SB 50 - An Act making appropriations for capital projects; and providing for an effective date. Budget Overviews were conducted for the following departments: Department of Corrections Department of Public Safety Department of Commerce & Economic Development Department of Education was rescheduled. Overview by the Department of Corrections C0-CHAIR DRUE PEARCE invited Commissioner Rupp and Kathy Christy, Facilities Manager, Department of Corrections, to join members at the committee table and proceed with the department presentation. COMMISSIONER RUPP directed attention to a handout entitled "FY94 Governor's Request, Department of Corrections, Capital Budget" (copy on file) which outlined priorities for capital projects for the department. No. 1 - Agricultural Rehabilitation Program provided for funding for relocatable buildings in the amount of $1,750.0. No. 2 - Statewide Renewal/Replacement/Renovation/Equipment in the amount of $2,100.0, was addressed by KATHY CHRISTY, Facilities Manager. She explained the funding was essential to maintain the buildings, some of which are over 25 years old, in a safe, secure and functional condition. She said the department kept an on-going list of priorities which totaled over $6.5M so only the highest priorities would be funded by this amount. No. 4 - Multi-Media Vocational Education Equipment provided for funding in the amount of $200.0 for vocational education equipment for four facilities without increasing staff. No. 5 - Special Purpose Facility - Anchorage provided for $1,500.0 for building an annex facility which provided for a full service facility for women. Co-chair Pearce asked if a list of items agreed to by the department had been prepared in terms of space or capital costs relative to the Cleary settlement and what had not been accomplished at this time. Commissioner Rupp said the department would be pleased to submit a list of those items to the chair. Co-chair Pearce asked if the settlement agreement required an entire new facility for women. Commissioner Rupp said he understood an annex or satellite facility would be acceptable and a more cost effective solution. He felt the main objective was to give women the same opportunities as men. The state is not accomplishing that now. Co-chair Pearce asked if mentally ill inmates were unnecessarily being held in a hospital setting. Ms. Christy replied the department was deficient in the care of the mentally ill. Commissioner Rupp attested to the fact that the recriminalization of the mentally ill is a national problem. He said the department and other administrators across the country did not support that philosophy but because of facility limitations were unable to address the problem. Co-chair Pearce asked, if $1.5M was the estimated cost for planning site selection, what the complete cost would be for such a facility. Commissioner Rupp agreed site determination cost was estimated to be $1.5M. He said the department would estimate construction cost with an annex approach. CO-CHAIR STEVE FRANK asked if all items referred to in the handout were contained in the Governor's budget and if additional backup was available in the detail budget books. Ms. Christy said this overview was from the Governor's budget. Co-chair Frank asked if the department had considered the option of "soft beds" as opposed to construction of a separate facility. Commissioner Rupp said the soft beds option would be examined and maximized where possible. He wanted the committee to be aware of the department's pretrial requirements. He agreed the cost of a free- standing facility was not justified. Ms. Christy added long-term high security females needs could not be met in Alaska and those inmates were housed outside the State. SENATOR JAY KERTTULA asked where the high-security inmates were housed and the number involved. Ms. Christy said she believed three to five inmates were housed in North Dakota. Co-chair Frank asked if a suitable facility was required for this small number of women inmates. Ms. Christy said the department was required to address women inmates' needs without discrimination. Commissioner Rupp added that the department must convince Judge Hunt the plan for an annex is appropriate and not discriminatory in any way. He did not believe the court would require the department to do anything extreme. Senator Frank asked if the department had an understanding of what the Judge would allow. Commissioner Rupp felt the department knew a high security facility in terms of construction standard cost was $100.0 per cell. He guaranteed the committee the department would follow the most cost effective choice. Ms. Christy added that the new facility would free up some beds that could be used by male inmates, and the costly Sixth Avenue facility could be closed. This would mean increased capital cost but in part would be compensated by a more efficient operating budget. Co-chair Frank asked if the facility was being called a special purpose facility because it would replace the Sixth Avenue facility and solve other needs. Ms. Christy affirmed the fact that the facility would house inmates recovering from surgery, inmates sentenced to life, care for the mentally ill, and serve as many other needs as possible. SENATOR STEVE RIEGER asked about the Spring Creek gym floor funding for $80.0 and why it was being redone. Ms. Christy said the linoleum floor was cracked and had potential for causing sport injuries. During further discussion it was determined the short life span of the floor was caused, in part, by poor contractor performance. End