Legislature(2017 - 2018)BARNES 124

04/20/2017 11:30 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM

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Audio Topic
11:32:31 AM Start
11:33:11 AM HJR19
11:54:06 AM Presentation(s): Marine Exchange of Ak
12:26:48 PM HJR19
12:30:49 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Paul Fuhs & Captain Ed Page, TELECONFERENCED
Marine Exchange of AK
*+ HJR 19 ARCTIC MARINE SAFETY AGREEMENTS TELECONFERENCED
Heard & Held
-- Public Testimony --
             HJR 19-ARCTIC MARINE SAFETY AGREEMENTS                                                                         
                                                                                                                                
11:33:11 AM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE announced  that the first order  of business would                                                               
be  HOUSE   JOINT  RESOLUTION  NO.  19,   Commending  the  Arctic                                                               
Waterways   Safety   Committee;   supporting  the   adoption   of                                                               
prevention  measures  into  international  agreements  to  ensure                                                               
clear, universal,  and enforceable marine safety  measures in the                                                               
Arctic; and  urging the state's  delegation in the  United States                                                               
Congress  and  the governor  to  promote  the adoption  of  spill                                                               
prevention  measures into  international  agreements; urging  the                                                               
President of the  United States and the  United States Department                                                               
of  State to  initiate negotiations  to enter  into international                                                               
agreements to ensure safe  and environmentally responsible marine                                                               
operations in the Arctic.                                                                                                       
                                                                                                                                
11:33:28 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:33 a.m. to 11:39 a.m.                                                                     
                                                                                                                                
11:39:12 AM                                                                                                                   
                                                                                                                                
JESSE LOGAN,  Staff, Representative  Dean Westlake,  Alaska State                                                               
Legislature,  presented  HJR  19   on  behalf  of  Representative                                                               
Westlake,   prime  sponsor,   with  the   use  of   a  PowerPoint                                                               
presentation [hardcopy  available in  the committee packet].   He                                                               
mentioned that  formerly he  was a policy  advisor to  the Alaska                                                               
Arctic Policy  Commission (AAPC).   He relayed that HJR  19 deals                                                               
primarily with marine safety prevention  measures as they pertain                                                               
to  international traffic  in the  Bering  Straits and  bilateral                                                               
agreements with Russia.                                                                                                         
                                                                                                                                
MR. LOGAN relayed  that Slide 2 cites the Alaska  statute and the                                                               
federal Act  defining the "Arctic."   He noted the yellow  box on                                                               
Slide  2  demonstrating  the constriction  point  of  the  Bering                                                               
Strait.    He  referred  to  Slide  3,  entitled  "Bering  Strait                                                               
Transits 2008-2016," which illustrates  the vessel traffic in the                                                               
Bering Strait during the last few  years.  He credited the Marine                                                               
Exchange of Alaska (MXAK) for the graph.                                                                                        
                                                                                                                                
MR. LOGAN  mentioned that the  proposed resolution  outlines some                                                               
of  the  needs  and  challenges  in  ensuring  that  all  vessels                                                               
transiting  the  Bering Strait  adhere  to  the same  safety  and                                                               
prevention measures.   He explained that beyond  three miles from                                                               
shore and  up to the  end of  the Exclusive Economic  Zone (EEZ),                                                               
the strait is  under federal jurisdiction; beyond that,  it is in                                                               
international and Russian waters.   He asserted that the focus of                                                               
the  proposed resolution  is  the vessel  traffic  in the  Bering                                                               
Strait.                                                                                                                         
                                                                                                                                
MR.  LOGAN  stated  that the  proposed  resolution  commends  the                                                               
formation  of  the  Arctic Waterway  Safety  [Committee]  (AWSC),                                                               
urges the  governor and the  state's congressional  delegation to                                                               
promote  the  adoption  of  the  spill  prevention  measures  and                                                               
international agreements,  and urges the President  of the United                                                               
States  and  the  U.S.  Department of  State  (DOS)  to  initiate                                                               
negotiations  with the  state's coastal  neighbors to  enter into                                                               
agreements to ensure safe  and environmentally responsible marine                                                               
operations in the Arctic.                                                                                                       
                                                                                                                                
