Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/18/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Statewide Aviation & International Airports | |
| SJR9 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SJR 9 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 18, 2021
1:36 p.m.
MEMBERS PRESENT
Senator Robert Myers, Chair
Senator Mike Shower, Vice Chair
Senator Click Bishop
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Peter Micciche
COMMITTEE CALENDAR
OVERVIEW: STATEWIDE AVIATION & INTERNATIONAL AIRPORTS
- HEARD
SENATE JOINT RESOLUTION NO. 9
Urging the United States Congress to exempt cruise ships from
certain provisions of the Passenger Vessel Services Act and
other applicable provisions of federal law for the period during
which Canadian ports are closed to cruise ships carrying more
than 100 people; and urging the President of the United States
not to fine or take actions against cruise ships sailing to the
state.
- MOVED SJR 9 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 9
SHORT TITLE: URGE EXEMPTION FOR CRUISE SHIPS
SPONSOR(s): SENATOR(s) KIEHL
02/10/21 (S) READ THE FIRST TIME - REFERRALS
02/10/21 (S) TRA, L&C
02/18/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JOHN BINDER, Executive Director
Alaska International Airport System (AIAS)
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint on the Alaska
International Airport System.
PAULA TERREL, representing self
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SJR 9 with
concerns that the waiver in SJR 9 would increase the number of
foreign flagged cruise ships to Southeast Alaska, potentially
increasing COVID-19 risks to residents.
KIMBERLY METCALFE, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to SJR 9 due to
COVID-19 risks and impacts of the cruise industry on whales,
crowding, and emergency services.
RAY PRESTON, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to SJR 9 due to
COVID-19 risks highlighted by CDC.
KARLA HART, representing self
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SJR 9 with
concern that the cruise industry adversely impacts communities
and the resolution recommends suspending enforcement or fines
during the waiver for an industry that frequently violates
environmental laws.
SUSAN SCHRADER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified with concern about COVID-19 risks
to local residents.
RORIE WATT, City Manager
City and Borough of Juneau
Juneau, Alaska
POSITION STATEMENT: Testified in support of SJR 9 for the
economic benefits to the state.
KATIE BOTZ, representing self
Juneau, Alaska
POSITION STATEMENT: Testified on SJR 9 with concerns about
potential COVID-19 infections on board cruise ships and risks to
residents.
CHRIS EICHENLAUB, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SJR 9 because of
economic benefits to communities since cruise ship passengers
travel throughout Alaska.
VIKKI JO KENNEDY, representing self
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion on SJR 9 by
cautioning against stopping the progress of business in Juneau
or elsewhere in Alaska.
ACTION NARRATIVE
1:36:15 PM
CHAIR ROBERT MYERS called the Senate Transportation Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Bishop, and Chair Myers. Senator Shower
joined the meeting shortly thereafter. Senator Kiehl arrived as
the meeting was in progress.
^OVERVIEW: STATEWIDE AVIATION & INTERNATIONAL AIRPORTS
OVERVIEW: STATEWIDE AVIATION & INTERNATIONAL AIRPORTS
1:36:53 PM
CHAIR MYERS announced that the business before the committee
would be an Overview: Statewide Aviation & International
Airports.
1:37:29 PM
JOHN BINDER, Executive Director, Alaska International Airport
System (AIAS), Department of Transportation and Public
Facilities (DOTPF), Anchorage, Alaska, began a PowerPoint on the
Alaska International Airport System. He reviewed the missions
for the Department of Transportation and Public Facilities
(DOTPF), Alaska International Airports System (AIAS), and the
Statewide Aviation (SWA) on slide 2. The department's overall
mission is to keep Alaska moving through service and
infrastructure. The Alaska International Airports System's
(AIAS) specific mission is to keep Alaska flying and thriving.
The Statewide Aviation's (SWA) mission is to sustain and improve
the quality of life throughout Alaska, he said.
1:37:58 PM
SENATOR SHOWER joined the meeting.
1:38:04 PM
MR. BINDER explained that the Statewide Aviation Division
consisted of all the airports the state owns except for the Ted
Stevens Anchorage International Airport (AIAS) and the Fairbanks
International Airport.
1:38:24 PM
MR. BINDER highlighted that although AIAS lies within DOTPF, the
international system does not use any state funds and none of
its revenue flows to the state. AIAS is self-sustaining with its
rates and fees' structure charging tenants, airlines, and
concessionaires to completely funding the airport, he said.
