Legislature(2011 - 2012)CAPITOL 120

02/24/2011 01:00 PM House MILITARY & VETERANS' AFFAIRS


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01:02:08 PM Start
01:02:55 PM Presentation: Northern Rail Extension
02:55:54 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation on Tanana River Bridge to Training TELECONFERENCED
Ranges on the Northern Rail Extension
by Alaska Railroad Corporation & Dept. of
Military & Veterans' Affairs
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                      ALASKA STATE LEGISLATURE                                                                                
      HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS                                                               
                          February 24, 2011                                                                                     
                              1:02 p.m.                                                                                         
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Dan Saddler, Co-Chair                                                                                            
Representative Steve Thompson, Co-Chair                                                                                         
Representative Carl Gatto, Vice Chair                                                                                           
Representative Alan Austerman                                                                                                   
Representative Sharon Cissna                                                                                                    
Representative Bob Miller                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bob Lynn                                                                                                         
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                                
Senator Joe Paskvan                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: NORTHERN RAIL EXTENSION                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHRISTOPHER AADNESEN, President and CEO                                                                                         
Alaska Railroad Corporation (ARRC)                                                                                              
Department of Commerce, Community & Economic Development (DCCED)                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a PowerPoint presentation titled,                                                               
"Northern Rail Extension."                                                                                                      
                                                                                                                                
BRIAN LINDAMOOD, Project Manager                                                                                                
Alaska Railroad Corporation (ARRC)                                                                                              
Department of Commerce, Community & Economic Development (DCCED)                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Participated  in  the PowerPoint  presentation                                                         
titled, "Northern Rail Extension."                                                                                              
                                                                                                                                
MCHUGH PIERRE, Deputy Commissioner                                                                                              
Office of the Commissioner/Adjutant General                                                                                     
Department of Military & Veterans' Affairs (DMVA)                                                                               
Fort Richardson, Alaska                                                                                                         
POSITION  STATEMENT:   Answered  questions  following  the PowerPoint                                                       
presentation titled, "Northern Rail Extension."                                                                                 
                                                                                                                                
JIM DODSON, President/CEO                                                                                                       
Fairbanks Economic Development Corporation (FEDC)                                                                               
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:   Answered  questions  following  the PowerPoint                                                       
presentation titled, "Northern Rail Extension."                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  STEVE  THOMPSON  called   the House  Special   Committee  on                                                        
Military  and  Veterans'   Affairs  meeting  to  order  at  1:02  p.m.                                                          
Representatives    Thompson,   Gatto,   Miller,   and   Saddler   were                                                          
present  at  the  call  to  order.    Representatives  Austerman   and                                                          
Cissna  arrived  as the  meeting was  in progress.    Senator Paskvan                                                           
was also present.                                                                                                               
                                                                                                                                
^Presentation: Northern Rail Extension                                                                                          
                Presentation: Northern Rail Extension                                                                       
                                                                                                                              
1:02:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   THOMPSON  announced   that  the  only  order  of  business                                                           
would  be a presentation  regarding  the  Northern Rail  Extension  by                                                          
the Alaska  Railroad  Corporation  and the  Department  of Military  &                                                          
Veterans' Affairs.                                                                                                              
                                                                                                                                
1:03:51 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER    AADNESEN,   President   and   CEO,   Alaska   Railroad                                                           
Corporation  (ARRC),  Department  of Commerce,  Community  & Economic                                                           
Development   (DCCED),  began  his  briefing  on  the  Northern   Rail                                                          
Extension  and  the Tanana  River  bridge.   He  called  attention  to                                                          
slide  2 which was  a map of  the area  surrounding  the Tanana  River                                                          
crossing.    Mr.  Aadnesen  turned  the  slide  presentation  over  to                                                          
the project manager and remained available for questions.                                                                       
                                                                                                                                
1:06:01 PM                                                                                                                    
                                                                                                                                
BRIAN  LINDAMOOD,   Project  Manager,  Alaska   Railroad  Corporation                                                           
(ARRC),  in response  to Representative  Gatto,  said  he is also  the                                                          
project  manager   for  the  Port  MacKenzie  Rail  Extension.     The                                                          
Northern  Rail  project  began around  2005,  and  its purpose  is  to                                                          
extend  the  Alaska  Railroad   (ARR)  approximately   80  miles  from                                                          
North  Pole to  Delta Junction.    This extension  will  provide  year                                                          
around  surface  transportation   access  to  the  military  training                                                           
ranges  on the  south  side of  the Tanana  River  that  are now  only                                                          
accessible  by  air,  or by  ice  bridges  during  a brief  period  in                                                          
winter.   The  extension  will also  provide  an alternative  mode  of                                                          
transportation    between   Delta  Junction   and   North   Pole   for                                                          
freight,  and will  provide transportation   security  in the case  of                                                          
a disruption  in  road  access.   Additionally,  a secondary  benefit                                                           
of the  first phase  of the  project includes  the construction   of a                                                          
levee  which will  attenuate  the threat  of  annual flooding  in  the                                                          
Salcha area.                                                                                                                    
                                                                                                                                
1:08:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO recalled   the U.S.  Army  Corps  of Engineers                                                           
(USACE) completed a large flood control project in that area.                                                                   
                                                                                                                                
MR.  LINDAMOOD   advised   the  area  of  Salcha   affected   by  this                                                          
project  is  very  upstream  from the  reach  of  the previous   work.                                                          
The USACE  project  blocked three  low-lying  channels  of the  Tanana                                                          
River  from  spilling  into  Piledriver  Slough,  but  the  river  has                                                          
eroded  around the  blocks.   In further  response  to Representative                                                           
Gatto, he explained a slough block is an earthen dike.                                                                          
                                                                                                                                
1:09:52 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD  presented  slide  4, which  was  a project  timeline.                                                           
He  advised  that the  U.S.  Department  of  Transportation,  Surface                                                           
Transportation   Board  (DOT/STB)  was  the  lead  agency,  beginning                                                           
its review  of environmental   impact statement  (EIS)  work in  2005,                                                          
and  approving the  final  EIS document  in January,  2010.   At  that                                                          
time,   the   project   moved  from   preliminary   engineering    and                                                          
environmental     work    to    final     design.        Construction                                                           
Management/General    Contractor  was   the  chosen   design-delivery                                                           
method  - instead  of the  traditional  design/bid  - because  of  the                                                          
difficult   technical   nature  of   the  project   and  construction                                                           
challenges.   In  fact,  ARRC thought  it important  to  benefit  from                                                          
the  contractor's  expertise   early  in the  project  during   design                                                          
and  engineering  decisions.    This process  also  allowed  for  more                                                          
cost-certainty,    and  problems   were   addressed   early   in   the                                                          
development  of the  project.   The first  construction  permits  were                                                          
submitted  in June  2010,  and most  are now  pending  approval.   Mr.                                                          
Lindamood  turned  attention  to slide  5  titled, "Project  Phases,"                                                           
and  explained   that  the  project  is  divided  into  four  phases:                                                           
Phase  1 is  construction  of  the Tanana  River  bridge;  Phase 2  is                                                          
extending  rail 13  miles to  the bridge,  which can  be completed  in                                                          
two years  to coincide  with  the completion  of the  bridge; Phase  3                                                          
is extending  rail  30 miles  to  connect the  two military  training                                                           
areas;  Phase 4 is  extending  rail 38 miles  to Delta  Junction.   In                                                          
response  to Representative   Gatto,  he confirmed  that  the initial                                                           
estimated cost of the project is $800 million.                                                                                  
                                                                                                                                