MR. LOGAN relayed that without  the uniform safety and prevention                                                               
measures  for all  vessels transiting  Alaska  waters, the  state                                                               
becomes increasingly  vulnerable to adverse effects  in the event                                                               
of  a mishap  or  a tragedy.    He mentioned  that  later in  the                                                               
committee  meeting,   Paul  Fuhs  [President  of   the  Board  of                                                               
Directors, MXAK]  and Captain Ed Page  [Executive Director, MXAK]                                                               
will provide background on MXAK and  offer more detail on how the                                                               
proposed resolution would fit into international agreements.                                                                    
                                                                                                                                
MR. LOGAN continued  with Slides 4 and 5 to  explain state policy                                                               
and the  function of AAPC, which  has been in existence  for just                                                               
over two  years.  He stated  that the goal of  the commission was                                                               
to  develop  an  Arctic  policy  for  the  state  and  create  an                                                               
implementation plan for  the policy.  He said that  for two years                                                               
the commission  convened public meetings  around the state:   the                                                               
first  was  in Juneau;  then  meetings  were held  in  Anchorage,                                                               
Fairbanks, Barrow,  Kotzebue, Nome,  and Unalaska.   He mentioned                                                               
that each meeting  began with a full day of  listening sessions -                                                               
gathering information from local  leaders, community members, and                                                               
stakeholders - to make the process as inclusive as possible.                                                                    
                                                                                                                                
MR.  LOGAN referred  to  Slide 6  and relayed  that  in 2015  the                                                               
commission delivered  its Final  Report, the  Implementation Plan                                                               
[for  Alaska's   Arctic  Policy],  and  the   Executive  Summary,                                                               
provided in the committee packet  and available electronically on                                                               
the website, "akarctic.com."                                                                                                    
                                                                                                                                
MR. LOGAN turned  to Slide 7, entitled  "Alaska's Arctic Policy,"                                                               
to highlight portions of the policy  now codified in statute.  He                                                               
mentioned that  the policy was  a direct  result of work  by AAPC                                                               
and former  Representative Bob Herron, who  introduced House Bill                                                               
1 in  the Twenty-Ninth Alaska  State Legislature, 2015-2016.   He                                                               
cited AS  44.99.105(a)(2)(A), which read, "strengthen  and expand                                                               
cross-border   relationships   and   international   cooperation,                                                               
especially bilateral engagements with Canada and Russia."                                                                       
                                                                                                                                
MR. LOGAN  referred to Slide  8 and cited  AS 44.99.105(a)(3)(A),                                                               
shown on  Slide 8,  which read,  "enhance disaster  and emergency                                                               
prevention and  response, oil spill prevention  and response, and                                                               
search  and  rescue  capabilities  in  the  region."    He  cited                                                               
subparagraph B,  which read, "provide safe,  secure, and reliable                                                               
maritime transportation  in areas  of the  state adjacent  to the                                                               
Arctic."   He  relayed that  one of  the most  significant issues                                                               
with maritime  transportation in  the Bering  Strait is  that the                                                               
U.S. has  jurisdiction over only  a portion  of it.   He asserted                                                               
that  if all  transiting vessels  are  not adhering  to the  same                                                               
regulations,  then  it is  possible  that  Alaska would  see  the                                                               
adverse effects of the dangers mentioned in this statute.                                                                       
                                                                                                                                
MR. LOGAN referred to AS 44.99.105(b),  displayed on Slide 9.  He                                                               
said  that  the  state  has  decided in  policy  to  support  the                                                               
strategic  recommendations  of  the implementation  plan  and  to                                                               
address the  infrastructure and response capacity  to support the                                                               
Arctic region.                                                                                                                  
                                                                                                                                
11:43:59 AM                                                                                                                   
                                                                                                                                
MR.  LOGAN   referred  to  Slide   10,  entitled   "Artic  Policy                                                               
Implementation Plan  FOUR LINES OF  EFFORT."  He relayed  that in                                                               
the Implementation  Plan, each  of the four  lines of  effort are                                                               
broken  into multiple  recommendations  identifying the  problem,                                                               
the  lead agency,  and the  plan for  implementation.   He stated                                                               
that it  was a "tool book"  advising policy makers on  a starting                                                               
point, (indisc.--coughing) players, and how to move forward.                                                                    
                                                                                                                                
