Legislature(2007 - 2008)CAPITOL 106

01/19/2007 10:30 AM House ECONOMIC DEV., TRADE, AND TOURISM


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10:35:28 AM Start
10:35:57 AM Presentation Regarding Pacific Northwest Economic Region
11:49:02 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Matt Morrison, Executive TELECONFERENCED
Director of PNWER (Pacific North-West
Economic Region)
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL                                                               
                       TRADE AND TOURISM                                                                                      
                        January 19, 2007                                                                                        
                           10:35 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mark Neuman, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Vic Kohring                                                                                                      
Representative Bob Lynn                                                                                                         
Representative Andrea Doll                                                                                                      
Representative Mike Doogan                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Gatto                                                                                                       
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Anna Fairclough                                                                                                  
Representative John Coghill                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION REGARDING PACIFIC NORTHWEST ECONOMIC REGION                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MATT MORRISON, Executive Director                                                                                               
Pacific NorthWest Economic Region                                                                                               
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Presented an overview regarding the Pacific                                                                
NorthWest Economic Region.                                                                                                      
                                                                                                                                
SENATOR LESIL McGUIRE                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Represented the Pacific NorthWest Economic                                                                 
Region as one of its vice presidents.                                                                                           
JOHN VAN DONGEN, Minister                                                                                                       
Intergovernmental Relations                                                                                                     
Government of British Columbia                                                                                                  
British Columbia, Canada                                                                                                        
POSITION STATEMENT:   Represented the Pacific  NorthWest Economic                                                               
Region as one of its vice presidents.                                                                                           
                                                                                                                                
JIM KENYON, Minister                                                                                                            
Economic Development                                                                                                            
Government of Yukon                                                                                                             
Yukon Territory, Canada                                                                                                         
POSITION STATEMENT:   Represented the Pacific  NorthWest Economic                                                               
Region as its president.                                                                                                        
                                                                                                                                
BRANDON HARANBROOK, Deputy Director                                                                                             
Pacific NorthWest Economic Region                                                                                               
Seattle, Washington                                                                                                             
POSITION  STATEMENT:   Responded to  questions regarding  Pacific                                                               
NorthWest Economic Region.                                                                                                      
                                                                                                                                
MARVIN SCHNEIDER, Executive Director                                                                                            
U.S. Relations                                                                                                                  
Government of Alberta                                                                                                           
Alberta, Canada                                                                                                                 
POSITION  STATEMENT:    Responded   to  questions  regarding  the                                                               
Pacific NorthWest Economic Region.                                                                                              
                                                                                                                              
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR MARK NEUMAN called the  House Special Committee on Economic                                                             
Development, International Trade and  Tourism meeting to order at                                                               
10:35:28 AM.   Representatives Lynn,  Doll, Doogan,  Kohring, and                                                             
Neuman  were  present  at  the call  to  order.    Representative                                                               
Johansen   arrived    as   the    meeting   was    in   progress.                                                               
Representatives Coghill  and Fairclough were also  in attendance.                                                               
Representative Gatto was excused.                                                                                               
                                                                                                                                
^Presentation Regarding Pacific NorthWest Economic Region                                                                     
                                                                                                                                
10:35:57 AM                                                                                                                   
                                                                                                                                
CHAIR NEUMAN announced  that the only order of  business would be                                                               
the  presentation  from  Matt Morrison,  Executive  Director,  of                                                               
Pacific  NorthWest   Economic  Region   (PNWER).     The  Pacific                                                               
NorthWest  Economic Region  is a  private and  public partnership                                                               
between  business and  government in  the U.S.  and the  Canadian                                                               
Northwest.   Members  include the  Canadian Provinces  of Alberta                                                               
and British  Columbia and the  Yukon [Territory], and  the states                                                               
of  Alaska,  Idaho, Montana,  Oregon,  and  Washington.   Pacific                                                               
NorthWest  Economic Region's  mission  is  to foster  sustainable                                                               
economic  development  throughout  the   region.    Chair  Neuman                                                               
recognized  the   following  members  of  PNWER:     Jim  Kenyon,                                                               
Minister,  Yukon Territory;  John Van  Dongen, Minister  of State                                                               
for  Intergovernmental  Relations,  British Columbia;  and  PNWER                                                               
representatives Matt Morrison and Brandon Haranbrook.                                                                           
                                                                                                                                