1:13:07 PM                                                                                                                    
                                                                                                                                
MR. LINDAMOOD,  in  response  to Representative  Austerman,  affirmed                                                           
that  the project  is broken  into  four major  phases,  and could  be                                                          
broken  into  smaller  phases  later,  depending  upon  funding.    In                                                          
further  response   to  Representative   Austerman,  he  stated   that                                                          
construction  of  the  bridge  could take  four  years  and extension                                                           
of the rail 13 miles could take two years.                                                                                      
                                                                                                                                
1:14:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  asked  for the  cost of Phase  1, which  is                                                          
construction of the bridge.                                                                                                     
                                                                                                                                
1:14:17 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD,  in response,  presented  slide  6 titled,  "Phase  1:                                                          
Tanana  Crossing  at Salcha,"  which  was  a map  showing  all of  the                                                          
project  components  of  Phase  1.   Indicated  on  the map  were  the                                                          
following:    bridge,  approximately  3,300  feet  in  length;  levee;                                                          
upgrade  of  Tom  Bear  Trail,  which  connects  the  project  to  the                                                          
Richardson    Highway;   east   bank    staging   area;   left    bank                                                          
embankment;  four  bridges  over  sloughs;  four  red spur  dikes  for                                                          
embankment  protection.     Slide  7 was  the  Joint  Pacific   Alaska                                                          
Range  Complex  (JPARC)   Modernization  and  Enhancement   EIS  which                                                          
indicated  the  location  of  Tanana  River  staging  areas  and  500-                                                          
person camps strategically located near ARR.                                                                                    
                                                                                                                                
1:17:26 PM                                                                                                                    
                                                                                                                                
SENATOR  PASKVAN  clarified  that  the camps  would  be built  by  the                                                          
U.S. military.                                                                                                                  
                                                                                                                                
1:17:41 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD  said correct.    He then  presented  slide  8 titled,                                                           
"2008  Flood  Event,"   and  pointed  out  the  2008  flood   was  the                                                          
highest  recorded   flood  event  since  1967.    During   the  flood,                                                          
surveyors  and  hydrologists  recorded  data  that  was then  used  to                                                          
calibrate  models   for  permitting  applications.     This  data  has                                                          
helped  the permitting   process  by convincing  regulatory  agencies                                                           
of the  present  situation,  and the  purposes  of ARRC's  proposals.                                                           
However,  the  flood significantly   destabilized  the  braidplain  of                                                          
the  river by  moving  sandbars  and trees;  in  fact,  the main-stem                                                           
of  the river  is now  causing  erosion  at the  planned  location  of                                                          
the levee, the bridge, and the approach to the bridge.                                                                          
                                                                                                                                
1:19:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MILLER  observed  that a  major  change  was wrought                                                           
in  the  river   by  one  flooding  event,   and  asked  whether   the                                                          
construction   of the  levee  and  other  structures  would  mitigate                                                           
future events.                                                                                                                  
                                                                                                                                
MR.  LINDAMOOD  said, "Yes,  it  would significantly   attenuate  it."                                                          
There  are  two  aspects  to the  flooding  in  Salcha;  as  the  town                                                          
sits  on a gravel  riverbed,  as much  water  is running  through  the                                                          
riverbed  as   is  on  the  surface.    After  the  levee   is  built,                                                          
surface  water  will not  flow over  property,  but the  ground  water                                                          
will  continue  to inundate  low-lying  areas  during flooding.    The                                                          
levee will help during short-term ice dam events.                                                                               
                                                                                                                                
REPRESENTATIVE   MILLER  asked  whether  there  could  be  a negative                                                           
effect on the integrity of the levee, bridge, and road system.                                                                  
                                                                                                                                
MR.  LINDAMOOD  said  no.   His  department  has  designed  the  levee                                                          
with  over  400,000  tons of  construction   material  to keep  it  in                                                          
place   and,  after   much  research   and  study,   the  bridge   was                                                          
designed  with single  column,  12-foot  diameter piers  because  they                                                          
will  shed  ice  and  debris.   He  further  explained   that regular                                                           
events  do  not change  the  braidplain  of  the  river,  but changes                                                           
occur  in the  river five  to ten  years after  a major  flood  event.                                                          
Furthermore,  ARRC  is  currently  going  through  a rigorous   review                                                          
process  with  the  U.S. Department   of Homeland  Security  (USDHS),                                                           
Federal  Emergency  Management  Agency (FEMA),  to ensure  that  there                                                          
will  be  no  harmful   downstream   or  upstream  effects   from  the                                                          
bridge or the levee.                                                                                                            
                                                                                                                                
REPRESENTATIVE   MILLER  surmised   flood  events  will   not  have  a                                                          
detrimental effect on the integrity of the bridge.                                                                              
                                                                                                                                
MR. LINDAMOOD concurred.                                                                                                        
                                                                                                                                
1:23:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO  recalled  that  levees  did  not  protect  New                                                          
Orleans  [during   the  flooding  caused   by  Hurricane  Katrina   in                                                          
2005].   He asked  for the source  of Mr.  Lindamood's  confidence  in                                                          
levees.                                                                                                                         
                                                                                                                                
MR.  LINDAMOOD  stated   that  difficulties  for  this  project   have                                                          
arisen  because   of  FEMA's   renewed  scrutiny   of  this   type  of                                                          
project.   As a  matter of fact,  this project  is  at a disadvantage                                                           
because  the  sort  of engineering  techniques   and guidelines   used                                                          
to design  levees  in New  Orleans  are not  equivalent  to the  flows                                                          
seen   in   Salcha    during   breakup,    particularly   with    ice.                                                          
Furthermore,  FEMA  guidelines  do  not  apply to  braided  rivers  of                                                          
this nature;  however,  ARRC  continues to  work with  FEMA and  USACE                                                          
Engineer  Research   and  Development  Center  (ERDC),  Cold  Regions                                                           
Research  and  Engineering   Laboratory  (CRREL),   to fully  address                                                           
and  vet these  issues.    Mr. Lindamood   advised  that many  of  the                                                          
levees  in New  Orleans  were 20-30  feet high  whereas  the majority                                                           
of the  levee in  Salcha is less  than 6  feet high.   He assured  the                                                          
committee  FEMA  regulations  are stringent,  and  he said  he has  no                                                          
doubt  that this  levee  is designed  to withstand  a  100-year  flood                                                          
event  with the  main  channel  of the  river 40  percent  blocked  by                                                          
woody  debris  stacked on  top  of the  bridge.   In fact,  there  are                                                          
additional   engineering   factors  which  attenuate   flooding   that                                                          
FEMA did not take into account.                                                                                                 
                                                                                                                                
