Legislature(2017 - 2018)BARNES 124

03/08/2018 11:30 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM

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11:36:10 AM Start
11:37:03 AM HJR33
12:01:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 33 DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE TELECONFERENCED
Moved CSHJR 33(AET) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,                                                                          
               ECONOMIC DEVELOPMENT, AND TOURISM                                                                              
                         March 8, 2018                                                                                          
                           11:36 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Lincoln, Chair                                                                                              
Representative Bryce Edgmon                                                                                                     
Representative Andy Josephson                                                                                                   
Representative Chris Tuck                                                                                                       
Representative Mark Neuman                                                                                                      
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Gary Knopp                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 33                                                                                                   
Urging the Alaska delegation in Congress to pursue the                                                                          
establishment of an Arctic naval station; supporting the                                                                        
increase in defensive capabilities in the Arctic region; and                                                                    
encouraging the development of critical Arctic infrastructure.                                                                  
                                                                                                                                
     - MOVED CSHJR 33(AET) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 33                                                                                                                  
SHORT TITLE: DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE                                                                            
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
02/09/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/18       (H)       AET                                                                                                    
02/27/18       (H)       AET AT 11:30 AM BARNES 124                                                                             
02/27/18       (H)       Heard & Held                                                                                           
02/27/18       (H)       MINUTE(AET)                                                                                            
03/06/18       (H)       AET AT 11:30 AM BARNES 124                                                                             
03/06/18       (H)       Scheduled but Not Heard                                                                                
03/08/18       (H)       AET AT 11:30 AM BARNES 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL LOWE, Intern                                                                                                            
Representative Chris Tuck                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the proposed committee substitute                                                              
(CS) for HJR 33, Version 30-LS1350\D, Radford, 2/14/18, on                                                                      
behalf of Representative Tuck, prime sponsor.                                                                                   
                                                                                                                                
RICHARD BENEVILLE, Mayor                                                                                                        
City of Nome                                                                                                                    
Nome, Alaska                                                                                                                    
POSITION STATEMENT:  Testified during the hearing on HJR 33,                                                                  
Version D.                                                                                                                      
                                                                                                                                
JOY BAKER, Port Director                                                                                                        
City of Nome                                                                                                                    
Nome, Alaska                                                                                                                    
POSITION STATEMENT:  Testified during the hearing on HJR 33,                                                                  
Version D.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:36:10 AM                                                                                                                   
                                                                                                                                
CHAIR JOHN LINCOLN called the House Special Committee On Arctic                                                               
Policy, Economic Development, and Tourism meeting to order at                                                                   
11:36 a.m.  Representatives Talerico, Josephson, Neuman, and                                                                    
Lincoln were present at the call to order.  Representatives                                                                     
Edgmon and Tuck arrived as the meeting was in progress.                                                                         
                                                                                                                                
         HJR 33-DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE                                                                     
                                                                                                                                
11:37:03 AM                                                                                                                   
                                                                                                                                
CHAIR LINCOLN announced that the only order of business would be                                                                
HJR 33, Urging the Alaska delegation in Congress to pursue the                                                                  
establishment of a U.S. Coast Guard  port in the Arctic region;                                                                 
supporting the increase in defensive capabilities in the Arctic                                                                 
region; and encouraging the development of critical Arctic                                                                      
infrastructure.  [Before the committee, adopted as a working                                                                    
document during the meeting on 2/27/18, was the proposed                                                                        
committee substitute (CS) for HJR 33, Version 30-LS1350\D,                                                                      
Radford, 2/14/18.]                                                                                                              
                                                                                                                                
11:37:20 AM                                                                                                                   
                                                                                                                                
MICHAEL LOWE, Intern, Representative Chris Tuck, Alaska State                                                                   
Legislature, presented the proposed  committee substitute (CS)                                                                  
for HJR 33, Version 30-LS1350\D,  Radford, 2/14/18, on behalf of                                                                
Representative Tuck, prime sponsor.  He addressed a question,                                                                   
raised at the previous [2/27/18] committee meeting, pertaining                                                                  
to the possible location for the  proposed U.S. Coast Guard port.                                                               
Nome is "at the top of the list,   he said, based on "a number of                                                               
factors" including a 2012 U.S. Department of Transportation                                                                     
(USDOT) survey that assessed 13 different areas in Western and                                                                  
Northern Alaska.  He opined that  Nome is not far enough north                                                                  
but reaffirmed its status as a tentative frontrunner.                                                                           
                                                                                                                                
MR. LOWE offered to provide the committee with copies of the                                                                    
USDOT report.                                                                                                                   
                                                                                                                                
11:39:14 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN stated that,  although he supported Version                                                               
D, he wished it highlighted the hard work done by the [Alaska                                                                   
Arctic Policy Commission] (AAPC).   He said he would like to have                                                               
seen references to the fully-developed  plan proposed by AAPC and                                                               
suggestions that the plan be followed.                                                                                          
                                                                                                                                