MR. BINDER briefly reviewed the operating agreement with
carriers on slide 6. DOTPF has an operating agreement that will
expire in 2023. That agreement currently has 35 signatory
carriers. He reported that these signatory carriers have more
say into how the airport uses its operating and capital funds.
The department must receive airline approval for any larger
expenditures. Since these carriers share the financial risks,
signatory carriers receive slightly reduced rates on landing
fees and rental fees. However, the signatory carriers are billed
for any shortfalls. AIAS also has the authority to issue bonds
for large capital budget projects although it has not done so in
many years.
1:41:11 PM
SENATOR SHOWER recalled that when the North Pole refinery was
open, most of the jet fuel was shipped outside Alaska. He asked
for the source of most of the aviation fuel for AIAS.
1:41:50 PM
SENATOR KIEHL joined the meeting.
1:42:35 PM
MR. BINDER answered that AIAS does not buy or sell fuel. The
airport has a tank farm but it is a fuel consortium comprised of
airlines. He acknowledged that a larger percentage of aviation
fuel previously came from sources within Alaska. He explained
that fuel comes to the airport via a pipeline connected to
Nikiski or from one connected to the port. Most carriers obtain
jet fuel from the international market. However, carriers
purchase their own fuel, barge it to the Port of Anchorage and
transport it to the port via the pipeline, where the fuel is
placed into the airport's tank farm, he said. The consortium
then tracks fuel usage and distribution by carrier. The airport
receives flowage fees for every gallon pumped through that
system since the airport owns the infrastructure, he said.
However, he stated he was unsure of the fuel quantities
purchased in the state and how that would impact revenue.
SENATOR SHOWER characterized the changes in cost as an invisible
result of the North Slope refinery shutting down.
1:44:43 PM
SENATOR BISHOP explained that part of the reduction was due to
reduced throughput in the pipe. He said the state did not have
enough royalty in kind (RIK) to service all the refineries in
the state.
1:45:17 PM
MR. BINDER reviewed the annual revenue and operations,
maintenance and debt costs on slide 7. He reported that the
airport received about $150 million in total revenues with just
over $120 million in operating costs. He directed attention to
the pie chart on the right of slide 7. Revenues do not match
expenditures because the chart does not reflect the airport
funded capital costs. He highlighted that the chart refers to
the projects the airport solely funds and the match for Federal
Aviation Administration (FAA) funding.
1:46:06 PM
CHAIR MYERS asked if airport funds for AIAS are commingled.
MR. BINDER explained that revenue from both airports flows into
the International Airport Revenue Fund (IARF), which is a
single, separate fund used by the system as a whole. He directed
attention to the pie chart on the left side of slide 7 to
landing fees. Landing fees represented about 40 percent of the
revenue. He offered to discuss landing fees as part of the
COVID-19 discussion later in the presentation. The remaining
non-aeronautical revenue categories are drastically impacted by
passenger activity, he said.
1:47:09 PM
SENATOR SHOWER asked where the surplus $26.9 million was spent.
MR. BINDER after further clarification on the question,
explained that the difference in revenues compared to costs
reflected the airport funded capital projects during FY 2020,
including solely funded airport projects and the match to any
FAA grants.
SENATOR SHOWER asked if the department rolled over any excess
funds or if the funds were depleted each year.
MR. BINDER responded that any surplus would be rolled over. This
allows the airport to lower its fees for the upcoming year, he
said. He reported that this year the airport was $10 million
short due to the dramatic reduction in airline passenger travel.
AIAS used federal CARES fund to make up the difference rather
than backfill carrier fees, he said.
1:48:34 PM
SENATOR KIEHL asked him to elaborate on the AIAS fund balance.
MR. BINDER explained that AIAS carried a significant cash
balance due to the substantial outstanding bond debt of $350
million. AIAS was dependent on international air cargo, which
can dramatically fluctuate. The AIAA coordinates this with its
signatory carriers, which means AIAS usually has a year's worth
of cash on hand, he said. This provides some cushion to carry
the airport forward in case of a downturn and still allow for
debt repayment, he said.
1:49:40 PM
SENATOR SHOWER asked if AIAS has considered options if it
experiences another weak travel year.
