Legislature(2023 - 2024)BARNES 124
03/14/2024 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Collaboration Between Fairbanks Area Surface Transportation (fast) Planning and Alaska Dept. of Transportation & Public Facilities | |
| HB122 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 386 | TELECONFERENCED | |
| += | HB 122 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 14, 2024
1:32 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Craig Johnson
Representative Jesse Sumner (via teleconference)
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): COLLABORATION BETWEEN FAIRBANKS AREA SURFACE
TRANSPORTATION (FAST) PLANNING AND ALASKA DEPT. OF
TRANSPORTATION & PUBLIC FACILITIES
- HEARD
HOUSE BILL NO. 122
"An Act authorizing the Alaska Railroad Corporation to issue
revenue bonds to finance the replacement of the Alaska Railroad
Corporation's passenger dock and related terminal facility in
Seward, Alaska; and providing for an effective date."
- MOVED CSHB 122(TRA) OUT OF COMMITTEE
HOUSE BILL NO. 386
"An Act relating to the obstruction of airports and runways;
relating to the obstruction of highways; establishing the crime
of obstruction of free passage in public places; relating to the
obstruction of public places; relating to the crime of
trespassing; relating to the obstruction of navigable waters;
and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 122
SHORT TITLE: RAILROAD CORP. FINANCING
SPONSOR(s): REPRESENTATIVE(s) TOMASZEWSKI
03/17/23 (H) READ THE FIRST TIME - REFERRALS
03/17/23 (H) TRA, FIN
02/20/24 (H) TRA AT 1:30 PM BARNES 124
02/20/24 (H) -- MEETING CANCELED --
02/27/24 (H) TRA AT 1:30 PM BARNES 124
02/27/24 (H) Heard & Held
02/27/24 (H) MINUTE(TRA)
03/14/24 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
JACKSON FOX, Executive Director
Fairbanks Area Surface Transportation Planning
Fairbanks, Alaska
POSITION STATEMENT: Gave a PowerPoint, titled "Fairbanks Area
Surface Transportation (FAST) Planning."
MAYOR BRYCE WARD
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Answered questions during a PowerPoint,
titled "Collaboration between Fairbanks Area Surface
Transportation (FAST) Planning and Alaska Dept. of
Transportation & Public Facilities."
REPRESENTATIVE FRANK TOMASZEWSKI
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 122.
ZACH YOUNG, Staff
Representative Frank Tomaszewski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained HB 122 on behalf Representative
Frank Tomaszewski, prime sponsor.
MEGHAN CLEMENS, External Affairs Director
Alaska Railroad Corporation
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
122.
BILL O'LEARY, President & CEO
Alaska Railroad Corporation
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
122.
MARK DAVIS, Special Counsel
Alaska Industrial Development and Export Authority
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
122.
JEFF SAN JUAN, Program Manager
Alaska Industrial Development and Export Authority
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
122.
ACTION NARRATIVE
1:32:53 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:32 p.m. Representatives Vance,
Mina, McCabe, and Sumner (via teleconference) were present at
the call to order. Representatives C. Johnson, McKay, and
Stutes arrived as the meeting was in progress.
^PRESENTATION(S): Collaboration between Fairbanks Area Surface
Transportation (FAST) Planning and Alaska Dept. of
Transportation & Public Facilities
PRESENTATION(S): Collaboration between Fairbanks Area Surface
Transportation (FAST) Planning and Alaska Dept. of
Transportation & Public Facilities
1:34:57 PM
CHAIR MCCABE announced that the first order of business would be
the Collaboration between Fairbanks Area Surface Transportation
(FAST) Planning and Alaska Dept. of Transportation & Public
Facilities presentation.