MR. LOWE said the AAPC report contributed to the writing of HJR
33.  He agreed with Representative  Neuman's assessment that AAPC                                                               
should have been mentioned.                                                                                                     
                                                                                                                                
REPRESENTATIVE NEUMAN reasserted the effort that was put forth                                                                  
by AAPC.  He offered to help add a suggestion to follow the                                                                     
Commission's plan.                                                                                                              
                                                                                                                                
11:41:37 AM                                                                                                                   
                                                                                                                                
CHAIR LINCOLN asked Representative Neuman to clarify if he was                                                                  
requesting the bill be held until  an amendment could be offered.                                                               
                                                                                                                                
11:41:49 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON said he would not recommend holding the                                                                   
bill.  He suggested that Representative Neuman was alluding to                                                                  
potential future action on the bill,  such as on the House floor.                                                               
                                                                                                                                
REPRESENTATIVE EDGMON stated that  he served on the AAPC, as well                                                               
as its predecessor, the Alaska Northern Waters Task Force.  He                                                                  
said he did not recall the AAPC  report suggesting a location for                                                               
an Arctic port.  He said there has been a lot of work                                                                           
investigating two possible sites:  [Port] Clarence near Nome and                                                                
Cape Blossom outside Kotzebue.  He said he believes Nome has "a                                                                 
leg up at this point, if not officially been selected as the                                                                    
site.  He emphasized his belief that Version D was well-                                                                        
intentioned and would serve its  purpose.  He said he did not                                                                   
recall any civic designation coming from the legislature.                                                                       
                                                                                                                                
11:43:39 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN suggested that Dutch Harbor was discussed                                                                 
as an integral part of the plan due to its substantial                                                                          
industrial infrastructure and its ability to deal with large                                                                    
ships.  Although there is support and need for a port in or                                                                     
around Nome, he said, any traffic headed in that direction would                                                                
necessarily pass through Dutch Harbor, given its unique ability                                                                 
to offer specialized services and repairs.  Representative                                                                      
Neuman recalled the AAPC discussing Dutch Harbor as "the entry                                                                  
way" to northern latitudes.                                                                                                     
                                                                                                                                
11:44:32 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:44 a.m. to 11:45 a.m.                                                                     
                                                                                                                                
11:45:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON suggested the Port Director of Nome and                                                                   
Mayor of Nome be invited to address the question and offer                                                                      
clarification.                                                                                                                  
                                                                                                                                
11:45:52 AM                                                                                                                   
                                                                                                                                
CHAIR LINCOLN opened public testimony on HJR 33.                                                                                
                                                                                                                                
11:46:11 AM                                                                                                                   
                                                                                                                                
RICHARD BENEVILLE, Mayor, City of Nome, congratulated                                                                           
Representative Tuck for drawing the attention of the legislature                                                                
to the importance of establishing a new port.                                                                                   
                                                                                                                                
MR. BENEVILLE said he recently attended the Arctic Frontiers                                                                    
Conference in Troms,  Norway.  He  described feeling disheartened                                                               
after conversing with people from  Finland, Norway, and Sweden.                                                                 
"Those folks are not looking at  the future," he said, "they are                                                                
living in it today."  He said Alaska needs to do likewise in                                                                    
order to help get the United States "on the map" as far as the                                                                  
Bering Sea and Bering Strait are concerned.                                                                                     
                                                                                                                                
MR. BENEVILLE shared his excitement that the City of Nome had                                                                   
entered into a 50-50 cost-sharing  agreement with the U.S. Army                                                                 
Corps of Engineers for a Nome-specific study, the results of                                                                    
which would inform the creation of infrastructure.  One day, he                                                                 
opined, there will be a series of ports going north, as "what is                                                                
happening in the far north" is "that  big."  He named locations                                                                 
of possible future ports:  Nome,  Port Clarence, Cape Blossom,                                                                  
and Utqiagvik.  There will be activity  in all these places, he                                                                 
said, because there will be "that  much traffic coming through."                                                                
He cited a statistic that ports  of call in Nome rose from 441 in                                                               
2016 to 723 in 2017.  He said he  looks forward to Nome being the                                                               
strategic port north of Dutch Harbor.                                                                                           
                                                                                                                                
MR. BENEVILLE thanked the governor and the legislature for                                                                      
approving $1.6 million in funds for Nome to enter into the                                                                      
previously-mentioned cost-sharing  agreement with the U.S. Army                                                                 
Corps of Engineers.  He said he  just returned from Washington,                                                                 
D.C. and described the experience as "enlightening."                                                                            
                                                                                                                                
MR. BENEVILLE compared his experience growing up during the Cold                                                                
War to the present.  He invoked Winston Churchill:  "If you                                                                     
don't learn from history, you are doomed to repeat it."  He                                                                     
stressed that "we are so behind  in the far north."  Alaska, he                                                                 
said, needs a port closer to the Bering Strait.                                                                                 
                                                                                                                                