1:26:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO,  after  confirming   that  the  Tanana   River                                                          
connects  with the  Yukon River,  said, "The  point is,  that's a  lot                                                          
of  ice."   He recalled  the  situation  in  Eagle,  in which  ice  in                                                          
the river rose over 60 feet and "roared through the town."                                                                      
                                                                                                                                
MR.  LINDAMOOD   acknowledged   working   with  USACE   and  FEMA   on                                                          
problems  caused  by ice.   Ice  jam events  on  the river  happen  in                                                          
spring,  during  relatively  low  flow.   Flooding  at Salcha  due  to                                                          
ice  jams  are a  function  of  the  main-stem  of  the  river  moving                                                          
closer  to Salcha.     After  construction  of  the levee,  the  river                                                          
will  be  redirected  back  into  other  portions  of the  braidplain                                                           
that are now occasionally dry.                                                                                                  
                                                                                                                                
REPRESENTATIVE  GATTO  recalled  his experience  living  in the  area,                                                          
and  questioned  the wisdom  of spending  "so  much money  to fix  it,                                                          
and being nervous about whether the fix will even work."                                                                        
                                                                                                                                
1:29:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA  expressed  her  understanding  that  ARRC  is                                                          
requesting  $44  million to  help put  in dikes.   She  asked whether                                                           
there  is  an  effort  to  work  with  the local   community  and  the                                                          
state  to study this  situation.   The community  of  Salcha needs  to                                                          
review  the potential  impacts  of  another event  and  whether it  is                                                          
ready  for  them,   as  do  all  communities.     Although   USDHS  is                                                          
working   on  that,  there   is  a  need  to   bring  other  entities                                                           
together to learn about the costs of changes and other lessons.                                                                 
                                                                                                                                
MR.  LINDAMOOD  observed this  is  already being  done;  for example,                                                           
the  engineers  made  levee  alignment  shifts  in  order  to include                                                           
Salcha  Fire and  Rescue within  the protected  zone.   Additionally,                                                           
FEMA  requires   ARRC  to  provide   an  operating   and  maintenance                                                           
manual  for the  levee,  which will  define  specific  procedures  for                                                          
the  coordination   of  first  responders,  and  maintenance   of  the                                                          
levee,  thus   there  have   been  multiple   community  meetings   in                                                          
Salcha  to inform  the community.    Staff will  be available  to  the                                                          
community  during  construction,  and after  construction  there  will                                                          
be  a maintenance  building.    Furthermore,  ARRC  has  been working                                                           
with  Fairbanks  North  Star  Borough   to identify   and  address  as                                                          
many concerns as possible.                                                                                                      
                                                                                                                                
1:33:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   AUSTERMAN  asked  whether  building   the  bridge  is                                                          
predicated on building the levee.                                                                                               
                                                                                                                                
MR.  LINDAMOOD  explained  ARRC has  an  EIS to  build a  bridge  that                                                          
requires   construction   of   a  levee,   and   from   a  regulatory                                                           
standpoint,  the  two  are tied  together.   In  further  response  to                                                          
Representative  Austerman,   he clarified  that  the bridge  will  not                                                          
work  without the  levee,  because the  river  has a very  wide  flood                                                          
plain  - sometimes  two miles  wide - and  the flood  regime dictates                                                           
that  when the  water  comes up  to the  banks it  spills  over.   The                                                          
largest  concern  about  the  project  was  whether  the  river  would                                                          
stay  under   the  bridge  after   its  construction,   so  engineers                                                           
looked  at  ways  to  harden  the  banks  upstream.    The  engineers                                                           
determined  the  levee  was  necessary  because  "you  can't  make  [a                                                          
bridge]  long  enough,"  since  the  first  35 miles  of  the project                                                           
are  in the  flood  plain.  In fact,  the  embankments  for  ARR  will                                                          
need  to  be  mitigating   against  the  floodwater  effects   of  the                                                          
river.   Although  other  options  were  studied,  he  concluded,  "We                                                          
can't  have  a  bridge   without  a  levee,  and  from  a  regulatory                                                           
standpoint, we can't have a levee without a bridge."                                                                            
                                                                                                                                
1:36:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  asked  when the initial  plan  for bridge  and                                                          
levee design, and funding, occurred.                                                                                            
                                                                                                                                
MR.  LINDAMOOD  indicated  at the  end of  2007,  and early  in  2008.                                                          
Prior  to  that,   other  options  were   under  consideration.     In                                                          
further  response   to  Representative   Miller  regarding  available                                                           
data,  he said the  engineering  team studied  aerial  photographs  of                                                          
the  historical   movement   of  the  riverbanks   taken  at  regular                                                           
intervals   beginning    in  1937,   which   show   there   has   been                                                          
consistent  movement  to  the right.   A  study  of the  hydrology  of                                                          
the  river was  completed  after  the  1967 flood,  and  he estimated                                                           
37  years  of gauge  data  is  available.   Additionally,   there  are                                                          
recommendations  from  hydraulic  engineers,  FEMA, and  USACE on  how                                                          
to  develop flood  events  for  a region,  based  on  available  data.                                                          
He  pointed  out  that  the  1967  flood  event,  which  was  used  to                                                          
derive  the  100-year  event timeline,   was bigger  than  a 100-year                                                           
event.     Because  the   record  for   this  region   is  short,   he                                                          
explained,  "These  sorts of  large  events tend  to move  around  the                                                          
map a  little bit,  until you  get, you  know, 50, 60,  80, 100  years                                                          
worth  of  data,  but  ...  I  believe  we  don't  reach  overtopping                                                           
until   the  500-year   event,   which  has   not  happened."      Mr.                                                          
Lindamood   restated    his  confidence    in   the  regulatory    and                                                          
technical reviews of the proposal.                                                                                              
                                                                                                                                
1:40:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    MILLER   asked   whether   there   was   a  roadway                                                           
associated with the project.                                                                                                    
                                                                                                                                
