Legislature(2015 - 2016)Anch LIO AUDITORIUM
08/25/2015 02:00 PM Senate SPECIAL CMTE ON THE ARCTIC
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| Audio | Topic |
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| Start | |
| Report(s): Thoughts and Takeaways from the Alaskan Arctic: A summit on Shipping and Ports | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TOURISM, AND
ARCTIC POLICY
SENATE SPECIAL COMMITTEE ON THE ARTIC
Anchorage, Alaska
August 25, 2015
2:04 p.m.
MEMBERS PRESENT
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TOURISM, AND
ARCTIC POLICY
Representative Bob Herron, Chair
Representative Craig Johnson
Representative Charisse Millett
Representative Louise Stutes (via teleconference)
Representative Cathy Tilton
Representative Dan Ortiz (via teleconference)
Representative Adam Wool
SENATE SPECIAL COMMITTEE ON THE ARTIC
Senator Cathy Giessel, Co-Chair
Senator Lesil McGuire, Co-Chair
MEMBERS ABSENT
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TOURISM, AND
ARCTIC POLICY
All members present
SENATE SPECIAL COMMITTEE ON THE ARTIC
Senator Lyman Hoffman
Senator Gary Stevens
Senator Donald Olson
Senator Click Bishop
Senator John Coghill
Senator Berta Gardner (alternate)
OTHER LEGISLATORS PRESENT
Representative Lora Reinbold
Representative Neal Foster
Representative Bryce Edgmon
Representative David Guttenberg (via teleconference)
Representative Liz Vazquez
COMMITTEE CALENDAR
REPORT(S): THOUGHTS AND TAKEAWAYS FROM THE ALASKAN ARCTIC: A
SUMMIT ON SHIPPING AND PORTS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SEAN O'KEEFE
(No address provided)
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
OLAFUR RAGNAR GRIMSSON, President
Republic of Iceland
Reykjavik, Iceland
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
MEAD TREADWELL, President
Pt Capital, LLC
Anchorage, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
REGGIE JOULE, Mayor
Northwest Arctic Borough
Kotzebue, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
HUGH SHORT (ph)
(No address provided)
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
ALICE ROGOFF, Publisher/Owner
Alaska Dispatch News (ADN)
Anchorage, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
SHIRLEY MARQUARDT, Mayor
City of Unalaska
Unalaska, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
TARA SWEENEY, Executive Vice President
External Affairs
Arctic Slope Regional Corporation (ASRC)
Barrow, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
DENISE MICHELS, Mayor
City of Nome
Nome, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
CHARLOTTE BROWER, Mayor
North Slope Borough
Barrow, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
PATRICK PLETNIKOFF, Mayor
City of St. George
St. George, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
THOMAS SPITLER, Mayor
City of Adak
Adak, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
MAIJA LUKEIN, Mayor
City of Kotzebue
Kotzebue, Alaska
POSITION STATEMENT: Reported thoughts and takeaways from The
Alaskan Arctic: A Summit on Shipping and Ports.
ACTION NARRATIVE
2:04:41 PM
CHAIR BOB HERRON called the joint meeting of the House Special
Committee on Economic Development, Tourism, and Arctic Policy
and the Senate Special Committee on the Artic to order at
2:04 p.m. Present at the call to order from the House Special
Committee on Economic Development, Tourism, and Arctic Policy
were Representatives Herron, Wool, and Tilton; Representatives
Johnson, Stutes (via teleconference), Ortiz (via
teleconference), and Millett arrived as the meeting was in
progress. Present from the Senate Special Committee on the
Artic were Senators McGuire and Giessel. Representatives
Reinbold, Foster, Edgmon, Guttenberg (via teleconference), and
Vazquez were also in attendance.
^REPORT(S): Thoughts and Takeaways from The Alaskan Arctic:
A Summit on Shipping and Ports
REPORT(S): Thoughts and Takeaways from The Alaskan Arctic:
A Summit on Shipping and Ports
2:05:25 PM
CHAIR HERRON announced that the only order of business would be
a reporting of thoughts and takeaways from The Alaskan Arctic:
A Summit on Shipping and Ports, which just concluded.
CO-CHAIR MCGUIRE - noting that both the House Special Committee
on Economic Development, Tourism, and Arctic Policy and the
Senate Special Committee on the Artic have passed legislation
pertaining to infrastructure in the Arctic - said that her
favorite part of The Alaskan Arctic: A Summit on Shipping and
Ports was that pertaining to financing, finding it to be
particularly insightful and thought-provoking, providing her
with ideas regarding other things that can be done with the
tools available. The Arctic is one of the most coveted,
visited, and interesting places on the earth, and it's time to
start using existing policies and tools to build and create an
Arctic that attracts [more] people.
