I call this meeting of the House Finance Department of Natural Resources Subcommittee
to order.
Let the record reflect that it is 12.03 p.m. on Friday, January 30th, 2026.
Present today, we have Representatives Freer, Dibert, Fields, Meers, Hall, Sadler, Colom,
Elam, and my self-chair shruggy.
As we start, please remember to mute your cell phones.
I want to thank our LIO moderator, Zach Lawhorn, for helping us with behind-the-scenes
Today, we will discuss the goals and expectations of the subcommittee here from the Department
of Natural Resources with an update on their fiscal year 26 budget and an overview of
the governor's proposed fiscal years 27 budget.
On the sub committee process, the DNR subcommittee will meet at noon on Wednesdays or Fridays
as needed.
Representative Dibert, Representative Freier, and I are working together to set up a schedule
I look forward to working with each of you and my goal is to have a collaborative, informative, and productive process, but also one that does not take more time than is necessary.
So if you have questions or specific areas that you'd like to dig into, please let our office know.
Otherwise, we will take a fairly light touch on some of this as there's less material this year to go over.
I encourage members to become familiar with their binders.
The binder's include data and resources from our nonpartisan legislative finance division.
And I believe Nathan is potentially home sick today as I'm not seeing him, very good.
But we do have, Mr. Connerbell here.
And if you have questions or would like to dig into any of this,
I highly recommend you set up a meeting with them as they'll be able to aid you
through this process and are very well informed.
Lastly, my staff, Caroline Hamp, will be with the, be our subcommittee aid
and your point of contact in my office.
Caroline is over here now.
Let's begin our main presentation today, which can be found in the back
of your committee binder.
Here today from the Department of Natural Resources, we have Commissioner Designee John Crowther, Deputy Commissioner Brent Goodrum,
Administrative Services Director Shannon Miller, and if they have anyone else, they're welcome to introduce them.
Thank you for being here today.
You are seating yourselves at the dais.
Thank, you.
When you're ready, please put yourselves on record and begin with your presentation, which we've pulled up.
Thank You, Chair Shraghi and members of the committee.
I very much appreciate the time today.
We know many of you are very familiar with our department, but we'll provide an overview
of both our structure, our budget items, some of the activities and accomplishments of
the various divisions within the department and also some our priorities for 2026.
In light of subcommittees time, we will move efficiently through it, and of course happy
to take questions here and follow up with your offices as necessary.
Just very briefly, before I turn it over to my colleague, Deputy Commissioner Brent Gidrum.
As you all know, the department's mission is very important to the state,
important of our economy, important all of the Alaskans.
We are supposed to manage use, make the best use of our state's abundant natural resources.
It's an obligation I take very seriously.
I've been able to work at the department for many years and working to make sure we keep
that commitment and keep that obligation to the better of the ability.
It takes a great deal of work to do all the work that is being presented today, so I'll
speak a little bit more to it in the next slide.
Since you're thanks to all the professionals of the department is very much in order.
We have a tremendous team and we've got great leaders, great staff and really a great organization.
So honored and thankful to be here and without further ado, I'll get into our work chart.
So as mentioned,
I'm serving as commissioner designee.
I previously was serving is deputy commissioner overseeing the right side of this chart
The four divisions on that side as enumerated here are division of oil and gas, which we'll talk about all these divisions in more detail later, but our director is Derek Nottingham, very experienced professionals served in both private industry and a variety of roles in government.
Very thankful to have him.
Our state geologist is Dr. Aaron Campbell.
served as a state geologist for the state of Wyoming for many years.
So we're very thankful to have a new Alaskan on our org chart,
and she's bringing a lot of good energy and good perspective
to that important division.
Our office of project management and permitting,
led by Ashley Adoko, who's also been serving in that role
for some time, and really is working
to amplify the coordination, the outreach,
and the functions of opump.
So she is a key part of the leadership team, say the least.
our Mental Health Trust Land Office, which has a special mission responding to its beneficiaries
and that trust responsibility is led by Justie Warner, also has had extensive experience
with the department.
And I just highlight that to show we've really got a tremendous set of leaders with a lot
of experience at DNR and a lotta experience in their various sections of expertise.
I'll let Brent do his own introduction.
He and I have been privileged to work together
for a great deal of years of the department,
but just very quickly moving through the other five divisions.
Our division of agriculture led by Brian Scorsby.
He's been working very actively
on the important efforts on food security
and working with the team there.
Division of Forestry and Fire Protection, tremendously consequential, both for economic activity and timber use, but also, of course, wildfire prevention and response.
That's a very important division. We're lucky to have Jeremy Dallas as our state forester there.
Division Of Mining, Land, and Water, the department's largest division, possibly you could say.
It's brought us breadth of responsibilities as led by Christy Collis.
come up through the division, you know, kind of a homegrown leader, which is extremely valuable,
both for her connection to her team and her understanding of the full operations.
Finally, we have our division of parks and outdoor recreation led by Ricky Geese.
He's been the director there for the Full Duration of this administration and
working very hard to make sure those resources are cared for, available to Alaskans
and are actively supporting recreational opportunities.
And then finally, second finally.
Shannon Miller is not able to be with us today.
She's been called away for some family leave,
but she's our support services director,
doing a tremendous job and has been navigating
some transitions, some staff changes
the department had over the last year.
And we're very, very thankful to have her.
So.
Concluding that I'll turn it over to Deputy Commissioner Goodrum for a quick introduction of himself and to talk a little bit about the budget specifics.
And before we turn over it to deputy director Goodram, just to quickly note that representative Thomas Chefsky joined us at about 1203.
Thank you, please continue.
Thank You Commissioner doesn't need Crowther for the record. My name is Brent Goodrom.
I am the deputy commissioner for The Department of Natural Resources and have worked in the department for.
Approaching 15 years now, so it's it great to be in front of you all today and deputy commissioner
I'm sorry to have demoted you when I that's okay. That's all right
He director a moment ago. Thank you, sir
We appreciate the opportunity to being here, and we'll get started right now
My high-level operating budget overview begins here on slide three
Please note that the division of agriculture has been removed from our department budget presentation
As there is a separate department of agricultural structure provided for in the governor's budget the top left
The table at the top left represents our FY25 actuals in the comparison of FY26 management plan to the proposed FY27 governor's budget.
