02/27/2024 01:30 PM House TRANSPORTATION

                 HJR 19-NORTHERN RAIL EXTENSION                                                                             
                                                                                                                                
1:37:49 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced that the  first order of business would be                                                               
HOUSE JOINT RESOLUTION  NO. 19, Supporting the  completion of the                                                               
Port MacKenzie  Rail Extension and  the Northern  Rail Extension;                                                               
supporting  the  increase  in   defensive  capabilities  at  Fort                                                               
Greely, Alaska;  encouraging a renewed  commitment by  the Alaska                                                               
Railroad   to  a   community-minded  approach   to  future   rail                                                               
expansion; and encouraging the development of critical Arctic                                                                   
infrastructure.                                                                                                                 
                                                                                                                                
1:38:12 PM                                                                                                                    
                                                                                                                                
JULIE MORRIS, Staff, Representative  Kevin McCabe, introduced HJR
  on  behalf  of  Representative  McCabe,  prime  sponsor,  and                                                               
paraphrased  the sponsor  statement  [included  in the  committee                                                               
packet], which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     This  resolution advocates  for completing  two pivotal                                                                    
     rail extensions, the Port  MacKenzie Rail Extension and                                                                    
     the   Northern  Rail   Extension,  alongside   critical                                                                    
     initiatives to  fortify our state's  infrastructure and                                                                    
     defense  capabilities. Alaska's  strategic position  as                                                                    
     the sole  state bordering  the Arctic  Ocean highlights                                                                    
     the significance  of these endeavors,  especially given                                                                    
     recent  expansions in  defense  infrastructure at  Fort                                                                    
     Greely.                                                                                                                    
                                                                                                                                
     The  Alaska  Railroad  Transfer   Act  (ARTA)  of  1983                                                                    
     reaffirmed  Congress's  recognition of  the  railroad's                                                                    
     importance  in  providing  freight and  passenger  rail                                                                    
     service  to   Alaska.  Recognizing  the   necessity  of                                                                    
     continued  services  and  expansion  to  meet  federal,                                                                    
     state,  and  private  objectives, Congress  deemed  the                                                                    
     state's  continued  operation   and  expansion  of  the                                                                    
     railroad a fitting public use of the rail system.                                                                          
                                                                                                                                
     The  completion  of  Phase   1  of  the  Northern  Rail                                                                    
     Extension  project,   including  crossing   the  Tanana                                                                    
     River,  represents  a significant  milestone,  bringing                                                                    
     the rail  line within  70 miles  of Delta  Junction and                                                                    
     Fort Greely. This  progress demonstrates our commitment                                                                    
     to realizing the full  potential of rail transportation                                                                    
     in  Alaska   and  lays   the  foundation   for  further                                                                    
     expansion and connectivity.                                                                                                
                                                                                                                                
     With the United States  Department of Defense expanding                                                                    
     the  anti-ballistic  missile  facility and  the  United                                                                    
     States  Army developing  new  training  range areas  to                                                                    
     support  the Stryker  Brigade,  ensuring seamless  rail                                                                    
     connectivity   is   crucial  to   sustaining   military                                                                    
     operations  effectively.  Notably,  the  lack  of  rail                                                                    
     access  at  Fort  Greely, the  only  military  base  in                                                                    
     Alaska  without it,  underscores  the  urgency of  this                                                                    
     resolution.                                                                                                                
                                                                                                                                
     Moreover,  commendable   progress  by   the  Matanuska-                                                                    
     Susitna Borough  and the Alaska Railroad  in completing                                                                    
     nearly two-thirds of the  Port MacKenzie Rail Extension                                                                    
     is essential. This  extension will substantially reduce                                                                    
     energy and  transportation costs, improve  air quality,                                                                    
     and  facilitate   efficient  movement  of   goods  from                                                                    
     tidewater to and across Interior Alaska.                                                                                   
                                                                                                                                
     Furthermore, the extension of  the Alaska Railroad from                                                                    
     Port  MacKenzie to  Houston, Delta  Junction, and  Fort                                                                    
     Greely  aligns  with  long-term  objectives,  promoting                                                                    
     economic   integration  and   enhancing  transportation                                                                    
     networks. These  extensions offer  significant economic                                                                    
     and  resource  development benefits,  particularly  for                                                                    
     mining  operations in  Delta  Junction  and Tetlin,  as                                                                    
     well  as   the  agricultural  industry  in   the  Delta                                                                    
     Junction area.                                                                                                             
                                                                                                                                
     In   conclusion,   this  resolution   underscores   our                                                                    
     commitment    to   fostering    economic   development,                                                                    
     enhancing  defense readiness,  and promoting  community                                                                    
     engagement   in    critical   infrastructure   projects                                                                    
     essential   to   Alaska's  long-term   prosperity   and                                                                    
     security.                                                                                                                  
                                                                                                                                
     Your   support   for   this   resolution   is   greatly                                                                    
     appreciated.                                                                                                               
                                                                                                                                
1:40:10 PM                                                                                                                    
                                                                                                                                
CHAIR  MCCABE reminded  the committee  that  this resolution  was                                                               
just about  the same as the  resolution passed last year  and the                                                               
year before, and  resolutions are only good for a  year.  He said                                                               
there  would be  a dignitary  coming for  a tour  of the  Port of                                                               
MacKenzie and he hoped to bring the resolution then.                                                                            
                                                                                                                                