2:10:25 PM
SEAN O'KEEFE offered his understanding of what the late U.S.
Senator Ted Stevens - for whom he said he once worked - might
have thought and said about The Alaskan Arctic: A Summit on
Shipping and Ports. In closing, Mr. O'Keefe commended the
members of the committees for meeting jointly [to consider
issues raised during the summit].
CO-CHAIR MCGUIRE indicated that at the summit, Mr. O'Keefe
presented information regarding icebreaker construction. On the
issue of Arctic infrastructure, she offered her belief that once
ports in the Arctic become available and more infrastructure is
developed, then more people from around the world will come to
the Arctic, thereby benefiting [Alaska's] economy.
2:18:09 PM
OLAFUR RAGNAR GRIMSSON, President, Republic of Iceland, offered
his belief that [while] there is a growing interest in the
Arctic from business leaders and governments around the world,
there is a deficiency with regard to [participation by] elected
representatives of Arctic territories and countries. He asked
that the Alaska State Legislature become more active in working
with others across the Arctic to ensure that during the coming
years and decades, the Arctic evolves as the people - through
their elected representatives - will it to, with regard to
setting the course and deciding the future of the Arctic. He
said the Republic of Iceland, the Faroe Islands, and Greenland
play a crucial role in the future of the Arctic, and, referring
to Alaska, Canada, Greenland, and [the Russian Federation],
offered his understanding that over 90 percent of the Arctic's
land mass is under what he called a "federal constitutional
system." He offered his belief that the Arctic, constituting a
big part of the planet, is now being viewed by the United
States, Canada, and other Arctic countries as global territory,
bringing with it extraordinary political, economic, and
scientific challenges but, with the cooperation of the countries
involved, offering new opportunities for investment,
construction, financing, and scientific and political progress
now that the Arctic is no longer as geographically and
politically isolated as it once was.
PRESIDENT GRIMSSON, referring to the summit, indicated that
taking advantage of the economic opportunities presented in the
Arctic is going to require the creation of infrastructure -
energy systems, roads, and harbors - and economic activity in
both urban and rural settings. And such progress in the Arctic,
he predicted, will start with small-scale projects in villages
and other [rural] communities; these projects, once linked
together, will transform the Arctic. The world's financial,
corporate, and economic communities - many of which were
represented at the summit - are expressing interest in becoming
partners [in such transformation]. He suggested that the Alaska
State Legislature simply go forth with its own Arctic
infrastructure projects, enter into agreements with other
nations - say for financial backing, for example - and establish
its own Arctic policy in order that Alaska may take advantage of
the Arctic's [opportunities] and remain the nation's vanguard in
terms of Arctic development; Alaska shouldn't wait for others to
agree with its proposals, because the pace of change in the
Arctic is far more [rapid] than people once thought possible.
2:34:49 PM
MEAD TREADWELL, President, Pt Capital, LLC, offered his belief
that as a result of information provided by President Grimsson
at The Alaskan Arctic: A Summit on Shipping and Ports, people
are beginning to recognize that there is a maritime industry in
the Arctic. Referring to Mr. O'Keefe's presentation at the
summit regarding alternative financing for icebreakers, Mr.
Treadwell characterized the information provided as very
important; there is a need for icebreakers in the Arctic, and
Mr. O'Keefe's presentation emphasized that something different
must be done with regard to procurement. Mr. Treadwell relayed
that the presentation by Governor Bill Walker included the
governor's vision of Arctic ports and the sentiment that Alaska
[should] take the lead with regard to the Arctic's maritime
[industry].
MR. TREADWELL indicated that one major topic addressed at the
summit was [that of establishing] a seaway [through the Arctic
Ocean]. His company, he relayed, has been working on the issues
of safety, security, and reliability; a lot of progress has been
made with regard to safety and security, but with regard to
reliability, the issues of "regime," business structure, trans-
shipment ports, and securing customers must still be addressed,
with a focus on solving the problems of how to finance ports and
icebreakers, and determining what type of international
cooperation to seek. A second major topic addressed at the
summit was that of port development, and some of the ideas that
were brought forth, he ventured, could be worked on through
Alaska's legislative process or via the Pacific NorthWest
Economic Region (PNWER) and other such organizations. According
to information provided by the U.S. Coast Guard, one out of
every five ships transiting the Aleutian Islands is not yet
subject to an oil-spill contingency plan; he ventured that by
working with Canadian counterparts, progress on that issue could
probably be made via the use of what he called reciprocal "port
state" agreements, which could specify, for example, that all
ships must comply with certain oil-spill prevention and response
plans. A third major topic addressed at the summit was that of
financing; ideas brought forth included the use of Arctic
infrastructure funds, and the financing of icebreaker
construction.