When you look at top-left table, you'll notice that the most significant change is in our federal funds category.
An increase of approximately 4.3 million, a change of about 24%.
The overall total FY27 governor's budget increased by 2.7% from FY26.
As you will soon learn in the upcoming slides, the vast majority of changes within the department's budgets are attributed to three things.
The movement of long standing programs and associated federal receipt and
matching funds from capital to the operating budget.
Number two, an increase in authority to receive interagency receipts for all hazard disaster response and
three implementation of the statewide information technology classification study within the department.
When you look at the top right at
the table there, you notice a decrease of 30 positions from the FY26 management plan to the
FY27 governor's budget
across all position types. I will discuss the reason for the position decreases in subsequent slides.
The three parts shown below the high-level comparison of our four fund categories
by percentage of the total operating budget. These fund types are unrestricted general fund,
designated general funds, other and federal.
DNR has 18 different funding sources.
When you look at the green comment box on the right,
you'll see the general fund budget includes both unrestricted
and designated general funds totaling approximately $122 million.
Unrestricted general fees and designated general
funds comprise 61% of the DNRs operating budget.
Now, looking at table on left under designated
general funs, most of our general
revenue is from park fees, ride-of-way leases, material sales, mining leases vehicle rental
tax, land sales and recording fees. Under the other category, most of this category is made
up of interagency receipts, statutory designated program receipts permanent fund receipts
capital funds and mental health trust authority.
When you look at the comment box in the bottom right, you'll see that on a 10-year revenue average for every general fund dollar
appropriated the DNR, D&R generates $22 in revenue.
I will now provide an overview of the proposed FY27 governor's operating budget changes.
Line 1, Administrative Services.
This item transfers four positions from the Department of Administration to DNR
for accounts payable and travel and expenses activity.
The funding for these positions remained with DMR during the consolidation of services,
so no funding is associated with these decisions.
Line 2, administrative services.
This item transitions four positions from Department of Administration to DNR for payroll activities.
The funding for these positions remained with DMR during the consolidations of services, so no funding is associated with these
positions transitioning back to the department.
Line three, multiple divisions within the Department.
This Item is to fund the implementation of the Information Technology Classification Study.
The study will apply to 29 positions within the department.
The total budget increment for DNR is approximately 595,000,
spanning various allocations identified on this slide.
Line four.
Deputy Commissioner, we have a question from Representative Fields.
Thank you through the chair, I'm not sure if this is the right place to ask about it.
But my understanding was the Department was doing a classification study for
If a state park ranger is traveling from one unit to another, they may be the first
responder called out to a traffic accident, an incident where a first respondor needs
to respond to criminal activity.
And yet, state Park Rangers, I believe, earned 40% less than starting state troopers.
So I think the department had started a classification study.
I believed that's what the Department of Administration right now.
This is probably one of the grossest inequities in our state pay system.
And I just wanted to check on the status of that and whether the governor's budget proposal assumes that we will in fact finally fix that
and deliver greater parity for state park rangers. Thank you.
At its final steps as we understand it we're working with the Department of Administration to
To review and and make sure that's appropriate and I believe that
The intent is to continue to work towards finalization for that classification study
And representative Sadler thank you, Mr
Yeah, given the detail of the budget something I appreciate the chance to ask questions of specific topics because they raise other issues, too
So my question is this through the chair
I've had several constituents contact me about concerns about a kind of a general statewide
salary study that just was released not too long ago.
My question is for the IT classification, was that a specific information technology
classification or was it part in response to the general salary's study?
Representative Sadler, this is Deputy Commissioner Goodrum.
I believe that was a statewide study for the IT specifically for that class that
was probably done independent of the other work and so I don't believe it's related to any of
the high-level statewide overarching study that you're referencing. Thank you.
Yeah, you may recall there was the discussion and salary study last year that was a broader statewide and then the IT was
a specific effort. I've got Representative Meyers, the Representative Colomb, and just for the record
Representative Prox joined us at 12.17 p.m. Welcome. Thank you through the chair.
I wanted to go back to the to park rangers and if you have a timeline on
If that re-classification would be done during our session,
I had the fortune to do a ride-along with a ranger.
I've been with APD and troopers,
and the vibe of a first responder carries through.
The training from the trooper academy,
the work that they do, and
the responses that I have had.
falls in line with the work of our other line
enforcement officers.
Thank you.
Chair Schrugg, our representative mirrors
through the chair, John Crowler, for the record.
Happy to follow up with a committee about,
we'll check on the timeline for that study.
Thank-you.
Representative Colomb.
Thank You, Chair.
Through the chairs.
So I just wanted to clarify line one and two.
So.
The accounting positions and the payroll positions were part of centralizing
So that was all going to go to DOA
But those positions actually didn't leave your department and now they're coming back to your Department
Through the chair representative clone
The department actually did transfer positions over to DOA.
The money for those positions stayed with the department and were funded
through an RSA agreement as that process was worked out.
And so the money's never left our departments, but we are now
getting the PCNs back from DWA that went over.
So follow so you guys have had the money said the whole you were just it was just the RSA that was paying for the
position so I'm back and can you tell me is this a like a it's all this that all these efforts to centralize is that
Is this special to DNR that everything's being pushed back or it?
The chair representative clone it it
I believe it's the vast majority of departments
that did send positions to DOA during the consolidation phase
are seeing positions going back.
There may be a couple departments
that DOa is going to still care for going forward,
but it say larger, DNR is not unique in this respect.
And one more question.
So do you feel like it's helpful for the department
to have these?
And it was, I mean, did you see any improvement
from centralizing?
Are you glad that they're back in your department?
Through the chair, Representative Klom,
I'm confident that DNR will do a great job administering
our pay and travel and all those things when
we have those positions back.
OK, thank you.
Representative fields. Thank you. I just want to share with committee members
I worked in a state agency when the centralization started and my experience a different agency
My experiences was it added significant bureaucracy time and expense so it was well-intentioned
But ultimately did not bear fruit and I appreciate this department for taking a close look at and trying to
Have the most efficient system and i believe this will be a more efficient. System. thank you
Related items one and two are all those positions filled or some of those unfilled
Mr.. Chair, I believe most of them are filled some some may not be but we will
We'll do well once we get the positions back
Okay, and follow up to that. There's currently a hiring freeze is your intent to keep those positions vacant or
Would you be seeking waivers to fill those position?