MR.  LOGAN referred  to Slide  11,  entitled "LINE  OF EFFORT  #2                                                               
ADDRESS  RESPONSE CAPACITY."   He  stated that  response capacity                                                               
requires  strong partnership  and  communication  to prepare  for                                                               
incidents, respond, and develop best practices.                                                                                 
                                                                                                                                
MR. LOGAN referred to Recommendation 2A  on Slide 12, which is to                                                               
ensure  strengthened   capacity  within  the   Administration  to                                                               
address Arctic  maritime, science, climate, and  security issues.                                                               
He mentioned that the lead agency  was the Governor's Office.  He                                                               
stated that  HJR 19 specifically  speaks to the  governor working                                                               
with  other  stakeholders  and the  [Alaska]  U.S.  congressional                                                               
delegation  to  support  bilateral agreements  on  marine  safety                                                               
standards within the Bering Strait and elsewhere.                                                                               
                                                                                                                                
MR. LOGAN referred to Recommendation 2C  on Slide 13, which is to                                                               
expand  the development  of appropriately  integrated systems  to                                                               
monitor and  communicate Arctic maritime information.   He stated                                                               
that  MXAK and  the  Alaska Ocean  Observing  System (AOOS)  were                                                               
identified  as the  lead agencies  for this  recommendation.   He                                                               
mentioned that  a presentation  from MXAK  is scheduled  later in                                                               
the committee meeting.  He noted  the map on Slide 13 showing the                                                               
major Arctic  shipping routes;  three of  the routes  converge in                                                               
the Bering Strait.                                                                                                              
                                                                                                                                
MR. LOGAN referred to Recommendation 2H  on Slide 14, which is to                                                               
foster  and  strengthen  international  partnerships  with  other                                                               
Arctic  nations  and  to establish  bilateral  partnerships  with                                                               
Canada  and   Russia  to   address  emerging   opportunities  and                                                               
challenges in the  Arctic.  He stated that the  lead agencies for                                                               
this  recommendation  are  the  Office  of  International  Trade,                                                               
Alaska's Congressional  Delegation, U.S.  DOS, and  the President                                                               
of  the United  States.   He referred  to the  Northeast Passage,                                                               
shown on  the slide,  and asserted that  it is  vitally important                                                               
not only  because it  is open for  increased vessel  traffic, but                                                               
because  it  reduces  vessel  transit  by  ten  days  and  10,000                                                               
kilometers.  It  represents savings for shipping to  the Far East                                                               
and is increasingly being utilized.                                                                                             
                                                                                                                                
MR.  LOGAN  referred  to  Slide  15, a  repeat  of  Slide  3,  to                                                               
emphasize   that  increased   vessel  traffic   positions  Alaska                                                               
uniquely.   Vessels  not  calling  on Alaska  or  U.S. ports  are                                                               
considered innocent  passage and are  not subject to  U.S. safety                                                               
prevention measures - increasingly a cause for concern.                                                                         
                                                                                                                                
11:47:34 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK mentioned  that  he viewed  a digital  video                                                               
disc (DVD)  on the  Northwest Passage.   He  said that  the route                                                               
shown  on the  map on  Slide 14  is one  of the  two routes  that                                                               
explorers  tried to  find for  many years.   He  relayed that  he                                                               
learned from the DVD that 15-25  percent of the world's supply of                                                               
oil and natural gas is in that region.                                                                                          
                                                                                                                                
11:48:20 AM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE opened public testimony on HJR 19.                                                                               
                                                                                                                                