MR.  LINDAMOOD  responded  that  the  initial  proposal   includes  an                                                          
access  road  off  the  Richardson  Highway   which  would  share  the                                                          
same  surface  as  ARR across  the  structure.    After  crossing  the                                                          
main-stem  of  the  Tanana  River,  the  road  would  diverge  into  a                                                          
separate  road to the  military training  areas.   In further response                                                          
to Representative Miller, he explained this is  a single set of tracks                                                          
and in case of a derailment, there are extensive emergency management                                                           
procedures  in  place  that are  practiced  on a  regular  basis  with                                                          
other agencies.                                                                                                                 
                                                                                                                                
MR.  AADNESEN advised  that  derailments  on a  bridge  do not  happen                                                          
very  often;  however,   ARRC  has  had  significant  experience   and                                                          
knows  how  to access  both  ends  of  a bridge  with  cranes.    This                                                          
bridge  will  have a  wider  deck than  most,  but  the logic  of  the                                                          
reaction would be similar to that of other ARRC facilities.                                                                     
                                                                                                                                
REPRESENTATIVE    MILLER   announced    there   has   been   a   train                                                          
derailment  in  Fairbanks  and expressed  his  interest  in comparing                                                           
clean-up times between downtown and remote locations.                                                                           
                                                                                                                                
MR.  AADNESEN  advised  the  clean-up   time  is the  same,  although                                                           
more  time is  needed  to get  equipment  to a  bridge on  the  Tanana                                                          
River.                                                                                                                          
                                                                                                                                
1:44:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  referred  to  slide  6, and  asked whether                                                           
the levee should continue on the other side of the bridge.                                                                      
                                                                                                                                
MR.  LINDAMOOD  indicated  that downstream  of  the bridge,  the  flow                                                          
of the river returns to its natural hydrologic condition.                                                                       
                                                                                                                                
1:45:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  described  the condition  of  the Tanana  River                                                          
Bridge   at  Nenana,  and   said  there  were   no  issues  with   the                                                          
suspension bridge.                                                                                                              
                                                                                                                                
MR.  LINDAMOOD  agreed  that the  conditions  of  the river  are  very                                                          
different   in  that  location,  whereas   at  the  project  location                                                           
there  is a  substantial  amount  of bedload  and  the river  is  very                                                          
active.   At Nenana,  a lot  of the instability  of  the bedload  from                                                          
the  glacier   is  relieved,   and   there  is  also   a  large   rock                                                          
formation   on  one   side  of  river.     In  further   response   to                                                          
Representative  Gatto,  Mr.  Lindamood  explained  moving  the  bridge                                                          
to  a better  position  would  place  it  too far  from  its purpose.                                                           
The  braided  condition  of the  river  extends  several  miles  south                                                          
of  Chena  Pump,  and  earlier  options  to  place  the  bridge  there                                                          
were discounted.                                                                                                                
                                                                                                                                
1:48:10 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD   presented   slide   9  titled,   "Project  Funding."                                                           
Funding  in  place  at  this  time  includes   a U.S.  Department   of                                                          
Defense  (DOD)/Federal  Railroad  Administration  (FRA)  grant in  the                                                          
amount  of $44.2  million  that expires  in  2013, and  an additional                                                           
DOD/FRA  grant in  the amount  of $60 million  that  expires in  2014.                                                          
The  second  grant is  unique  in that  it  may only  be  applied  for                                                          
the  main  bridge   structure  itself.     Finally,  $40  million   is                                                          
available  from  the state  capital  budget.   He noted  a previously                                                           
expected  grant  in the  amount of  $12 million  is  not forthcoming,                                                           
and   cautioned   that  funding   deadlines   actually   precede   the                                                          
expiration dates by about six months.                                                                                           
                                                                                                                                
1:50:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER   surmised  the  grant  funds  cannot  be  used  for                                                          
another purpose or put on hold.                                                                                                 
                                                                                                                                
MR.  LINDAMOOD   said  correct.  In  further   response  to  Co-Chair                                                           
Saddler,  he said  DOD money  for the project  could  not come out  of                                                          
JPARC  funding.     Continuing   to  slide   10  titled,  "2011   Cost                                                          
Estimate,"   he  said  some   adjustments   in  the  phasing   of  the                                                          
project  have  been  made,  putting  the  current  cost  estimate  for                                                          
the "base"  project  at $150  million.    To date,  $16.5 million  has                                                          
been  spent  on  rights-of-way,   permitting,  and  engineering,   and                                                          
just  over   $11  million   has  been   projected   for  construction                                                           
management.     There  is  an  estimated   contingency  of   over  $10                                                          
million,  for  a grand  total for  Phase  1A of  a little  under  $188                                                          
million.    In  further  response  to  Representative  Austerman,   he                                                          
clarified   that  not  quite  all  of  the  $16.5  million   has  been                                                          
spent,  and that  this  money  came from  the  $44.2  million DOD/FRA                                                           
grant.                                                                                                                          
                                                                                                                                
1:52:54 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD   explained  slide  11  titled,   "Cost  Escalations,"                                                           
saying  the   cost  estimate  for  April   2010,  was  $158  million;                                                           
however,  additional  costs  addressing  the  movement  of  the  river                                                          
and   river    erosion   were    $3   million,    additional    permit                                                          
requirements   for issues  related   to security   cost  $13 million,                                                           
and additional  permit  requirements  for  issues related  to bridges                                                           
and culverts  cost  $15 million.   Slide  12 pictured  the erosion  of                                                          
the river  at  the site  of the proposed  bridge  in 2009,  and  where                                                          
the  river  threatens  to  divert  into  Piledriver  Slough,  despite                                                           
efforts begun in 1967 by USACE to block it off.                                                                                 
                                                                                                                                
1:57:19 PM                                                                                                                    
                                                                                                                                
MR.  AADNESEN  informed  the committee  the  aforementioned  derailed                                                           
train  in Fairbanks  consisted  of seven  empty covered  hoppers,  was                                                          
re-railed within 30 minutes, and is operating now.                                                                              
                                                                                                                                
