invested in.  The project, working with  AHFC, would develop                                                                    
a framework for responsive building code development:                                                                           
                                                                                                                                
     •  Providing   utilities  with  flexibility   to  adopt                                                                    
     innovative technologies                                                                                                    
     •   Reforming  statutes   and  regulations   to  remove                                                                    
     modernization barriers                                                                                                     
     • Engaging stakeholders  to align regulatory frameworks                                                                    
     with utility needs                                                                                                         
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  looked at slide 19,  " Workforce Development                                                                    
for Utilities:                                                                                                                  
                                                                                                                                
     • Training programs for local energy system operators                                                                      
     • Federal and state partnerships for capacity building                                                                     
     • Importance of technical  expertise in managing modern                                                                    
     energy grids                                                                                                               
                                                                                                                                
Mr. Andreassen discussed the projects  detailed on the slide                                                                    
including, Strengthening Reporting  Capacity in Rural Alaska                                                                    
Governments,  Rural  Municipal  Utility  Cybersecurity,  and                                                                    
Alaska TREC: Home Energy Efficiency Training.                                                                                   
                                                                                                                                
9:46:14 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen addressed  slide  20, "  Energy Storage  and                                                                    
Microgrid Development,":                                                                                                        
                                                                                                                                
     • Enhancing reliability  through Battery Energy Storage                                                                    
     Systems (BESS)                                                                                                             
     • Kodiak Electric's success in reducing fuel reliance                                                                      
     • Long-duration energy storage for resilience                                                                              
                                                                                                                                
     EPA  announces  $78  million in  grants  to  Tribes  in                                                                  
     Alaska,  Pacific Northwest  to  cut climate  pollution,                                                                  
     accelerate clean energy transition.                                                                                      
                                                                                                                                
     •  $24,232,383 for  two wind  turbines in  Toksook Bay,                                                                    
     along with  battery storage and a  wind-to-heat boiler,                                                                    
     a project  overseen by the Alaska  Native Tribal Health                                                                    
     Consortium.                                                                                                                
     •  $14,999,999 to  the Central  Council of  the Tlingit                                                                    
     and Haida Indian  Tribes of Alaska to set  up or expand                                                                    
     "composting  and   recycling  infrastructure   in  four                                                                    
     tribal communities and the city of Juneau."                                                                                
     •  $14,820,331  to  the Aleut  Community  of  St.  Paul                                                                    
     Island  to install  three  new  wind turbines,  upgrade                                                                    
     three current turbines and add battery energy storage.                                                                     
     •   $4,942,841  to   "construct  a   new,  70-foot-high                                                                    
     concrete and  steel storage reservoir" to  the Humpback                                                                    
     Creek  Hydroelectric project  for energy  generation to                                                                    
     Cordova, awarded to the Native Village of Eyak.                                                                            
     •  $2,339,537  to the  Village  of  Solomon for  energy                                                                    
     audits,  weatherization improvements  and solar  energy                                                                    
    installations for households and tribal buildings.                                                                          
                                                                                                                                
9:46:42 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen advanced to slide  21, " Bulk Fuel Management                                                                    
and Infrastructure:                                                                                                             
                                                                                                                                
     • Addressing  maintenance and regulatory  challenges in                                                                    
     fuel storage                                                                                                               
     • Regional bulk fuel aggregation to reduce costs                                                                           
     •   Long-term  sustainability   strategies  for   fuel-                                                                    
     dependent communities                                                                                                      
                                                                                                                                
Mr.  Andreassen  noted  that   AML  had  supported  a  grant                                                                    
application  to address  a barge  landing infrastructure  in                                                                    
Western  Alaska.  The  league  had  also  been  involved  in                                                                    
several projects  that supported energy efficiency.  He said                                                                    
that the  area had  not received much  funding from  IIGA or                                                                    
IRA,  as the  prior administration  had focused  on reducing                                                                    
environmental  pollution and  greenhouse gasses,  which left                                                                    
the fuel  challenges in the  area lacking a  funding source.                                                                    
He stated that  AML had sought funding too mee  the needs of                                                                    
the communities.                                                                                                                
                                                                                                                                