1:36:01 PM
JACKSON FOX, Executive Director, Fairbanks Area Surface
Transportation (FAST) Planning, began a PowerPoint presentation
[hard copy included in the committee packet], on slide 2, titled
"Overview," which read as follows [original punctuation
provided]:
• Metropolitan Planning Organizations (MPOs)
• Who we are &What we do
• Planning Area Boundary
• Policy Board &Committees
• Who we work with
• Required Transportation Plans
• Relationship between MTP,TIP, & STIP
• Supplemental Planning Efforts
MR. FOX proceeded to slide 3, titled "Metropolitan Planning
Organizations (MPOs)," which is something that he explained is
done across the U.S. The slide read as follows [original
punctuation provided]:
• Urbanized Areas with 50,000+ population
• In Alaska ? Anchorage, Fairbanks, & MatSu
• Federally mandated and funded
• Carries out Transportation Planning Process under 23
CFR 450, Subpart C, to develop the region's Long- and
Short-Range Transportation Plans
• Empowers local governments in the transportation
decision-making process
• Continuously engages the public in transportation
planning and projects
1:39:11 PM
MR. FOX advanced to slide 4, titled "Intergovernmental Operating
Agreement." He added that the agreement could be found on the
FAST website, and it outlines how FAST coordinates and
collaborates with the Department of Transportation & Public
Facilities (DOT&PF).
1:39:51 PM
MR. FOX, in response to Chair McCabe, elaborated on the
organization type. He then moved to slide 5, which showed a map
of the planning area boundary, and it related back to the census
as to what is considered to be urbanized versus rural. Within
the boundary, he said, there are 12 city limits including the
University of Alaska Fairbanks (UAF) campus. He proceeded to
slide 6, titled "Our Office," which read as follows [original
punctuation provided]:
• 501(c)(3) Non-profit Corporation (established April
2019)
• MPO Staff
• Executive Director (1.0 FTE)
• Transportation Planner (2.0 FTE)
• Administrative Assistant (part-time, 0.5 FTE)
• Support Staff
• DOT&PF Planner (0.5 FTE)
• Borough Transportation Planner (0.5 FTE)
1:43:15 PM
REPRESENTATIVE STUTES asked who the DOT&PF planner is.
MR. FOX replied the DOT&PF planner in Fairbanks is Randi Bailey.
He continued on slide 7, titled "Board, Committees, & Working
Groups," which featured the policy board technical committee.
He noted all the committees meet on a monthly basis and are open
to the public.
1:44:25 PM
CHAIR MCCABE asked which board a communication to the Federal
Highway Administration (FHWA) would go through.
MR. FOX replied that all formal communications go through the
technical committee and policy board, the latter which has to
approve the content of the communications.
CHAIR MCCABE requested copies of the last communications
specifically dealing with the Statewide Transportation
Improvement Program (STIP).
MR. FOX replied that he would provide the documents. He
proceeded to slide 8, titled "Policy Board (MPO Decision-making
Body) Concurrently serves as Board of Directors for Non-profit
Corporation." He said there are seven seats consisting of five
local government and two state seats. He moved to slide 9,
titled "Technical Committee (Primary Advisory Body)." The slide
featured 18 committee members filling three seats for city
representatives, four seats for borough representatives, six
seats for state representatives, two military seats, and seats
for the railroad tribal organizations as well as a freight
representative.
1:47:14 PM
CHAIR MCCABE asked Mr. Fox to elaborate on the freight
representative.
MR. FOX replied the representative is from a local freight
hauling company, which is currently ALS Transportation. He
continued on slide 10, titled "Other FAST Planning Committees,"
which read as follows [original punctuation provided]:
• Bicycle & Pedestrian Advisory Committee
• Agency, Local Interest Groups, & Public members
• Project Enhancement Committee
• Engineers, Architects, & Maintenance Managers
• Seasonal MobilityTask Force
• DOT&PF Maintenance, City PublicWorks, Borough
Rural Services, Borough Parks & Recreation,
MACSTransit, UAF Operations, School
District,Access Alaska (disabilities)
1:49:17 PM
MR. FOX, in response to Chair McCabe, confirmed that it is
normal for FAST to comment on statewide projects; the MPO has
been in existence for 25 years; each time a STIP is developed
and advertised for public input, comments have been provided
statewide. In response to a follow-up question, he deferred to
Maor Bryce Ward.
1:50:58 PM
MAYOR BRYCE WARD, Fairbanks North Star Borough, addressed
Representative McCabe's inquiry and explained that through every
STIP development, it is typical for FAST to look at statewide
allocations for transportation for comparison purposes. He
added there is interest in seeing as many transportation dollars
come to the Interior, as well as the other MPOs making sure
prioritized projects get the necessary funding.