SFC-93 #8 Side 1 Begin SFC-93 #8 Side 2 No. 6 - Hiland Mountain Correction Center Security Upgrade would cost $1,750,000 for the installation of a double fence, realignment of the perimeter road and repair of the electronic security system. No. 7 - Spring Creek Correction Center Expansion funding in the amount of $700.0 would increase the capacity by double bunking 50 beds. Sprinklers would need to be relocated because of the upper bunk installation. Program space would also be increased. No. 8 - Deferred Maintenance request for $500.0 would fund the most critical of the $12M list of projects. Ms. Christy referenced the list contained in the handout as a representative project list. The department chose to prioritize the items as emergencies arose. Co-chair Pearce asked if the department had received deferred maintenance money in the 1993 budget. Ms. Christy answered that maintenance funding had been combined with renovation, repair and renewal money. Co-chair Pearce requested a list of those maintenance projects included in the 1993 budget. Senator Rieger asked if the department provided for allocation items under each appropriation item rather than a representative list. Discussion followed among members and it was agreed that a more specific list would be preferred. Ms. Christy reiterated that the department maintained an on- going list of needs, but the department chose to remain flexible in its prioritization because of impending emergencies. SENATOR BERT SHARP asked if any changes in standards or codes had resulted in the reduction of the capacity of any of the facilities. Commissioner Rupp answered that double bunk capability increased capacity but in the area of recreation, medical services, education and program space more space is needed especially in light of the fact that facilities are running at full capacity. Co-chair Frank questioned the $1,500.0 requested for No. 3 - Management Information System. MICHAEL W. DINDINGER, Criminal Justice Planner, Division of Administrative Services, Department of Corrections, joined the committee at the table. He stated a partial offender- tracking computer system used by the department was purchased in 1980. It has been under evaluation since that time and on January 31, 1993 a major upgrade was added. One of the major problems with the system is that it was designed to track and cannot be used as a data base. Mr. Dindinger explained that the department's original request was higher than $1.5M, but this funding provided for an evaluation enabling the system to be more compatible with other agencies within the state, to share data, tie in and add more work stations around the state. He explained that $1.5M handled the first phase and did not replace the system. Prior to January 31, 1993, the system could only list one offense per offender, but after the update it was able list up to five offenses and the length of stay. Co-chair Pearce had concerns regarding updating of computer systems and asked if any firms in the lower 48 had looked at the system. Mr. Dindinger said that four out-of-state firms had looked at the existing system. Part of the evaluation included an analysis by these companies. He explained that because of sun spots the satellite feed experienced time blocks, and data could become lost. He went on to explain that Alaska was only one of four states that handles sentenced felons, pre-trial misdemeanors, etc. The data base system needs to be compatible with criminal justice agencies such as the Dept of Law, Dept of Safety, etc. Co-chair Pearce reminded the committee that each chairperson of an operating budget subcommittee would have a later hearing in order to go into more budget detail. Co-chair Frank asked what the second phase would entail. Mr. Dindinger said the second phase would be replacement of the system. The cost is not yet available. Earlier estimates amounted to $1M in hardware and $.75M in software for a new system. Co-chair Frank observed that the $1.75M for a new system would be in addition to the $1.5M capital budget request. He asked how the January 31, 1993 upgrade had been accomplished. Mr. Dindinger answered that two department programmers and a non-permanent programmer had been assigned the upgrade. Co-chair Frank asked if the $1.5M capital request provided for computer programmer time. Mr. Dindinger explained that the $1.5M included evaluation of the system, reprogramming of the current system, and terminal access for on-site offices which included some hardware. Co-Chair Frank asked for an exact breakdown of the $1.5M request. Senator Rieger asked what part of the $1.5M would be an RSA to the Division of Information Services. He also asked how many megabytes of information were contained in the system. Mr. Dindinger said DOC had just begun to meet with DOIS. Those costs had not been decided as yet. He said the system contained 680,000 files, but he did not know the megabyte capacity of the system and would send the information to the committee. Overview by the Department of Safety Co-Chair Pearce invited Commissioner Richard Burton and Kenneth E. Bischoff, Director, Department of Safety, to join members at the committee table and proceed with the department presentation. COMMISSIONER BURTON directed attention to a handout entitled "FY 94 Capital Budget Overview, Department of Public Safety", (copy on file). He asked members to look at page 2 of the handout which gave a history of the department from 1984. This report excluded the Department of Transportation because of federal funding in that department. He felt