1:57:46 PM                                                                                                                    
                                                                                                                                
MR.  LINDAMOOD  presented  slide  13 which  was  a re-sequenced   cost                                                          
summary  of the  Tanana Crossing,  and also  indicated  ARRC's  budget                                                          
request  for  $44 million.    He  then described   what is  needed  to                                                          
advance  the  project,  beginning   with funding   and resolution   of                                                          
the  permits,  which is  expected  "hopefully  in  the next  month  or                                                          
two."     Meetings  with   the  permit   agencies   are  progressing,                                                           
although  there  is still  a lot  of  work to  do, particularly   with                                                          
EPA.    The   congressional   delegation  has   been  helpful.     Mr.                                                          
Lindamood   acknowledged   the   difficulty   of  releasing   federal                                                           
funding  for  construction;   in  fact,  FRA  will  not  release   the                                                          
remaining   funds  for  construction   until   ARRC  can  demonstrate                                                           
there  is  a documented  funding  plan,  and  that  the  military  has                                                          
signed  off on  the  proposal.   The  approaching  expiration  of  the                                                          
grants  is  now critical  because   the levee  must  be  built  before                                                          
the bridge,  and  construction  of the levee  will take  six to  eight                                                          
months.   Thus,  if the  levee is  not under  construction  by May  or                                                          
June  2011,  construction  on  the  bridge  will  not  begin  by  this                                                          
fall,  and  the  project  will  be  pushed  back  for one  year.    He                                                          
warned  that  the  $60  million  grant  is  then  put into  jeopardy,                                                           
because  this  money  can only  be  used to  build  the bridge.    Mr.                                                          
Lindamood  assured  the committee  "We  have  done everything  we  can                                                          
from a construction phasing standpoint."                                                                                        
                                                                                                                                
2:01:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    AUSTERMAN   inquired   as  to   when   the  project                                                           
started.                                                                                                                        
                                                                                                                                
MR. LINDAMOOD  restated  that  the EIS started  in 2005.   In further                                                           
response  to  Representative   Austerman,  he  expressed   his  belief                                                          
that the  $44 million  grant  was appropriated  in 2007,  and the  $60                                                          
million grant was appropriated in 2008.                                                                                         
                                                                                                                                
REPRESENTATIVE   AUSTERMAN  observed  ARRC  is  "struggling  with  EPA                                                          
to get your permitting process done."                                                                                           
                                                                                                                                
2:02:49 PM                                                                                                                    
                                                                                                                                
MR. AADNESEN  confirmed  that  ARRC is having  a very  difficult  time                                                          
with  EPA,   which  is   being  represented   by   USACE  during   the                                                          
permitting  process,  with  EPA oversight.    An official  with  USACE                                                          
has  promised  a final  permit  ruling  from USACE  during  the  first                                                          
or  second  week  in  March;   however,  EPA  could  veto   the  USACE                                                          
decision,  and  then the  project  would  have to  be approved  by  an                                                          
Undersecretary  of  the Army,  a possibility   that would  cancel  the                                                          
project.     Furthermore,   without  appropriate   funding  from   the                                                          
legislature,   preparatory   work   cannot   start,   and  again   the                                                          
project  would  be  canceled.   Thus,  the  ARRC  board  of directors                                                           
will decide  on the  project  in March or  April, before  ARRC  spends                                                          
money   on  preparatory    work.     Mr.   Aadnesen   restated   FRA's                                                          
conditions  on  its  funding  and  concluded  that  funding  from  the                                                          
state cannot be less than $44 million to save the project.                                                                      
                                                                                                                                
2:04:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMPSON  asked whether  any federal  funds  that have  been                                                          
spent will have to be paid back if the project fails.                                                                           
                                                                                                                                
MR. AADNESEN deferred to Mr. Lindamood.                                                                                         
                                                                                                                                
MR.  LINDAMOOD  said  he  was  unsure;  however,  ARRC  did  not  move                                                          
forward with any spending without FRA's approval.                                                                               
                                                                                                                                
2:05:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   AUSTERMAN   asked  whether   last  year,  when   ARRC                                                          
received   state   funding  in   the  amount   of  $40   million,   it                                                          
anticipated additional funding of $44 million this year.                                                                        
                                                                                                                                
MR. LINDAMOOD  opined  the additional  funding  was  not anticipated.                                                           
In  further  response   to Representative   Austerman,   he  said  the                                                          
escalation  in  cost  was  mainly  due to  regulatory   issues  during                                                          
last year and before.                                                                                                           
                                                                                                                                
REPRESENTATIVE     AUSTERMAN     surmised     these     costs     were                                                          
"unanticipated   that  you couldn't  take  care  of  or  you couldn't                                                           
anticipate, similar to if EPA or the Corps says 'no'."                                                                          
                                                                                                                                
MR. LINDAMOOD said correct.                                                                                                     
                                                                                                                                
REPRESENTATIVE   AUSTERMAN  restated  that  this is  an  $800 million                                                           
project   that  is   trying   to  complete   Phase   1,  without   any                                                          
guarantee of funding for Phases 2, 3, or 4.                                                                                     
                                                                                                                                
MR.  LINDAMOOD  said  correct.   In  response  to Co-Chair  Thompson,                                                           
he  advised  that  the  project  is  one  of  "independent  utility."                                                           
Although  the EIS  was for the  entire  project, different  pieces  of                                                          
the project  can  be permitted  as long as  "those pieces,  in and  of                                                          
themselves   even   if   nothing    else   gets   built,   still   has                                                          
independent    utility   over   and   above   the   whole   project."                                                           
Therefore,  surface  access  for the  military  to its  training  area                                                          
serves as an independent utility of the bridge.                                                                                 
                                                                                                                                
2:07:46 PM                                                                                                                    
                                                                                                                                
MR.  AADNESEN  recalled   many  meetings  with  the  Alaska  military                                                           
command;    in  fact,  Lieutenant  General  Dana  Atkins,  Commander,                                                           
Alaskan  Command,  U.S.  Pacific  Command;  Commander,  Elmendorf  Air                                                          
Force  Base,  Alaska,  suggested   re-scoping  of  the  project  to  a                                                          
bridge   with   a   wide  highway   surface,    for  the   military's                                                           
transportation   needs, and  installing  the  rails  later.   For  the                                                          
committee's   information,  Mr.   Aadnesen  asked  Mr.  Lindamood   to                                                          
explain the changes to the original EIS signed by EPA.                                                                          
                                                                                                                                
MR.  LINDAMOOD   opined  EPA's  position   is  dumbfounding.     Seven                                                          
cooperating  agencies,  along  with  USACE,  authored  the  EIS.   The                                                          
STB  does  an EIS  a  bit  differently  because  it  is  regulating  a                                                          
commercial   railroad,   thus  ARRC   paid  for   the  EIS,  answered                                                           
questions,  and  provided  technical  information,  but  was informed                                                           
at  the  same time  as  the  public  of  the final  report.    At  the                                                          
release  of  the  final  EIS, USACE  requested   a supplemental   EIS,                                                          
which  ARRC  did  and  called  a  permit.    In  February   2008,  EPA                                                          
issued  a letter  which  stated  the EIS  had been  determined  to  be                                                          
an  adequate  document,  and  endorsed  STB's  proposed   actions  and                                                          
the  proposal   that  was  ultimately   licensed.    Last  fall,   EPA                                                          
suddenly  informed  USACE  it had  serious concerns  over  the  permit                                                          
application  and  in  December,  suggested  that  USACE  not  issue  a                                                          
permit  and that  EPA would  veto  the permit,  because  the proposed                                                           
location   of  the  bridge  was  not   the  best  alternative.     Mr.                                                          
Lindamood  said  EPA has  not explained,  or  changed,  its position.                                                           
At  this  point,  there  are  two  legal  issues:    whether  STB  has                                                          
exclusive  regulatory   authority  over  rail corridors   through  the                                                          
U.S.  Constitution   Interstate  Commerce   Clause,  superseding   the                                                          
Clean  Water Act  of 1977;  whether  EPA has  the ability  to reverse                                                           
its decision.  The ARRC is pursuing these legal issues.                                                                         
                                                                                                                                