CHAIR MCCABE agreed, but pointed out that Kenai has no MPO and,
for example, no way to comment on the Fairbanks projects. He
said he understood the level of frustration from many Alaskans
wondering why Fairbanks feels the need to comment on other
areas.
1:52:31 PM
MR. FOX moved to slide 11, titled "Primary [Required]
Transportation Plans." He said FAST's primary function is to
carry out the transportation planning process for projects
within their boundaries. Slide 12 showed graphics of all the
transportation projects over the next 20 years, but he noted
they are subject to change. He added that the map is a result
of a very comprehensive analysis of the transportation needs
from many factors. He continued on slide 13, which showed lists
of short-range FAST planning projects, 2023-2027, and non-FAST
planning projects.
1:56:11 PM
REPRESENTATIVE STUTES asked Mr. Fox for further understanding
why he is commenting on projects that are outside FAST's
boundary.
MR. FOX referred to Mayor Ward's comments and stated that he had
many project needs in his area, and for example, Matanuska-
Susitna ("Mat-Su") has many needs as well, being it has the
fastest growing population in the state. On projects related
outside of FAST's boundaries, he explained there may be a more
equitable share of funds.
1:58:18 PM
CHAIR MCCABE brought up that in the last 13 years, Fairbanks
received six times more money than any other area in the state.
MR. FOX replied he was aware that the northern region office had
done very well in securing federal transportation dollars.
1:58:46 PM
REPRESENTATIVE STUTES expressed that she was alarmed to learn it
seemed it was more about how much money was coming in versus the
safety of Alaskans on some of these projects.
1:59:12 PM
MR. FOX moved to slide 14, titled "What happens before a project
is built," which featured a flow chart on how the planning
process works from needs through construction.
2:00:14 PM
MR. FOX moved to slide 15, titled "STIP vs. TIP," which he
stated were very similar spreadsheets featuring statewide versus
local projects. He proceeded to slide 16, headed "TIP," which
featured transportation improvement programs within local
boundaries. On slide 17, titled "Relationship between MTP, TIP,
& STIP," he briefly highlighted the relationship between the
programs and the long-range plan.
2:02:16 PM
MR. FOX, in response to Representative Mina, spoke about how his
MPO engaged in the process of developing a STIP. In response to
a question from Chair McCabe regarding telling the media that a
STIP had been rejected by the FHWA, referred to the original
STIP that expired in September 2023 and needed a six-month
extension. To a follow-up question regarding the Alaska
Railroad Corporation (ARRC), he explained that for the MTP and
TIP there is a requirement to list all the railroad projects
within an area's boundaries and spoke of a planning effort with
DOT&PF and ARRC to eliminate some of the conflicts with rail
crossings in the area.
2:05:50 PM
MR. FOX moved to slide 18, titled "Other Required Plans," and
summarized the four plans on the slide which included a Unified
Planning Work Program, a Regional [Air Quality] Emissions
Analysis, a Public Participation Plan, and a Title VI Plan
[Civil Rights].
MR. FOX, in response to Chair McCabe, referred to slide 19,
titled "Air Quality Conformity Freeze," and explained that there
were letters that came out through the policy board to the
Environmental Protection Agency (EPA) about frustrations with
tying the air quality issues with federal dollars. He gave a
brief history of emissions issues in Fairbanks and penalty
phases brought about by the EPA. He said FAST is experiencing
some of the penalty right now and explained that there is a
"conformity freeze," highlighted on slide 19, titled "Air
Quality Conformity Freeze," which read as follows [original
punctuation provided]:
• Final EPA Rulemaking
• Took effect January 4th
• Expected to last 24 months
• During a Conformity Freeze:
• No amendments are allowed for MTP and TIP,
except for Exempt projects
• Only projects in first 4 years of MTP and TIP
may move forward 2023 to 2026
• If StateAir Plan deficiencies are not corrected
within 24 months, highway sanctions are imposed
2:10:02 PM
CHAIR MCCABE encouraged the committee to come up with a
resolution to the federal government to address the issue.