11:48:43 AM                                                                                                                   
                                                                                                                                
WILLIAM HARRINGTON offered his congratulations  on the intent and                                                               
timeliness of the proposed resolution.   He offered that lines 9-                                                               
12, on page 2, of HJR  19, clearly state that Alaska's ability to                                                               
control   other  nations'   Arctic  oil   and  gas   ventures  is                                                               
nonexistent.    He  relayed  that  on  April  19,  2017,  British                                                               
Broadcasting   Corporation  (BBC)   Japan   broadcasted  a   show                                                               
featuring  Russian-Japanese collaboration  to deliver  Arctic gas                                                               
to Japan via  huge Liquefied natural gas (LNG} tankers.   He said                                                               
a $200 million Japanese investment  was mentioned.  He claimed it                                                               
was not  possible to fully  gauge the entire situation  from this                                                               
reputable news  source.  He  concluded that LNG tankers  will ply                                                               
the  Bering  Strait  and  the   Arctic  if  the  Russian-Japanese                                                               
consortium has  its way.  He  added that his modeling  shows this                                                               
to be  12 to 15 years  in the future.   He urged that  Alaska not                                                               
pursue a gas pipeline to tide water.                                                                                            
                                                                                                                                
11:50:26 AM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE closed public testimony on HJR 19.                                                                               
                                                                                                                                
11:50:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN  relayed that when  he worked with  AAPC in                                                               
its first year, his office  worked on infrastructure and wildlife                                                               
policies.   He  stated that  regarding infrastructure,  there was                                                               
much discussion  on location of  entry ports to the  Arctic; both                                                               
Dutch Harbor and the Northwest  region were considered.  He asked                                                               
for an update on that issue.                                                                                                    
                                                                                                                                
11:51:34 AM                                                                                                                   
                                                                                                                                
MR. LOGAN answered that the  question is longstanding, especially                                                               
as it  relates to a deep-water  port, which does not  exist north                                                               
of Dutch  Harbor -  800 miles  from the Arctic  Circle.   He said                                                               
that [the possibility  of] a dual port in Nome  and Port Clarence                                                               
was most  recently identified by  the federal government  and the                                                               
Army  Corps of  Engineers (ACE).   He  mentioned that  an earlier                                                               
HAET committee meeting  provided an update on what  Nome is doing                                                               
to bring  the port to fruition.   He said that  Cape Blossom near                                                               
Kotzebue  has  also  been  considered.    He  opined  that  other                                                               
communities would undoubtedly wish to have a port as well.                                                                      
                                                                                                                                
MR. LOGAN stated that one of  the final reviews of ACE concerning                                                               
the deep-water port  in Nome specifically stated  that without an                                                               
anchor tenant,  such as oil  and gas  drilling in the  Chukchi or                                                               
Beaufort Sea,  a port there may  not be economically viable.   He                                                               
added  that with  the right  kind of  agreements with  Russia for                                                               
vessel  transiting, there  may  be  opportunities for  transiting                                                               
vessels to  call on ports.   He added that Adak  has the capacity                                                               
to  be a  storage and  distribution center  for vessels  with ice                                                               
navigation  capabilities  "to  come down  through  the  Northeast                                                               
Passage, drop their cargo in Adak,  and move back and stay within                                                               
icy waters where other vessels  can then distribute to either the                                                               
U.S. or to Asia."                                                                                                               
                                                                                                                                
REPRESENTATIVE NEUMAN asked  for the locations of  the U.S. Coast                                                               
Guard (USCG) ports in Alaska besides Kodiak.                                                                                    
                                                                                                                                
MR. LOGAN responded  that to the best of his  knowledge Kodiak is                                                               
the  main  station, and  USCG  has  temporary stations  north  of                                                               
Barrow and out of Kotzebue for Arctic exercises.                                                                                
                                                                                                                                
REPRESENTATIVE   NEUMAN   shared  that   Alaska's   congressional                                                               
delegation has been working very hard  to get a U.S. ice breaker,                                                               
which he hopes would be stationed in Alaska.                                                                                    
                                                                                                                                
11:53:59 AM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE announced that HJR 19 would be held over.                                                                        
              HJR 19-ARCTIC MARINE SAFETY AGREEMENTS                                                                        
                                                                                                                                
