Legislature(2005 - 2006)CAPITOL 17
03/14/2006 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB434 | |
| HB491 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | HB 491 | ||
| * | HB 434 | ||
| * | HJR 26 | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 14, 2006
1:30 p.m.
MEMBERS PRESENT
Representative Jim Elkins, Co-Chair
Representative Carl Gatto, Co-Chair
Representative Vic Kohring
Representative Mark Neuman
Representative Bill Thomas
Representative Mary Kapsner
MEMBERS ABSENT
Representative Woodie Salmon
COMMITTEE CALENDAR
HOUSE BILL NO. 434
"An Act authorizing the commissioner of transportation and
public facilities to participate in certain federal highway
programs and relating to that authorization; relating to powers
of the attorney general to waive immunity from suit in federal
court related to those programs; and providing for an effective
date."
- MOVED HB 434 OUT OF COMMITTEE
HOUSE BILL NO. 491
"An Act authorizing the Alaska Railroad Corporation to issue
revenue bonds to finance rail transportation projects that
qualify for federal financial participation; and providing for
an effective date."
- MOVED HB 491 OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 26
Requesting the United States Senate to ratify Annex VI of the
International Convention for the Prevention of Pollution from
Ships, 1973, as modified by the Protocol of 1978.
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 434
SHORT TITLE: AUTHORIZE HWY PROGRAM PARTICIPATION
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/08/06 (H) READ THE FIRST TIME - REFERRALS
02/08/06 (H) TRA, JUD, FIN
03/14/06 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 491
SHORT TITLE: ALASKA RAILROAD REVENUE BONDS
SPONSOR(s): TRANSPORTATION
03/08/06 (H) READ THE FIRST TIME - REFERRALS
03/08/06 (H) TRA, FIN
03/14/06 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
JOHN MACKINNON, Deputy Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented HB 434.
PETER PUTZIER, Senior Assistant Attorney General
Department of Law (DOL)
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 434.
PAT GAMBLE, President and Chief Executive Officer
Alaska Railroad Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 491.
ACTION NARRATIVE
CO-CHAIR CARL GATTO called the House Transportation Standing
Committee meeting to order at 1:30:59 PM. Representatives
Kohring, Neuman, Elkins, and Gatto were present at the call to
order. Representatives Thomas and Kapsner arrived as the
meeting was in progress.
HB 434-AUTHORIZE HWY PROGRAM PARTICIPATION
1:36:33 PM
CO-CHAIR GATTO announced that the first order of business would
be HOUSE BILL NO. 434, "An Act authorizing the commissioner of
transportation and public facilities to participate in certain
federal highway programs and relating to that authorization;
relating to powers of the attorney general to waive immunity
from suit in federal court related to those programs; and
providing for an effective date."
1:37:19
JOHN MACKINNON, Deputy Commissioner, Department of
Transportation & Public Facilities (DOT&PF), referred to HB 434
as a National Environmental Policy Act of 1969 (NEPA) delegation
bill. He said the passage of the Safe, Accountable, Flexible
and Efficient Transportation Equity Act-a Legacy for Users
(SAFETEA-LU) highway bill in August included a six-year pilot
program for five states to assume NEPA delegation. He
paraphrased from the following [original punctuation provided]:
SAFETEA-LU includes a NEPA delegation pilot program
for five states - Alaska, California, Oklahoma, Ohio,
and Texas. Under the program, the five states are
eligible to apply for delegation of the Secretary of
Transportation's (Secretary) NEPA responsibilities for
one or more highway projects within the state. The
state may also apply for delegation of some or all of
the Secretary's review and consultation
responsibilities under other Federal environmental
laws. The scope of delegation will be determined
through application to the Secretary and execution of
a Memorandum of Understanding (MOU).
Time Frame:
Duration of the pilot program is six years from
enactment of SAFETEA-LU. Unless extended by statute,
the pilot terminates on August 10, 2011.
The Secretary is required to promulgate regulations to
establish delegation application requirements.
Rulemaking is required to be complete within 270 days
of the Act. Rulemaking is currently behind schedule.
The State may not submit its application until:
Rulemaking is complete, and
The State must advertise the application and solicit
public comment.
After application is accepted, the State and Secretary
will enter into an MOU.
Once the MOU is executed, delegation may proceed.
Delegation Options:
NEPA delegation is limited to highway projects. The
term includes roads, streets, and parkways, rights-of-
way, bridges, and protective structures.
NEPA delegation may be programmatic, or for specific,
identified projects. The State has broad latitude to
determine the FHWA environmental responsibilities it
would like to assume (i.e. Ces, Eas, EISs, Section
4(f)).