that the Governor's budget request was not unrealistic, and he pointed out he had asked for a higher budget because of an expected major expenditure to replace several patrol vessels. He explained the department's budget request maintained or replaced existing facilities and equipment. Co-Chair Pearce asked the committee to turn to page 10 of SB 50, "An Act making appropriations for capital projects; and providing for an effective date", and asked for a brief explanation of each line item. Senator Rieger asked if the department would support a change to a single license plate per vehicle to hold down costs on line 16. Commissioner Burton explained the cost savings would not be significant. For the purpose of identifying vehicles in the area of enforcement, two license plates are deemed very important. KENNETH E. BISCHOFF, Director, Department of Safety, detailed line 17 enhancements as additions to the Anchorage office such as partitions, signs directing customers and a new telephone system. Included in that request was a $100.0 study proposing the use of bar code scanning devices to retrieve information and the ability of customers to process certain transactions at an auto teller machine. In answer to Co-chair Frank's question regarding how an emissions requirement would be handled, Mr. Bischoff said he would supply that information to the committee. Mr. Bischoff spoke to the department's forty aircraft, annual maintenance, rebuilds, etc. He said the request on line 19 would cover those expenses for FY94. He explained some services were contracted out, and some maintenance was carried in the operating budget. Line 20 would cover similar expenses for FWP enforcement vessels. Discussion followed between committee members regarding vehicle and equipment service and maintenance, whether it should be done within the departments or whether the State should maintain this service by one department. Co-chair Frank observed that backup for line 19 indicates funding would be used only for contractual costs. Commissioner Burton agreed that these maintenance items could not be accomplished within the department. Co-chair Pearce asked the commissioner to address line 22, statewide law enforcement systems, in the amount of $1.8M. Commissioner Burton asked Mr. Bischoff to explain how critical the coordination of computer systems was between the Dept. of Law, Dept. of Corrections, and the Court system. Mr. Bischoff hoped that the committee would see similar requests from those departments. Within the Dept. of Safety, this request would maintain the Alaska Public Safety information network and rewrite the management system which contains approximately 22 million records, supports 2,600 users and also provides all motor vehicle processing. He felt the Alaska criminal history data base was in poor shape but the source of many decisions. After a data quality audit of 300 million transactions, only about one- third of those contained fingerprints and one-third dispositions. At this time anyone accessing the system is not provided all available information. Co-chair Pearce wanted the legislature to be assured that all systems would communicate with each other if the Dept. of Public Safety, Dept. of Law, Dept. of Corrections and Courts all receive funding for new computer systems. Mr. Bischoff agreed that was a valid concern. He stated that Congress appropriated $27M to the states to improve the integrity and quality of criminal and police records nationwide. Alaska received approximately $700.0 of that appropriation. He explained there were no existing statutes that provide for cooperation between agencies, but most departments realize the importance of cooperation. He believed the Governor's office was going to introduce legislation, this session, addressing some of the mandatory requirements between departments. End SFC-93 #8, Side 2 Begin SFC-93 #10, Side 1 Commissioner Burton informed the committee that DOL was in final review of the Governor's proposed legislation providing for sanctions for city police departments and other agencies throughout the State that do not cooperate with state departments. SENATOR JUDITH SALO asked how all the data processing would stay organized, and what state agency would be responsible for that. Mr. Bischoff said there was no guarantee that statewide coordination would happen. A few years ago, a council was formed and had limited success. Some requirements of the system are dictated by the standards needed to participate in national systems. He said a core control group of working level people existed that tried to make these systems talk to each other. At this time, there is no policy making body to ensure that fact. The Governor's proposed legislation provided for an advisory group to the Commissioner of Public Safety to be used as a sounding board for these issues. Co-chair Pearce found it hard to believe the Governor was going to create another advisory group. She instead suggested the State hire a computer expert who would oversee these issues. Mr. Bischoff addressed line 23 at the direction of Co-chair Pearce. He explained that this request for funding by Alaska State Troopers for replacement equipment was for revolvers, holsters, snow machines, video cameras, and other tools used by law enforcement. Co-chair Pearce asked what FWP bulk fuel storage tanks were being replaced by line 24 and 25. Commissioner Burton said he had asked DEC to pay for these tanks but was unsuccessful. Mr. Bischoff reported that the locations of the underground tanks were in Aniak, King Salmon, Bethel, Kodiak