MR. TREADWELL, in conclusion, recommended establishing an Arctic
ports association that could research what other countries need,
establishing a "vessel traffic system" in the Bering Strait in
cooperation with Russia, and advocating for an icebreaker in
order to establish a program that could result in a seaway.
2:43:25 PM
REGGIE JOULE, Mayor, Northwest Arctic Borough, characterized The
Alaskan Arctic: A Summit on Shipping and Ports, as interesting,
and indicated that Alaska's favorable position in the Arctic,
especially given the opportunities arising, was a topic of
discussion, as was the issue of financing infrastructure [in the
Arctic]. [It was relayed that] how such infrastructure would be
financed in rural Alaska would be different [than in other
places], and that's to be expected given the challenges faced.
However, it's not yet known exactly what that will mean for the
people living in Alaska's rural communities, and this can be
worrying, particularly given their many-millennia-long reliance
on subsistence fishing/hunting and the area's other renewable
ocean resources. Changes [in the Arctic] are going bring
considerable challenges and opportunities to the people living
there, and the issues of how to adjust to those changes, how to
lessen their costs and impacts, and how to focus on a direction
and work together must still be addressed, as must issues
regarding financing, the environment, maintaining existing
maricultures, search and rescue operations, foreign investors,
and other issues related to the development/construction of
infrastructure.
2:53:20 PM
HUGH SHORT (ph) indicated that he'd given a presentation about
Australia during The Alaskan Arctic: A Summit on Shipping and
Ports, mentioned that his presentation came to a similar
conclusion as that of another presentation given at the summit,
and repeated portions of his Australia presentation. With
regard to that other presentation given at the summit, he
indicated that it used larger-scale [infrastructure-financing
estimates and debt estimates] than his did, and said that both
it and his presentation are proposing an idea that could maybe
be used for catalyzing investment in Arctic ports so as to be
able to take advantage of the opportunities being presented in
the Arctic. "We have the assets, we have the leverage, we have
the private-sector partners, and - from my calculations - we
have a potential of almost a $10-billion-fund to be able to go
out and invest into our state," he said in conclusion.
CO-CHAIR MCGUIRE, in response to comments, indicated that the
Arctic infrastructure [funding] mechanism that's already in
place has not yet been [used], and characterized the notion of
selling Alaska's existing assets in order to pay for
infrastructure projects in the Arctic as intriguing.
MR. SHORT, in response to questions, indicated his beliefs that
the state's existing debt authority could potentially be used
for leveraging purposes, and that there may be an opportunity
for the state to sell the assets from its hydro-electric
projects and other energy-producing projects to global
investors; he also acknowledged that for purposes of matching
private investment dollars with public dollars, monies from the
general fund (GF) could be used in lieu of monies from the
selling of the state's existing assets.
3:09:58 PM
ALICE ROGOFF, Publisher/Owner, Alaska Dispatch News (ADN),
[speaking as the organizer,] indicated that a lot of what was
accomplished at The Alaskan Arctic: A Summit on Shipping and
Ports was made possible as a result of actions taken [by
legislators, in various roles, and other interested parties].
The summit was intentionally focused on Arctic ports and
shipping because they constitute the aspect of the Arctic that
Alaska [could address as landowner]; it was felt that it was
time to start focusing on the specifics of the issue in order to
come up with some sort of framework for a legislative action
plan. She indicated that at the summit, Governor Walker and
Craig Fleener announced that they were going to develop an
Arctic infrastructure plan for Alaska; she predicted that a lot
of that infrastructure will be located on the coast since Alaska
is a coastal state. She said she thinks the inevitable
emergence of a maritime economy in Alaska is becoming more
tangible, but noted that discussions with the private sector
thus far indicate that first an expansion of Alaska's existing
ports might be in order, particularly given that some don't even
have docks yet.