MR. BENEVILLE said the quality of life in Western Alaska will                                                                   
improve.  The commerce that comes into the Port of Nome, he                                                                     
explained, affects 53 villages.  Further development in the                                                                     
region, he said, would benefit not just Nome, but Western Alaska                                                                
and the United States as a whole.                                                                                               
                                                                                                                                
11:50:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON said it was  nice seeing Mr. Beneville in                                                                 
Anchorage a couple days before.  He wished the mayor a great                                                                    
Iditarod.                                                                                                                       
                                                                                                                                
MR. BENEVILLE extolled the Iditarod ("like Mardi Gras with                                                                      
dogs") and invited the committee members to Nome.                                                                               
                                                                                                                                
11:51:28 AM                                                                                                                   
                                                                                                                                
JOY BAKER, Port Director, City of  Nome, clarified that the 2012                                                                
USDOT study referenced earlier by  Mr. Lowe was a combined joint                                                                
study between USDOT and the U.S.  Army Corps of Engineers-Alaska                                                                
District.  The study evaluated 13  sites in western and northern                                                                
Alaska for development of an Arctic  port.  The study settled on                                                                
the three sites mentioned by Representative Edgmon:  Point                                                                      
Spencer - a peninsula on Port Clarence,  Cape Blossom, and the                                                                  
City of Nome.  A further evaluation of those three sites                                                                        
concluded that Nome was the most logical and economically viable                                                                
site for expansion.  This conclusion was due to Nome's existing                                                                 
infrastructure including the hospital, airport, and onshore                                                                     
facilities that support the harbor.   She said this conclusion                                                                  
was solidified in January 2015 by the U.S. Army Corps of                                                                        
Engineers' Alaska Regional Ports  study.  She said progress was                                                                 
halted in summer 2015 when [Royal Dutch] Shell pulled out of the                                                                
Arctic and ceased operations.                                                                                                   
                                                                                                                                
MS. BAKER said the agreement between the City of Nome and the                                                                   
U.S. Army Corps of Engineers had resumed the evaluation of                                                                      
benefits offered by an expanded  Port of Nome.  She said she                                                                    
believes Nome could "fit the bill" for a regional port.  She                                                                    
acknowledged the benefits offered by Dutch Harbor for larger                                                                    
vessels but emphasized that Nome's  proximity to the Arctic and                                                                 
existing coastal infrastructure  could save three to four days'                                                                 
travel and costs for the maritime fleet.                                                                                        
                                                                                                                                
MS. BAKER said Version D, as well as the federal Water                                                                          
Infrastructure Improvements for the Nation Act (WIIN Act) of                                                                    
2016, would benefit the region and not just Nome.  She expressed                                                                
confidence that the new study would  prove the benefits of port                                                                 
expansion outweigh the costs.  After  that, she said, they would                                                                
soon move into the design and construction  phases in order to                                                                  
get an Arctic deep-draft port in  place for use not just by the                                                                 
region and the maritime fleet, but also for use by the military,                                                                
given "how far we are behind Russia."                                                                                           
                                                                                                                                
11:55:20 AM                                                                                                                   
                                                                                                                                
CHAIR LINCOLN, after ascertaining no one wished to offer further                                                                
testimony, closed public testimony on HJR 33.                                                                                   
                                                                                                                                
11:55:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN said resolutions that support                                                                             
infrastructure in Alaska are important.  He said that the                                                                       
expansion of opportunities for ports  and exports is important                                                                  
for safety and security, but his concern is the economic                                                                        
opportunity it provides for creating  jobs.  He said he wishes                                                                  
more safety and infrastructure proposals could receive support.                                                                 
He said there was one near his district  that would inject $750                                                                 
million into the economy, which  would add a lot of safety.  He                                                                 
remarked,  We just lost another  one of our Alaskans a couple of                                                                
days ago because of the issues we are facing."  He restated his                                                                 
support for Version D and the development of infrastructure and                                                                 
safety for all Alaskans.                                                                                                        
                                                                                                                                
11:57:20 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON moved to report CSHJR 33, Version 30-                                                                     
LS1350\D, Radford, 2/14/18, out of committee with individual                                                                    
recommendations and the accompanying fiscal notes.  There being                                                                 
no objection, CSHJR 33(AET) was reported out of the House                                                                       
Special Committee On Arctic Policy, Economic Development, and                                                                   
Tourism.                                                                                                                        
                                                                                                                                
11:58:10 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:58 a.m. to 12:01 p.m.                                                                     
                                                                                                                                
12:01:50 PM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee On Arctic Policy, Economic Development, and                                                                   
Tourism meeting was adjourned at 12:01 p.m.                                                                                     

Document Name Date/Time Subjects
HJR033 Fiscal Note LEG-SESS -- 3.7.18.pdf HAET 3/8/2018 11:30:00 AM
HJR 33