The State intends to request delegation for all of the
Secretary's environmental review and consultation
responsibilities under other Federal environmental
laws (examples include Section 106 of the National
Historic Preservation Act, and Section 7 of the
Endangered Species Act).
NEPA delegation is limited to environmental decision-
making. It does not extend to engineering decisions.
Requirements and Responsibilities:
Under delegation, the State would assume sole
responsibility and liability for its NEPA actions and
decisions and would be subject to Federal court
jurisdiction. To receive delegation, the State is
th
required to waive its 11 Amendment sovereign immunity
from suits in Federal court for decisions under NEPA.
The State will be required to comply with all
applicable Federal laws, Executive Orders,
regulations, policies and guidance for the
responsibilities it assumes.
The State's delegation programs will be audited, twice
annually for the first two years, annually thereafter.
The audits will be available for public comment.
The Secretary is required to submit an annual report
to Congress on the pilot program.
The Secretary may terminate any state's participation
in the pilot program at any time for cause.
1:42:45 PM
CO-CHAIR ELKINS asked if it will make the process faster and
cheaper because it's all contained within the state.
MR. MACKINNON said it is easier to move a piece of paper on a
state desk. The state has a great relationship with the Federal
Highway Administration, "but we can also improve the process."
CO-CHAIR ELKINS asked how this applies to the ferry system.
MR. MACKINNON said for any federal dollar spent on the ferries,
the state has to go through NEPA documentation, usually a simple
one. New vessels require a NEPA process, as does brush cutting
along roads when done by the federally-funded SAGA program. He
said he doesn't know all the rules, but the state is serious
about taking over the program, and this will allow it to happen.
1:44:51 PM
REPRESENTATIVE NEUMAN asked about the state assuming liability
for NEPA actions.
PETER PUTZIER, Senior Assistant Attorney General, Transportation
Section, Department of Law, said the waiver is required, and it
means the state would be subject to suit in federal court and
would have to defend its actions. The waiver could be made on a
case or project basis, or it could be done more broadly.
1:47:22 PM
REPRESENTATIVE NEUMAN asked if the sovereign immunity has to do
with lawsuits against the state and the implications.
MR. PUTZIER said the state will be standing in the shoes of
FHWA-taking the same actions and being subject to the same
standards. A lawsuit over a poor EIS could occur, he noted.
CO-CHAIR GATTO asked how much money the federal government will
send to the state because of the bill.
MR. MACKINNON said it will be paid for out of project funds.
The state's environmental staff will be charging out to each
project, as is done currently. There is a state match as in all
federal highway funds, he stated. "These are all federal
receipts to pay for the program," he said.
1:49:46 PM
CO-CHAIR GATTO asked about the six-year pilot program.
MR. MACKINNON said the state averages one to two environmental
impact statements, ten environmental assessments, and about a
hundred categorical exclusions. There are a "couple" top-level
positions required in the department, he stated. Some would be
contracted out, "but we need to have them on staff as a firewall
between the department and the department." This will be the
same function "as fed highways." Judgments on NEPA lawsuits
have been very, very small, he said. NEPA is a procedural law
and a violation would be for failure to follow a particular
procedure, "in which case a judge would order us to go back and
hold a couple of meetings or conduct another study."
1:51:14 PM
REPRESENTATIVE NEUMAN said the fiscal note for FY07 through FY11
is $637.4 million, "and it doesn't increase." [He later
corrected that figure to $637,400.] He noted that the costs of
business always go up and he asked if more will be needed later.
MR. MACKINNON said, "This would not be general fund; we would
not be coming back for more state money on this." He said these
are federal program receipts that will pay for the positions and
added there probably ought to be a cost-of-living adjustment.
REPRESENTATIVE THOMAS asked if the money is from Shakwak funds.
MR. MACKINNON said it would be all federal funds.
REPRESENTATIVE THOMAS asked about liability immunity.
1:52:54 PM
MR. MACKINNON said it refers to projects "where we started and
finished the environmental documentation. Any ongoing EIS would
continue to be in fed highway's hands."
REPRESENTATIVE THOMAS said if it includes the [Juneau to Haines]
road project, he doesn't like the bill, because "I got
communities that are all against it and it doesn't make sense to
me to build this road, and I don't want to sit here in a
committee voting for a bill that does exactly what the people
don't want right now."
MR. MACKINNON said, "That particular project, a couple of bridge
projects we know about, I can think of dozens of projects where
the environmental document has already started under the hands
of federal highways and will continue in their hands, and
continue in their court, not in the state's."