MR.  AADNESEN  expressed   his  belief  that  ARRC  has  taken   every                                                          
measure  possible   to  address  this  situation   because  returning                                                           
$104  million   in federal   funds,  for  a  project  that   was  once                                                          
approved, would be onerous for the corporation.                                                                                 
                                                                                                                                
2:13:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE AUSTERMAN appreciated the clarification.                                                                         
                                                                                                                                
2:14:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  asked  whether there  are currently  any  non-                                                          
military uses for the road, bridge, or extension.                                                                               
                                                                                                                                
MR.  LINDAMOOD  replied   no,  because  the  road  goes  onto  a  live                                                          
military  range.   In  fact,  ARRC  will  cede any  control  over  the                                                          
use  of the bridge  by  entities other  than  ARRC and  the military,                                                           
to the military.                                                                                                                
                                                                                                                                
2:15:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MILLER   has   heard  there   is  support   for   the                                                          
extension  of  the railroad  system  to  Canada and  the  Lower 48  by                                                          
this route.                                                                                                                     
                                                                                                                                
MR.   AADNESEN  acknowledged    the  Phase   1  extension   to   Delta                                                          
Junction   is  the  connection   point  for   a  route  into  Canada;                                                           
however,  Canadian  National  Railway  Company  does  not  have  plans                                                          
to build rail northwest at this point.                                                                                          
                                                                                                                                
REPRESENTATIVE   MILLER   recognized  the   dynamics  of  the   river.                                                          
Furthermore,  there  were  $3  million in  cost  escalations  for  the                                                          
past  movement  of the  river.   He  asked  whether further  redesign                                                           
would   be  necessary   due  to  more   changes   in  the  river,   if                                                          
construction began immediately.                                                                                                 
                                                                                                                                
MR.  LINDAMOOD  answered  likely  not.   The engineers  have  come  to                                                          
the  determination  that  the  river is  changing  daily,  and  ARRC's                                                          
outstanding   issues  with  USACE   are  related  to  the  amount   of                                                          
approach that is required.                                                                                                      
                                                                                                                                
REPRESENTATIVE   MILLER  asked  for  assurance  that  "once  we  build                                                          
the   levee,   we've   stabilized   this   particular    bank,   we've                                                          
stabilized that problem."                                                                                                       
                                                                                                                                
MR. LINDAMOOD said correct.                                                                                                     
                                                                                                                                
2:17:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   AUSTERMAN  reviewed  the  projected   costs  for  the                                                          
phases  of  construction,   and  asked  for  the  projected   cost  of                                                          
Phase  2,  which  connects  the  bridge  and  levee  to  the existing                                                           
rail at Eielson Air Force Base.                                                                                                 
                                                                                                                                
MR.  LINDAMOOD   responded   that  preliminary   cost  estimates   are                                                          
approximately    $80    million.       In    further    response    to                                                          
Representative   Austerman,   he  said   ARRC  does   not  anticipate                                                           
returning to the legislature for funding for that phase.                                                                        
                                                                                                                                
MR.  AADNESEN  added  there  is  no  commercial  reason  for  ARRC  to                                                          
build  Phase 2  at this  point.   If  the military  determines   there                                                          
is  a  need   for  rail  transportation,   ARRC   would  seek   funds;                                                          
however,  ARRC   cannot  borrow  to  do  that  because   there  is  no                                                          
incremental  revenue  source  to  float  bonds  or support  borrowing                                                           
funds  from a  bank,  and FRA  funds cannot  be  used as  there  would                                                          
be no passenger service.                                                                                                        
                                                                                                                                
REPRESENTATIVE AUSTERMAN asked for clarification.                                                                               
                                                                                                                                
MR. AADNESEN  further  explained  that ARRC  does not  have the  money                                                          
to  build  that extension   and it  is  not  needed  as the  road  and                                                          
bridge  will  provide   access.    The  military   and  ARRC  have  no                                                          
problem  not  proceeding   with  Phase  2  as  there  is  no  revenue                                                           
source  for ARRC,  and  the military  can  use  the road  and bridge.                                                           
He restated  that  ARRC will  not be requesting  funding  for Phase  2                                                          
next year.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  asked  why ARRC  would build  a bridge  and                                                          
a highway.                                                                                                                      
                                                                                                                                
MR. AADNESEN  advised  the bridge  will ultimately  be  a rail  bridge                                                          
and the  decision  when to build  the railroad  section  is dependent                                                           
on whether  the  military wants  to use  flatcars  for transportation                                                           
to the training site.                                                                                                           
                                                                                                                                
2:21:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked for  an overview  statement  on the need  for                                                          
the entire project.                                                                                                             
                                                                                                                                
MR.  AADNESEN  stated  the impetus  for  this project  is  the  state,                                                          
as ARRC's  charter  requires  it to support  economic  development  in                                                          
the  state.   The bridge  is  in the  future  railroad  route between                                                           
North  Pole  and  Delta  Junction,  and  it  will  support  the  long-                                                          
range  plan for the  military  to move traffic  to its  bases further                                                           
south,  and  for future  passenger  service.    He  opined  this is  a                                                          
piece   of  infrastructure    development   that   will   also   allow                                                          
economic  development  in  mining areas  and  populated  areas of  the                                                          
region.    Although  there  currently  is  no source  of  incremental                                                           
revenue  to ARRC,  the benefit  is  to keep  the military  in Alaska,                                                           
provide  access  to  its training   grounds,  and expand  its  use  of                                                          
JPARC and the international possibilities thereof.                                                                              
                                                                                                                                
2:24:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  for  confirmation  that  EPA was  an  agency                                                          
involved during the scoping process.                                                                                            
                                                                                                                                
MR.  LINDAMOOD  replied  yes.    He  clarified  that  EPA  was  not  a                                                          
cooperating  agency,   but reviewed   and  provided  comments  to  STB                                                          
throughout   the  project.     In  further   response,  he  said   EPA                                                          
endorsed the location of the bridge.                                                                                            
                                                                                                                                