MR. BINDER explained that DOTPF received $33 million in initial
CARES funding in early summer specifically allocated to AIAS. As
previously mentioned, AIAS used $10 million to make the airport
system whole, which left about $22 or $23 million to backfill
any shortfall. He anticipated cargo would begin to decrease but
it has not yet happened. However, passenger comeback has met
DOTPF's expectations. He estimated about 90 to 95 percent of the
FY 2019 seat capability was already scheduled for this summer.
He related his understanding that the airlines seemed to be
optimistic about increased passenger numbers, even with the
cruise industry cutbacks. Although airlines were not operating
at full capacity yet, tourist companies in the Lower 48 related
that people were booking stateside travel destinations rather
than European travel destinations. Alaska is still high on the
destination list so AIAS has been fairly optimistic about the
upcoming tourism season, he said. The airport also has another
$18 million in CRRSA funds to fall back on so AIAS feels it
could survive for a few years based on its projected activity
levels.
1:52:29 PM
SENATOR BISHOP asked for the percentage of freight versus
passenger landing fees.
MR. BINDER explained that the landing fee rates are the same for
freight and passenger planes. Fees are based on the aircraft
size. He offered to break out the landing fees by airline and
report back to the committee.
SENATOR BISHOP expressed an interest in any increases in air
freight and freezer expansion data.
1:53:34 PM
SENATOR SHOWER explained that the industry initially anticipated
it would bypass Anchorage but found it was self-defeating to
carry extra fuel rather than cargo. Thus, cargo flights
discovered it was cost effective to stop in Anchorage and
refill. He offered his view that Alaska would not experience a
drop off in air cargo from Asia.
1:54:59 PM
MR. BINDER discussed the cargo and passenger activity on slide
8. He described the chart as a breakout between international
and domestic cargo and passenger flights. The light blue
dominating the chart represented international cargo, the green
represented the domestic passenger travel, the purple
represented international passenger travel, and the dark blue
represented state domestic cargo. He said international cargo is
the primary revenue driver for AIAS. Typically, about 40 percent
of air cargo is shipped on passenger planes. During the
pandemic, as flights were cancelled, this cargo was transferred
to air cargo planes, which greatly benefitted AIAS.
1:56:44 PM
MR. BINDER turned to slide 9 and discussed the primary revenue
drivers. AIAS's landing fees are based on the certified maximum
takeoff weight (CMGTW), which tends to be the best revenue
predictor. He directed attention to the chart. He said each line
on the chart is progressively higher, that the green line
depicts FY 2020 and the magenta line FY 2021. He characterized
landing fees as being really strong and very beneficial to the
AIAS.
MR. BINDER turned to slide 10, related to passenger activity. He
said about 60 percent of airport revenue is related to non-
aeronautical activities, such as concessions within the
terminal, rental cars and airport parking. Thus, the airport
experienced revenue shortfalls for FY 2020 even though AIAS had
a strong air cargo market.
1:58:13 PM
MR. BINDER discussed capital funding on slide 11. He explained
that the airport normally receives about $40 million from the
Federal Aviation Administration (FAA), with the match at 12
percent. He said the CARES Act covered 100 percent of federal
share. FY 2020 was down due to the North South Runway Project He
reported that FY 2021 was a more normal year. He reported that
the supplemental budget also provided additional federal
funding.
1:59:28 PM
MR. BINDER reviewed the economic opportunities on slide 12. He
related that AIAS has five big cargo development proposals in
Anchorage, including constructing the Alaska Cargo and Cold
Storage facility this summer. He related these projects
represented an attempt to take advantage of the uptick in air
cargo. He highlighted the passenger transfer rights that Alaska
and Hawaii airlines have had for many years. This year the
contracts added provisions for international passenger transfer
rights. Although passengers cannot disembark and remain in
Alaska, they may transfer to other flights. For example, a
foreign carrier flying from Asia to Mexico could land in Alaska
and transfer its passengers to other flights headed to Canada or
the Caribbean. He compared it to Reykjavik, Iceland, which
serves as a hub for many international flights.
2:01:05 PM
SENATOR SHOWER referred to the line item on slide 12 that
identified economic opportunities for seafood export to Asia. He
related his understanding that the Alaska Seafood Marketing
Institute had considered seafood export to Asia but found it was
not viable. He asked for any new information or analysis on this
issue.