9:48:03 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen looked  at slide  22, "  Capacity Building,"                                                                    
which showed  a sample  of energy awards  that AML  had been                                                                    
directly involved  in. He emphasized  that there  many other                                                                    
projects that the  stakeholders had played a  role in seeing                                                                    
to  success.  He  mentioned partnering  with  Department  of                                                                    
Transportation   and  Public   Facilities  and   the  Denali                                                                    
Commission on  Reducing Impact of Rural  Boardwalk Barriers.                                                                    
He spoke  to the  additional projects  on the  slide: Alaska                                                                    
Water Infrastructure Financial navigation Center (AWIFNC),                                                                      
and Community Capacity Building in Disaster Impacted                                                                            
Communities.                                                                                                                    
                                                                                                                                
9:49:28 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen spoke  to slide  23,  " Capacity  Building,"                                                                    
noting  that the  capacity  building  efforts extended  into                                                                    
other areas.  He discussed the  projects illustrated  on the                                                                    
slide:                                                                                                                          
                                                                                                                                
     Climate Pollution Reduction Grant (CPRG) Planning                                                                        
     Description:                                                                                                             
     The  Alaska Municipal  League is  working on  behalf of                                                                    
     the Alaska Department  of Environmental Conservation to                                                                    
     complete  sustainable energy  planning for  the Climate                                                                    
     Pollution Reduction Grants  (CPRG) program. This effort                                                                    
     looks  to  identify  policies, programs,  and  projects                                                                    
     (measures) that  reduce greenhouse gas  emissions while                                                                    
     helping  Alaska   communities  achieve   benefits  like                                                                    
     energy  cost reductions,  quality of  life, and  energy                                                                    
     independence.  By working  with the  CPRG program,  AML                                                                    
     can  help provide  easier access  to federal  funds for                                                                    
     the energy needs that Alaska  communities have, both in                                                                    
     the near  and long-term  via planning  that complements                                                                    
     energy project development work  being conducted by AML                                                                    
     and other partners around the state.                                                                                       
                                                                                                                                
     Heavy Equipment to Support Maintenance                                                                                   
     Key Takeaway:                                                                                                            
     AML  coordinated  a  bundled application  and  now  the                                                                    
     administration   of   this   Congressionally   Directed                                                                    
     Spending  Appropriation  for   the  purchase  of  Heavy                                                                    
     Equipment in 8 communities across Alaska.                                                                                  
                                                                                                                                
     Arctic Energy Ambassadors                                                                                                
     Description:                                                                                                             
     The   Arctic   Energy  Ambassadors   program   provides                                                                    
     training  and   support  to  develop   regional  energy                                                                    
     leadership in  the state for selected  practitioners to                                                                    
     improve energy  security across Alaskas   Arctic region                                                                    
     and beyond.  Through deployment of energy  projects and                                                                    
     support   for   grant    applications   and   technical                                                                    
     assistance,   the   U.S.   Department  of   Energy   is                                                                    
     delivering  resources and  partnership  for the  Arctic                                                                    
     region, aligned with DOE Arctic Strategy.                                                                                  
                                                                                                                                
     The  Ambassadors will  help ensure  that resources  are                                                                    
     shared widely  in Alaska to  tap into  programs, answer                                                                    
     questions, and prepare for  clean energy transitions in                                                                    
     their communities  to combat  climate crisis  and build                                                                    
     climate resilience.                                                                                                        
                                                                                                                                
     Community Compass                                                                                                        
     Key Takeaway:                                                                                                            
     Community  Compass is  a  technical assistance  program                                                                    
     that will  provide support and capacity  building among                                                                    
     HUD  grantees  in  Alask around  the  state,  including                                                                    
     Tribes and Regional Housing Authorities.                                                                                   
                                                                                                                                