MS. ROGOFF mentioned that at the summit, a speaker from Canada
had relayed that the Port of Prince Rupert was developed as part
of a national plan designed to focus on what she called, "multi-
modal infrastructure"; she surmised that that's why a rail line
with connections to Eastern Canada and the U.S. Midwest is
located near that port, helping to make it so vital. She
predicted, therefore, that any maritime economy that gets
developed in Alaska will require the development of ground-
transportation infrastructure such as a rail line running from
the coast of the Bering Sea to Alaska's Railbelt, for example,
since that's where [the bulk] of cargo will be headed. She also
mentioned that the Port of Nome was discussed at the summit, and
that she'd recently heard that there is a U.S. Coast Guard
cutter currently moving towards Port Clarence in advance of a
bad Bering Sea storm in order to take refuge. Without planning,
she added in conclusion, one will never get where one intends to
be, regardless that sometimes plans go awry.
3:17:00 PM
SHIRLEY MARQUARDT, Mayor, City of Unalaska, said that one of her
big takeaways from The Alaskan Arctic: A Summit on Shipping and
Ports was a positive and energized outlook with regard to some
of the ideas that have been discussed for several years, because
finally some specifics with regard to financing, investment,
planning, and strategies were also discussed, and she found this
to be really helpful. Mayor Marquardt expressed appreciation
for the work that Ms. Rogoff did in organizing the summit,
bringing those specifics to the forefront, both locally and
internationally, and keeping everyone engaged. Information
provided at the summit addressed both what communities should be
doing as well as what they shouldn't be doing, and this can be
really helpful in terms of community planning. The state's
financial difficulties will present challenges for the
legislature, she acknowledged, and expressed her hope,
therefore, that people will be able to come up with a strategic
and immediate plan to implement, in terms of what she called
"protection and response." Such a plan will be key, and once in
place as much as is possible in and around the Arctic, then the
rest of the necessary infrastructure can start to be developed.
Progressing on infrastructure without already having such a plan
in place would cause her concern, though.
MAYOR MARQUARDT characterized the information provided at the
summit regarding private and public partnerships as very
exciting and helpful. In conclusion, she encouraged legislators
to attend as many such [gatherings/conferences/summits] as
possible, because of the amount and type of information that's
provided, information that can really make a big difference in
terms of how the associated challenges are viewed.
CO-CHAIR MCGUIRE, in terms of takeaways from the summit, noted
that Alaska's deep-water Arctic port is located in Unalaska,
that vessels transiting the Arctic are passing right through
[some of Alaska's richest] fishing grounds, and that Unalaska
has already "outgrown" its [existing facilities].
3:24:22 PM
TARA SWEENEY, Executive Vice President, External Affairs, Arctic
Slope Regional Corporation (ASRC), said she also serves as
International Chair for the Arctic Economic Council (AEC), and
noted that the chairmanship transferred to the United States in
April of 2015. During the conference in Ottawa, Canada, the AEC
provided a presentation to foreign ministers on the progress of
the AEC. She then described the AEC's themes, focus, and
growth, and explained that subsequent to the AEC encourages the
legislature to establish a delegation of legislators, AEC
representatives, Institute of the North members, and Alaska
Chamber members to work directly with the Arctic Affinity Group
within the U.S. Department of Commerce to identify trade
barriers and potential state and federal solutions to increase
and improve Arctic trade, and to offer responsible investment in
the Arctic. She relayed that there are opportunities for other
Alaska businesses to invest in the Arctic - providing access to
capital - and noted that the Arctic Aboriginal Corporation, for
example, is reviewing its opportunities for investment. She
stated that the AEC is interested in working with the
legislature regarding investment issues and reviewing Alaska's
policies to ensure there are no barriers to Arctic commerce,
and, if there are, submit legislation to remedy those barriers.
With respect to shipping, she advised, an area of concern within
the maritime industry is that of obtaining insurance, and
emphasized the need to ensure that the insurance industry has
established clear policies with regard to its Arctic maritime
customers. She informed the committee that often such insurance
policies are unpredictable, inconsistent, and expensive.
Therefore, the legislature should ascertain that [the insurance
industry's] vision for the maritime transportation industry is
aligned with Alaska's business climate and practices.
CHAIR HERRON advised that Alaska is one of the members of the
Pacific Northwest Economic Region (PNWER), and extended an
invitation that AEC attend its winter meeting, in Yellowknife,
Northwest Territories, Canada, on November 15-18, 2015.