MR. BINDER answered that he would provide information but
suggested that it would be mostly anecdotal. Asian marketers and
companies regularly contact AIAS and request more seafood but
several impediments need to be addressed. First, Alaskan
processors typically remove the heads and freeze the fish, but
the Asian companies and markets want their fish live and whole.
MR. BINDER stated that secondly, rural Alaska has not been able
to transport sufficient quantities of fish to Anchorage to make
it worthwhile for planes to land. He explained that this issue
was somewhat alleviated when Alaska Airlines began flying its
freight planes to rural Alaska. If Alaska Airline and Lynden
Transport were able to transport enough fish to Anchorage, it
could meet the Asian market demand for fresh fish and seafood,
he said. He clarified that he was not suggesting that the state
develop any seafood processing or warehouse in Anchorage, but
that AIAS could track the activity and connect buyers and
sellers to take advantage of the opportunity.
2:03:27 PM
MR. BINDER reviewed statewide aviation on slide 13. Statewide
aviation is the rural Alaska system, which covers all aviation
outside of Anchorage or Fairbanks. Alaska has certificated
airport hubs under the Federal Aviation Administration (FAA).
These hubs are basically any airport where Alaska Airlines or
other jets fly, which provide a huge lifeline to communities in
rural Alaska.
2:04:07 PM
MR. BINDER reviewed the rural system scope and scale on slide
14. General funds primarily fund the rural airport system, which
is not self-sustaining, he said. He outlined the rural system
operating budget on slide 15. He said a $49.4 million CARES Act
grant was a huge boon for the system. The intent of the federal
grant was to offset any lost revenue and to cover additional
expenses the airports incurred during COVID-19.
MR. BINDER explained that since the state does not own the
terminals at rural airports, COVID-19 did not adversely affect
DOTPF's rural airport program last year. This allowed DOTPF to
free up general funds for other purposes, he said. He directed
attention to the bullet related to revenues. First, DOTPF rented
lease lots at airports, which resulted in $6.9 million in
revenue. Secondly, the state collected aviation fuel tax on jet
fuel and aviation gas and this revenue flowed back to the
department into the Highways and Aviation Fund to fund aviation.
Next, he turned to system sustainability. The department
experienced more freeze and thaw events and erosion this past
year. Rather than clear ice off the runways, the Southcoast
Region's approach was to stay ahead of the weather. The region
used federal AIP funding to perform its standard maintenance
activities to relieve some of the burden on the general fund.
However, it does pull some funding from capital projects, he
said. He remarked that the state continues to provide free
aviation services to Alaskans at all its rural airports.
However, in other parts of the world, landing fees or user fees
are charged for these services.
2:06:44 PM
SENATOR SHOWER asked whether the $49.4 million CARES Act funding
could be used beyond FY 2020.
MR. BINDER answered that CARES Act funding was provided via a
standard FAA grant with a four-year performance period. The only
caveat was that funding must be used for aviation expenses.
DOTPF used these to replace aviation general funds within the
region's highways and aviation components for FY 2020. He was
unsure of the amount but he recalled that it was about $14
million for FY 2020. Doing so allowed the department to free up
general funds in FY 2021 and FY 2022. He added that this also
applied to the CRRA funds.
2:08:22 PM
SENATOR BISHOP asked if DOTPF would be able to use CARES funding
for specific construction projects in rural villages.
MR. BINDER answered that FAA specifically required these funds
be used for operating expenses but the construction project
qualified as a capital expense so those funds were not
available. He suggested that the state could steer general funds
to free up funds for construction projects.
SENATOR BISHOP offered to discuss this further outside the
committee meeting.
2:09:09 PM
MR. BINDER reviewed a list of the AIP rural system capital
improvement projects (CIP) on slide 16. He estimated that the
rural system's AIP annual average CIP at approximately $132
million. One advantage Alaska's DOTPF has is the flexibility and
readiness to accept additional discretionary federal funds while
some other states lack that ability, he said. He related that
the non-DOTPF airports in Juneau, Wasilla, and Kenai experienced
small capital improvement funding in FY 2020. However, DOTPF was
able to provide rural airport funding. He characterized the
overall 2020 funding as being great. In addition, since the
funding did not require state match and was all federal funding,
it saved the department $10 million. Further, the state has a
few essential air service airports that fall under economically
distressed communities that qualify for a 5 percent match of
project eligible costs.