and Soldotna. In answer to Co-chair Pearce's question, he informed the committee that funding would bring the tanks under compliance and it was his understanding this would complete the department's responsibility for underground tank replacements. Senator Rieger asked the Commissioner to report to the committee if the tanks would be replaced with above the ground tanks. Referencing line 25, Co-chair Frank questioned whether items under $25,000 should be requested in the operating budget, and if items over $25,000 automatically went into the capital budget. He asked if OMB gave the department any direction in that area. Commissioner Burton agreed that items like revolvers and license plates seemed more appropriate for the operating budget. He said that to his knowledge there were no guidelines available. Mr. Bischoff informed the committee that indirect guidelines were the caps that each agency received for its operating budget and services needed to be prioritized within that cap. He explained that if license plates were placed in DMV's operating budget, field offices would have to be closed. Senator Salo asked for clarification regarding budgets. She proposed, as the pressure on the operational budget became more intense, items were shifted to the capital budget. Mr. Bischoff agreed that in general that was true. The capital budget was generally used for significant one-time costs, and maintenance costs generally came under the operating budget. Senator Salo felt the repairs listed on line 19 should be funded through the operating budget. Mr. Bischoff said it was a matter of interpretation. Co-chair Pearce asked OMB to provide guidelines for the operating and capital budget for the committee. Co-chair Frank asked DPS to provide several years of budget history after noticing a drop of over $1M worth of equipment. Mr. Bischoff answered that budget tightening could have been responsible for some budget reductions. Co-chair Pearce, after referencing line 27 & 28, Facilities Renewal and Replacement/Deferred Maintenance, asked if DPS kept a representational list of prioritized projects and if the priority changed in case of emergencies. Commissioner Burton said in budget preparation, he asked his agency directors and managers to provide a list of priorities for their respective departments. He also had available a list of all state owned and leased properties. Commissioner Burton directed attention to page 11, line 4, Juneau Public Safety Building Code Upgrade/Modifications. He said the Juneau building was built in 1970 for five-years temporary use and was still being used. One-third of the building was being used for office space and needed renovation such as upgraded bathrooms, and handicapped access. Mr. Bischoff addressed line 6, Enforcement Vessel Replacement, funding of $1M. He said it would begin to fund the need to replace some of the agencies smaller aging vessels. Co-chair Pearce inquired concerning DOL's negotiations with a fishery company which provided for two vessels for the State in lieu of a fine. She asked if this vessel was the one in question. Commissioner Burton said that because of enforcement action taken last spring, the fishery company was in negotiations with DOL and in lieu of a fine, may provide two vessels for the State. He informed the committee he was privy to some of the negotiations, and DOL was to inform the president and speaker of the Senate of the outcome. He understood that forfeiture legislation was in the works and would find out when it would be submitted to the legislature. He said, however, it would not effect line 6 funding. Recess 10:40am Reconvene 11:45am Overview by the Department of Commerce & Economic Development Co-Chair Pearce invited Commissioner Paul Fuhs and Guy Bell, Director, Department of Commerce & Economic Development, to join members at the committee table and proceed with the department presentation. COMMISSIONER FUHS directed attention to a handout titled "Department of Commerce & Economic Development FY 94 Capital Budget", (copy on file). He said #1 requested $750.0 for a three to five year transition from a Wang computer system to a new system. He explained Wang Laboratories had filed for bankruptcy and the department was forced to phase into a more open computer system. Another capital request would follow to accomplish the conversion of the data base to a new system. Senator Rieger asked how much data was contained in the department's computer system and if it was a data based system. GUY BELL answered that there were over 30,000 occupational licensees, 63,000 business licensees, approximately 1,000 permits for games of chance and skill, 21,000 corporate records, 5,000 active security registrations, 5,300 producer and 1,100 insurer licensing files, and $230M of outstanding loans on file. He said it was a data base system but used extensively and daily. SENATOR TIM KELLY asked why the department was not using, and could it return to, the State's mainframe computer. Mr. Bell explained that in 1982 the department made the decision to leave the State's mainframe, mainly because of charge- back costs. He said the possibility of returning to the mainframe could be investigated in regard to cost, etc. Senator Rieger's main concern was the high cost of changing from one computer system to another. Mr. Bell stated that over 200 employees were using the system, each of which needed a new work station. He explained that the existing Wang work stations were not compatible with any other system. It was estimated the Wang system would last from five