Chair sharagi for the record John Crother
You know what we evaluate
The hiring freeze remains in place and consequently any exception to it requires a special waiver.
We do submit waivers when we identify that there's a need consistent with the priorities.
It may be the case that a waiver is needed based on whether those positions are filled or not, but we evaluate that on a case-by-case basis and then get Governor's office approval.
So it's possible some may remain vacant for some time depending on how we're meeting that service in need.
Excuse me representative Tomaszewski
Thank you. Thank You
Co-chair shoggy through the chair
With regards to the waivers is there especially current we requirements for the waiver
Do you have it laid out or is it a individual case-by-case?
per job
Representative Tomasjewski through to chair
Generally, you know the governor's office is articulated and has to be consistent with public safety critical state interest
key economic capacity facilitation, many of those are areas of the Department of Natural
Resources' mission touches on, so depending on the specific position, you know, we may
describe the need through those identified and important categories, but it varies based
on a position.
So it's not necessarily a one-size-fits-all.
I'm so sorry, I punched the button off, and I was like.
It happens to the best of us representatives out there.
Any additional questions of this pointer, should I?
Not seeing any, please continue.
Line four, Exxon Valdez, for the record,
Deputy Commissioner Brent Goodram.
Line 4 Executive Valdez Oil Spilled Trustee Council Projects.
This item removes the Exxon Valde's Oil spilled trustee council projects fund authority.
All EVOS projects under this fund have concluded, and DNR no longer receives these funds.
So this allocation and authority can be eliminated.
It's a decrement of $175,000 in other.
Mental Health Trust Lands Office Facility Operations and Maintenance.
This item establishes a Trust Land Office's administrative budget
under the Mental health Trust's land facilities operation
and maintenance component to adhere to statute
and to document the mental health trust facilities operations
and the maintenance costs.
The structural change adds 895.8,000
of mental Health trust authority authorized receipts.
That 895.8,000 this includes the addition of 573.2, 000 for facilities and operations maintenance that you see on the slide here and transfers 323,00 to this component from the Trust Land Office Administration budget.
Note that mental health trust has their own funding bill.
Representative Sadler I do and again I apologize. I missed I may have missed the answer the question
I took an interest in line five as well
Do I understand through the chair deputy commissioner that there's been a 573,000 increase in operations cost is or that just transfer somehow?
That's a pretty significant increase and cost through. The chair representative Sadlers last year the department
broke out
These costs associated for operations and maintenance and it was done throughout the division
I don't know that mental health trust did it and so you're seeing it this year in their budget.
Thank you. Good answer. Very good. Please continue. Oh, uh, sorry. Representative Prox.
Now just, um, microphone if we cut that thing. Thank thank you, thank
you co-chair. Double covered. Yes. Right. Uh, through the chair, I am concerned about, if you will,
And I just don't know that much about it, but I'm concerned about
it.
But I would like to have some sort of report on what to do.
And are they, do we need to hire a real estate developer?
I don' t know.
But, I'd like you to hear more about that.
Deputy commissioner or commissioner?
It's kind of out of your scope, is that right?
Or is there a comment that you'd offer to represent or
proxy's concerns?
Uh, Chair Schraghi, John Crow there for the record and
For administrative purposes, the Mental Health Trust Land Office is located in the department.
We work with their leadership and their staff on their mission of developing their resources
for the benefit of the beneficiaries.
We'd be happy to share a little bit at the end of this presentation about their activities
and accomplishments, but we'd happy be to discuss with your office any questions on
specifics that you have.
Is it fair to say that?
The department
More or less does what the trust Authority tells you to do
Guidelines and all that kind of stuff representative proxy the chair the
The trust land office is a somewhat unique entity.
It's located within the Department of Natural Resources,
but it also responds to the direction
of the mental trust authority and their board.
There's a memorandum of understanding that lays out
some of those respective roles and functional obligations,
but we work to both guide and cooperate with their office.
To the greatest degree we can in light
of their additional responsibility to their Board.
a good offline discussion at this point. Yeah, thank you. Very good. Please continue.
Line six for the record deputy commissioner Brent Goodram.
Force management and development.
Good neighbor authority, force management on federal lands.
This item will create one permanent full-time
forester four position, range 20, located in Ketchikan
to increase timber sale capacity on Federal lands
in Southeast and South Central Alaska.
This position will be focused on force development
and admin support through the Good Neighbor Authority.
The timing of this position
aligns with major federal partnerships. The Division of Forestry is entering into a 10-year
good neighbor authority master agreement with the US Forest Service and is developing a 30- year
shared stewardship agreement, allowing the state to take a more active role in managing
activity within federal forests in Alaska. This increment is for a total of 160,000 in federal
Representative Sadler. Thank you. I appreciate the indulgence of this chair. So through the chair
Is that ten-year plan come with a guarantee of the this or slightly escalating ten years worth of money to fund that position in federal receipts?
Are you gonna pay for it?
Through the Chair, Representative Sadler, I'm confident there'll be
ample federal money, to pay, for that, position.
And to committee members, please feel free to ask questions here.
I think this is really the meat of presentation, so ask away to the extent you have questions.
Please continue.
Line 7, Geological and Geophysical Surveys.
Maintain critical minerals mapping,
earth mapping resources initiative, Earth MRI.
This grant from the U.S. Geological Survey funds mapping of critical mineral resources.
The data will help industry explore for critical minerals and base minerals
and benefit all sectors of Alaska's mining industry.
This fund has historically been addressed through capital budget,
but is a core funding mechanism for the division in an ongoing program,
so it is now reflected in the operating budget.
This provides an increment of $5.8 million in federal funds.
No state match is requested in FY27.
Please continue.
Line 8, Fire Suppression Preparedness.
This item is to increase interagency authority for the Division of Forestry and Fire Protection
under the Fire suppression preparedness component.
It expands inter-agency authority to collect revenue from other state agencies through reimbursable services agreements which will further enable the division to provide all hazard support outside of fire season.
Leveraging emergency response expertise of existing state employees aims to improve operational efficiency and save costs.