MR. FOX noted that FAST may try to pursue a "protective finding"
so that federal highway dollars are preserved. He added that
when the time comes, he will reach out. He continued the
presentation on slide 20, titled "Supplemental Plans," which
were not required plans for the MPO, he said. The four plans
listed on the slide were freight mobility, road/rail crossing
reduction, road service area expansion, and bike/pedestrian. He
advanced to slide 21, titled "Supplemental Plans Under
Development," and he summarized plans FAST is currently
formulating. Slide 22 featured a cooperative agreement letter
that noted a proposed expansion to 16 communities outside of
FAST boundaries. It is a new partnership with DOT&PF, he said.
2:14:23 PM
MR. FOX moved to slide 23, titled "Who Maintains My Road?
Interactive Map." The slide featured a variety of different
initiatives, and he noted the map could be found online. He
added that it had been popular with many different entities.
2:15:37 PM
MAYOR WARD rejoined the discussion and stressed that MPOs are a
great partnership between the state and the local communities.
He acknowledged that there was often frustration between
"bridging the gap" between a member of the public and government
agencies, and the MPOs give the opportunity for the community to
come together and be a part of the planning efforts, and in turn
benefit DOT&PF.
2:18:10 PM
CHAIR MCCABE expressed his appreciation to the presenters. He
questioned what the mission statement for the 501(c)(3) would be
and how it would influence projects outside of FAST boundaries.
MR. FOX replied that he did not have it in front of him, but
that in general, the mission statement is to carry out the
transportation planning process and to do that on behalf of the
local governments that have a stake in the local transportation
network.
2:20:21 PM
REPRESENTATIVE MINA asked whether MPOs in other states comment
on their area only or also comment on other projects.
MR. FOX replied he could not speak to that without seeing other
examples of comment letters from other states.
HB 122-RAILROAD CORP. FINANCING
2:21:46 PM
CHAIR MCCABE announced that the final order of business would be
HOUSE BILL NO. 122, "An Act authorizing the Alaska Railroad
Corporation to issue revenue bonds to finance the replacement of
the Alaska Railroad Corporation's passenger dock and related
terminal facility in Seward, Alaska; and providing for an
effective date."
2:22:31 PM
REPRESENTATIVE FRANK TOMASZEWSKI, Alaska State Legislature, as
prime sponsor, introduced HB 122. He noted that this is a re-
introduction of the bill and would answer any questions and take
amendments at the will of the committee.
2:22:57 PM
ZACH YOUNG, Staff, Representative Frank Tomaszewski, Alaska
State Legislature, on behalf Representative Tomaszewski, prime
sponsor of HB 122, paraphrased the sponsor statement [included
in the committee packet], which read as follows [original
punctuation provided]:
The purpose of HB 122 is to enable the Alaska Railroad
Corporation to secure financing for the critical
replacement of its passenger dock and associated
terminal facility in Seward, Alaska. By issuing
revenue bonds, the Alaska Railroad Corporation can
address infrastructure needs, enhance transportation
services, and contribute to the economic vitality of
the region.
The existing passenger dock and terminal facility play
a crucial role in supporting tourism, commerce, and
transportation along the scenic Alaska Railroad route.
However, due to wear and aging, these facilities
require immediate attention. The proposed financing
through revenue bonds will allow for timely upgrades,
ensuring safe and efficient operations for passengers,
freight, and tourism-related activities.
The replacement project aims to enhance the overall
experience for travelers, promote economic growth, and
maintain the Alaska Railroad's status as a vital
transportation link within the state. By investing in
modern infrastructure, we can continue to connect
communities, foster tourism, and support local
businesses.
HB 122 represents a collaborative effort to address
critical infrastructure needs while maintaining fiscal
responsibility. We appreciate your support for this
legislation, which will benefit Alaskans and visitors
alike.
2:24:20 PM
CHAIR MCCABE announced that the committee would take up
amendments.
REPRESENTATIVE MCKAY moved to adopt Amendment 1 to HB 122,
labeled 33-LS0623\A.1, Klein, 2/8/24, which read as follows:
Page 1, line 13:
Delete "$150,000,000"
Insert "$135,000,000"
CHAIR MCCABE objected for the purpose of discussion.