9:51:02 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  referenced slide  24, "  Capacity Building,"                                                                    
which   showed  additional   types   of  capacity   building                                                                    
including,  Resilience  Planning that  Strengthens  Alaskas                                                                     
Rural    Communities,    Statewide    Equitable    Community                                                                    
Connectivity    Action   Plan    (SECCAP),   and    Regional                                                                    
Infrastructure Accelerator  TIFIA Plan for Alaska.                                                                              
                                                                                                                                
Mr. Andreassen  relayed that he was  optimistic that smaller                                                                    
communities would  receive the support that  they needed. He                                                                    
reiterated that AML could not  have supported communities to                                                                    
the  extent  that  they  had  without  the  support  of  the                                                                    
legislature and the state.                                                                                                      
                                                                                                                                
9:52:56 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  turned to slide  25, " Shifting  Gears," and                                                                    
addressed  where AML  was headed  forward. He  mentioned the                                                                    
new  federal administration  had  different priorities  than                                                                    
the  previous  administration. There  was  a  short list  of                                                                    
screenshots  and  news  articles  that  identified  cuts  to                                                                    
programs under Donald Trump:                                                                                                    
                                                                                                                                
     Skagway  likely  to lose  nearly  $20  million in  FEMA                                                                  
     rockslide mitigation funds.                                                                                              
     Skagway was  slated to be  Alaskas  first  recipient of                                                                    
     Building   Resilient  Infrastructure   and  Communities                                                                    
     grant funding.                                                                                                             
                                                                                                                                
     CISA cuts  $10 million  annually from ISAC  funding for                                                                  
     states amid wider cyber cuts.                                                                                            
     The  cybersecurity and  Infrastructure Security  Agency                                                                    
     confirmed  this week  that it  is  cutting funding  for                                                                    
     cybersecurity intelligence sharing.                                                                                        
                                                                                                                                
     Federal   Funding  freeze   halts  key   infrastructure                                                                  
     projects in tribal communities                                                                                           
                                                                                                                                
     Rural  leaders push  Congress to  unfreeze climate  and                                                                  
     environmental funds                                                                                                      
                                                                                                                                
     USDA Funding Cuts                                                                                                        
     Local Food for Schools (LFS)                                                                                             
     $1,383,131 funding cut to Alaska                                                                                           
     $2,390,054 in potential economic loss to Alaska                                                                            
                                                                                                                                
     Local Food Purchase Assistance (LFPA)                                                                                    
     $765,450 funding cut to Alaska                                                                                             
     $1,307,107 in potential economic loss to Alaska                                                                            
                                                                                                                                
     Local Food Purchase Assistance (LFPA Tribal)                                                                             
     $5,298,875 funding cut to Alaska                                                                                           
     $9,048,529 in potential economic loss to Alaska                                                                            
                                                                                                                                
Mr.    Andreassen   lamented    that    under   the    Trump                                                                    
Administration,   much  of   the  work   done  by   AML  for                                                                    
communities in  Alaska would  cease to  continue or  come to                                                                    
fruition due to funding cuts  and cancellations, and cuts to                                                                    
agency staffing. He  opined that there was a  lot of turmoil                                                                    
and lack of clarity due to the chaos at the federal level.                                                                      
                                                                                                                                
9:55:57 AM                                                                                                                    
                                                                                                                                
Mr.  Andreassen considered  slide 26,  " Executive  Orders,"                                                                    
which  showed a  list  of  a portion  of  the 131  Executive                                                                    
Orders issued by the new federal administration:                                                                                
                                                                                                                                
     • Revocation of the vast majority of prior EOs.                                                                            
     •  14151    terminate  DEI,  equity, and  environmental                                                                    
     justice                                                                                                                    
     •  14153    Unleashing Alaska's  Extraordinary Resource                                                                    
     Potential                                                                                                                  
     • 14154  Unleashing American Energy                                                                                        
     • 14158  Establishing and Implementing DOGE                                                                                
     • 14210  Workforce Optimization                                                                                            
     • 14222  Cost Efficiency Initiative                                                                                        
     •  14225     Immediate  Expansion  of  American  Timber                                                                    
     Production                                                                                                                 
     • 14238  Reduction of Federal Bureaucracy                                                                                  
     • 14239  Achieving Efficiency Through State and Local                                                                      
     Preparedness                                                                                                               
     • 14241  Immediate Measures to Increase American                                                                           
     Mineral Production                                                                                                         
     • 14255  Establishing Investment Accelerator                                                                               
     • 14260     Protecting American Energy from State                                                                          
     Overreach                                                                                                                  
     • 14269  Restoring America's Maritime Dominance                                                                            
                                                                                                                                