This request is for 1.5 million in other.
fire suppression preparedness line 9 this item transfers two positions and associated funding from the Division of Forestry and Fire Protection a
Part-time wildland fire resource technician and a full-Time fire management officer to the Department of Agriculture
This transfers out of DNR a total of approximately
193,000
Representative Sadler thank you to chair can you explain to me the thinking behind you know we have the division of
forestry and wildlife preparation, wildlife prevention explained to me the logic of
Switching positions out of that into the department make into a conditional department agriculture
Through the chair representative Sadler
Last legislative session when
Initially the Department of Agriculture was put forward
We identified these two positions as positions that had been vacant for greater than two years
and had identified them for the purpose to help establish the new Department of Agriculture,
both the PCNs and the funding that was associated with them.
That did not happen during the executive order last season, last session.
There was a special session in which an executive orders was put forth.
There is ongoing litigation with regards to that.
held in this status until pending resolution of either that Supreme Court case or some other
thing that alters the trajectory of of EO 137.
The story continues. Any follow-up? No. Okay. Representative Kloem.
Yeah, my question. Thank you, Chair. Through the Chair, so my
question was kind of in along the lines of Rep. Sadler. I'm still wondering what
these two positions for through the chair representative cloned the positions would be
reclassified and so it's the the PCN is the vehicle that allows them to re classify it into another
position okay follow up yeah follow yeah so you're just you trying to keep the pcans you you gonna
adapt it to whatever the agriculture needs is not that it is going to be fire suppression
through the chair representative clone that is correct and one more follow-up
so I'm just looking at all the funding so you get federal
GF UGF interagency receipts in capital improvement
why is there so many different funding sources for these two positions
through chair represent of clone thats how those the two
positions currently within the division of
I mean, a big chunk of that, as you'll see, is UGF,
which is really important, which can universally be spent.
But within our current division of agriculture,
we do have the ability to spend federal receipts,
interagency receipts and capital improvement projects.
So all of those funding types would apply,
potentially over there as well.
One problem.
Okay, so it doesn't matter.
I just look in the federal receipt if that was connected
positions, like we switch the position, we still have access to those receipts.
Through the chair, Deputy Commissioner Goodham speaking, I anticipate that there are other
federal funds that, for agricultural purposes, that could also use that federal authority.
Thank you.
Absolutely.
Representative Elam.
Thank You.
Through the chair.
Thank for the presentation.
I just noticed as we look at all of this, there's a combined 30 loss of 30 FTEs.
And so I'm just curious, how confident are you that this isn't going to impact or slow
the general or the getting the permitting processes and then also any kind of revenue
aspects of DNR. Through the chair, Representative Ilam will get to it here in the next few slides, but
37 of that net negative 30 is the out migration of the Division of Agriculture.
So we're not cutting perimeters, we are not doing that in other divisions like Division
of Mining Land and Water or parks, those aren't being cut. It's the removal of 37 positions from
the division of agriculture in addition to these two positions within forestry
that would support that, that get us to a negative 39 and then we've got those
plus eight that come over from DOA for admin and payroll and the plus one for
the GNA forester that's how we get to negative 30 and that is not going to
create any kind of a slowdown in process for permitting or for the revenue
Through the chair, Representative Elam,
does not intend to stop us or slow us down.
Okay, thank you.
Very good.
And then next up, we have Representative Mears,
and then after that, representable.
Thank you through the Chair.
So I'm sure one of the things we'll be getting into later
in our process is the difference between the governor's budget
and I believe what we will be doing here in the legislature with
the Division of Agriculture. Last year, as the budget was going through, there's a little bit more
of a story to these positions, and if I recall correctly, they were removed from the Budget
in Finance as they are identified as vacant positions. I would love to have further discussion
still kind of reclass them into ag within the division to provide real technical support
in that area.
But I think these are all things that we'll be discussing later on as we get through the
committee.
If I've mischaracterized any of that, if there's more information that you have to
share, I'd appreciate it.
Anything that's you gentlemen?
the legislature chooses to do with things.
But we're presenting what's in the governor's budget,
and that's what we are trying to share with you today.
Fair enough, and look forward to further conversation.
Representative Hall.
Thank you, Mr. Chair.
So back to the conversation about the funding
sources for these positions.
Am I understanding the conversations correctly
that if these two positions are
the two PCNs are moving over to a Department of Agriculture.
There would be no funding restrictions as far as the activity
that is going to be performed
by those two new PCN's that don't necessarily have to
be tied to fire suppression preparedness in agricultural development.
Am I following this right?
Through the chair representative Hall what I believe happens when those positions say they were transferred
The PC ends would go over as well as with the funding authority and and if there's actual monies associated with that like
UGF would Go with them
Once they're over at the new department, they can be reclassified for other purposes.
The division currently has the ability to spend or receive authority and
spend money from other federal types of monies and other things.
And so ultimately, it kind of comes out in the wash.
They are able to put some of those money types to work.
Follow?
Yeah, follow.
Thank you, Mr. Chair.
So.
Basically the the sources the funding sources are fungible to the point where it's like a jenga game
You can just kind of or a Tetris you can move things around you have that kind
of flexibility based on the
Funding sources and any restrictions that are associated with them
Representative Hall through the through The Chair John Kruehler for the record if I understand the question
It were were any particular of these funding source is to be enacted in the budget
subject to the division that they were in and the processes for classification,
reclassification, they could be used for purposes consistent with that division
or departments, mission and statutory obligations.
So if we transfer UGF associated with a position from the Department of Natural
Resources at DNR, it would in this case be working on fire suppression and
preparedness, assuming that's enacted and appropriately transferred to a
It could then be utilized for a Department of Agriculture purposes as a UGF fund source.
Follow-up?
So, but when it comes to, thank you, Mr. Chair, when, so when
it come to like the federal sources of funding or other potential restricted sources, sources
of, uh, funding that would, that
would make a difference as far as whether that money could actually be used to those
newly reclassified positions in Department
Through the chair, this is deputy commission. I go to my believe that to be correct. Yes
Very good
think I have exhausted
Q of legislators hoping to
Ask questions or make comments not seeing any additional hands or mics going up. Please continue
All right line 10 deputy commissioner goodroom speaking
Agricultural Development under Executive Order 137, this item transfers positions
and associated funding to the Department of Agriculture.
Total transfer is about 5.8 million and 17 permanent full-time positions.
As with the previous item, under Executive Order 137, this item transfers positions and
associated funding authority to the Department of Agriculture.