3:35:38 PM
DENISE MICHELS, Mayor, City of Nome, said that a takeaway from
the summit is that a lack of infrastructure in the Arctic
constitutes a national and economic security issue for both the
nation and Alaska. When reviewing this issue globally, she
pointed out, there are other countries interested in developing
resources in the Arctic, and advised that the City of Nome
continues to work [on using] assets for environmental
protection, search and rescue, and a deep-draft port. She
stated she is grateful to the U.S. Army Corps of Engineers for
the work they have provided, and will continue to provide during
the review process. She expressed gratitude for the
infrastructure bank, and indicated that she has been discussing
with the Alaska Industrial Development and Export Authority
(AIDEA) one option of public and private financing to determine
how much control of the facility would be given away. With
regard to the U.S. Army Corps of Engineers' project, things will
happen very quickly and the hope is that by January, the chief
report will be out and work with Congress can begin in order to
determine how significant the project will be to the nation in
comporting with its Arctic policy.
CHAIR HERRON asked whether a letter from the House Special
Committee on Economic Development, Tourism, and Arctic Policy,
and the Senate Special Committee on the Arctic would be helpful.
MAYOR MICHELS relayed that it would be.
3:39:44 PM
CHARLOTTE BROWER, Mayor, North Slope Borough, said that Arctic
shipping is increasing in the Chukchi and Beaufort Seas, and
expressed that Alaska lacks port and other essential
infrastructures to take advantage of emerging opportunities, and
more must be done to develop its resources. She proffered that
action, and not just words, is what's required now. She said
she has pushed for the formation of the North Slope Port
Authority in order that her region could begin leading the way
in developing ports and other types of transportation
infrastructure in the Arctic. Furthermore, the North Slope
Borough joined with the Northwest Arctic Borough and the City of
Nome and pushed for the creation of the Arctic Waterways Safety
Committee (AWSC) to protect local hunters and the maritime
industry, and she is encouraged about the progress it has made
in a relatively short period of time. This is an example of
Alaskans being willing to take the initiative and demonstrate
leadership on Arctic issues. While the challenges Alaska is
facing are daunting, they are not insurmountable and offer the
impetus necessary to explore ways of increasing Alaska's
economic base beyond oil and gas development. She advised that
the legislature can show support for what she referred to as
U.S. Senator Lisa Murkowski's Outer Continental Shelf (OCS)
Revenue Sharing legislation, as Alaska [currently] risks OCS
development with little benefits. Alaska's tribes could use the
dedicated funds to develop needed infrastructure along
unprotected coast lines, and the state's coastal municipalities
would have access to revenues to build an infrastructure needed
to support OCS development and build up local spill-response
capacity.
3:45:18 PM
MAYOR BROWER opined that enactment of Senator Murkowski's bill
will result in providing momentum for greater infrastructure
development along the North Slope and America's Arctic. This
infrastructure development could include substantial investments
to import infrastructure pertaining to telecommunications, spill
response, search and rescue, and airports in a relatively short
period of time. For example, this year the U.S. Coast Guard is
experiencing lack of hanger space at the Barrow airport. She
pointed out that this is an opportunity for the state to partner
with the U.S. Coast Guard to build hanger space in that facility
and other facilities, and support increased commercial
activities. She suggested the legislature look at more
opportunities to facilitate public-private partnerships, using
the state's ability to finance projects at low interest rates so
as to help make more projects economical for the potential of
greater return years down the road. For example, she said,
building a medium-sized port may have somewhat limited returns
today, but could provide larger returns in the future with OCS
development and increased Arctic shipping. She recommended the
legislature re-examine the infrastructure fund authorization,
contained in Senator McGuire's bill from a few years ago, as a
starting point. She remarked that the state could take a direct
role in financing Arctic port infrastructure; for example, they
could consider placing before the voters the question of whether
to approve an Arctic Port general obligation bond. Alaskan
voters could then determine how much initiative they want to
take with respect to investing in Arctic development in
conjunction with the federal government and private industry.
She indicated that the legislature should not become too
concerned with Alaska's current challenges as those serving on
the local level are willing to work with the legislature and
position Alaska to take advantage of the opportunities that lay
on its doorstep. She referred to challenges the North Slope
Borough currently faces, such as addressing issues related to
the [semi-submersible drilling rig,} the TransOcean Polar
Pioneer, [intended for deployment 70 miles northwest of]
Wainwright. She noted the current lack of icebreakers and
infrastructure for them in the Arctic, and raised the specter of
an oil spill occurring in the Arctic. The legislature and the
U.S. Army Corps of Engineers must take a serious step in
assisting with developing the necessary infrastructure.