2:24:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA   understood   there   is  no   passenger   or                                                          
economic purpose for the rerouting at this time.                                                                                
                                                                                                                                
MR.  LINDAMOOD  confirmed  that  at  this  point  ARRC  will  own  and                                                          
maintain  the  levee  and  will  be  responsible  to  FEMA  to  ensure                                                          
that  the  levee  is  not  used  inappropriately.    The  corporation                                                           
will  also  own  and  maintain  the  bridge,  but  the military   will                                                          
control access.                                                                                                                 
                                                                                                                                
REPRESENTATIVE   CISSNA stated  her  concern  with  the issue  of  how                                                          
to get  people  around  and to  the state  in safe  ways,  such as  by                                                          
train.    However,  the  expenditure  of state  money  should require                                                           
an  element  of  planning  that  will help  Alaskans'   develop  local                                                          
economic projects.                                                                                                              
                                                                                                                                
2:27:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  for the  financial  impact  to  ARRC if  the                                                          
project does not go forward.                                                                                                    
                                                                                                                                
MR.  AADNESEN  restated  ARRC's  interest  in  economic  development.                                                           
Additionally,  the  corporation  has  invested  time  and engineering                                                           
work  in  the  project  over   a long  period   of  time.    The  only                                                          
economic  benefit   of the  project's   demise  to  ARRC  is  that  it                                                          
would  not  have  to  finance  the  maintenance   of  the  bridge,  as                                                          
there is no source of revenue that would be impacted.                                                                           
                                                                                                                                
2:30:03 PM                                                                                                                    
                                                                                                                                
MCHUGH    PIERRE,     Deputy    Commissioner,     Office     of    the                                                          
Commissioner/Adjutant     General,    Department    of   Military    &                                                          
Veterans'  Affairs  (DMVA),  informed  the  committee  the  bridge  is                                                          
very  important   to  military  access  and  to  other  functions   of                                                          
DMVA;  for example,  the Division  of Homeland  Security  & Emergency                                                           
Management  (DHS&EM),  and Fairbanks  North  Star Borough  regard  the                                                          
proposed  levee   as critical   to  help  with  emergency  management                                                           
efforts  in Salcha.     He stressed  that  the most  important  aspect                                                          
of  the project  is  the access  to  JPARC, which  would  support  the                                                          
active  duty  military's  interest  in the  expansion  of  that  area.                                                          
The state  has designated  this  land and  airspace -  about the  size                                                          
of  Indiana -  to be  used for  military  training  with  the goal  of                                                          
providing  access  for local  training of  the Stryker  Brigades,  the                                                          
Alaska  National   Guard,   and  for  active   and  routine  training                                                           
exercises.    However,  the military's   future needs  for  this  area                                                          
will   be  for   larger-scale,   joint   military   training  efforts                                                           
involving  over  6,000 troops,  and  with battlefield   realism.   The                                                          
isolation  of  this  area  would  allow  all  branches  of  the  armed                                                          
forces  to  participate   in  "a true  joint   effort  that  you,  you                                                          
won't  get  anywhere  else in  the  United  States  of America."    In                                                          
order  to  execute   this  training   plan,  a  bridge  structure   is                                                          
required   to   replace   the  undependable    ice  bridge   that   is                                                          
available  only   under  certain  weather  conditions.     Mr.  Pierre                                                          
stressed  that  this  is the  economic  value  of  this  project,  not                                                          
only  from its  use  by Alaska's  military   installations,  but  when                                                          
it   is  proven   to  be   "a  training   element   that   is   beyond                                                          
comparison,  [and]  that  other  significant   moving  pieces  of  the                                                          
United   States   military,    whether   they're    from   Hawaii   or                                                          
California  or beyond,  will come  to use."   He described  how  units                                                          
from  other states  would  travel to  this area  and train  for  about                                                          
two  weeks  to one  month,  and  then  spend  time  in  the community                                                           
before  returning  home.    The bridge  is  critical  to  bringing  in                                                          
"those  training  dollars."    In addition,   there  is also  a  local                                                          
safety  issue as  troops  now drive  on the  Richardson  Highway  from                                                          
their  installations  to  the training  area.    This is  a dangerous                                                           
situation  for  the  military  members  in  their  vehicles,  and  for                                                          
civilians,  as convoys  travel  slowly in  all kinds  of weather.   In                                                          
fact,  in 2006 two  members of  the military  travelling  in a  convoy                                                          
on a public road were killed in a highway accident.                                                                             
                                                                                                                                
2:35:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  for  the  current  access  to  the Donnelly                                                           
Training Area.                                                                                                                  
                                                                                                                                
MR.  PIERRE   advised  the  area  is  accessed   via  the  Richardson                                                           
Highway and through an access road.                                                                                             
                                                                                                                                
CO-CHAIR  SADDLER   asked  how  many  years  it  would  take  for  the                                                          
military to make up its $104 million investment.                                                                                
                                                                                                                                
MR.  PIERRE  stated  the benefit  to  the  military  would  be in  the                                                          
unparalleled  realism  in  training.   This  explains  the  money  and                                                          
effort  put   into  building  the  bridge.     Although  active   duty                                                          
military   members  cannot  advocate   for  the  project  because   of                                                          
military  spending  cuts,  this project  will  clearly  show Alaska's                                                           
commitment to the military.                                                                                                     
                                                                                                                                
2:37:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMPSON  agreed   installation  of  the  bridge  will  help                                                          
ensure that the military stays in the state.                                                                                    
                                                                                                                                
MR. PIERRE  relayed  DMVA's direction  from  the governor  to look  at                                                          
the  military   industrial   complex  in  Alaska,   ensure  there   is                                                          
support  for  what is  here,  work for  expansion,  and  utilize  this                                                          
economic engine throughout the state.                                                                                           
                                                                                                                                
2:38:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   SADDLER  asked  whether   the  training  cycle   runs  year                                                          
around.                                                                                                                         
                                                                                                                                
MR.  PIERRE  advised   the  training  cycle  would  depend   upon  the                                                          
needs  of  nearby   communities,  airspace   needs,  and  information                                                           
gleaned from the public comment process presently underway.                                                                     
                                                                                                                                
2:39:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  asked  how much  access into  the training                                                           
area will be provided beyond the bridge.                                                                                        
                                                                                                                                
MR.  PIERRE advised  that  once active  duty  military  has permanent                                                           
access  to  the training  area,  capital  infrastructure   funds  will                                                          
be  available   to   install   electronics,   barracks,   roads,   and                                                          
additional  developments.    In further  response  to  Representative                                                           
Austerman,  he  said  active  duty  military  is  not concerned   with                                                          
Phase  3,  which   brings  rail  30   miles  to  the  middle   of  the                                                          
Donnelly   Training   Area,  because   the  bridge   will  allow   the                                                          
training  area  to  be  used  to  its  full  extent.    However,   the                                                          
Alaska  National Guard  would  use the rail  extension  to move  large                                                          
equipment and personnel to and from Fort Greely.                                                                                
                                                                                                                                