REPRESENTATIVE MCKAY explained that the change would reduce the
maximum principal amount of revenue bonds the ARCC can issue for
the replacement of their passenger dock and terminal facility in
Seward, Alaska.
CHAIR MCCABE removed his objection to the motion to adopt
Amendment 1. There being no further objection, Amendment 1 was
adopted.
2:26:07 PM
The committee took a brief at-ease at 2:26 p.m.
2:26:29 PM
CHAIR MCCABE moved to adopt Amendment 2 to HB 122, labeled 33-
LS0623\A.2, Klein, 2/21/24, which read as follows:
Page 1, line 3, following "Alaska;":
Insert "authorizing the Alaska Railroad
Corporation to issue revenue bonds to finance the
completion of the Port MacKenzie Rail Extension in
Point MacKenzie, Alaska;"
Page 2, following line 6:
Insert a new bill section to read:
"* Sec. 2. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) The
Alaska Railroad Corporation is authorized to issue
revenue bonds under AS 42.40.250 to finance the
completion of the Port MacKenzie Rail Extension in
Point MacKenzie, Alaska, and associated costs,
including, without limitation, reserves for debt
service and capitalized interest, if necessary or
appropriate, and costs of issuance. The maximum
principal amount of bonds that the Alaska Railroad
Corporation may issue under this section is
$58,000,000. The Alaska Railroad Corporation may issue
the bonds in a single issuance or in several
issuances, without limitation as to number of
issuances or timing, and as the Alaska Railroad
Corporation determines best furthers the purpose of
financing the extension of the Alaska Railroad
Corporation's rail from Point MacKenzie, Alaska, to
Houston, Alaska, and associated costs. The bonds shall
be repaid from revenue or other funds available to the
Alaska Railroad Corporation. The general credit of the
Alaska Railroad Corporation and the state may not be
pledged for the repayment of the bonds.
(b) The authorization under (a) of this section
extends to bonds issued to refund the bonds authorized
in this Act. The principal amount of the bonds
authorized in this Act may be increased in an issue of
refunding bonds in an amount equal to the costs of
refunding.
(c) This section constitutes the approval
required by AS 42.40.285 for the issuance of the bonds
described in this section.
(d) The bonds authorized to be issued under this
section are issued by a public corporation and an
instrumentality of the state for an essential public
and governmental purpose.
(e) In this section, "bonds" means bonds, bond
anticipation notes, notes, refunding bonds, or other
obligations."
Renumber the following bill section accordingly.
REPRESENTATIVE STUTES objected for the purpose of discussion.
CHAIR MCCABE summarized that Amendment 2 would authorize ARRC to
complete the Port MacKenzie rail extension. He noted he had
done the amendment before on the floor two years in a row.
REPRESENTATIVE STUTES asked whether the completion of Port
MacKenzie had been anticipated by ARRC.
CHAIR MCCABE said there is no current plan, just "circling
around" the financing.
REPRESENTATIVE STUTES asked whether the bonding would require a
public vote.
CHAIR MCCABE replied no.
2:28:30 PM
REPRESENTATIVE MINA stated that she was curious about ARRC's
perspective on Amendment 2.
2:28:50 PM
MEGHAN CLEMENS, External Affairs Director, Alaska Railroad
Corporation, explained that ARRC is supportive of rail
infrastructure and actively pursuing opportunities to the build
the Port MacKenzie rail extension. Having the bond
authorization would expedite the process; therefore, ARRC had no
objection toward Amendment 2 to HB 122.
2:29:37 PM
REPRESENTATIVE VANCE questioned why bonding authority was not
included for the northern rail extension as well.
CHAIR MCCABE indicated that that was considered, but he
anticipated it may be easier to "take it in small chunks."
2:30:58 PM
REPRESENTATIVE VANCE asked Ms. Clemens if this were to pass what
the next step in the bonding authority would be.
MS. CLEMENS replied that the next step is to continue trying to
identify a commercial customer that would be able to secure the
bond debt.
2:32:48 PM
REPRESENTATIVE MINA asked whether ARRC would typically have
funding secured prior to asking for the bond authority.
