Legislature(2011 - 2012)BARNES 124
01/19/2012 10:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Pacific Northwest Economic Region - Arctic Caucus Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
January 19, 2012
10:20 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Kurt Olson, Vice Chair
Representative Neal Foster
Representative Wes Keller
Representative Cathy Engstrom Munoz
Representative Steve Thompson
Representative Berta Gardner
Representative Chris Tuck
MEMBERS ABSENT
Representative Reggie Joule
OTHER LEGISLATORS PRESENT
Representative Sharon Cissna
Senator Cathy Giessel
COMMITTEE CALENDAR
PRESENTATION: PACIFIC NORTHWEST ECONOMIC REGION - ARCTIC CAUCUS
UPDATE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SENATOR LESIL MCGUIRE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided historical and current background
information on the Pacific NorthWest Economic Region and the
Arctic Caucus thereof.
MATT MORRISON, Executive Director
Pacific NorthWest Economic Region (PNWER)
Seattle, Washington
POSITION STATEMENT: Participated in the Pacific NorthWest
Economic Region - Arctic Caucus Update.
DAVID RAMSAY, Member of the Legislative Assembly; Minister of
Industry, Tourism & Investment
Government of Northwest Territories; Vice-President
Pacific NorthWest Economic Region (PNWER)
Yellowknife, Northwest Territories
POSITION STATEMENT: Participated in the Pacific NorthWest
Economic Region - Arctic Caucus Update.
CURRIE DIXON, Member of the Legislative Assembly; Minister of
Economic Development
Government of Yukon
Whitehorse, Yukon
POSITION STATEMENT: Provided economic information on Yukon
Territory as part of the Pacific NorthWest Economic Region -
Arctic Caucus Update.
LARRY DIETRICK, Director
Division of Spill Prevention & Response
Department of Environmental Conservation (DEC)
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation entitled,
"Arctic Caucus Oil Spill Task Force," dated August 20, 2011.
COLIN SMITH, Delegate
Professional Engineers and Geoscientists of British Colombia
Pacific NorthWest Economic Region (PNWER)
Victoria, British Colombia
POSITION STATEMENT: Provided information on Action Item 16 and
answered a question as part of the Pacific NorthWest Economic
Region - Arctic Caucus Update.
GEORGE GROENEVELD, Member of the Legislative Assembly
Government of Alberta
High River, Alberta
POSITION STATEMENT: Provided general information on Alberta and
answered a question as part of the Pacific NorthWest Economic
Region - Arctic Caucus Update.
ACTION NARRATIVE
10:20:16 AM
CHAIR BOB HERRON called the House Special Committee on Economic
Development, International Trade and Tourism meeting to order at
10:20 a.m. Representatives Herron, Gardner, Thompson, Munoz,
Keller, Foster, and Olson were present at the call to order.
Representative Tuck arrived as the meeting was in progress.
Also present were Representative Cissna and Senator Giessel.
^PRESENTATION: PACIFIC NORTHWEST ECONOMIC REGION - ARCTIC
CAUCUS UPDATE
PRESENTATION: PACIFIC NORTHWEST ECONOMIC REGION - ARCTIC CAUCUS
UPDATE
10:21:15 AM
CHAIR HERRON announced that the only order of business would be
the Pacific NorthWest Economic Region (PNWER) Arctic Caucus
update, and he invited Senator McGuire to address the committee.
10:22:03 AM
SENATOR LESIL MCGUIRE, Alaska State Legislature, informed
committee the PNWER acronym stands for the Pacific NorthWest
Economic Region which is a group that has been in existence for
almost 22 years. The founders of PNWER decided that Canada and
the U.S. have much in common, and an organization was needed to
meet annually and focus on the common goals of the two
countries. The members of PNWER include states, territories,
and provinces in the Pacific Northwest, with the newest member
being the Northwest Territories. Senator McGuire noted that
Alaska's ties with Canada continue to grow because of its
relationship with PNWER. One of the goals during her term as
the president of PNWER was to establish a registry for workforce
development between Canada and the U.S. This registry would
provide employers with information so they could respond to due
to a shortage of workers for large infrastructure projects in
Canada, and a shortage of highly-trained workers in the U.S.