1:41:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked for confirmation that it is strictly                                                                
for the rail extension, not the port.                                                                                           
                                                                                                                                
CHAIR MCCABE confirmed that was correct.                                                                                        
                                                                                                                                
1:41:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA  asked  what   the  projected  cost  was  to                                                               
complete the remaining 70 miles of the Northern Rail Extension.                                                                 
                                                                                                                                
CHAIR MCCABE  responded that last  year's cost was north  of $1.2                                                               
billion, and  Port MacKenzie may  be close  to $250 million.   He                                                               
stated that the tentative plan is to do it in three years.                                                                      
                                                                                                                                
1:42:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE stated that she  hoped for the resolution to                                                               
"stand firm on its own" and  that the intent is much broader than                                                               
just defense.                                                                                                                   
                                                                                                                                
CHAIR  MCCABE replied  that  it could  be  discussed further  and                                                               
there could be a possibility for amendments.                                                                                    
                                                                                                                                
1:43:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE C.  JOHNSON asked  Chair McCabe who  the dignitary                                                               
was.                                                                                                                            
                                                                                                                                
CHAIR  MCCABE said  he  could not  confirm a  name  yet, but  the                                                               
person is part of an  exercise along with approximately 28 others                                                               
that have been invited to give a presentation.                                                                                  
                                                                                                                                
REPRESENTATIVE  C.   JOHNSON  noted   there  could  be   an  easy                                                               
conceptual amendment if needed.                                                                                                 
                                                                                                                                
1:45:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA asked  whether there have been  any follow up                                                               
conversations   with   the   state's   congressional   delegation                                                               
regarding the resolution and federal funding opportunities.                                                                     
                                                                                                                                
CHAIR  MCCABE  confirmed there  had  been  conversations and,  in                                                               
addition,  that he  was  looking  for any  way  to find  funding,                                                               
matching funding, and interested parties.                                                                                       
                                                                                                                                
1:46:34 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE  provided a biography for  Lieutenant General Krumm,                                                               
who would speak as an invited testifier.                                                                                        
                                                                                                                                
1:48:10 PM                                                                                                                    
                                                                                                                                
LIEUTENANT GENERAL  DAVID KRUMM, Retired, gave  invited testimony                                                               
in  support  of  HJR  19.    He  thanked  Chair  McCabe  for  the                                                               
introduction  and stated  that he  was  honored to  speak to  the                                                               
resolution today.   He  said although the  views he  will express                                                               
are his  own and not  necessarily the U.S. Department  of Defense                                                               
(DOD), they are  informed by his time as a  commander.  He opined                                                               
that timing could not be  better to discuss the extension because                                                               
the  U.S. needs  the  infrastructure to  expand  its economy  and                                                               
better our  capabilities for crisis.   Having extra  rail options                                                               
would  be  a  substantial  improvement,   he  said,  and  heavier                                                               
transport lends itself to the use  of railways rather than air or                                                               
road.    He offered  his  belief  that  the Port  MacKenzie  Rail                                                               
Extension would be a welcome addition for many uses.                                                                            
                                                                                                                                
1:52:27 PM                                                                                                                    
                                                                                                                                
BILL O'LEARY, President & CEO,  Alaska Railroad Corporation, gave                                                               
invited  testimony in  support of  HJR 19.   He  stated that  the                                                               
Alaska  Railroad Corporation  (ARRC) is  in full  support of  the                                                               
rail extension,  and he  opined it  would fit  beautifully within                                                               
the railroad's economic development.                                                                                            
                                                                                                                                
1:54:32 PM                                                                                                                    
                                                                                                                                
MEGHAN  CLEMENS, Director  of External  Affairs, Alaska  Railroad                                                               
Corporation, gave  invited testimony in  support of HJR 19.   She                                                               
mirrored  comments  made  by  Mr. O'Leary  and  added  that  ARRC                                                               
embraced  this   approach  to   economic  development,   and  the                                                               
community  involved  approach  is  one that  works  well  and  is                                                               
necessary when looking at large  projects, she said.  In relation                                                               
to both  Port MacKenzie  and Northern  Rail Extensions,  she said                                                               
there had been significant outreach  to different stakeholders to                                                               
put  together a  coalition  to move  these  projects forward  and                                                               
benefit the  state.  She further  mentioned bonding opportunities                                                               
that could be useful, as  projects may advance in that direction.                                                               
She  said ARRC  had  a  proven track  record  for managing  large                                                               
projects successfully,  which is  an important  role that  can be                                                               
provided.                                                                                                                       
                                                                                                                                
1:59:13 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE invited questions from committee members.                                                                          
                                                                                                                                
1:59:29 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:59 p.m. to 2:00 p.m.                                                                       
                                                                                                                                
2:00:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE moved  to report  HJR 19  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
2:01:14 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE objected for the purpose of discussion.                                                                            
                                                                                                                                
2:01:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER stated he supported the resolution.                                                                       
                                                                                                                                
2:01:27 PM                                                                                                                    
                                                                                                                                
CHAIR  MCCABE removed  his  objection.   There  being no  further                                                               
objection, HJR  19 was reported  out of the  House Transportation                                                               
Standing Committee.