2:10:54 PM
MR. BINDER stated that slide 17 listed some of the locations of
major projects in FY 2021 to FY 2022. He advised members that
DOTPF construction projects were not affected by COVID-19. He
offered to provide details on individual projects to members.
2:11:38 PM
MR. BINDER reviewed unmanned aircraft systems (UAS) on slides
17-18. He reported that Alaska was one of the top states in the
country in terms of UAS. It began when FAA selected Alaska as
one of seven test sites. The Alaska Center UAS Integration
ACUASI handled testing, integration, and trials. For example,
Poker Flats integrated with Fairbanks International Airport for
unmanned cargo operations. DOTPF took on the role as statewide
program coordinator, working with state departments and agencies
to train pilots, tracking systems, coordinating with tribes and
communities throughout the state. He stated that the coastal
launch program was coming to fruition and would reap huge
dividends for all departments.
2:13:30 PM
CHAIR MYERS remarked that he would like to have DOTPF come back
to present more details in terms of economic development
implications.
2:14:07 PM
MR. BINDER highlighted the UAS benefits to Alaskans on slide 20.
For example, DOTPF used drones at Atigun Pass to monitor snow
loads, initiate avalanches, to conduct bridge, runway, and tower
inspections.
2:14:56 PM
MR. BINDER reviewed the photographs on slide 21 to illustrate
the division's cost savings by using unmanned aircraft.
SJR 9-URGE EXEMPTION FOR CRUISE SHIPS
2:18:12 PM
CHAIR MYERS announced that the final order of business would be
SENATE JOINT RESOLUTION NO. 9 Urging the United States Congress
to exempt cruise ships from certain provisions of the Passenger
Vessel Services Act and other applicable provisions of federal
law for the period during which Canadian ports are closed to
cruise ships carrying more than 100 people; and urging the
President of the United States not to fine or take actions
against cruise ships sailing to the state.
2:18:42 PM
SENATOR KIEHL, speaking as sponsor, said the pandemic has hit
Alaska hard economically. He expressed concern that the cruise
industry may not come to Alaska this summer. In 2019, about 2.25
million visitors came to Alaska. Of those, 1.2 million were
passengers on cruise ships. The tourism sector brought $4
billion in economic activity in Alaska. He directed attention to
language in the resolution that highlights this economic
activity. In 2020, the tourism figures dropped close to zero.
While some businesses closed, others have held on due to federal
help from the CARES Act [Coronavirus Aid, Relief, and Economic
Security Act]. Seasonal employees were not hired last year and
were relying on pandemic unemployment assistance. He cautioned
that these businesses would not survive without a cruise season
this year.
SJR 9 asks Alaska's Congressional Delegation and the executive
branch of the federal government to take steps to make it
possible for Alaska to have a cruise ship season this year. He
noted that he worked with members of the delegation when
drafting the resolution who suggested the language should be
broad enough to allow it the flexibility to address this issue.
SENATOR KIEHL said this resolution is not a call for permanent
changes to federal laws, lasting changes in federal rules
designed to protect American steel or shipbuilding jobs or allow
for unlimited cruise ship passengers in the future. Instead, SJR
9 requests a waiver limited to the 2021 cruise ship season, he
said.
2:25:21 PM
SENATOR SHOWER said he appreciates SJR 9 and supports efforts to
get Alaska's businesses operational. Many businesses were caught
off guard by the pandemic, could not manage, and closed. He said
his interest stems from the fact that his district has two
ports. He expressed concern that fear mongering related to
COVID-19 caused people not to book cruise ship travel. Further,
the state highlighted COVID-19 issues to the extent that it
added to people's concern about travel. In addition, the
administration put some development projects on hold to the
extent that the state might struggle economically. Many cruise
passengers fall into the vulnerable COVID-19 category. Since the
CDC can protect passengers, the cruise industry could have been
operating. Instead, the cruise ship industry was shut down
nationally and in Canada. He offered his view that people needed
to let go of fear to allow the state to open up.
2:29:17 PM
SENATOR KIEHL offered his view that many passengers will feel
safe due to protocols in place on cruise ships. In addition, two
vaccines are being offered and more are in the planning stages,
he said.
2:30:25 PM
CHAIR MYERS opened public testimony on SJR 9.
2:31:17 PM
PAULA TERREL, representing self, Juneau, Alaska, stated that she
previously served on the Juneau Visitor Industry Task Force,
which dealt almost exclusively with the cruise ship industry.