that - in some cases - could be filled by workers from across
the border. Unfortunately, the registry project remains "on
standby" because some of the large pipeline projects that would
have created a shortage of workers are delayed. Another of her
goals was creating the highly successful PNWER Arctic Caucus
which continues forward due to the leadership of Chair Herron,
Representative Gardner, and others. In fact, the vision of the
Arctic Caucus was recognized by the legislature in the form of
HJR 15 [Legislative Resolve 10] which was passed and signed by
the Governor of Alaska last session. Senator McGuire explained
that the need for the Arctic Caucus arose because as PNWER
reaches across borders and looks at resource development,
transportation hubs, and intermodal growth, a voice from the
Arctic region was missing, hence the Arctic Caucus provides an
opportunity for Alaska, the Northwest Territories and Yukon to
focus their efforts on the needs of those areas. She pointed
out that the Arctic region is of interest to China and Russia,
although in the U.S., there has been "a failure to ... embrace
our status as an Arctic nation." In an effort to push the
interests of Alaska, the Northwest Territories, and Yukon, the
Arctic Caucus held a meeting in Barrow in December to emphasize
living conditions in the far North in winter. Subjects covered
at the meeting included infrastructure and the potential for
marine vessel tracking in the Northwest Passage. A meeting was
also held in Yellowknife in August 2011, and she described
several experiences there.
10:28:38 AM
SENATOR MCGUIRE relayed that North America will hold the
chairmanship of the Arctic Council [an intergovernmental forum
formally established by the Ottawa Delegation of 1996] from 2013
to 2017, creating a leadership opportunity at the state and
provincial level to "dovetail" PNWER and Arctic Caucus issues
into larger global goals, and perhaps acquire "observer status."
She expressed her appreciation for the support and guidance from
Alaska Lt. Governor Mead Treadwell regarding setting policy
goals that are in alignment with other members of the Arctic
Caucus. Senator McGuire called attention to a document
published in 2007 by Yukon, the Northwest Territories, and
Nunavut entitled, A Northern Vision: A Stronger North and a
Better Canada, which is a vision to guide Canada's far North.
She read from the document, and pointed out that although the
Arctic Caucus is in the process of establishing goals through
its meetings, the joint resolution passed last legislative
session, and other documents, it has not created a "PNWER Arctic
Caucus vision" and she encouraged this to happen. Senator
McGuire read from the document, and noted that Alaska is similar
to Yukon, the Northwest Territories, and Nunavut in its
"northern people, our northern culture, and our desire to be a
jurisdiction that's recognized for its own right."
10:33:57 AM
MATT MORRISON, Executive Director, Pacific NorthWest Economic
Region, expressed his appreciation to the committee for its
support of a long-term and sustainable effort to articulate to
the respective federal governments the goals and vision for the
North. Mr. Morrison noted that Canada's prime minister visits
communities in the Arctic each year and he expressed his hope
that bringing Canadian territories together with Alaska will
result in more impact for the pan-Arctic agenda in Washington,
D. C. He praised the work of the Alaska Northern Waters Task
Force and opined Alaska should be the U.S. leader in this area.
Crafting a vision with the Arctic Caucus to submit to the Arctic
Council is a very important opportunity. He commended Senator
McGuire on the creation of the caucus and commented on its
ability to improve connections with the rest of the U.S.; in
fact, PNWER will continue to pull in the rest of the states to
enhance their understanding Arctic issues. He relayed PNWER is
planning an event on 3/8/12 in conjunction with the Energy
Council that will be a briefing by the Arctic Caucus to the U.S.
Department of State and Canada's federal delegation. The
Arctic Caucus will encourage Canada and the U.S. to set
priorities for the Arctic Council during their period of
leadership from 2013-2017, and to begin planning for six years
in advance, instead of two years. Mr. Morrison noted that the
U.S. Arctic Research Commission and the Canadian Polar
Commission will hold a joint meeting at the 2012 International
Polar Year Conference in April at which PNWER hopes to make a
presentation. Before turning to discuss the sixteen action
items identified by the caucus, he described how the Northwest
Territories formed its consensus government in Yellowknife.
10:41:33 AM
CHAIR HERRON recalled the Alaska Northern Waters Task Force
recognized PNWER as a unique organization and encouraged all of
its jurisdictions to use it to promote the welfare of the
residents of the Arctic.