10:37:12 AM                                                                                                                   
                                                                                                                                
MATT  MORRISON, Executive  Director,  Pacific NorthWest  Economic                                                               
Region, spoke  of its first  summit in Alaska scheduled  for July                                                               
2007, which  may bring together 500  to 600 leaders from  the bi-                                                               
national region  PNWER represents.   Alaska is an  important part                                                               
of this region  which, if PNWER were a nation,  it would generate                                                               
the 12th largest  economy in the world.  The  summit will be held                                                               
in  Anchorage and  one  focus will  be on  the  2010 Olympics  in                                                               
Whistler, British Columbia.                                                                                                     
                                                                                                                                
10:39:05 AM                                                                                                                   
                                                                                                                                
MR. MORRISON  stated the importance  of PNWER's  action regarding                                                               
workforce  development.   Shortages of  labor in  the region  are                                                               
anticipated with  the upcoming mega  projects to develop  oil and                                                               
natural gas development in Alaska and Alberta.                                                                                  
                                                                                                                                
10:41:00 AM                                                                                                                   
                                                                                                                                
MR. MORRISON also noted PNWER's  leadership in energy planning by                                                               
connecting a  network of research  and development  resources for                                                               
solving  energy  challenges  and  developing  the  concept  of  a                                                               
Pacific gateway for  Asia.  Working groups  have been established                                                               
to explore the issues  of transportation infrastructure, invasive                                                               
species, agriculture, and homeland security.                                                                                    
                                                                                                                                
10:47:23 AM                                                                                                                   
                                                                                                                                
SENATOR LESIL  McGUIRE, Alaska State Legislature;  Vice President                                                               
of  PNWER, announced  that the  first Pacific  NorthWest Economic                                                               
Region  summit  in   Alaska  will  be  held  July   21-26th.    A                                                               
preliminary meeting  will be  held in Whittier  on July  21st and                                                               
the  actual conference  begins  July  22nd.   There  will be  500                                                               
participants including heads  of state.  All  western states will                                                               
be invited and  it is possible a Governor/Premier  summit will be                                                               
scheduled  concurrently.     Policy  workshops  will   relate  to                                                               
resource   development,   economic  development,   tourism,   job                                                               
training,  government  autonomy,   the  Artic  National  Wildlife                                                               
Refuge,  and the  National Petroleum  Reserve-Alaska.   Delegates                                                               
will be invited to visit Prudhoe  Bay, the Port of Anchorage, the                                                               
Matanuska-Susitna  Valley and  Fairbanks.    She then  encouraged                                                               
members  to forward  any  suggestions for  policy  ideas for  the                                                               
conference  to her.   The  goal with  the policy  workshop is  to                                                               
showcase   Alaska's  successes.     In   fact,  Alaska's   Native                                                               
Corporation will also be presenting.                                                                                            
                                                                                                                                
10:53:03 AM                                                                                                                   
CHAIR  NEUMAN  requested  that Mr.  Morrison  discuss  the  Asian                                                               
market for natural gas.                                                                                                         
                                                                                                                                
MR. MORRISON responded  that natural gas prices are  high and are                                                               
projected to be high for the  next 20 years and liquefied natural                                                               
gas (LNG)  will continue  to develop.   In fact,  after Hurricane                                                               
Katrina  the  price  of  natural   gas  spiked  due  to  domestic                                                               
shortages.  However, even higher  prices in Europe caused the LNG                                                               
to be exported  there.  He opined that natural  gas prices are at                                                               
the verge of an international globalization.                                                                                    
                                                                                                                                
10:54:37 AM                                                                                                                   
                                                                                                                                
SENATOR McGUIRE added that PNWER  provides a world view of energy                                                               
development.  She  further added that LNG is  in demand worldwide                                                               
and  thus the  energy  track  at the  PNWER  summit will  provide                                                               
information regarding  the potential demand for  natural gas from                                                               
China and other Asian markets.                                                                                                  
                                                                                                                                
MR. MORRISON  emphasized the need  for Alaska to  provide natural                                                               
gas to North America.                                                                                                           
                                                                                                                                
CHAIR  NEUMAN thanked  Senator  McGuire  for providing  objective                                                               
information  on how  PNWER will  bring groups  together to  shape                                                               
policies between Canada and Alaska.                                                                                             
                                                                                                                                