The total amount to be transferred is approximately 3.9 million and 15 permanent full time and
five permanent part time positions.
parks and outdoor recreations, National Historic Preservation Fund Grant, which is a core funding
mechanism for the Office of History and Archaeology. This is 4060 state federal split. The grant
supports Section 106 reviews which are required for any construction project with a federal nexus,
which includes federal funding for roads, bridges, airports, etc.
million general fund match and 2 million federal receipt authority for a total of 3.3 million
Representative Sadler. Thank you to the chair Mr. Gooderman. Yeah, you answered a lot of my questions here about the match
So a question on this one and in line seven. So this is a
Well, first the impact of will this does this reflect the fact that there are more 106 requests for review than we can handle currently?
Or is this something the federal government is urging along to us and what's the net result going to be?
Representative Sadler through the chair, John Crowler for the record.
The primary intent of both of this item and item number seven is to bring,
I guess, in a lay sense, regular order items that have historically been in the capital budget,
but recur every year into the operating budget to reflect that they are base programs and authorities.
We certainly think that that gives us predictability, gives
of folks seeking authorizations and approvals through this office predictability.
So we think it's a constructive change and will help us meet as you alluded to.
There has been a significant increase in demands on this
office. We think this will also help
us to meet that positive change.
And I do appreciate the rationality that makes all the circles and arrows and ladders and
the shoots of the budget more comprehensible for the public as well.
So my question would be, and I almost beg your question, but does this mean this is not
just for this current fiscal year but the match will be available for future years,
I guess indefinitely?
Or are there limitations to this Line 12 or Line 7's money?
Through the Chair, Deputy Commissioner, go ahead, I'm speaking.
Yes, this would go into the base.
And it would be part of the operating budget going forward.
Roger, thank you.
Representative Ewell.
Thank you, the conversation here around federal dollars
is kind of maybe go back to the slide there on page three,
which was the federal match dollars.
If that's 23.8% growth, I'm curious how much of that
is going to be match dollar related
and what happens if federal priorities change?
Yes, the majority of the money that you see there is in these two projects that are being transferred the 5.8 associated with DGGS and
Earth MRI with a zero match this year.
And another 2 million of that is federal dollars associated
with this National Historic Preservation Fund, which has a 40, 60 split.
The National Historic Preservation Fund grant has been received here by the state like since the 1970s.
I mean, that is a long time occurring program, which really is operational in nature.
Okay, thanks.
Okay. Any additional questions? Representative Diber.
Thank you, through the chair, Deputy Commissioner Goodram.
authority. Is that new to the state? Is this going to be a new partnership? Have
you experienced this before and has it been in the interior? Through the chair
Representative Dibert, all very good questions. Good neighbor authority has
been around for quite a long time and the State has utilized those provisions to
help manage lands on adjacent federal property.
I'm not certain that it's been used yet in the interior.
I mean, because it is generally where we have federal
forests and so that would be for us the Chewgach and the Tongass.
And so I will follow up with Director Dalles to see if there's opportunities
that we could leverage any of that potentially in
the interiors as we look forward.
Thank you.
We're going to think that gets us through our fiscal year 27.
Governor's budget changes
that leaves us with
25 slides that are generally high-level overview. We've got
Approximately 30 minutes exactly 30 Minutes left.
We don't have to use all of it
I'll leave it to the department to go through the remaining slides as much or as
Little as you'd like
Into the extent that members have questions feel free to get my attention, but I'm gonna turn it over to you
Thank you, Chair Shruggi. John, for the record, I think our intent would be to move very quickly through all these slides
And we'll be respectful of your time. Very good. Thank You
I'll do my best here to try and not read everything
We do have a lot on the slide. We did present on this last year as well, you know division of forestry as a twofold mess
Mission both with forest management as wells wild and fire and so we will get into it real quick
Last year the division sold 27.1 million board feet of new timber sales
appraised at 764,000 as well as harvesting 31. 1 million
board feed from state lands generating 2.8 million dollars in timber receipts.
Additionally, 86 miles of forest roads were reconstructed by the Division and
others. This helps create access into our forests, which is important not only for
I will try to be very quick.
The last item there is the Alaska Lumber Grading Program
which was put into law a couple of years ago.
We continue to get people put through that program
to help make more local timber available
in local communities.
So we're excited about that.
Very good.
On the fire management side, very busy, the division is tasked with safely managing
wildland fires that pose a threat to life property and critical infrastructure on 150
million acres of land throughout the state of Alaska.
Last year, the Division trained 235 new firefighters and 84 cadets,
as well as containing over 90% of fires in critical and full protection areas
with our initial attack assets.
Additionally, 160 emergency firefighters statewide participated
in non-emergency hazardous fuels work to help reduce risk in risk of fire
in proximity communities and state values at risk.
The state currently has 16 active hazardous fuel reduction projects and two prescribed fire treatment projects in the planning phase.
These efforts help contribute to establishing a network of wild land fire resistant or resilient landscapes around communities.
As noted on this slide, woody debris sites, disposal sites have played an instrumental role in reducing the risk of island fire and communities such as TOC, Delta Junction, Nina, and the Matsu Valley.
So we found those to be really good tools for us.
Representative Prox, did you have a question here?
You've said you've trained 235 new firefighters and 84 cadets
and
That seems like a pretty high turnover
Which maybe isn't a bad thing. It's a great job training program for other people, but could you explain a little more?
Is there something that?
might be done to
increase retention reduce
recruitment and new fire fighters
Through the chair, Representative Prax, I want to say that those numbers are going to come through folks that go to our training academies.
As you mentioned, that's a great job training and skill training thing.
Those aren't all folks we're trying to hold on to and keep, you know, forever within the state government system,
but we are training people and equipping them and then giving them an opportunity to do work for the State.
I think it's a great opportunity, happy to invite you out to any of our academy sites
to see what they do, but I I
think that it is a
great program and it
is great that we're training that many folks. Hopefully, we can train more as we go forward.
Yes, follow up.
If all just comment, please do because it
is
a good training academy. I know that and
it gets a
good bunch of people to work with and we are getting, hopefully, a need for
lots of trained people for building a pipeline and this really has some
applications for that.
Representative Thomas Fiski.
Thank you through the chair. Are those the red card training? Is that what is the
235? is that the for the Red Card training and what are the 84 cadets?