10:43:04 AM
DAVID RAMSAY, Member of the Legislative Assembly, Minister of
Industry, Tourism & Investment, Government of Northwest
Territories, stated that the Northwest Territories joined PNWER
in 2009 and his government is pleased to work with the Arctic
Caucus to advance their interests of mutual concern.
Furthermore, the new premier of the Northwest Territories is Bob
McLeod, who is an enthusiastic supporter of PNWER. Mr. Ramsay
provided his background and added he also serves as vice-
president of PNWER. He also spoke of the PNWER meeting hosted
by the Northwest Territories at Yellowknife, and recalled the
activities in which the PNWER executive participated. Mr.
Ramsay further explained the Northwest Territories' consensus
style of government - which with Nunavut is unique in Canada.
He mentioned that there are currently several reality television
programs that reveal similarities between Alaska and the
Northwest Territories. Mr. Ramsay turned to the Arctic Caucus
meetings in August and the topics discussed such as
infrastructure, electricity from natural gas,
telecommunications, the role of Canada within the Arctic
Council, search and rescue in the North, Arctic offshore
drilling, and oil spill response. Mining potential was an
important topic to all regions and presentations were heard on
how to develop infrastructure, enhance development, and
facilitate development with state financing programs. Arctic
Caucus presentations included visits to Aurora Village, the
Giant Mine Remediation Site, and a geothermal project. Finally,
the Arctic Caucus working group identified 16 action items
including a mapping project of the caucus region and the
establishment of a working group to identify and share
jurisdictional best practices on resource development regulatory
systems. The mapping project seeks to develop a joint resource
inventory, infrastructure, and opportunity map of the Arctic
Caucus region that is interactive, shared, with multiple GIS
layers for infrastructure and resources, and with links to
contacts and more detailed information. The Northwest
Territories is the lead on this project - which is expected to
highlight the economic potential of the North, as well as help
identify current infrastructure gaps - and he described the
status of both the mapping project and the working group, and
the portions that have, and have not, moved forward.
10:58:05 AM
CURRIE DIXON, Member of the Legislative Assembly, Minister of
Economic Development, Government of Yukon, described his
responsibilities as a Yukon government official and provided
information on Yukon's economic status from 2002 to present.
Prior to 2002, Yukon suffered from a negative economy, but since
then three mines are operating and Yukon has less than five
percent unemployment with no net debt. Mr. Dixon compared Yukon
potential resource development with Alaska's in that it "has
only scratched the surface of our natural resources." There are
several promising projects underway and Alaska is an integral
economic partner with Yukon because of its part in the
transportation of Yukon products to market. Yukon projects a
growth in population and in the development of infrastructure,
with Alaska as a partner in providing energy, transportation,
and telecommunication. Mr. Dixon continued, explaining that the
Government of Yukon is interested in securing tidewater access
at Skagway in support of its resource industry and exports to
the Asian market. The Alaska Highway is an example of
collaboration between Canada and Alaska on transportation
infrastructure critically important to both. Finding sources of
new energy for Yukon is vital, and he cautioned against
restrictions, noting that 90 percent of Yukon's power comes from
hydroelectric, and the size of its deposits of natural gas are
unknown. He encouraged regional planning - such as the
Southeast Alaska Integrated Resource Plan - to reach beyond the
border. In fact, Yukon would like to be connected to the North
American electrical grid through Alaska, because a connection
south through British Columbia is very expensive. Mr. Dixon
restated that expansion of its infrastructure, including the
important expansion of internet connectivity and loops of
redundancy, will lead to growth in Yukon and all of the PNWER
regions.
11:07:12 AM
MR. DIXON turned to the Alaska Northern Waters Task Force
initiative and pointed out the three governments of Yukon, the
Northwest Territories, and Nunavut have banded together in a
similar way. He also quoted from the 2007 "northern vision"
initiative and explained that there are 14 First Nations in
Yukon - 11 of which are self-governing - thus a document to make
land ownership very clear is vital for resource development and
the permitting system. The northern vision document also
informed the federal government in the creation of its northern
strategy based on four priority areas: exercising sovereignty,
protecting environmental heritage, promoting social and economic
development in the North, and improving governance. As a
result, Yukon and northern Canada have a very positive
relationship with their federal government, which invests in the
North and allows it to have an influence on Arctic policy. He
further discussed Arctic Caucus Action Item 1 and elaborated on
Action Item 2, indicating that his office is working with the
Department of Commerce, Community & Economic Development, Alaska
Industrial Development & Export Authority (AIDEA), to create
prospective models for an Arctic Infrastructure Development
Authority. Regarding communications, he said Yukon is
continuing its work with Northwestel Inc. to develop alignment
of a "northern region's telecom infrastructure" and suggested
telecommunications is another "cross-jurisdictional opportunity"
to support economic development. He summarized several Yukon
and Alaska shared interests such as infrastructure,
transportation, energy, and telecommunications, and expressed
his belief that PNWER is an important part of building and
fostering governmental relationships.