10:58:01 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DOLL  inquired about  the reserves of  natural gas                                                               
in China.                                                                                                                       
                                                                                                                                
MR. MORRISON answered that China does not have much in reserve.                                                                 
                                                                                                                                
SENATOR  McGUIRE   recalled  that  Marvin   Schneider,  Executive                                                               
Director of  U.S. Relations  for the  Government of  Alberta, has                                                               
said that China has "minimal reserves  of natural gas."  She then                                                               
referred to a  presentation by an official from  China who stated                                                               
that his country will look to  Russia, the Middle East, and North                                                               
America  for   energy  needs.    Also   from  the  aforementioned                                                               
presentation, she recalled that  regardless of the UNOCAL (United                                                               
Oil Company of California) decision,  the Chinese official opined                                                               
that China will get the [energy] it needs.                                                                                      
                                                                                                                                
11:00:24 AM                                                                                                                   
                                                                                                                                
CHAIR  NEUMAN reiterated  that countries  around  the world  need                                                               
Alaska's energy.                                                                                                                
                                                                                                                                
11:00:43 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DOOGAN  welcomed the Canadian officials  and asked                                                               
about PNWER's role in workforce development.                                                                                    
                                                                                                                                
MR. MORRISON, referring  to a grant PNWER was  awarded to address                                                               
challenges  to workforce  mobility across  borders, related  that                                                               
stakeholder  meetings  are  in progress  to  identify  and  solve                                                               
temporary workforce problems.                                                                                                   
                                                                                                                                
11:02:33 AM                                                                                                                   
                                                                                                                                
SENATOR   McGUIRE  said   PNWER  can   be  a   clearinghouse  for                                                               
information and  can advocate for nonprofit  governmental grants.                                                               
Furthermore, PNWER has  staff to look at issues  in a nonpartisan                                                               
way  that  the  private  sector and  policymakers  cannot.    She                                                               
highlighted  that  PNWER  can  bring  policymakers  in  a  region                                                               
together to hear nonpartisan information and exchange ideas.                                                                    
                                                                                                                                
11:04:15 AM                                                                                                                   
                                                                                                                                
MR. MORRISON added  that the states of Washington  and Idaho, and                                                               
provinces  of British  Columbia and  Alberta have  provided funds                                                               
for  PNWER  to  form  a regional  tourism  coordination  council.                                                               
During this  legislative session it  is hoped Alaska  will become                                                               
part of this  group.  This council will work  on a marine tourism                                                               
collaboration  project  and  would  like to  develop  NORPASS,  a                                                               
Northwest  Passage rail  & sail  pass with  access to  the Alaska                                                               
Railroad,  Alaska Marine  Highway System,  BC [British  Columbia]                                                               
Ferry system, and  Washington State Ferry system,  similar to the                                                               
EURAIL transportation pass.                                                                                                     
                                                                                                                                
SENATOR  MCGUIRE described  opportunities for  the region  during                                                               
the  2010  [Olympic] games  from  training  venues, tourism,  and                                                               
other activities  before and after.   There could be  overflow to                                                               
Alaska from  the tremendous  amount of world  focus on  this area                                                               
during that short period of time.                                                                                               
                                                                                                                                
11:09:13 AM                                                                                                                   
                                                                                                                                
MR.  JOHN  VAN  DONGEN,  Minister,  British  Columbia;  and  Vice                                                               
President,  PNWER, informed  the  committee that  he  has been  a                                                               
farmer  all  his life,  studied  agricultural  economics and  was                                                               
first  elected to  the  Legislative  Assembly in  1995.   He  was                                                               
appointed  Minister of  Agriculture, Food  and Fisheries  in 2001                                                               
and in 2005  moved to his current position.   This experience led                                                               
to  close  ties  to  neighboring   states  and  provinces.    The                                                               
aforementioned   was  helpful   during   the  Bovine   Spongiform                                                               
Encephalopathy (BSE)  event in 2003 which  illustrated how border                                                               
closures impact neighboring states.                                                                                             
                                                                                                                                
11:12:01 AM                                                                                                                   
                                                                                                                                
CHAIR  NEUMAN  noted the  difficulty  farmers  in the  Matanuska-                                                               
Susitna Valley  are having  due to  hoof and  mouth disease.   He                                                               
asked if there has been any  movement toward reviewing any of the                                                               
border restrictions  related to  the transport of  cattle. Alaska                                                               
farmers depend on Canada for stock.                                                                                             
                                                                                                                                