3:53:12 PM
PATRICK PLETNIKOFF, Mayor, City of St. George, said that in
February of 1984, Governor Bill Sheffield signed a Memorandum of
Understanding with the federal government, agreeing that Alaska
would take responsibility for building harbors at St. George and
St. Paul. He offered that in 33 years nothing realistic has
occurred at St. George. During a conference, years ago, it was
mentioned that rural communities should be consulted, and that
the ocean environment should be kept clean so as to protect
resources in order to continue a subsistence manner of living.
However, his community did not receive information regarding the
new routes the U.S. Coast Guard is proposing through the Bering
Sea. He said there is concern about ocean acidification, and if
that problem develops further it will affect all of the marine
mammals and fish, and already adverse impacts are seen. He said
he has always lived in St. George and in the spring the birds
sing, except this summer it is silent; for example, at one
observation point there were 183 eggs in bird nests, but only
three were hatched and the remainder were abandoned. He
indicated that his takeaways from the summit were: consult with
rural Alaska communities, inform the state's federal partners
they need to consult more thoroughly, and do everything possible
to protect the environment.
3:57:34 PM
THOMAS SPITLER, Mayor, City of Adak, offered concern about the
environment, but noted that development is needed. He said it
is a matter of working together and not forgetting about Adak,
getting exposure, and he invited the legislature to Adak.
3:58:42 PM
MAIJA LUKEIN, Mayor, City of Kotzebue, noted that President
Barak Obama would be visiting Kotzebue, and that Kotzebue is the
gateway to the Arctic, especially in the case of Cape Blossom.
She referred to previous witnesses stressing the need for port
infrastructure and concurred with their statements. She pointed
out that although Cape Blossom was mentioned during the summit,
Kotzebue needs more than just Cape Blossom, because multiple
ports on the coast of Alaska are necessary for the development
of Arctic infrastructure; for example, there are 15-16 vessels
owned by Shell in Hope Bay, off of Cape Blossom, because it is a
port of refuge. However, Cape Blossom is not just a port of
refuge. Furthermore, rural communities suffer the highest costs
of energy, shipping, and living, and thus having a deep water
port at Cape Blossom will cut shipping costs by approximately 24
percent.
4:03:35 PM
REPRESENTATIVE GUTTENBERG concurred with the comments expressed
regarding the need to start taking action.
REPRESENTATIVE REINBOLD said she found it impressive that the
summit attracted potential partners in Arctic investment from
across the globe, promoting public-private partnerships. She
surmised that Alaskans have hope for the future of the Arctic.
REPRESENTATIVE WOOL referred to President Grimsson's remarks
that the rate of change in the Arctic is far more rapid than was
once thought possible, and indicated a preference, therefore,
for immediately starting the process of obtaining community
input.
4:06:45 PM
REPRESENTATIVE VAZQUEZ said it is imperative that the State of
Alaska take initiatives as it is obvious that infrastructure and
the issue of climate change must be dealt with. She noted it is
not only a matter of national security, but also of state
security, economic prosperity, and the wellbeing of Alaskans.
REPRESENTATIVE MILLETT pointed out that the United States is an
Arctic nation because of Alaska, and indicated a belief that the
Arctic presents as equal an economic opportunity for Alaska as a
gas line.
CHAIR HERRON opined that the state, with legislative
involvement, should move forward [with the process of developing
infrastructure in the Arctic].
CO-CHAIR MCGUIRE pointed out that Alaskans envision a future [in
the Arctic] with: more jobs, lower suicide rates, lower
addictions to drugs and alcohol - stemming from people lacking
hope for a [better] future - better education, more affordable
energy, access to world views, access to goods and commodities
that come in and out of port, and an opportunity for local
kuspuk and jewelry makers to export their goods out as well.
She referred to President Obama's upcoming visit to Alaska and
expressed hope that he understands the link between human
prosperity and emotional and physical independence that comes
from the wide development of Alaska's resources. She warned
that without that hope or an opportunity to develop the Arctic
responsibly, Alaskans living in the North are relegated to
secondary status, and stifling a chance to develop Alaska with
some goal of reducing global warming isn't in Alaskans' best
interest.
4:13:23 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting of the House Special Committee on Economic Development,
Tourism, and Arctic Policy and the Senate Special Committee on
the Artic was adjourned at 4:13 p.m.
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