Legislature(2021 - 2022)GRUENBERG 120
03/30/2021 01:00 PM House MILITARY & VETERANS' AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HJR15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 15 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS
March 30, 2021
1:03 p.m.
MEMBERS PRESENT
Representative Chris Tuck, Chair
Representative Andi Story
Representative Geran Tarr
Representative Matt Claman
Representative George Rauscher
Representative David Nelson
MEMBERS ABSENT
Representative Laddie Shaw
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 15
Requesting the United States Department of Defense to invest in
the Port of Alaska.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HJR 15
SHORT TITLE: FEDERAL INVESTMENT IN PORT OF ALASKA
SPONSOR(s): REPRESENTATIVE(s) FIELDS
03/08/21 (H) READ THE FIRST TIME - REFERRALS
03/08/21 (H) MLV
03/25/21 (H) MLV AT 1:00 PM GRUENBERG 120
03/25/21 (H) -- MEETING CANCELED --
03/30/21 (H) MLV AT 1:00 PM GRUENBERG 120
WITNESS REGISTER
EMMA POTTER, Staff
Representative Zach Fields
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes in the proposed
committee substitute for HJR 15 on behalf of Representative
Fields, prime sponsor.
REPRESENTATIVE ZACK FIELDS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented a PowerPoint on
HJR 15.
STEVE RIBUFFO, Port Director
Port of Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HJR 15.
ACTION NARRATIVE
1:03:16 PM
CHAIR CHRIS TUCK called the House Special Committee on Military
and Veterans' Affairs meeting to order at 1:03 p.m.
Representatives Tarr, Claman, Nelson, Story, Tuck were present
at the call to order. Representative Rauscher arrived as the
meeting was in progress.
HJR 15-FEDERAL INVESTMENT IN PORT OF ALASKA
1:04:17 PM
CHAIR TUCK announced that the only order of business would be
HOUSE JOINT RESOLUTION NO. 15, "Requesting the United States
Department of Defense to invest in the Port of Alaska."
1:04:57 PM
REPRESENTATIVE TARR moved to adopt the proposed committee
substitute (CS) for HJR 15, Version 32-LS0412\B, Radford,
3/22/21, as a working document.
1:05:09 PM
CHAIR TUCK objected for the purpose of reading hearing an
explanation of the changes.
1:05:23 PM
EMMA POTTER, Staff, Representative Zach Fields, Alaska State
Legislature, on behalf of Representative Fields, prime sponsor,
explained that the changes in the committee substitute are
updating errors in the original document.
1:05:34 PM
CHAIR TUCK removed his objection to the motion to adopt the
proposed CS for HJR 15, Version 32-LS0412\B, Radford, 3/22/21,
as a working document. There being no further objection,
Version B was before the committee.
1:05:52 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, as prime
sponsor, presented a PowerPoint on HJR 15. He said that the
Port of Alaska is one of 17 nationwide strategic seaports, which
are ports that support major force and materiel deployments, and
having an operating port is essential due to Alaska's four
operating military bases. He said the Port of Alaska handles
more inbound cargo capacity than all other south-central ports
combined and should this port be disabled, such as through a
natural disaster, there would be no way to efficiently route
necessary equipment to the various defense installations in the
state. He said that the Port of Alaska is in danger of being
damaged in a possible seismic event; as such, this resolution
calls for federal investment to stabilize the port to ensure its
operating capacity after an earthquake.
1:10:33 PM
REPRESENTATIVE STORY asked for an update on any conversations
Representative Fields has had with the U.S. Department of
Defense (DoD), as well as any comments the DoD has had on this
proposed resolution.
REPRESENTATIVE FIELDS responded that this proposed resolution,
which began last year, was not based on any conversations with
the DoD but rather was intended to show that federal investment
in infrastructure installations would be welcomed by the state.
He said that he hopes HJR 15 will pass, after which there will
be conversations.
1:11:36 PM
CHAIR TUCK asked whether the Port of [Alaska] received any
COVID-19 stimulus money from the federal government in the last
year.
1:11:53 PM
STEVE RIBUFFO, Port Director, Port of Alaska, said that the Port
of Alaska received no COVID-19 stimulus money, and there were
very few ports in the entire industry that did.
1:12:13 PM
REPRESENTATIVE STORY asked whether port officials have had any
conversations with the DoD, and what other means of finance
officials had been considering.