However, she is speaking on her own behalf today, she said. This
resolution supports the waiver exemption provisions of the
Passenger Vessel Services Act, specifically from requiring
foreign flagged vessels to stop in a non-USA port. Cruise ships
destined for Alaska must stop in Canada, which has closed its
ports until 2022. Although this resolution was the sponsor's
attempt to help businesses that have suffered economic hardships
from last year cruise ship season last year, it is not the
solution. Under the waiver, foreign flagged cruise ships could
travel in international waters and directly access Southeast
Alaska. She was uncertain how many large cruise ships would take
advantage of this opportunity since some cruise lines are not
foreign flagged, such as Norwegian Cruise Lines. However, many
residents, including herself, desire to limit the number of
cruise ships and passengers visiting Southeast Alaska.
MS. TERREL related that foreign flagged vessels are exempt from
certain taxes and enjoy other financial benefits. She
acknowledged that strict CDC guidelines would potentially
minimize COVID-19 but she was unsure how safe communities would
be. She urged members to seek options for supporting local
businesses other than this this waiver.
2:35:54 PM
KIMBERLY METCALFE, representing self, Juneau, Alaska, spoke in
opposition to SJR 9 because she has concerns about the issues
related to the foreign-flagged cruise ship industry. She
specifically spoke against the waiver exemption provisions of
the Passenger Vessel Services Act that requires foreign-flagged
vessels to stop in a Canadian or other non-USA port. Last month,
Transport Canada reported that Canada decided to extend the ban
on cruise ship travel until February 28, 2022, because:
Cruise vessels in Canadian waters pose a risk to our
health care systems. The government of Canada will
continue to evaluate the situation and make changes as
necessary to ensure the health and safety of all
Canadians. Should the COVID-19 pandemic sufficiently
improve to allow resumption of these activities, the
Minister of Transport has the ability to rescind the
interim orders.
MS METCALFE said this ban emphasizes that Canada puts its
citizens first. COVID-19 provides an opportunity for SE Alaska
to explore its relationship with the cruise industry, including
effects on whales, crowding, and emergency services, she said.
2:39:08 PM
RAY PRESTON, representing self, Juneau, Alaska, spoke in
opposition to SJR 9 due to COVID-19 risks highlighted by CDC. He
said SJR 9 ignored the risk to Alaskans by offering a waiver,
yet Canada issued the ban to protect its citizens. He offered
his view that this resolution ignored the pandemic in favor of
revenue from the cruise industry. It also ignored the CDC
[Centers for Disease Control and Prevention] guidelines. He
quoted from the CDC's website:
CDC recommends that all people avoid travel on cruise
ships, including river cruises, worldwide. That's
because the chance of getting COVID-19 on cruise ships
is high since the virus appears to spread more easily
between people in close quarters aboard ships. It is
especially important that people with an increased
risk of severe illness put off travel on cruise ships,
including river cruises.
MR. PRESTON concluded by stating that he hoped that this
resolution would not pass.
2:41:22 PM
KARLA HART, representing self, Juneau, Alaska, highlighted her
concern that the cruise industry has more physical impact in
Alaska but SJR 9 does not recommend any enforcement or fines.
She related that she operated tourism businesses in Juneau for
ten years. The cruise industry has the biggest voice and the
most visitors yet it also has the greatest adverse impact on
communities. She expressed concern that SJR 9 lumped cruise and
other visitors together. She said, "Tourism does not equal
cruise tourism. According to the 2016 Alaska Visitors Statistics
Program (AVSP), visitors spend $2 billion in Alaska. However,
cruise passengers only account for one-third of it. Further, SJR
9 urges the President of the United States to not take
enforcement actions against cruise ships sailing to the state
while the Canadian ports are closed to the cruise ships. She
surmised that the sponsor likely intended this resolution to
refer to the Passenger Vessel Services Act but it does not do
so. She urged the committee to amend this language since the
cruise industry has a long history of environmental violations.
2:44:12 PM
SUSAN SCHRADER, representing self, Juneau, Alaska, acknowledged
that local businesses catering to cruise ship passengers were
severely hurt during the pandemic as were other businesses. She
commended the City and Borough of Juneau (CBJ) for its COVID-19
mitigation and vaccination efforts. She referred to the sponsor
statement that cited the CDC's stringent COVID-19 safety
protocols for responsible cruising in American waters. However,
she does not trust the foreign-flagged cruise industry to follow
the protocols or any US law, she said.