Through the Chair, Representative Tom Faski,
I don't have the specifics on that.
I, I I
don t believe it's all just red card.
I mean, there's a multiple different level of summer trained on engines and various other things.
And so it s a compilation of many different types of skill sets that our wildland fire crews need to have.
So we can get back to you on, on more specifics to your question.
Thank you.
Great. Please continue.
I'm trying to be responsive of time.
Real quick, all hazard response is really important and I know the two house co-chairs
yesterday were in a meeting.
listening to director Brian Fisher of Homeland Security and Emergency Response.
And what she shared, the devastating effects of ex typhoon, how long,
was the biggest disaster response he'd encountered in his 31 years of service.
And I want to say that our team members were an important and integral part of that response.
A lot of the logistical things, some of our aircraft were helping.
We had fire crews that were
do a lot of work out there.
So that is the great work that our team is a big part of.
And so I wanted to say thanks for that.
Thank you.
And thank you for highlighting that Deputy Commissioner.
Lastly, trying to keep pace.
These are some of the priorities that are ahead of us
as we look to FY27.
And I will turn it over to Commissioner Crowther.
Thank You for the record.
John Crowder, Commissioner Designee.
So, on our Division of Geological and Geophysical Surveys,
this slide just outlines our mission.
But one of the things we wanted to add in our new director,
Aaron Campbell, Dr. Aaron
Campbell wanted highlight, that really the focus
of all of our geological studies are to do two things,
grow the economy and protect Alaskans.
And so she's working hard to orient everything
that division does towards those two key focuses.
As we went through with our forestry team there's a lot of stats here but I would highlight
our mineral resources section is critical because the commodity markets are really showing
a demand for gold, silver,
things like copper, but also critical minerals and rare earths that Alaska has in abundance.
So our Division of Geological and Geophysical Surveys is really working to make as much
data as we have available to boost that exploration activity.
That same dynamic is affecting our energy resources.
We were seeing a major uptick in exploration, development activity in the North Slope particularly,
and the Division on Geological and Geological Survey is providing data and insights that
is the front end of those opportunities.
within the division are doing great work and we want to keep doing it.
Representative Sadler?
Thank you.
Real briefly.
I love DGGS.
I loved what they do.
They just go up and make rain happen, money.
But I did see something in the other budget documents about something to the effect of
abandonment of the geothermal leasing program or exploration.
Can you speak on that briefly?
Very briefly through the chair where the department is not ready to speak to that issue yet.
If we can get back to you?
Okay. Very good. Sounds like a topic for future discussion. Please continue.
Thank you, Chair Shraghi. And the two areas additionally highlighted on this slide are
geologic hazards. It's alluded to by Deputy Commissioner Goodrum, or it's discussed.
Our Division of Forestry has been integral with boots on the ground response. The Division
of Geological and Geophysical Surveys has done that same thing, responding in the immediate
but also collecting data and developing planning
and informational documents looking forward
to try and understand, mitigate,
and avoid future disasters.
So it's been a growing area of focus for the division
and we're very committed to that.
That involves everything from volcanoes, our earthquake,
but, also, hydrology, landslides, floods.
The division really has a great breadth of experience there.
Similarly, that hydrology and surficial geology section is working on hazard mitigation but
also opportunity potentiation to understand when we're developing in Alaska how those
geologic forces can affect development, how to plan around them.
Representative Eel.
Thank you.
Through the chair, on the previous slide there, 15 were there was the online interest for
That we're looking at represent a vellum to the chair the the earth and my program has been ongoing for for many years. It's a
USGS funding and partnership to collect a variety of data types and that the division
administers.
When we collect that data, we then process it and make it available.
And that bullet's meant to highlight that we've really seen a surge in activity or interest
in that Data, downloading it, accessing it.
Which is showing us that that program is having the result we want, which is information
is getting into the hand of explorers, claims are going up, exploration expenditures going
benefiting from that information.
Thank you.
Okay, please continue.
Next quick summary here on slide 17, our Geologic Information Center is essentially the kind
of publishing publishers clearing house for all of our geologic data and so as our data
volume, data complexity goes up, as public access and interest goes
up that they're a real critical part of the function.
Similarly, the Geological Materials Center's are physical samples and that's really a warehouse
rocks that can be studied to learn more about opportunity in Alaska.
So I'd encourage and invite all of you to come on tours if you haven't turned
that facility. It's a lot of fun.
Finally, our geospatial office is working to bring geospatial data into
everything that not just the department does but across the state government
and boost efficiency there so that we can geolocate, which is so important to so
many activities in DNR and across
the State.
Representative rocks. Thank you through the chair. I think a lot of the work that gets done in
geological and geofusical surveys in particular
is underutilized and
I don't know if that's because your department is overworked and can't do advertising or whatever, but it would be something to
let folks know and
what the owners of resources are supposed to be doing to evaluate the value of the resources, so it'd be great to
hear more about that and maybe that's a homework assignment for ourselves to put that in newsletters and
No, from the media and elsewhere, so feel free to comment.
Otherwise, please continue.
Thank you, Representative Proxie.
The chair, I have a highlight.
We're working as hard as we can,
but we'd appreciate all the publicize what we're doing
and what Optinians of Alaska has.
We have new what's called hyperspectral scanner,
which is a capital intensive thing
enabled by the legislature's support
and, of course, the governor's direction.
To use some of these core samples,
scan them and make even more data available
you know, destructive tests, which is the kind of old-fashioned approach, we're now
trying to upgrade that, make it even more available.
So we are going to be both doing that work and trying
to broadcast it.
It's exciting.
Very good.
Well, thank you, Committee.
This slide references several things we've talked about today, and it's really just doubling
continue to prepare data for hazard response,
continue get mineral and energy information out,
continue try and partner with other scientific,
federal and public agencies.
So we're hoping to really, really boost the important
work of the division this coming year.
All right, I will.
Keep this brief, as you all know, Division of Mining, Land and Water does lots of things.
They manage more than 165 million acres about the size of California and Oregon.
They touch the entire lifecycle of land management.
Some of the highlights that they achieved this past year, they generated $38.3 million in revenue
from the use of state land that represents a 1% increase over the previous year.
The division successfully conveyed 18,000 acres of land to six municipalities and
sold 169 parcels of lands, totaling over just 1, 000 acres.