REPRESENTATIVE FIELDS interjected that he is not surprised the
Municipality of Anchorage didn't pay for shoring up the Port of
Alaska, considering the scale of investment required, which is
why state and federal investments are needed.
MR. RIBUFFO added that DoD officers who have been through the
Port understand the situation and want to help; however, the
existing challenge is that there are "no mechanisms for the DoD
to write any strategic port a check," despite the obvious need.
He said that there may be the future opportunity to channel some
funds to the Port, which the DoD supports.
1:14:47 PM
REPRESENTATIVE NELSON noted that it's been 17 years since the
Port of [Alaska] was designated a strategic port, and he asked
whether Representative Fields knows whether DoD is still
intending to use it as the strategic port, or if other ports in
the state are being considered.
REPRESENTATIVE FIELDS said that HJR 15 is based on the
statistics of materiel coming through the Port of Alaska.
REPRESENTATIVE NELSON followed up to ask whether there has been
any notice from the DoD indicating the intention to keep using
the Port of Alaska as a strategic port.
REPRESENTATIVE FIELDS replied that by virtue of having the
strategic port designation, the DoD is showing that it relies on
the Port of Alaska.
REPRESENTATIVE NELSON asked whether there exists anything more
recent than 17 years that could be taken as evidence that the
DoD intends to continue using the Port of Alaska as a strategic
port.
REPRESENTATIVE FIELDS answered that he believes that the
"geopolitical need" of a strategic port in Alaska has increased
due to the activities of Russia and China, and he agrees there
should be a conversation with the DoD.
1:18:07 PM
REPRESENTATIVE RAUSCHER noted that approximately half of the
inbound DoD materiel enters through the Port of Alaska, and
asked whether the DoD uses other ports in the state, and if so,
what percentage of cargo uses them.
MR. RIBUFFO offered a "seaborne logistics primer." He said that
in Alaska, 90 percent of all inbound freight is waterborne, of
which half comes through the Port of Alaska; half of the Port of
Alaska cargo continues moving to the 75 percent of the state
population on the road system, with the rest being barged to
locations in Western, Southeast, and South-central Alaska for
populations not on the road system.
REPRESENTATIVE RAUSCHER asked whether any military cargo goes
through Valdez.
MR. RIBUFFO said that Valdez receives barge traffic directly
from Seattle for local use only, and the DoD delivers its
munitions through Valdez.
1:22:23 PM
REPRESENTATIVE CLAMAN asked about the current status of the
lawsuits involving the municipality [of Anchorage] as relates to
potential funding for the Port of Alaska.
MR. RIBUFFO responded as follows:
The trial has been held. It lasted a week; everyone
rested the 3rd week of February. The judge has asked
both sides to prepare a summary of arguments,
witnesses, and points for consideration in lieu of
closing arguments; those are due on July 2, after
which the judge will ask any necessary questions,
deliberate, and then render a verdict.
REPRESENTATIVE CLAMAN asked whether it's being heard in federal
court, and, if so, which judge is presiding.
MR. RIBUFFO said that it's in the Court of Federal Claims, and
the Honorable Judge [Edward J.] Damich is presiding.
1:24:31 PM
CHAIR TUCK noted that it's difficult to determine who was
ultimately responsible for port design due to the layers of
consultants. He then asked about the dollar amount of damages
in the lawsuit.
MR. RIBUFFO responded that the City of Anchorage is asking for
damages of $320-$325 million.
CHAIR TUCK asked how much has been spent on the development of
the port since 2009.
MR. RIBUFFO answered that, if Chair Tuck was inquiring how much
has been spent "subsequent to stopping the expansion project on
the modernization program," then the amount is approximately
another $250 million. He added that he could get the exact
amount.
CHAIR TUCK said that he would like to see how much has been
spent on design and development of the Port of Alaska since
2009. He noted that the initial cost of $250 million but said
he believes that the costs have now increased to over a billion
dollars..
REPRESENTATIVE FIELDS noted that tariffs on port users have
increased substantially. He referred to the letter of support
from Matson, which read as follows [original punctuation
provided]: "No singular source is expected to shoulder the
substantial costs related to the port modernization, and the
parties involved (state, municipal and private industry) should
pursue all avenues while seeking funding opportunities." He
said that to bring the Port of Alaska up to standards that will
survive an earthquake would take more funds than the users could
bear.
1:27:55 PM
The committee took an at-ease from 1:28 p.m. to 1:30 p.m.
1:30:17 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 1:30 p.m.