MS. CLEMENS suggested Mr. O'Leary weigh in on the question.
2:33:30 PM
BILL O'LEARY, President & CEO, Alaska Railroad Corporation,
joined the discussion on HB 122 and, in response to
Representative Mina, stated it has gone both ways over the years
but the majority of the time there is a specific revenue source
identified prior to coming to the legislature.
2:34:33 PM
REPRESENTATIVE STUTES removed her objection.
2:34:36 PM
REPRESENTATIVE MINA objected.
2:34:42 PM
A roll call vote was taken. Representatives C. Johnson, McKay,
Vance, Stutes, and McCabe voted in favor of Amendment 2 to HB
122. Representative Mina voted against it. Therefore,
Amendment 2 to HB 122 was adopted by a vote of 5-1.
2:35:39 PM
REPRESENTATIVE STUTES moved to adopt Amendment 3 to HB 122,
labeled 33-LS0623\A.3, Walsh, 3/4/24, which read:
Page 1, line 11, following "issuance.":
Insert "The replacement dock and terminal facility
must accommodate Alaska marine highway system
vessels."
CHAIR MCCABE objected for the purpose of discussion.
2:35:47 PM
REPRESENTATIVE STUTES [moved to adopt] Conceptual Amendment 1 to
Amendment 3 to add "with side loading doors" following "highway
system vessels".
REPRESENTATIVE C. JOHNSON objected.
2:36:47 PM
REPRESENTATIVE STUTES explained Conceptual Amendment 3, as it
would be amended by Conceptual Amendment 1.
2:37:37 PM
REPRESENTATIVE C. JOHNSON asked, "Why would we limit our
options?"
2:38:18 PM
REPRESENTATIVE STUTES replied that was a consideration, but
there is not a timeline on when rebuilding the cargo dock will
begin. She said when the cargo dock is rebuilt, it will accept
the front, back, and side loading vessels. She pointed out that
allowing these vessels to be used at the same dock as the cruise
ships, there is accessibility.
2:38:55 PM
CHAIR MCCABE agreed with Representative Stutes and offered his
belief that the design change to the dock that would allow a
front-loading vessel would be fairly significant at this point.
2:40:19 PM
REPRESENTATIVE VANCE asked whether the bonding amount request
would change.
MS. CLEMENS replied it does not change the scope or "price tag"
of the proposed passenger dock. She added that the cargo dock
has a construction plan in place and the project is funded, but
the timeline has been pushed slightly since federal dollars are
involved, she said.
2:41:28 PM
REPRESENTATIVE C. JOHNSON removed his objection to Conceptual
Amendment 1 to Amendment 3. There being no further objection,
Conceptual Amendment 1 to Amendment 3 was adopted.
CHAIR MCCABE announced that Amendment 3, [as amended], was
adopted.
2:41:50 PM
REPRESENTATIVE MCKAY moved to adopt [Conceptual] Amendment 4 to
HB 122, labeled 33-LS0623\A.4, Walsh, 3/14/24, which read as
follows:
Page 1, line 3, following "Alaska;":
Insert "authorizing the Alaska Industrial
Development and Export Authority to issue bonds to
finance infrastructure that supports development of
critical mineral and rare earth element projects;"
Page 2, following line 6:
Insert a new bill section to read:
"* Sec. 2. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LEGISLATIVE APPROVAL: STATEWIDE CRITICAL MINERAL
AND RARE EARTH ELEMENT INFRASTRUCTURE PROJECTS. (a)
The Alaska Industrial Development and Export Authority
may issue bonds to finance infrastructure and
construction costs of infrastructure that support the
development of critical mineral and rare earth element
projects located in the state. The critical mineral
and rare earth element project infrastructure shall be
owned and operated by the authority or financed under
AS 44.88.172, 44.88.650 - 44.88.690, or 44.88.800 -
44.88.840. The principal amount of the bonds provided
by the authority for critical mineral and rare earth
element projects may not exceed $300,000,000 and may
include the costs of issuing bonds considered
reasonable and appropriate by the authority. The bonds
shall be repaid from revenues of the authority.