Mr. Andreassen stated  that many of the  orders had specific                                                                    
connotations  to  the  effort  that had  been  made  in  the                                                                    
previous  years in  terms of  infrastructure.  He said  that                                                                    
Alaskas  competitive advantage  for accessing federal grants                                                                    
had been based in part  on equity and environmental justice.                                                                    
Rural communities that could point  to challenges had been a                                                                    
priority  for  the  federal  government.  He  discussed  the                                                                    
review  process for  current  applications,  which could  be                                                                    
cancelled under EO 14151.                                                                                                       
                                                                                                                                
Mr.  Andreassen spoke  to  thought  agencies were  currently                                                                    
going through  a vetting process  for all  currently awarded                                                                    
projects.  He noted  that under  EO 14222  not only  wordage                                                                    
would be  scrutinized, but also  cost savings  that agencies                                                                    
needed to be  looking for. He noted that  the projects would                                                                    
need to be evaluated by  DOGE, and grants and projects would                                                                    
be cancelled based on words identified in EO 14151.                                                                             
                                                                                                                                
Mr. Andreassen highlighted two types  of Executive Orders on                                                                    
the  list  that impacted  how  AML  related to  the  federal                                                                    
government: EO  14210 Workforce Optimization, EO  14222 Cost                                                                    
Efficiency Initiative.  We stated that staff  at the federal                                                                    
level  could  not  be replaced  until  four  employees  were                                                                    
terminated.  He   said  that  the  Federal   Highways  Grant                                                                    
Division  in   Alaksa  had  four   people  take   the  early                                                                    
retirement  plan,  leaving  zero staff.  He  lamented  that,                                                                    
under  the  executive  order, only  one  employee  would  be                                                                    
allowed to return should the program come back online.                                                                          
                                                                                                                                
9:59:41 AM                                                                                                                    
                                                                                                                                
Mr. Andreassen  continued to address  the list  of Executive                                                                    
Orders on  slide 26. He  noted that  all the impacts  of the                                                                    
executive   orders   were   still  being   discovered.   The                                                                    
implementation section set  requirements in 30-day intervals                                                                    
and  included demands  for reports  and evaluations,  at the                                                                    
same time as  the workforce was being  diminished. He stated                                                                    
that  the last  three years  had been  spent ramping  up the                                                                    
federal  workforce  in  the  state  to  meet  the  needs  of                                                                    
communities,  which   was  now   being  stripped   away  and                                                                    
reprioritized  in  a way  inconsistent  to  the interest  of                                                                    
Alaskans.                                                                                                                       
                                                                                                                                
Mr.  Andreassen   acknowledged  that   AML  members   had  a                                                                    
resolution  in  place  emphasizing  the  need  for  resource                                                                    
development.  He  considered  the list  and  considered  the                                                                    
benefits  to the  state from  timber and  mineral production                                                                    
and maritime dominance.                                                                                                         
                                                                                                                                
10:01:31 AM                                                                                                                   
                                                                                                                                
Mr. Andreassen displayed slide  27, "Developing a Strategy,"                                                                    
which he  considered could be  a call to action.  He thought                                                                    
that it was worth consideration  at the state level to think                                                                    
through  the previously  mention  two  executive orders  and                                                                    
consider how to navigate challenges at the local level:                                                                         
                                                                                                                                