11:12:34 AM                                                                                                                   
                                                                                                                                
MR.  VAN DONGEN  clarified that  BSE disease-not  hoof and  mouth                                                               
disease-is  not contagious.   However,  animals  over 30  months,                                                               
whether for  slaughter or breeding, are  restricted from crossing                                                               
the border.  He acknowledged the  impact on Alaska.  He mentioned                                                               
that  the  U.S. Department  of  Agriculture  recently posted  for                                                               
comment a  proposed set  of rules for  the various  categories of                                                               
livestock over  30 months  of age  for breeding  stock.   Mr. Van                                                               
Dongen  opined that  Alaska should  encourage  the government  to                                                               
move forward on  the proposed set of rules to  reopen the border.                                                               
In Seattle last year, PNWER  supported opening the border for all                                                               
of the livestock industry, he noted.                                                                                            
                                                                                                                                
11:18:07 AM                                                                                                                   
                                                                                                                                
CHAIR NEUMAN recalled  his tour in Edmonton of  an Invasive Plant                                                               
and  Animal   Species  research  plant  and   asked  if  Canadian                                                               
officials   have   had   discussions  with   the   Alaska   state                                                               
veterinarian about a similar program here.                                                                                      
                                                                                                                                
MR.  VAN  DONGEN described  the  inspection  system for  tracking                                                               
diseases through  the Canadian Food Inspection  Agency and Animal                                                               
Health  Center,  which  is  a  very  comprehensive  network  with                                                               
veterinarians to  track sources and  levels of disease.   He said                                                               
he did  not know whether  there has been specific  dialog between                                                               
Dr. Ron Lewis of Canada and  the head veterinarian in Alaska, but                                                               
he offered to encourage Dr. Lewis to do so.                                                                                     
                                                                                                                                
11:20:01 AM                                                                                                                   
                                                                                                                                
MR. JIM KENYON, Minister,  Economic Development, Yukon Territory;                                                               
President,  PNWER, spoke  first about  PNWER's 14  active working                                                               
groups.    The  Animal  Health Group  met  recently  in  Spokane,                                                               
Washington.   The  Yukon  has been  very  involved with  Alaska's                                                               
state veterinarian, on animal health  issues and is now reviewing                                                               
animal  cross border  issues.   The Yukon  is affected  by animal                                                               
health issues as  outfitters to the industry.   He echoed earlier                                                               
comments regarding  the value  of PNWER  as a  nonpartisan entity                                                               
that  reviews  issues  in  an  entire  region  and  can  get  all                                                               
participants talking together.   Mr. Kenyon referred  to the Blue                                                               
Cascade series  which enables the  private sector  and government                                                               
to explore  possible problems during  a crisis.  Mr.  Kenyon said                                                               
that  he initially  become  involved with  PNWER  because of  the                                                               
Alaska Highway pipeline  route and the railway.   He related that                                                               
the railway study  is complete and should be available  soon.  He                                                               
further  related that  much  of the  railway  will favor  Alaska.                                                               
With  regard  to the  pipeline,  [Canada}  is supportive  of  the                                                               
highway route due  to the proximity of their  resources and their                                                               
need  for  access  to  the  pipeline in  and  out.    Mr.  Kenyon                                                               
acknowledged that the state may  see an economic benefit by going                                                               
the LNG route,  but in the long run the  state will probably have                                                               
less product to sell.                                                                                                           
                                                                                                                                
Mr. Kenyon  than turned to  tourism, and the link  between Alaska                                                               
and Canada.  He highlighted that  Skagway and Haines are close to                                                               
Yukon and  depend on Whitehorse  for many services  and supplies.                                                               
The  requirement  and cost  of  passports  will have  a  negative                                                               
impact  on families,  school sports  teams, and  sporting events.                                                               
Mr.  Kenyon  closed  by mentioning  that  Ottawa  and  Washington                                                               
[D.C.] can forget  about the United States'  third border, Alaska                                                               
and Yukon.                                                                                                                      
                                                                                                                                