11:13:34 AM
CHAIR HERRON commented that in some ways Yukon is far ahead of
Alaska in telecommunications.
MR. DIXON, in response to Chair Herron, recalled his early
experience in politics.
11:16:29 AM
LARRY DIETRICK, Director, Division of Spill Prevention &
Response, Department of Environmental Conservation (DEC),
displayed slide 2 of a PowerPoint presentation entitled, "Arctic
Caucus Oil Spill Task Force," dated August 20, 2011, and
informed the committee Arctic Caucus Action Item 6 created an
Arctic state/territorial oil spill task force to educate, share
information, collaborate, and coordinate oil spill planning,
preparedness, and response in the Arctic. The designated
representatives to the task force are: Brian Love, Yukon; Peter
Vician, the Northwest Territories; and Larry Dietrick, Alaska.
Slide 3 indicated the task force held its first teleconference
on November 16, 2011, and the participants were: Calum
MacPherson, the Northwest Territories; Ron Sumanik and Perry
Diamond, Yukon; and Larry Dietrick, Alaska. Slide 4 identified
the agenda items for discussion: review and discuss
implementation of Action Item 6; verify the official points of
contact; share information; discuss future collaboration; and
identify areas of cooperation. Slide 5 summarized the
discussion, and Mr. Dietrick explained there is a great
diversity between the Northwest Territories, Yukon, and Alaska
in jurisdictional responsibilities, programs, organization, and
coverage for oil spill response offshore. Because of this, the
task force wanted to identify areas of common interest in order
to leverage its influence. He assured the committee the task
force has a very strong foundation despite the organizational
differences of the participants.
11:19:59 AM
MR. DIETRICK displayed slide 6 and noted the outcome from the
teleconference was that all participants agreed to a
teleconference in the spring to discuss future items of
interest, how to collaborate, and how to continue an exchange of
basic information and understanding of programs and differences.
This will put the task force in a position to deal with the
ultimate PNWER goal of resource and economic development in the
Arctic region, significantly in offshore exploration and the
development of oil and gas. Slide 7 indicated items of interest
to the task force including the following three Arctic Council
items: the Task Force on Oil Spill Preparedness and Response
draft mutual aid instrument; the Best Practice Prevention of
Marine Oil Pollution dealing with marine oil pollution and
shipping, offshore oil and gas development, and land-based
development; and the Emergency Prevention and Preparedness
Working Group agenda items. Also, three field items of interest
are: the CANUSNORTH [bi-lateral U.S. Coast Guard and Canadian
Coast Guard] 2012 drill planning exercise in anticipation of
drilling operations in the Beaufort Sea and Chukchi Sea by
Shell; the Alaska Arctic Shield offshore drill; and an Alaska
North Slope Mutual Aid drill that will be conducted with Shell.
Other items of interest include the Canadian National Energy
Board report regarding drilling safety, and the upcoming Alaska
Northern Waters Task Force report. Mr. Dietrick noted that the
University of Alaska - Fairbanks is a finalist in a competition
for a Science and Technology Center for Oil Spill Prevention and
Preparedness in the Arctic and, if successful, the center would
be a significant step forward in spill response for the state.
He restated that drilling is poised to move forward on the
Alaska sides of the Chukchi Sea and the Beaufort Sea, in
addition to the seventy wells and four offshore drilling
operations already in place. Shipping is another issue as the
Northwest Passage and the Northern Sea Route open and the
response capability to Vessels in Innocent Passage is necessary;
in fact, the International Maritime Organization is developing a
Polar Code for vessels operating in ice. Finally, Alaska is
updating its Subarea Contingency Plans for the Chukchi Sea and
Beaufort Sea coasts in anticipation of drilling this summer.
Mr. Dietrick closed by encouraging members to review the PNWER
web site for further information.