     • Approach  a changing federal  landscape methodically,                                                                    
     similar  to  how  governments   would  develop  a  risk                                                                    
     mitigation   strategy   or  an   economic   development                                                                    
     strategy.                                                                                                                  
     •  Identify  nexus  with  State  and  local  roles  and                                                                    
     responsibilities.                                                                                                          
     •  Determine  potential  impact,  plausibility,  scale,                                                                    
     etc.                                                                                                                       
     • Develop strategy to  mitigate impact where necessary,                                                                    
     or leverage opportunity.                                                                                                   
     • This approach is consistent  with EO 14239 and shifts                                                                    
     from  an  all-hazards   approach  to  preparedness  and                                                                    
     mitigation to one that is risk-informed.                                                                                   
                                                                                                                                
Mr.  Andreassen   discussed  the   development  of   a  risk                                                                    
register, which  was a common part  of a project in  which a                                                                    
team would consider risks. He  thought one could expect that                                                                    
staff or state  agencies could assess the  impacts from each                                                                    
executive  order  and how  to  prepare  for a  response.  He                                                                    
reiterated  that   where  there  were  areas   for  economic                                                                    
opportunity would require preparation.                                                                                          
                                                                                                                                
Mr. Andreassen  thought everyone should be  thinking about a                                                                    
strategy, and thought the  suggested approach was consistent                                                                    
with EO 14239,  and shifted from an  all-hazards approach to                                                                    
preparedness  and mitigation  to an  approach that  was risk                                                                    
informed.                                                                                                                       
10:05:18 AM                                                                                                                   
                                                                                                                                
Mr.  Andreassen noted  that one  EO discussed  shifting more                                                                    
responsibility  for  risk  mitigation  to  state  and  local                                                                    
government. He  wondered whether there were  resources to do                                                                    
that if  FEMA was no longer  a resource.  He  considered and                                                                    
EO that would restrict the  state from taking action related                                                                    
to carbon  credits or carbon mitigation  type activities. He                                                                    
stressed  the importance  of planning  how  the state  would                                                                    
navigate the next four years.                                                                                                   
                                                                                                                                
10:06:08 AM                                                                                                                   
                                                                                                                                
Mr.   Andreassen  highlighted   slide   28,  "Planning   and                                                                    
Community Development,"  and noted that AML  was prepared to                                                                    
do  a lot  of the  work  described on  the previous  slides,                                                                    
including:                                                                                                                      
                                                                                                                                
     • Community Planning and Prioritization                                                                                    
     • Grant Development and Response                                                                                           
     • Grant Award, Partnerships, and Match                                                                                     
     • Procurement and Workforce                                                                                                
     • Project Management                                                                                                       
     • Grant Reporting and Outcomes                                                                                             
     • Maintenance and Operations                                                                                               
     • Asset Management and Sustainability                                                                                      
                                                                                                                                
10:08:15 AM                                                                                                                   
                                                                                                                                
Mr. Andreassen  looked at slide 29,  "Planning and Community                                                                    
Development,":                                                                                                                  
                                                                                                                                
     Stakeholder Engagement                                                                                                   
     •  Planning  Services:   AML's  cohort-based  framework                                                                    
     facilitates    collaboration   among    municipalities,                                                                    
     encouraging  shared  learning  and  alignment  on  best                                                                    
     practices.                                                                                                                 
     • Community  Development: Many projects, such  as those                                                                    
     focused  on energy  resilience  or climate  adaptation,                                                                    
     rely  on  active   stakeholder  involvement  to  ensure                                                                    
     outcomes address diverse local priorities.                                                                                 
                                                                                                                                
     Integrated Project Administration                                                                                        
     •  Planning Services:  AML offers  municipalities tools                                                                    
     and templates  for managing zoning  updates, permitting                                                                    
     processes, and other planning activities.                                                                                  
     •  Community Development:  Grant-funded projects  often                                                                    
     involve   administrative  tasks   such  as   compliance                                                                    
     monitoring, reporting, and contractor coordination.                                                                        
                                                                                                                                
     Funding Alignment and Access                                                                                             
     •   Planning  Services:   Long-range  planning   aligns                                                                    
     municipal  strategies  with  funding  opportunities  by                                                                    
     prioritizing   state    and   federal    goals   (e.g.,                                                                    
     infrastructure investments, resilience).                                                                                   
     •  Community Development:  Many grant-funded  projects,                                                                    
     such as  those in  energy or  water systems,  depend on                                                                    
     strategic planning frameworks to secure funding.                                                                           
                                                                                                                                