And generated 6.2 million for the land disposal income fund.
A 4.5% increase over last year's numbers.
And with a current price of gold close to 5,000 plus or minus,
there's a lot of activity in the mining section, so they continue to be very busy.
Representative Sadler?
Oh, no question.
Please continue.
The price is the gold has been flabbergasted.
It's incredible.
All right.
Some of the many priorities, and I'm going to go through it really quick.
DMLW has been really instrumental in the work that we're doing with our federal
counterparts to potentially see conveyance of land within the public land order 51-50.
We may be able to receive here in
the next several months up to 1.4 million acres of
land entitlement which would be really important with additional lands yet to
They've got two area plans that you see listed here
that they're working to try and finalize.
One of those is important with regards
to public land 5150.
And with the new federal administration,
there's great opportunity for us to finally get recognized.
Some of our submerged lands and ownership
of the submerged land here within the state.
So lots of opportunity going forward.
Next slide.
the Division of Oil and Gas, the next Division to highlight, and that's a team that is responsible
for managing and developing all of our oil and gas resources and coordination with our
lessees and operators.
So it has a critical mission that was responsible for perhaps most importantly receding our
approximately 1.8 billion in royalty revenues every year, core part of the states, both
This slide goes over some of these accomplishments at the division, you know, it's not specifically
in here, but in my mind, one of the most important things, the bottom line matters, and when
we look at our oil production forecast, we see really for the first time in a long time
we're headed for a structural increase that's potentially going to start as soon as this
year with the peak of field coming online.
And so it is very encouraging, I think it portends really good continuing trends for
the North Slope.
With that, without any further questions on that I'll move, you know what, we see on
this slide the division's priorities and one of those is of course Cook Inlet,
you have a critical supply issue there, the department's been working very
actively, We've had several good years of development activity. We're going to be
doing everything we can to make sure that there's another good year of both
drilling and potentially new unit unit development this year.
going forward. Also mentioned here is one of the department's roles with our
Alaska LNG project and that's managing and authorizing
the right-of-way and permitting activities. The department is prepared
and active to step in and support that project in that way.
So we're we think we are in a good place and we
are excited what this next year will hold.
In our next office, the highlight is our Office of Project Management and Permitting.
This is an office essentially responsible for coordinating across not just our state and
department agencies, but also the federal government and local governments, stakeholder
groups to ensure that complex projects can be efficiently permitted.
That can a multi-year process and expertise, support, and most of all efficiency and communication
Projects that opt into the coordination by this group enter into what are called reimbursable services agreements.
So they pay for the services that they receive in terms of coordination to offset impacts to the state coffers that could be associated.
List here just very quickly of the projects that have coordination agreements with the office.
You'll see many of our operating minds are on this list, but also a variety of different projects around the State.
No questions, please continue.
Robert, do you have a question?
Oh, no.
Keep going.
Please continue, thank you.
Another area to highlight here for our O-Pump team, and that's that they play a key role
coordinating federal comments, federal activities, you know, many times that is permitting, but
Process actions by the federal government. We've been very benefited from a federal
government that's seeking to engage and get the state's input and so the opump team is critical to
collecting information not just from the department but across state agencies
Submitting it and participating in these federal processes and trying to get to the best outcome we can
Representative fear
Thank you. I was just reading through the five-year offshore oil and gas leasing program
styles and brief on the Bureau of Ocean Energy Management page on Congress and particularly
speaking with constituents and folks that are concerned. You know, oh sorry, my speaking.
DNR submitted comment regarding their national outer continental shelf oil and gas leasing
program in sale.
And just want to express, you know, our, the Arctic, it's hard to get to.
We have a lot of activity with the, with AEWC whaling in our communities.
We had a fiber break that happened.
And so if there were to be an oil spill in the high Arctic or in
the Chuck G.C., it would be difficult to reach.
So I just want to express that now, very supportive of
responsible resource development.
But I have to speak for my region too.
Absolutely, co-chair John Crowler for the record.
Our opump team for just the reasons you articulated one of
the important things is the coordination with local
governments and local communities.
And so, you know, we spend a lot of time
because of the North Slope activities,
interact with those communities, engaging with them,
and we're always happy to do so.
The comments that you referenced,
I believe the department specifically referenced
the importance of those local stakeholder engagements
in the federal process, so we wanna keep supporting that.
Thank you.
Any follow-up?
No follow?
Okay, Representative Prox.
Thank You.
Through the Chair, it appears that this LNG pipeline
Way back when when we put in the oil pipeline there was all quite a few delays
We the state we're not prepared to do all the permitting and the changes along the way
Are you gearing up talking to?
The construction folks so we can reduce those delays looking forward
Representative Prox through the chair
We were absolutely working to be as prepared as we can, you know, a project of that, the scale.
Certainly, it involves a level of work that you inherently have to respond to in triage as you go, but we are...
You know, we have a very sophisticated team that's done many, you know either pipeline
projects on the slope, pipeline projects in other states, areas of the state, mining projects
and we're ready to bring all that experience to have that process be as efficient as possible.
We're working with other state agencies as well as directly with with Glenfarn and AGDC.
That'll be really important.
They got, they spooled up not fit called the joint pipeline office and that kind of
seems like poem by the way side a little bit but something like that I don't know
suggestions anyway good luck with that we'll meet it okay and we've got two
additional representatives in the queue representative clum thank you chair
through the chair I was gonna just go back to this large project coordination so
I think you said something about maybe it was a reimbursable agreement but so
are you saying that these mining projects pay the permitting office to
Interagency and with the feds and how much like how is how was that determined? I couldn't tell if that was the private
Companies that were paying I guess extra for that coordination
Yeah, representative column to the chair if I understand the question correctly
So yes, the these projects on this list have entered into reimbursable services
So the project applicants pay when there's coordination services provided through that effort.
So there may certainly be permitting processes at the federal level say that don't go through
that and aren't covered by that RSA, but sums to many of the state processes can be.
So it allows us to avoid incurring significant costs for these projects.
Thank you, Bruce Lee, through the chair.
So, Opump is kind of at the leading edge of resource development.
You know, they kind make things happen, but also because they are the pioneers,
they get hung up on some challenges and so forth.
And notice the Lotus definition changes and some NEPA changes potentially.
I'd like to ask the committee, well, this may be our resource issue.