to ten additional years, and the transition was planned to be complete in three to five years. Four in-house computer programmers would perform the changeover in systems. Mr. Bell, in response to Co-chair Frank's question, said he did not know how DOL and DOPS computer systems compared to DCED's. Commissioner Fuhs directed attention to item #2., Economic Development Matching Grants. He said backup material provided a list of projects funded in FY91. In general, these projects would not be accomplished without the grant funding. Senator Salo asked if any evaluation data for FY91 projects was available in order to see how those projects were working. Commissioner Fuhs agreed to provide that information and offered that all projects were operating at the present time. Senator Kelly asked for an explanation of the Dalton City Tourism Project (Renovation of White Fang Set). Mr. Bell said the White Fang set was being converted for use as a tourist attraction in the Haines area. Commissioner Fuhs hoped item #3., Small business Assistance and Development, would get more attention in Alaska. The Small Business Development Center, connected to the University of Alaska, helps people write business plans, marketing assessments, and gives technical assistance to small businesses. Commissioner Fuhs said item #4, Alaska-Japan Fisheries Cooperation, for $45.0 was a minimum funding request and at its lowest since it was initiated in 1985. It would cover some meetings and exchanges between communities and medium- sized Japanese companies working in community development programs and assisting with by-catch species. He felt the program was of value because other countries, like Japan, would look to the state government's involvement in fisheries. Co-chair Pearce asked if there was any connection between this program and personnel in the Tokyo office. Mr. Bell answered that the offices would work together, but there was no direct connection. (Co-chair Pearce announced the Department of Education Overview would be rescheduled until Monday, February 8, at 9:00 a.m.) Commissioner Fuhs directed attention to item #5, Gold Rush Centennial Celebrations. He said this celebration was similar to the Gold Rush '92 program which brought people up the highway. He felt the program was a good investment because tourist dollars were spread out more around Alaska and benefited more small Alaskan businesses. Co-chair Pearce asked if the department could provide a list of celebration grant applications by local communities to see what sorts of grants this funding would accomplish. Commissioner Fuhs agreed to give the committee specific examples of this kind of celebration funding. He added that the department had specific examples of money spent from the 1992 Alcan Highway celebration experience. CONNEL MURRAY, Director, Division of Tourism, Department of Commerce and Economic Development, provided background. Beginning in 1986, a reasonable increase of traffic over the highway occurred as a result of the world's fair in Vancouver. In 1988-89, the department spent almost $1M advertising the 50th anniversary of the Alaska highway. Last year, Alaska realized an increase in highway visitation of 14 percent. He stressed how important the independent traveler was to smaller operators, lodges, etc. He felt a series of events beginning in 1996, the anniversary of the discovery of gold in the Klondike, could keep the highway use momentum going. Local communities have already organized, or were in the process of organizing, local gold rush committees. He informed the committee that a federal cooperative grant had been filed with Seattle Convention and Visitors Bureau. The capital request would not include marketing, and money from the operating budget would be used to sell the events. Co-chair Pearce asked if the Yukon could be involved in the funding of this celebration. Mr. Murray answered that the Yukon and British Columbia were both involved in the marketing program. Commissioner Fuhs stated Alaska had one-sixth of the coal in the world. He said there was new technology that allowed coal to burn cleaner. This funding would be used for test shipments of Alaskan coal to confirm the suitability of the coal for new technology and new markets. The other new prospect for Alaska coal is coal-water fuel which replaces no. six fuel oil. This fuel is easier to transport and if it was spilled, would not be a polluting toxic substance. In answer to Co-chair Frank's question, Commissioner Fuhs stated most of the coal was on State land, some on mental health lands and some on Arctic Slope Regional Corp. land. Co-chair Frank asked how the department's initiative fit with the private sectors' initiative to develop coal. Co-chair Pearce announced there would be a subcommittee meeting on the subject of coal development. Commissioner Fuhs suggested Ron Garzini, Interim Executive Director, Alaska Energy Authority and Chris Gates, Director of Economic Development, both top state coal authorities, be available for that briefing. Discussion followed regarding the relationship of state marketing and private development. Co-chair Pearce asked if the railroad had helped with coal development. Discussion followed regarding railroad issues including fees, the hotel development and their tax exempt status. Co-chair Pearce announced that the railroad authority would be invited to come before the committee to speck to these issues. Co-chair Pearce invited Ron Garzini, Interim Executive Director, and David Denig-Chakroff, Director, Rural Programs, Alaska Energy Authority to join