HJR 37: FED MONEY FOR RURAL WATER/SEWER PROJECTS ROGER MCKOWAN, LEGISLATIVE STAFF TO REPRESENTATIVE LYMAN HOFFMAN, testified on his behalf saying, "In the summer of 1990, nearly a quarter of the residents of the village of Kotlik were victims of viral meningitis...I think we all understand there are some very critical water and sewer problems in rural Alaska. In an ongoing effort to identify sources of funding for rectifying these situations, Representative Hoffman has come into contact with HJR 1033 in Congress. This piece of legislation is sponsored by Congressman Hayes of Louisiana and suggests that the federal government should provide 300 million dollars a year for six consecutive years...for constructing water and sewer projects in economically depressed rural communities." MR. MCKOWAN continued, "Under the intent currently established in HJR 1033, the allotments would be made to the states in the ratio which the population and economically distressed rural communities of each state bears to the total population in economically distressed rural communities of all the states... In a 1990 report to Congress, the EPA (Environmental Protection Agency) estimated that 74 percent of the nation's Native wastewater problems were located in the state of Alaska." MR. MCKOWAN continued further, "The governor has asked for 26 million dollars for village safe water through the DEC... Should HJR 1033 pass...the state of Alaska would qualify for 45 million dollars. It is a 90 percent federal match, so rather than go in and have to spend 26 million dollars in general funds to accomplish (less)...it is my understanding, that the state, through Village Safe Water dollars, could go in with five million dollars, purchase 45 million more dollars, through the federal government, accomplish all the projects that are listed...on this prioritized list and save the state 20 million dollars approximately, in general fund dollars..." Number 560 REPRESENTATIVE ED WILLIS pointed out that a Glennallen water/sewer project was on the governor's priority list. (A copy of this list may be found in the House Community and Regional Affairs Committee Room, Capitol Room 126, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) REPRESENTATIVE TOOHEY asked if the governor's priority list included population considerations. Number 578 KEITH KELTON, DIRECTOR, DIVISION FACILITY CONSTRUCTION OPERATION, ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION, indicated that materials providing this information had been distributed to legislators. He added, "We are very much in support of HJR 37... HJR 1033 is the first comprehensive attempt to try to provide grants for those smaller communities which are unable to afford the loan programs... We think it would be a very good tool to have in the box with rural communities... This is just one of the possible sources of revenue and a very attractive option at this time, and the timing on this is very good." Number 630 CHAIRMAN OLBERG asked about the dollar sign notation on the governor's priority list. MR. KELTON explained, "The dollar figures that are shown on there relate to basically two programs. It is either a match with the U.S. Public Health Service on projects where we are going in jointly, or the Environmental Protection Agency has had a very limited program called the Indian Set Aside Program where basically half of one percent of the total federal appropriation for wastewater has been available for Indian Set Aside Projects. ...The total identified need is over 1.2 billion dollars for rural Alaska, so we have a long ways to go unless we get a steady sustained source of funding, and we are looking at the federal government to pick up part of it." Number 651 REPRESENTATIVE TOOHEY asked, "Again, is there any limit on the amount of people in a village that precludes the fact that they can have a sewer system? If you have ten people that set up camp in Iditarod, does that equate to a fact that they can have a sewer and water system?" MR. KELTON said, "That is a very good question and one we have wrestled with for years. The way we have addressed that is the priority list that is handed out is developed through a series of evaluation criteria...obviously, those that have the bigger problem associated with a larger population are going to be at the top of the list. So we are addressing the bigger needs and if we ever get down to the point where we are talking about ten people, then perhaps we will have a real question to answer..." Number 678 REPRESENTATIVE SANDERS MOVED that HJR 37 be moved out of committee with individual recommendations. There were no objections, and the MOTION CARRIED. ADJOURNMENT CHAIRMAN OLBERG adjourned the meeting at 1:53 p.m.