11:27:59 AM
COLIN SMITH said he was representing the Professional Engineers
and Geoscientists of British Colombia as a delegate to PNWER.
He stated the power of PNWER is that it is a partnership between
the public and private sectors with private sector participation
at all levels of membership and activities, including the
executive committee. Furthermore, the 14 working groups within
PNWER are co-chaired by private sector members. He addressed
Arctic Caucus Action Item 16, and said the workforce committee
was tasked with looking at employment training opportunities for
Northerners. His experience is that employment opportunities in
remote communities are scarce and he stressed the need for young
residents to finish high school in order to be able to enter
skilled trades, or to continue to postsecondary education. This
is an ongoing challenge in all of PNWER's jurisdictions,
especially if construction of a gas pipeline is undertaken in
Alaska. The workforce committee will continue to explore
methods to provide skilled training to workers. An initiative
the committee is currently pursuing addresses the 60,000 workers
still needed for the Canadian oil sands projects. Mr. Smith
explained that it is a cumbersome process for a company to
import foreign workers into Canada. Through the Beyond the
Border Action Plan, PNWER is developing a pilot project where a
pool of 500 to 1,000 U.S. workers, holding bi-national
certifications from unions, would be created. This pool would
fill vacancies such as those currently found in northern Alberta
and would benefit both countries. Another program he
highlighted seeks to obtain credential recognition by both
governments for professional engineers throughout the PNWER
region. Lastly, there is a proposal now before British Colombia
and the State of Washington that will allow a roster of
"disaster resilience experts" to be recognized by both
governments and thereby provide a sufficient number of engineers
to quickly determine whether damaged buildings are safe to
repair and rebuild.
11:36:30 AM
REPRESENTATIVE GARDNER surmised a professional certification
would have to be through the federal - not the state -
governments.
MR. SMITH agreed and expressed his belief that such a proposal
would be accepted by both federal governments. In further
response to Representative Gardner, he said "certainly the
example [is] in place." For instance, first responders can
cross the border immediately.
11:38:11 AM
REPRESENTATIVE TUCK stated he is a member of the International
Brotherhood of Electrical Workers and attended a convention in
Vancouver, B.C. He restated the problem of U.S. electricians
who are not allowed to work in Canada, and reminded Canadian
employers that Alaskans are comfortable working in northern
conditions.
MR. SMITH agreed.
11:40:47 AM
GEORGE GROENEVELD, Member of the Legislative Assembly,
Government of Alberta, said although Alberta is not a member of
the Arctic Caucus, it is interested in northern issues. He
relayed Alberta has a new premier, Alison Redford, and he
expected an election to be called soon. He stated PNWER is a
useful tool and can respond quickly to implications of federal
programs between the U.S. and Canada, such as the Beyond the
Border Action Plan and the Regulatory Cooperation Council Action
Plan. Mr. Groeneveld noted the failure of the Keystone XL
pipeline permit and opined legislators from Alaska "shared a
little bit of that shock." He observed that Alaska and Alberta
have many things in common such as pipelines and energy
resources, and confirmed that Alberta is short 60,000 skilled
laborers and has an unemployment rate of 4.9 percent.
11:45:41 AM
REPRESENTATIVE TUCK asked whether there is a shortage of housing
resulting from Alberta's fast industrial growth.
MR. GROENEVELD said the companies around the oil sands fields
have provided housing projects, although housing is expensive;
as a matter of fact, there is a strain on Alberta's entire
infrastructure.
11:47:32 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 11:47 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Arctic Caucus - Combined Proceedings.pdf |
HEDT 1/19/2012 10:15:00 AM |
|
| PNWER Juneau Delegation 2012.pdf |
HEDT 1/19/2012 10:15:00 AM |
|
| Larry Dietrick, ADEC - PNWER Arctic Oil Spill Caucus - Overview - 1.19.12.pdf |
HEDT 1/19/2012 10:15:00 AM |
|
| Arctic Council Chairmanshp Letter-amended (ree edit).pdf |
HEDT 1/19/2012 10:15:00 AM |
|
| EDT 1.19.12 PNWER Arctic Caucus Agenda.pdf |
HEDT 1/19/2012 10:15:00 AM |
|
| IPY-Request to join Montreal April meeting.pdf |
HEDT 1/19/2012 10:15:00 AM |