(b) The Alaska Industrial Development and Export
Authority may issue the bonds under this section in a
single issuance or in several issuances, without
limitation as to the number of issuances or timing,
and as the authority determines best furthers the
purpose of financing infrastructure that supports the
development of critical mineral and rare earth element
projects in the state.
(c) The bonds authorized by this section may not
be considered in calculating the authority's bonding
limitation for a 12-month period under
AS 44.88.095(a).
(d) This section constitutes legislative
approval required by AS 44.88.095(g)."
Renumber the following bill section accordingly.
2:41:52 PM
REPRESENTATIVE STUTES objected.
REPRESENTATIVE MCKAY explained that [Conceptual] Amendment 4
would allow Alaska Industrial Development and Export Authority
(AIDEA) to issue bonds in the amount up to $300 million to
finance infrastructure and construction costs necessary to
develop critical mineral and rare earth projects located in
Alaska. The amendment grants the legislative approval necessary
for AIDEA to issue bonds and finance economically viable
projects. He further related example projects.
CHAIR MCCABE noted that the amendment was brought in late;
therefore, it is a conceptual amendment by Representative McKay.
2:43:56 PM
REPRESENTATIVE STUTES opined that Conceptual Amendment 4 "junks
up the bill" and makes the bill less likely to go anywhere. She
added her belief that it is not germane to the original bill and
maintained her objection.
2:44:27 PM
REPRESENTATIVE VANCE understood the bill would go to the House
Finance Committee next, and she requested that the amendment
sponsor give more details on, once bonded, what kind of process
there is with the legislature and public on each of the various
projects.
REPRESENTATIVE MCKAY referred the inquiry to a member of AIDEA.
2:46:30 PM
MARK DAVIS, Special Counsel, AIDEA, joined the discussion on HB
122 and directed his response to Representative Vance. He said
this is a preauthorization for bonds that would be issued under
AIDEA but not revenue bonds. He said AIDEA issues two types of
bonds and has products all over the state that deal with
critical minerals. If a project were being developed and needed
to go back to the legislature for bonding approval, then it
would take time, and sometimes that means the deal does not go
forward, he said. He summarized that AIDEA is asking for
preauthorization for rare earth metals, but that they are not
the debt of the state.
2:47:51 PM
REPRESENTATIVE STUTES inquired whether, if the bond
authorization is issued, there would be a requirement to come
back to the legislature in order to get authorization for that
particular project using the funds.
MR. DAVIS replied not if it was for the rare earth metals. He
added if it were any other kind of bond for a different purpose,
then it would not be an authorization. Any bond issuance has to
go through all governance, he said, to make sure they track and
make sense.
2:49:00 PM
CHAIR MCCABE, considering time, announced that HB 386, which had
a public testimony component, would be held until the next
hearing. He apologized to those listening specifically for HB
386.
2:49:45 PM
REPRESENTATIVE STUTES offered her understanding that if AIDEA
has a project and needs bonding, it must explain the reason
behind it to the legislature.
MR. DAVIS confirmed that is correct and added that if the
general obligation (GO) bonds are less than $25 million, then
AIDEA can issue them by themselves and issue revenue bonds as
well.
2:50:51 PM
REPRESENTATIVE MINA asked Mr. Davis whether AIDEA has pursued
this language in a separate bill or a committee bill throughout
this legislature.
MR. DAVIS stated he did not think the matter had been presented
until very recently.
REPRESENTATIVE MINA asked whether there was a timeline or
urgency for the passage of HB 122 and what would happen if the
bill did not pass.
MS. CLEMENS confirmed that there is an urgency to pass HB 122
and how it relates to the construction timeline of the Seward
passenger dock.
REPRESENTATIVE MINA asked Mr. Davis whether there was an urgency
for the proposed amendment and what the result may be if the
amendment does not go through.
MR. DAVIS offered his belief there was not urgency in the sense
of ARRC.
2:53:07 PM
REPRESENTATIVE VANCE asked Mr. Davis whether there is a revenue
that would be gained by the state through the projects once they
start to get implemented.
MR. DAVIS answered yes.
2:53:43 PM
REPRESENTATIVE STUTES, adding to Representative Vance's
question, inquired how there could be revenue for the state when
there are no projects lined up.