REPRESENTATIVE THOMAS surmised that the bill won't keep people
from suing. "I don't like Shakwak money taken out of the marine
highway budget to build the road."
MR. MACKINNON said that road started under federal oversight and
will continue that way.
1:55:21 PM
REPRESENTATIVE NEUMAN moved to report HB 434 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 434 was reported out of the
House Transportation Standing Committee.
HB 491-ALASKA RAILROAD REVENUE BONDS
1:56:05 PM
CO-CHAIR GATTO announced that the final order of business would
be HB 491, "An Act authorizing the Alaska Railroad Corporation
to issue revenue bonds to finance rail transportation projects
that qualify for federal financial participation; and providing
for an effective date."
PAT GAMBLE, President and Chief Executive Officer, Alaska
Railroad Corporation, said state railroad transfer statute
requires the approval of the legislature for selling bonds. The
bill is a package for bond approval, he explained.
1:57:30 PM
CO-CHAIR GATTO asked what the bonds will be used for.
MR. GAMBLE said the bill is to accelerate an effort that began
in 1996 to recapitalize the Alaska Railroad infrastructure,
which is the main track. Over the last ten years there has been
a work program to incrementally improve the main line, and now a
mechanism through SAFETEA-LU [Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users] allows
the improvements to be accelerated with the use of bonding.
CO-CHAIR GATTO asked if wooden ties are being replaced with
concrete ties.
MR. GAMBLE said yes, where needed. He said these are capital
grant receipt revenue bonds in aggregate not to exceed $165
million. The project is to rehabilitate substandard or
potentially unsafe tracks, which is the railroad's core work
effort using federal dollars since 1996. He said, "We began
receiving federal railroad administration dollars through
appropriations from Senator Stevens, and we went on to the
federal formula fund process...because we move passengers on a
regularly-scheduled year-round basis." He said the entitlement
has increased over the years, and between those and net
earnings, "we have put this money in a very concerted way into
that mainline track." He added that about $220 million have
been put "into that one specific area...primarily from Anchorage
to Fairbanks, but, secondarily, from Seward to Anchorage."
2:00:20 PM
MR. GAMBLE showed a graph of the derailments between 1996 and
2005, which is primarily due to poor track condition. There are
huge costs associated with derailments on the main track, but
the trend is going in the right direction, he stated. The train
accident rate is [decreasing] as a result of mainline
investments. He said the money will allow the welding of rail
and "the click clack will be gone" as well as the battering to
the joints, which can cause dangerous breaks and derailments.
2:02:34 PM
CO-CHAIR GATTO asked why the rail is not welded.
MR. GAMBLE said the rails weren't welded until four years ago
when an expert was hired who debunked the idea that rails could
not be welded in cold climate conditions.
REPRESENTATIVE NEUMAN asked if the need to haul freight for the
gas line created this priority.
PAT GAMBLE said that has been a goal of the Alaska railroad for
the five years that he has been there.
2:04:23 PM
CO-CHAIR GATTO said he thought wooden ties were better but was
told concrete ties are more effective in preventing derailments.
MR. GAMBLE said he is not proposing eliminating wooden ties;
concrete ties are not needed everywhere, but they are a benefit
on the curves where accidents occur. Concrete ties and welded
rails provide stability preventing the flux that causes wheels
to pop off. Wooden ties will be replaced cyclically, he said.
2:07:11 PM
MR. GAMBLE said there are 3,200 ties per mile. The project also
includes replacing river rock with granite ballast for a more
stable roadbed. He said gas pipe will be heavy-620 pounds per
foot, so "we're moving up to 140-pound rail." There will also
be a collision avoidance program to reduce human error, he said.
CO-CHAIR GATTO said the size of the pipe in unknown, but he
asked if the heaviest pipe will be heavier than a load like
rocks, for example.
MR. GAMBLE said he is predicting the size of the pipe, and the
track will be capable of handling a least one piece.
2:10:17 PM
MR. GAMBLE said bonding will allow for faster improvements. He
said 300,000 carloads of hazardous material traverse "some
pretty sacred country," so he believes the public would demand
this work. This debt "actually creates a financing structure
that puts some real rigor and discipline into our capital
program." The program will not vary each year as it has because
of the percentage of revenue going to paying the debt service.
2:12:34 PM
REPRESENTATIVE NEUMAN said a Wasilla realignment project has
been discussed, and he asked if any of those funds are included.
The people in Wasilla want the track moved west to go around
town, and he said it is an excellent way to get it near Pt.
McKenzie for coal shipping.