     Leveraging Shared Services                                                                                               
     • Planning Services: AML  provides shared software, GIS                                                                    
     mapping,  and  contractor  pools  to  enhance  planning                                                                    
     capacity.  •  Community   Development:  Many  projects,                                                                    
     particularly     those     involving     infrastructure                                                                    
     improvements  or resilience  hubs,  benefit from  these                                                                    
     same tools.                                                                                                                
                                                                                                                                
10:09:38 AM                                                                                                                   
                                                                                                                                
Mr. Andreassen addressed slide 30, "Leveraging Investments:                                                                     
Next Steps,":                                                                                                                   
                                                                                                                                
     Expansion of Shared Services                                                                                             
     • Community Oriented Municipal Planning                                                                                    
     • Reporting and Compliance                                                                                                 
     • Project Management                                                                                                       
     • Infrastructure Asset Management                                                                                          
     • GIS and Data Management for Planning                                                                                     
                                                                                                                                
     Strategic  Plan  for  Risk Mitigation  and  Opportunity                                                                  
     Development                                                                                                              
                                                                                                                              
     Consistent with                                                                                                          
     Vision:  Thriving  communities  led  by  healthy  local                                                                  
     governments                                                                                                                
     Mission: Strengthen Alaska's local governments                                                                           
     Values:     Sustainability,      Collaboration,     All                                                                  
     Municipalities                                                                                                             
                                                                                                                                
     Fiscal First Aid                                                                                                         
        • Tax and Revenue Administration                                                                                        
        • Bonds and Loans                                                                                                       
        • Modeling and Projections                                                                                              
        • Short and Long-Term Needs                                                                                             
        • Deferred Maintenance                                                                                                  
        • Investment                                                                                                            
                                                                                                                                
Co-Chair Stedman solicited questions from the committee.                                                                        
                                                                                                                                
10:14:40 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  queried  whether  the  Alaska  Governor's                                                                    
Office of Infrastructure was still in existence.                                                                                
                                                                                                                                
Mr.  Andreassen replied  in the  affirmative. He  noted that                                                                    
the  office   sent  out  a  weekly   newsletter  with  grant                                                                    
opportunities and activities.                                                                                                   
                                                                                                                                
10:15:26 AM                                                                                                                   
                                                                                                                                
Senator Kaufman asked for more  detail on Community Planning                                                                    
and  Prioritization  listed  on  slide  28.  He  asked  what                                                                    
staffing,  cost,  and spend  looked  like  for the  programs                                                                    
listed on the slide.                                                                                                            
                                                                                                                                
Mr. Andreassen  replied that  when he  started at  AML there                                                                    
were  three  employees,  which  had  grown  to  28.  He  was                                                                    
uncertain  about  growth  and   funding  going  forward.  He                                                                    
thought the  Division of Planning and  Community Development                                                                    
was  at the  heart of  what  AML did.  He said  that if  the                                                                    
vision  was  to  remove  barriers and  be  sure  that  every                                                                    
community had  resources to meet community  needs, ALM would                                                                    
use a  cohort approach to  mitigate cost and  maximize human                                                                    
resources. He noted that some  work could be contracted out.                                                                    
He stressed that AML constantly sought efficiencies.                                                                            
                                                                                                                                
Co-Chair Stedman solicited further questions.                                                                                   
                                                                                                                                
Mr.  Andreassen that  through collaborative  work AML  staff                                                                    
and partners  had worked to  meet the needs  of communities.                                                                    
He felt that the future looked hopeful.                                                                                         
                                                                                                                                
Co-Chair   Stedman   thanked    Mr.   Andreassen   for   his                                                                    
presentation. He discussed housekeeping.                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:19:58 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:19 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
041625 AML_Infrastructure - SFIN.pdf SFIN 4/16/2025 9:00:00 AM
041625 Grant Report to Legislature.pdf SFIN 4/16/2025 9:00:00 AM