MR. DAVIS clarified that bonds are one of the last things done
on a project that is financed.
REPRESENTATIVE STUTES stated her belief that currently there are
no projects lined up that would be utilizing the bonding
dollars.
MR. DAVIS replied they are in discussions with companies that
would like to have the bonding authority, and he said he
believed they would come to fruition. He added they are not the
same as ARRC type projects with already laid out, detailed
plans.
REPRESENTATIVE STUTES reiterated that currently no projects are
lined up that would utilize these dollars.
MR. DAVIS confirmed there are currently discussions with
companies with the goal being to start projects within a
reasonable period of time.
2:55:29 PM
REPRESENTATIVE C. JOHNSON pointed out that recently, AIDEA was
designated as a state energy finance institution through the
U.S. Department of Energy and asked whether that made funds
available through the department to help with the projects and,
if so, how the bond would play into that interaction.
MR. DAVIS confirmed the designation was correct and mentioned
Title 17 [Clean Energy Funding], further explaining there are
guarantees of loans and credit to projects that would be used
with the bonding authorized by the amendment.
REPRESENTATIVE C. JOHNSON asked whether the dollars are
substantial or a match.
MR. DAVIS stated the dollars could be substantial depending on
the projects.
2:57:23 PM
JEFF SAN JUAN, Program Manager, AIDEA, added to Mr. Davis'
comments that AIDEA had the ability to draw investment from
other parts of private entities, and he referenced understanding
the mineral potential in Alaska and how the state could
capitalize on outside investment.
2:58:54 PM
REPRESENTATIVE MINA commented that she did not disagree with the
amendment but needed time to think about what it does. She
restated her opposition.
2:59:49 PM
CHAIR MCCABE welcomed any further discussion.
3:00:20 PM
REPRESENTATIVE STUTES maintained her objection.
3:00:20 PM
A roll call vote was taken. Representatives Sumner, C. Johnson,
McKay, Vance, and McCabe voted in favor of Conceptual Amendment
4 to HB 122. Representatives Mina and Stutes voted against it.
Therefore, Conceptual Amendment 4 was adopted by a vote of 5-2.
3:00:59 PM
The committee took an at-ease from 3:00 p.m. to 3:03 p.m.
3:03:04 PM
CHAIR MCCABE announced the committee would dispense with
Amendment 5 and asked for the will of the committee in moving
the underlying bill.
3:03:32 PM
REPRESENTATIVE MINA indicated that she would object to a motion
to move the bill out of committee.
3:04:01 PM
CHAIR MCCABE opened public testimony on HB 122, as amended.
After ascertaining no one wished to testify, he closed public
testimony.
3:04:33 PM
REPRESENTATIVE VANCE moved to report HB 122, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes.
3:04:50 PM
REPRESENTATIVE MINA objected.
3:04:58 PM
A roll call vote was taken. Representatives C. Johnson, McKay,
Vance, Stutes, and McCabe voted in favor of the motion to report
HB 122, as amended, out of committee with individual
recommendations and the accompanying fiscal notes.
Representative Mina voted against it. Therefore, CSHB 122(TRA)
was reported out of the House Transportation Standing Committee
by a vote of 5-1.
3:05:35 PM
CHAIR MCCABE discussed future business.
3:06:38 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 3:07
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB0122.VerA.2.15.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB 122 Sponsor Statement.2.15.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB122 Sectional Analysis.2.12.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB122.Ver A.DCCED Fiscal Note.2 16 14.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB 386 Version A.3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 386 |
| HB 386 Transmittal Letter version A.3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 386 |
| HB 386 Highlights version A.3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 386 |
| HB 386 Sectional Analysis version A 3.8.24..pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 386 |
| HB 122 Amendment A.1 3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB122 Amendment A.3 3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB122 Amendment A.2 3.8.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| FAST Planning Introduction Presentation.pdf |
HTRA 3/14/2024 1:00:00 PM |
Fairbanks MPO |
| HB 122 Amendment A.4 3.14.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |
| HB 122 Amendment A.5 3.14.24.pdf |
HTRA 3/14/2024 1:00:00 PM |
HB 122 |