MS. SCHRADER suggested that the committee consider the cruise
ships as huge assisted-living facilities with passengers
congregating in bars, restaurants, and night clubs for over a
week. She expressed concern that passengers pose risks for local
residents, ports of call, and their home communities. She
offered her view that any approval to stop in Alaska communities
should be based on the best science available and reflect the
will of the local residents. She offered her view that SJR 9 was
badly misguided.
2:47:19 PM
At ease
2:47:55 PM
CHAIR MYERS reconvened the meeting.
2:47:59 PM
SENATOR SHOWER related his understanding that people have
concerns about COVID-19. However, testing standards can mitigate
the effects to protect citizens. He offered his view that
communities can take precautions to protect their citizens yet
still allow cruise ships. He cautioned people that federal
funding to communities will run out. He solicited solutions from
testifiers that would allow people to work and for the state to
have a viable economy. He pointed out that Alaska has been
devastated by job losses and closed businesses due to COVID-19.
2:49:27 PM
RORIE WATT, City Manager, City and Borough of Juneau (CBJ),
Juneau, Alaska, spoke in support of SJR 9. He stated that not
having ships in port last summer was devastating to Juneau. He
stated that the city government, local businesses, and neighbors
and friends were hurting. He pointed out that this issue was not
limited to Juneau. The lack of the cruise ship industry in
Alaska affects Southeast Alaska and Interior Alaska since many
visitors disembark from cruise ships and travel throughout
Alaska, he said.
2:50:26 PM
KATIE BOTZ, representing self, Juneau, Alaska, said she
respected what Senator Kiehl is trying to do by keeping tour
businesses open. She characterized downtown Juneau as a ghost
town last summer. She asked the committee to consider amending
the resolution to enforce stricter CDC guidelines to protect
residents.
2:52:40 PM
CHRIS EICHENLAUB, representing self, Wasilla, Alaska, spoke in
support of SJR 9 due to the economic benefits from the cruise
industry throughout Alaska. In fact, he said he supports any
bill that will open the state up and allow things to return to
normal. He suggested that businesses could decide to stay closed
if the owner has concerns about COVID-19.
2:54:51 PM
VIKKI JO KENNEDY, representing self, Juneau, Alaska, agreed with
the prior testifier that businesses could decide to stay closed
if the owner has concerns about COVID-19. She cautioned against
stopping the progress of business in Juneau or elsewhere in
Alaska.
2:57:25 PM
CHAIR MYERS closed public testimony on SJR 9.
2:57:39 PM
SENATOR KIEHL, speaking as sponsor, said he appreciates the
robust comments. He clarified that Congress has authority to
waive the provisions of the Passenger Vessel Services Act and
change federal laws. He pointed out that the CDC requirements
included laboratory testing on board each cruise ship for
passengers and crew and isolation for those who test positive to
limit spread. The CDC included requirements for shoreside COVID-
19 testing for passengers and crew, including for crew changes.
He said local port agreements provide local control and include
shoreside health care providers. He offered his view that this
was a rigorous and thorough approach to COVID-19 that will also
allow the possibility of economic activity. He acknowledged that
issues arise. However, nothing in SJR 9 affects local control.
3:01:05 PM
CHAIR MYERS noted there were no amendments and solicited a
motion.
3:01:19 PM
SENATOR SHOWER moved to report SJR 9, work order 32-LS0503\B,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR MYERS found no objection and SJR 9 was reported from the
Senate Transportation Standing Committee.
3:01:40 PM
At ease
3:02:41 PM
CHAIR MYERS reconvened the meeting.
3:03:00 PM
There being no further business to come before the committee,
Chair Myers adjourned the Senate Transportation Standing
Committee meeting at 3:03 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 9 Sponsor Statement 2.10.2021.pdf |
STRA 2/18/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Support Testimony as of 2.17.2021.pdf |
STRA 2/18/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Opposition Testimony as of 2.17.2021.pdf |
STRA 2/18/2021 1:30:00 PM |
SJR 9 |
| DOT Aviation & Airports Presentation 2.18.pdf |
STRA 2/18/2021 1:30:00 PM |
|
| SJR9 Fiscal Note.pdf |
STRA 2/18/2021 1:30:00 PM |
SJR 9 |