MR. GAMBLE said the Knik Bridge is not part of this funding.
REPRESENTATIVE NEUMAN asked for clarity of costs for track
upgrades and if some of that money could be used for a spur.
2:15:07 PM
MR. GAMBLE said the track realignment between Anchorage and
Wasilla has been done. The Wasilla bypass will take up to $200
million and the route is still being chosen. A feasibility
study is underway, and for the last four years there has been no
consensus. Prices of land in that area are going up and the
railroad is running out of options, he noted. Engineering
solutions may need to be employed that don't move the railroad
outside of Wasilla but raises it over the roads. Representative
Don Young told him he supports putting the railroad on the
[proposed Knik] bridge even though it is unaffordable. Senator
Ted Stevens would like to see the rail go across the bridge, he
said, and the railroad is looking at that possibility.
2:18:41 PM
REPRESENTATIVE THOMAS said people create a community around the
railroad and now they don't want the railroad nearby.
CO-CHAIR ELKINS asked if the [proposed Knik] bridge has to built
to handle the railroad now.
MR. GAMBLE opined that now is the time to do the planning.
CO-CHAIR GATTO noted that there is very little room for cars at
the Wasilla depot, and the population is out of control. One
thought is to elevate the track, which is right in front of a
condominium, but he asked about tunneling instead.
MR. GAMBLE said it can be done, depending on the soil and water.
2:20:50 PM
CO-CHAIR GATTO said it is only one intersection that is such a
problem in Wasilla.
MR. GAMBLE said there are water table problems so it can't go
underground. If all the freight went across the [proposed]
bridge, then Wasilla would only have the less frequent passenger
trains, which may solve the problem.
CO-CHAIR GATTO said the gas line is at least six years away,
"and I can't imagine what that intersection will look like."
2:23:14 PM
MR. GAMBLE said the railroad will continue the feasibility study
of that intersection, but surmised it will take "an ugly scene
at that crossing to trigger some action." It is a city problem
and a borough solution, and things are stymied. He said
SAFETEA-LU allowed the railroad a 6-fold increase in federal
entitlements. The federal funds are guaranteed in perpetuity,
so the full faith in credit of the Alaska Railroad is not at
risk. He said the railroad will spend that money, "whether we
spend it on debt service or whether we spend it incrementally
over a extended period of time." The cost of materials are
going up, so the purchases can be made in bulk and stored. He
said passenger service is increasing, requiring the line to be
safe and smooth. There will be no impact to other capital
programs, he stated.
2:26:30 PM
REPRESENTATIVE THOMAS said, so this won't extend the railroad?
MR. GAMBLE said no.
CO-CHAIR GATTO asked the distance to any Canadian rail line.
MR. GAMBLE said it is about 1,000 miles to their railroad.
2:27:09 PM
MR. GAMBLE said the proposed financing is up to $165 million,
with three bond sales over the next six years. Each would have
to be approved by the railroad board of directors. The year
with the largest debt service would be 49 percent of available
funds. He said if Senator Ted Stevens gives the railroad
another earmark, "we would see the need for that $165 million to
come down to a lower number; the debt service would reflect
that." He sees no event that would have the railroad coming
back to the legislature for more money.
CO-CHAIR GATTO said the Europeans have been using welded
railroads since he learned how to walk, and they have bullet
trains. He predicted a savings for using welded railroads.
2:30:52 PM
MR. GAMBLE said the railroad workers are local, "and there's a
momentum there...that is not refreshed from the outside." There
was a resistance to going to welded rails. Now there are
experienced outside workers with a host of new ideas, he said.
CO-CHAIR ELKINS asked if the rails are longer when welded.
MR. GAMBLE said yes; they are built to half-mile lengths, and
the curve is put into it. The concrete tie holds it. The
acuteness of the curves has been reduced, he added. Therefore
the average velocity has gone up steadily.
2:34:45 PM
MR. GAMBLE said the railroad gets very little homeland security
money. It all goes to the state, he noted.
REPRESENTATIVE NEUMAN referred to the mainline density history
and the million gross tons from Portage to Anchorage and to
Matanuska-Susitna. He asked if that would change if there was a
line to Pt. Mackenzie, "assuming that we would be doing coal
down through there." He asked about the economic development
opportunities.
2:37:36 PM
MR. GAMBLE said he can provide that information.
REPRESENTATIVE THOMAS moved to report HB 491 out of committee
with individual recommendations and with no accompanying fiscal
notes. There being no objection, HB 491 was reported out of the
House Transportation Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at
2:39:11 PM.
| Document Name | Date/Time | Subjects |
|---|