I'll tell the chairs.
I would love to have these gentlemen before us again,
especially the commissioner doesn't need to go as an update on the legal cases
and policy changes at a federal level that might be affecting Alaska resource
development."
Sounds like a great topic for the full resources committee.
Very good. Any additional representative process at your hand for a moment related to the budget process?
When we get to end if there's just 30 seconds, that'd be fine.
There probably won't be, but we'll see what we can do.
Please continue.
Thank you, Church Rage.
Just very quickly on this slide is information about the A-Star Project
and important community infrastructure project on the North Slope
that we've been working very hard on.
I have a question.
No.
Representative Freer.
Sorry.
Thank you.
Just on the A star.
Will DNR be at the Marshallboro Roads?
They're having a, what was the word?
They are having, okay, February 5th and 6th I believe in Anchorage.
Co-chair, yes, John Crowler for the record.
We will have several of our key folks there and we're expanding that invite as well.
Okay.
Very good.
A quick update on our carbon offset program, that office is located within our O-Pump team.
There's been some changes in the broader market, changes with the registries that...
Approve the creation and marketing of carbon credits that have have affected some of our initial proposals
But we've been working very actively to review and revise those and I think in the near future
We're planning to do an additional RFP to solicit more potential projects and see if we can get some
Of these going in Alaska
For the record deputy commissioner good room. I'll be quick everyone knows that state parks are greatly valued by all Alaskans and people that come here
I'm gonna be quickly divisions levering leveraging its improved reservation system
continuing to increase the number of commercial and special permits via a new
online permitting portal and saw a year-over-year authorization increase of
13% and has installed 108 electronic fee stations reducing money handling and
increasing security and revenues and as you're well aware our state state park
Rangers are routinely called on to provide education law enforcement and
as well as participate in search and rescue missions throughout the state.
Last year, our state Rangers participated in 63 search
and rescue missions.
Very thankful for their dedication and hard work for Alaskans and our guests.
Thanks Representative Eilin.
Thank you, I know this.
Finance of committee and so we can talk about maybe more in depth later on
But I've had a number of constituents within the greater Kenai Peninsula who have reached out
You know we take a lot of pride in our parks and our cabins and facilities
And we just want to make sure that the maintenance particularly on some of these facilities are being able to be taken care of and
So are we good for being sure we've got good maintenance and
Through the chair representative I'd love to talk with you offline. Yeah
Okay, thank you.
Great.
Thank you
Continuing on, the division held over 453, voting safety classes, 54 pool sessions and
had a total program outreach of approximately 15,000 participants, as you can see, that's
quite an increase over the prior year and probably an all-time high.
The division's Office of Design and Construction awarded $6.6 million in federal
25 contracts and completed 12 construction projects in calendar year 25.
Lastly, the Office of Grants currently manages 112 active and pending outdoor
recreation grants all across the state.
Next slide.
Just two comments here, please bear with me very briefly.
The Office of History and Archaeology and the State Historic Preservation Office are
both so very important to the state of Alaska.
Without their critical work projects on state lands or projects where the federal nexus
could not go forward, full stop.
The SHIPO office provides state perspective and voice to lead federal agencies on matters
related to The Federal Section 106 Review.
And then lastly, I just want to highlight something here.
This year, the United States is celebrating its 250th birthday
on July 4th as part of the National Semi-Quin Centennial
celebration.
That's a big word.
America 250 Alaska will be hosting a week of dreams
to recognize the unique history of baseball in our state
and engage Alaskans in festivities.
Major League Baseball will
be an official participant as many professional baseball
players have donned uniforms under the midnight sun.
Alongside Alaska gold panners, Alaska baseball league teams,
and many, many other partners.
Too many to list here.
Throughout the legislative session, a new nine panel exhibit, Alaska's Field of Dreams,
Alaska is pastime in the 49th state, will be located in
the state office building 8th floor atrium. It's currently the now if you can
care to see it. And DNR will soon be sharing a companion booklet,
Alaska Field Of Dreamers, Alaskas Pastime In The Far North, by state historian Dr.
Katherine rings move then so once those booklets are printed. I think today
We will try and get some down here. They're really neat about the baseball and entice to Alaska here
Here are the look ahead for parks lots of things and we'll go to the next slide
Lastly on support services division throughout this past year our team continues to
to meet and exceed our expectations
and hopefully our customers as well.
They do everything from financial support,
budgeting expertise, procurement,
human resources, information, technology.
They're all critical functions
without which a department cannot function.
And so we're very excited and pleased with our team
and just very proud of the work that they do.
So thank you to them.
and chair to John Crother for the record.
Two more slides here, very quickly,
our Alaska Mental Health Trust Land Office,
summary of their activities,
but they're responsible for full development
of those resources, so they have mining projects
that they facilitate, land sales they
facilitate to try and generate revenue
and get that to beneficiaries.
And happy to follow up with any members of the committee
who want to discuss those projects in more detail.
The office of the commissioner
Just really two things to highlight on here. The first is that you know our appeals program
We were hired and new appeals director. It's that important function of department
We're really trying to accelerate and we were actually able to get nearly a third of our outstanding backlog issued last year
And we want to keep that momentum going and get those decisions was all for Alaskans
And then finally, I just mentioned our future leader summit, the department's working really
hard to retain and encourage and promote from within the skilled folks we have, and that
future leaders summit is now I think in its sixth year and it's being led by peers.
So it is a peer mentorship, peer guidance activity, so it very exciting and we want to
keep supporting it.
With that said, we're going to keep working.
Very good. Well, it is officially the time that we had planned to adjourn, but I know representative Prox. He would ask for 30 seconds
Do you still like that? I think we can accommodate. I don't think you can do under 15 very good
We received the Alaska Minerals Commission annual report
This actually came through the Department of Commerce community economic development
They're talking about a lot of things for DNR to do.
I think you're engaged in some questions.
Are you going to submit a response to this report?
Representative Prox, through the chair,
I believe every year we review and engage with that report.
If there's particular calls for response in it,
we can take a look at it.
But we do consult it and engaged with the folks on that team.
Very thankful for their support.
Look very good.
I think you used your 30 seconds very well. Thank you to the committee members
and our presenters for helping us get through today's work in a timely
fashion. With that we are adjourned at 1.16 p.m. thank you.