members at the committee table and proceed with their presentation. RON GARZINI directed attention to the handout titled "Financially Restructured Alaska Energy Authority FY94 Capital Budget Request Summary" (copy on file). He stated the programs would be addressed in order of priority. He wanted the committee to know the department was putting an emphasis on rural management and training in advance and consistent with the capital projects. Under "Umbrella" programs, DAVID DENIG-CHAKROFF spoke to the energy problems in rural Alaska. He stated the department's goal for rural communities was three part. The first was to eliminate and prevent emergency situations and improve life, health and safety situations as related to energy facilities; secondly, to implement capital substitutions for energy projects that would create better efficiency and lower cost power; and thirdly, improve management of rural energy projects and utilities. He then described the individual programs in relation to these goals. Mr. Denig-Chakroff explained that A-1, Operation, Technical and Emergency Assistance was the basis for the rural technical assistance program. The goal was to train utilities in better business management as well as technical operations and maintenance practices. He said that since this training had started, no power related emergency had been declared a state emergency. A-2, Electrical System Life, Health and Safety Improvements request was reduced because work in this area had been accomplished. It included correcting problems in wiring, inadequate grounding, fire violations, etc. Mr. Denig-Chakroff said funding for A-3, Rural Utility Regionalization, Consolidation and Business Management Training would help the utilities become more self- sufficient and less state funding would be required. He said this program would be closely coordinated with DEC, DC&RA and some federal programs. In answer to Co-chair Pearce's question, he said A-3 would not help fund two positions for DC&RA. Co-chair Pearce asked if one document existed that addressed each department's responsibility and how the coordination was taking place. Mr. Garzini voiced his support for this coordination between departments and hoped the appointment of Commissioner Blatchford, Commissioner Sandor and himself as the state's representatives to the Rural Development Council would help accomplish that. He felt management should be in place before capital improvements. Senator Kelly asked why A-3 was in the capital and not the operating budget. Mr. Denig-Chakroff stated the department believed utility consolidation and business management training could be completed in a year or two and would identify a number of rural utilities that should be merged. He pointed out that in some instances, the department has declined further assistance until the utility joins a professional organization of its choice. Mr. Denig-Chakroff directed attention to A-4, Rural Power Systems Upgrades funding. He explained this was a continuation of an on-going program addressing upgrades of systems by replacing old generators or improving distribution systems to more efficient voltages to prevent line losses. He pointed out one of the problems of rural communities joining existing utilities was that the utilities would not want to take on a community that had existing problems. Mr. Denig-Chakroff directed attention to A-5, Emergency Bulk Fuel Repairs/Prevention, providing follow-up from a completed assessment. He said A-5 funded emergency repairs discovered in the assessment. He pointed out funding for major upgrades or environmental rehabilitation on existing systems was covered in A-7, Bulk Fuel System Upgrades. Mr. Denig-Chakroff directed attention to A-6, Statewide Electric and Power Project Development, which would identify the capital substitution projects and small hydro-projects s as discussed under item A-3. End SFC-93 #10, Side 2 A tape is not available for the rest of the meeting. Mr. Denig-Chakroff discussed A-8, Alternate and Applied Energy Technology Development listing small hydro projects, wind projects, coal and hybrid systems, etc. under research. Senator Rieger asked if any loans or grants were available for research funding. Mr. Garzini affirmed that AEA looked to local efforts, federal money and grants for funding. In answer to Senator Rieger's question regarding appropriations from the general fund to the AEA, Mr. Denig-Chakroff stated legislation was being introduced regarding this issue. Mr. Garzini reported that A-9, Energy Conservation Management-State-Funded Facilities, addressed rural Alaska. AEA, working with DOT, would put together a program of state investments to be made for energy efficiency. Mr. Garzini directed attention to B-1, Reimbursable Authority, and B-2, Component Renewal & Replacement-AEA- Owned Facilities. He said facilities were aging and the reserve would service power lines, power houses, etc. He pointed out that funds must be appropriated through the legislature. In answer to Senator Rieger's question regarding the four-dam pool, he explained a fund was set up with utility money, and capital improvements are decided by a vote of the four-dam committee. Under specific projects, Mr. Garzini outlined the Snettisham acquisition; Railbelt, St. Michael-Stebbins, Sutton- Glennallen, and Southeast interties feasibility studies; Tazimina and King Cove Hydroelectric projects; and coal initiatives. He also provided a handout restructuring plan for the railbelt energy plan. ADJOURNMENT The meeting was adjourned at approximately 12:00 p.m.