11:30:33 AM                                                                                                                   
                                                                                                                                
CHAIR  NEUMAN noted  that Senators  Dyson and  McGuire have  been                                                               
instrumental in  setting up opportunities for  legislative visits                                                               
between the  Alaska and Yukon  governments.  He  highlighted that                                                               
Alaska is a source of tourists  for the Yukon and opined that the                                                               
tourism  industry  in  Alaska  and Yukon  will  grow  or  decline                                                               
together.   In that vein, he  related that the new  owners of the                                                               
Alyeska Hotel and  Resort are beginning new  development and thus                                                               
he inquired  as to who  they can talk  to about the  2010 Olympic                                                               
training centers.                                                                                                               
                                                                                                                                
MR. VAN  DONGEN referred to PNWER's  Olympic Coordinating Council                                                               
which is developing a web site  to help other areas in the region                                                               
interested in  hosting teams  for training.   Also,  supplies and                                                               
products  will be  needed to  support Whistler,  B C,  during the                                                               
games.   Mr.  Van Dongen,  in further  response to  Chair Newman,                                                               
specified that his office or  the PNWER office could help provide                                                               
contacts for the 2010 Olympics.                                                                                                 
                                                                                                                                
SENATOR  McGUIRE  suggested that  contacts  be  made through  the                                                               
Department of Commerce, Community and Economic Development.                                                                     
11:32:09 AM                                                                                                                   
                                                                                                                                
CHAIR  NEUMAN  encouraged members  of  this  committee, as  state                                                               
representatives, to consider how to promote Alaska.                                                                             
                                                                                                                                
11:38:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DOLL asked about  PNWER'S mission regarding health                                                               
care.                                                                                                                           
                                                                                                                                
MR.  KENYON   said  the   next  Blue   Cascade  Interdependencies                                                               
Exercises will  review a  pandemic such  as the  avian flu.   The                                                               
group will  review potential problems  with all  services, public                                                               
and private, when personnel become sick.                                                                                        
                                                                                                                                
11:40:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DOLL asked about drug importation issues.                                                                        
                                                                                                                                
11:40:41 AM                                                                                                                   
                                                                                                                                
BRANDON HARDENBROOK,  Deputy Director, PNWER, responded  that the                                                               
drug importation  issue is  at the  information sharing  level as                                                               
the rules have  relaxed somewhat.  Drug importation is  not a top                                                               
issue at this time, he related.                                                                                                 
                                                                                                                                
11:41:20 AM                                                                                                                   
                                                                                                                                
MR.  KENYON  added that  in  regard  to  the legal  drug  aspect,                                                               
communication is key.                                                                                                           
                                                                                                                                
11:41:02 AM                                                                                                                   
                                                                                                                                
MARVIN SCHNEIDER, Executive  Director, U.S. Relations, Government                                                               
of  Alberta, commented  on the  common interests  between Alberta                                                               
and Alaska, such as oil and  LNG.  Alberta has the world's second                                                               
largest  reserves  of  oil.    Alberta  is  looking  to  increase                                                               
production and needs the support of  the region to reach the goal                                                               
of  3 million  barrels per  day.   Alberta is  the world's  third                                                               
largest  producer  and  exporter  of  natural  gas  and  is  very                                                               
interested in  the Alaska gas  pipeline.  Alberta has  a pipeline                                                               
hub  that could  be used  to distribute  Alaska's natural  gas to                                                               
markets.   The  [Government  of Alberta]  would  also would  like                                                               
access to the liquids from Alaska's natural gas streams.                                                                        
                                                                                                                                
11:46:20 AM                                                                                                                   
                                                                                                                                
CHAIR NEUMAN  commented about  the competing  markets in  oil and                                                               
gas and  the time restraints  facing Alaska when  moving products                                                               
to market.   He highlighted the close connection  Alaska has with                                                               
Alberta  which will  be critical.   In  closing, he  welcomed the                                                               
Canadian visitors to  the 17th Annual PNWER  Summit in Anchorage,                                                               
July  22-26,  2007.    Working  groups  at  the  summit  include;                                                               
agriculture,  border   issues,  energy,   environment,  forestry,                                                               
health  care, technology,  homeland  security, invasive  species,                                                               
sustainable  development,  communications,   tourism,  trade  and                                                               
economic   development,   transportation,  water   policies   and                                                               
workforce development.                                                                                                          
                                                                                                                                
11:49:02 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Economic Development,  International Trade                                                               
and Tourism meeting was adjourned at 11:49 a.m.                                                                                 

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