Legislature(2007 - 2008)CAPITOL 106
01/19/2007 10:30 AM House ECONOMIC DEV., TRADE, AND TOURISM
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| Presentation Regarding Pacific Northwest Economic Region | |
| Adjourn |
* first hearing in first committee of referral
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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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