12:26:48 PM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE announced  that the final order  of business would                                                               
be the  return to HOUSE  JOINT RESOLUTION NO. 19,  Commending the                                                               
Arctic  Waterways Safety  Committee; supporting  the adoption  of                                                               
prevention  measures  into  international  agreements  to  ensure                                                               
clear, universal,  and enforceable marine safety  measures in the                                                               
Arctic; and  urging the state's  delegation in the  United States                                                               
Congress  and  the governor  to  promote  the adoption  of  spill                                                               
prevention  measures into  international  agreements; urging  the                                                               
President of the  United States and the  United States Department                                                               
of  State to  initiate negotiations  to enter  into international                                                               
agreements to ensure safe  and environmentally responsible marine                                                               
operations in the Arctic.                                                                                                       
                                                                                                                                
12:26:52 PM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE reopened public testimony on HJR 19.                                                                             
                                                                                                                                
12:27:05 PM                                                                                                                   
                                                                                                                                
RACHAEL  KALLANDER,   Founder  and  Executive   Director,  Arctic                                                               
Encounter  Symposium (AES),  testified  that AES  is the  largest                                                               
annual Arctic  policy and  economics symposium in  the U.S.   She                                                               
mentioned  that   AES  just  hosted  the   Fourth  Annual  Arctic                                                               
Encounter in Seattle on April 13  and 14; AES also hosted a group                                                               
of young  Alaskans as  part of  its team.   She relayed  that AES                                                               
hosted  Arctic Encounter  in Paris  last year  during the  United                                                               
Nations (UN)  Convention on Climate  Change, also referred  to as                                                               
COP 21.   She shared  that there were stimulating  discussions at                                                               
last week's symposium and expressed  her belief that the proposed                                                               
resolution  is   timely.    She  mentioned   that  many  Alaskans                                                               
participated  in   the  conference.    The   conference  speakers                                                               
included   Alaska    Senator   Lisa   Murkowski,    Alaska   U.S.                                                               
Representative  Don  Young,  Ambassador  [Geir  H.  Haarde]  from                                                               
Iceland, Ambassador  [Kre  R.  Aas] from  Norway, and  the former                                                               
Prime Minister of  Greenland [Aleqa Hammond].  She  said that all                                                               
were  enthusiastic  and optimistic  to  work  with the  State  of                                                               
Alaska, the  legislature, and Alaska's  congressional delegation,                                                               
to "push  forward" on  many issues impacting  the Arctic  and the                                                               
people who live  in the Arctic.  She offered  her support for HJR
19 and the efforts to raise awareness.                                                                                          
                                                                                                                                
MS. KALLANDER  stated that she  wished to share the  AES mission,                                                               
which  is  to gather  together  all  the stakeholders  to  engage                                                               
challenges  and  debate  solutions for  responsible  development,                                                               
sustainable  environments, and  healthy  communities.   She  said                                                               
that she learned  at last week's symposium  that the stakeholders                                                               
have  an  opportunity and  a  responsibility  to raise  awareness                                                               
together.   She said that she  feels compelled to point  out that                                                               
"we're in a time and place in  history in which we really have to                                                               
innovate  and advocate  for the  best  future possible  results."                                                               
She offered that  there are many young Alaskans  around the state                                                               
who are engaged  in these issues.  She  emphasized the importance                                                               
of the  committee's role  in involving  Alaskans in  these issues                                                               
that  will impact  the  future of  the state.    She offered  the                                                               
assistance and support of AES for the committee's efforts.                                                                      
                                                                                                                                
12:30:30 PM                                                                                                                   
                                                                                                                                
CHAIR WESTLAKE,  after ascertaining  that no  one else  wished to                                                               
testify, reclosed public testimony on HJR 19.                                                                                   
                                                                                                                                
[HJR 19 was held over.]                                                                                                         

Document Name Date/Time Subjects
Marine Exchange Presentation.pdf HAET 4/20/2017 11:30:00 AM
Marine Exchange of Alaska - Paul Fuhs & Captain Ed Page Presentation
HJR19 ver A.PDF HAET 4/20/2017 11:30:00 AM
HJR 19
HJR 19 Presentation.pdf HAET 4/20/2017 11:30:00 AM
HJR 19