REPRESENTATIVE   AUSTERMAN   asked  whether   the  training   area  is                                                          
currently used "from the Delta Junction end."                                                                                   
                                                                                                                                
MR.  PIERRE  indicated  no.   He added  that  there  is a  section  of                                                          
JPARC  that  is used  on  a limited  capacity  dependent  on  the  ice                                                          
bridge.     He  confirmed   that  there  is   no  access  from   Delta                                                          
Junction.                                                                                                                       
                                                                                                                                
2:42:47 PM                                                                                                                    
                                                                                                                                
MR.  PIERRE,  in response  to  Representative   Gatto,  restated  that                                                          
active  duty  military  is  currently  using  the  ice  bridge  during                                                          
the months  when  it is sturdy  enough to  cross for  Stryker Brigade                                                           
training.    In  further  response,  he  added  that training   during                                                          
other  months  and seasons,  and  guaranteed  access,  is  needed  "in                                                          
the  bigger   scheme   of  national   training  efforts,   and   joint                                                          
training exercises with thousands of troops ...."                                                                               
                                                                                                                                
REPRESENTATIVE  GATTO  referred  to  unexploded  ordinance  and  asked                                                          
whether that area is used by citizens.                                                                                          
                                                                                                                                
MR.  PIERRE  said  there  is  no unexploded   ordinance  in  the  area                                                          
now;  however,  in the  future designated  areas  where  ordinance  is                                                          
dropped  will be  off-limits  and monitored.    This is  also a  topic                                                          
of the scoping and public comment process underway.                                                                             
                                                                                                                                
2:44:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMPSON  has heard  that changing  weather  patterns  could                                                          
trap equipment on the training area side of the river.                                                                          
                                                                                                                                
MR. PIERRE said correct.                                                                                                        
                                                                                                                                
2:45:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MILLER   expressed  his  belief   that  the  purpose                                                           
behind   military   training   is  to  prepare   troops   for   combat                                                          
readiness  by putting  them  in locations  where  there  is damage  to                                                          
infrastructure.    Foreign  occupation  of an  area without  a  bridge                                                          
may be an appropriate training challenge.                                                                                       
                                                                                                                                
MR.    PIERRE   stated    the    concern    for   dependability     in                                                          
infrastructure  development   for training  is  to ensure  the  safety                                                          
of  individuals   and  equipment.     Although   realism  is  needed,                                                           
troops  need  to  learn  to  use  the  assets  procured  for  them  in                                                          
defense  situations.   A well-developed,   well-served  training  area                                                          
will allow for this to take place.                                                                                              
                                                                                                                                
2:47:41 PM                                                                                                                    
                                                                                                                                
JIM   DODSON,   President/CEO,    Fairbanks    Economic   Development                                                           
Corporation   (FEDC),  supported   the  previous   testimony   of  the                                                          
president  of  ARRC  and  the  deputy  commissioner  of  DMVA  on  the                                                          
necessity   of  building   the  bridge.    He   added  that  Alaska's                                                           
economy  is  strengthened  by  the  military  industry;  in  fact,  16                                                          
percent  of  Alaska's  payroll  is  from  the  military.    Access  to                                                          
JPARC  supports   not  only   Alaska's  military,   but  would   bring                                                          
military  training  opportunities   into  Alaska  from  all  over  the                                                          
world,  and  increase  local  economic   activity.    He  pointed  out                                                          
that   the  percentage   of   Alaska's   economy  dependent   on   the                                                          
military  is equivalent  to  that of  the oil  industry.   Mr.  Dodson                                                          
warned  that  impending  cuts  in  military  spending  will  increase                                                           
competition  between  states  to  attract  military  activities.    He                                                          
opined  that  JPARC  is  the  best  military   training  area  in  the                                                          
world,  and providing  access  is  a very  wise long-term  investment                                                           
in  the  military   industry   that  will  support   Alaska's   future                                                          
economy.                                                                                                                        
                                                                                                                                
2:50:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   SADDLER   asked   what   kind   of   mineral   development                                                           
possibilities the bridge and rail extension would provide.                                                                      
                                                                                                                                
MR.  DODSON  relayed   a department   of  the  University   of  Alaska                                                          
Fairbanks  (UAF)  has  performed  extensive  studies  of  the project                                                           
corridor,  and estimated  the  value of  known mineralization  in  the                                                          
area  at  $6.5  billion.   This  is  another  source  of  significant                                                           
future  economic  development  for Alaska.    In further  response  to                                                          
Co-Chair  Saddler,  he said  there  is a significant  deposit  of  the                                                          
rare  earth  mineral   molybdenum  that  would  be  accessed   by  the                                                          
bridge.                                                                                                                         
                                                                                                                                
2:52:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO asked  whether  an  alternative  to  the  levee                                                          
and  two-mile-long  bridge  would  be  to cross  the  river  at  Eagle                                                          
River and access the training area and the railroad there.                                                                      
                                                                                                                                
MR.  PIERRE responded  that  alternative  does  not provide  the  same                                                          
training  opportunity  to meet  the critical  needs  of the military.                                                           
The  military  land   at Eklutna   Flats  and  adjoining   Joint  Base                                                          
Elmendorf-Richardson   is  very  small  and,  although  utilized   for                                                          
air drops,  parachute  training,  and simulated  activity,  it is  not                                                          
sufficient  in  size to  support  a joint  level  of training  and  to                                                          
simulate real battle scenarios.                                                                                                 
                                                                                                                                
REPRESENTATIVE  GATTO  clarified  that this  alternative  is a  bridge                                                          
to Port MacKenzie and beyond.                                                                                                   
                                                                                                                                
MR.  PIERRE  advised  the  military  works   with the  Department   of                                                          
Natural  Resources  (DNR)  with  regard  to  land  that  is allocated                                                           
for certain  uses,  and the  JPARC training  area has  been allocated                                                           
for  this specific   use.   He acknowledged   that  DNR has  not  been                                                          
approached  for  a  change-in-allocation   or a  change-in-use   plan;                                                          
furthermore,   DMVA  and  active   duty  military  want   to  be  good                                                          
partners with DNR, and responsive to the communities affected.                                                                  
                                                                                                                                
2:55:54 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Military and Veterans' Affairs meeting was                                                                 
adjourned at 2:55 p.m.                                                                                                          

Document Name Date/Time Subjects
2-24-11 military and vet affairs committee briefing.pdf HMLV 2/24/2011 1:00:00 PM
Tanana Access Leave Behind.pdf HMLV 2/24/2011 1:00:00 PM